Indonesian Journal of Business Analytics (IJBA)
Vol. 3 No. 4 (2023): August 2023

Analysis of Factors that Influence Investment Decisions with Financial Literacy as a Moderating Variable

Tia Mahrurotul Fikriyah (Universitas Pembangunan Nasional “Veteran” Jawa Timur)
Dwi Suhartini (Universitas Pembangunan Nasional “Veteran” Jawa Timur)



Article Info

Publish Date
05 Sep 2023

Abstract

Investment is an important driving factor in a country's economic growth. However, in making investment decisions, factors such as fundamental analysis, technical analysis, psychological factors, and financial literacy can influence the results of investment decisions. Therefore, this study aims to analyze these factors and their relationship with investment decisions. This study uses a quantitative method with a descriptive approach. The research subjects were students of the East Java "Veteran" National Development University. Data is collected through a questionnaire that measures the level of influence of these factors on investment decisions, with financial literacy as a moderating variable. The results show that fundamental analysis has limitations because it depends on limited data. Technical analysis also has limitations because it relies on limited historical data and is vulnerable to sudden market changes. Psychological factors, such as self-confidence and risk tolerance, also influence investment decisions. However, financial literacy has only a limited impact on moderating the relationship between these factors and investment decisions. In making investment decisions, factors such as fundamental analysis, technical analysis, and psychological factors play an important role. Although financial literacy can assist in understanding basic financial concepts, its influence on these factors is limited. Therefore, increasing financial literacy among students and the millennial generation is expected to increase their understanding of managing risk and making wiser investment decisions.

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Journal Info

Abbrev

ijba

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Indonesian Journal of Business Analytics (IJBA) is a peer-reviewed journal providing a space for both practitioners and academics for disseminating research results that work in Business Analytics and related fields. IJBA provides an outlet for the increasing flow of interdisciplinary research ...