International Journal of Accounting & Finance in Asia Pasific
Vol 2, No 3 (2019): International Journal of Accounting & Finance in Asia Pasific (IJAFAP)

Investment Literation Improvement for Preparation of Investments for Young Investors

Linzzy Pratami Putri (University of Muhammadiyah Sumatera Utara)
Irma Christiana (University of Muhammadiyah Sumatera Utara)
Delyana Rahmawany Pulungan (University of Muhammadiyah Sumatera Utara)
Isna Ardila (University of Muhammadiyah Sumatera Utara)



Article Info

Publish Date
21 Oct 2019

Abstract

This study aims to determine the financial literacy and investment of students and their influence on the ability of students to manage finances and the ability of students to manage assets owned to be invested. The data analysis method used in this research is the Structural Equation Model or SEM method. To see the factors that influence the ability to manage finances and the ability to manage assets, Partial Least Square (PLS) analysis is performed. This analysis is used by looking at the number of samples that are a bit of an obstacle if you want to do an analysis using factor analysis or Structural Equation Model (SEM). Thus, analysis using PLS is appropriate. The results of this study are of 5 (five) literacy variables, namely capital market literacy, type of investment instrument literacy, profit level literacy, investment literacy, and financial literacy on the ability to manage finances, only investment literacy has no significant effect, more influence significant ability to manage finances. Then from (5) five literacy variables that do not have a significant influence on the ability of students to manage assets are capital market literacy and investment literacy.

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Journal Info

Abbrev

IJAFAP

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

IJAFAP aims to feature narrative, theoretical, and empirical-based research articles within the abovementioned fields. The journal welcomes articles relating to the current issues of financial decision making as well as its impact on society. IJAFAP carries out the mission to feature narrative, ...