Research Article
Analysis of Capital Market Literacy, Risk Preferences, and Financial Behavior on The Probability of Investment Decisions in The Stock Market
@INPROCEEDINGS{10.4108/eai.14-9-2020.2304467, author={Nivi Hendwiyani and Maria Ulpah}, title={Analysis of Capital Market Literacy, Risk Preferences, and Financial Behavior on The Probability of Investment Decisions in The Stock Market}, proceedings={Proceedings of the 1st International Conference on Sustainable Management and Innovation, ICoSMI 2020, 14-16 September 2020, Bogor, West Java, Indonesia}, publisher={EAI}, proceedings_a={ICOSMI}, year={2021}, month={5}, keywords={capital market literacy financial behavior investment decisions risk preferences}, doi={10.4108/eai.14-9-2020.2304467} }- Nivi Hendwiyani
Maria Ulpah
Year: 2021
Analysis of Capital Market Literacy, Risk Preferences, and Financial Behavior on The Probability of Investment Decisions in The Stock Market
ICOSMI
EAI
DOI: 10.4108/eai.14-9-2020.2304467
Abstract
This research was conducted to analyze capital market literacy, risk preferences, and financial behavior towards the probability of investment decisions in the stock market. The research model uses a questionnaire as a research instrument with a sample of Indonesian citizens living in Indonesia with a minimum age of 18 years. Furthermore, binary logistic regression is applied to find out whether capital market literacy, risk preferences, and financial behavior affect the probability of investors' investment decisions in the stock market. The results showed that capital market literacy and risk preferences significantly influenced the probability of investment decisions. This research is also analyzes whether gender affects capital market literacy and risk preferences. Crosstabulation test results showed that men tend to invest in shares and have higher level of capital market literacy and risk preferences compared to women.