Research Article
The Impact of Financial Literacy and Investor Behavior on Investment Decision Making in the Capital Market
@INPROCEEDINGS{10.4108/eai.14-8-2024.2351615, author={Asri Jaya and AIfayani Haanurat and Nurlina Nurlina and Akmal Hidayah}, title={The Impact of Financial Literacy and Investor Behavior on Investment Decision Making in the Capital Market}, proceedings={Proceedings of the 4th International Conference on Business, Accounting, and Economics, ICBAE 2024, 14-15 August 2024, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2024}, month={11}, keywords={financial literacy investor behavior investment decision}, doi={10.4108/eai.14-8-2024.2351615} }- Asri Jaya
AIfayani Haanurat
Nurlina Nurlina
Akmal Hidayah
Year: 2024
The Impact of Financial Literacy and Investor Behavior on Investment Decision Making in the Capital Market
ICBAE
EAI
DOI: 10.4108/eai.14-8-2024.2351615
Abstract
This study explores how investor behavior and financial literacy influence capital market investment decisions. Using a quantitative approach, the study collects data via questionnaires from investors registered at the IDX investment gallery of Muhammadiyah University of Makassar. Purposive sampling is applied to select individuals actively investing in the capital market. Multiple linear regression analysis, conducted with SPSS software, is used for data analysis. Results reveal a positive and significant effect of financial literacy on investment decisions, as indicated by a significant value of 0.000 < 0.05 and a t-value of 4.201, exceeding the t-table value of 1.985. Additionally, investor behavior characteristics positively and significantly impact investment choices, with a t-value of 5.448, also greater than 1.985, and a significant level of 0.000. Thus, both financial literacy and investor behavior play crucial roles in shaping investment decisions.
