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The purpose of this study was to analyze the effect of financial literacy on the performance and sustainability of MSMEs in the Banyumas Regency. This research is descriptive and quantitative, using the method of regression analysis and using SPSS 16.0 software for Windows. The number of samples in this study was 100 MSMEs in Banyumas Regency. The sampling technique in this study will determine by the nonprobability sampling technique. The results of this study indicate that financial literacy influences the performance and sustainability of MSMEs.

The purpose of this study is to investigate the impact of internal psychological factors driving on investor’s investment decision making. The internal psychological factors of investor discussed as the research objects are financial literacy, loss aversion, and overconfidence. Data were collected from questionnaires and fulfilled by investors registered at securities companies in Central Java, Indonesia. Applying multiple regression approach, the results suggest that investor’s financial literacy drives positively in making investment decision; investor’s loss aversion drives negatively in making investment decision, and investor’s overconfidence does not drive in making investment decision. As the implication, market participants should consider financial behavior of investors in observing stock price movement to achieve higher stock returns. Moreover, stock exchange institutions should include the internal psychological factors of investor in formulating their policy to enhance stock market development. KEYWORDS: investment decision, financial literacy, loss aversion, overconfidence.