How Behavioural Biases and Demographic Factors relate to Financial Literacy

Ika Pratiwi Simbolon (Accounting, Faculty of Business, President University)
Maria Yus Trinity Irsan (Actuarial Science, Faculty of Business, President University)
Risa Fitria (Primary School Teacher Education, Faculty of Humanities, President University)

FIRM: Journal of Management Studies
Vol 7, No 2 (2022): FIRM JOURNAL OF MANAGEMENT STUDIES

The research aims to analyze the effect of factors of demography and investor behaviors on financial literacy for investors and potential investors in Indonesia. The paper used questionnaires in collecting primary data. Policymakers, investors, and other shareholders should consider the results of this study in making important policies, especially regarding investor behaviors, not all investors act rationally. Regarding the research limitations, future research can use the research object not limited to behavioral biases and demographic factors, but more to discover a research model for financial literacy determinants. Future research may study the investors in different countries to find the effect of investor characteristics on financial literacy.