Investment Decisions: The Results of Knowledge, Income, and Self-Control

Abstract

Investment is an economic activity that can be a way for a person to expand or maintain his wealth. However, in investing, the public must be more careful in making decisions so that they are not trapped by fake investments. In investing, there are several factors that influence the decision to invest, namely Financial Knowledge, Income, Self-Control, Financial Behavior, and Financial Attitude towards Investment Decisions. This study aims to examine the influence of the variables of Financial Knowledge, Income, and Self-Control on Investing Decisions mediated by Financial Behavior and Financial Attitudes. This study uses Financial Knowledge, Income, and Self-Control as independent variables, then Investment Decisions as the dependent variable, then Financial Behavior, and Financial Attitudes as intervening variables. The results of this study indicate that financial knowledge has an effect on financial behavior. Financial Knowledge affects Financial Attitudes. Financial knowledge influences investment decisions. Income has an effect on Financial Behavior. Income has an effect on Financial Attitudes. Income does not affect the Investment Decision. Self-control affects financial behavior. Self-Control affects Financial Attitudes. Self-Control has no effect on Investment Decisions. Financial Behavior has no effect on Investment Decisions. Financial Attitudes do not affect the Investment Decision.

Determinants of Financial Wellness of Rural Households in the Hill Districts of Uttarakhand: An Empirical Approach

“…Previous research revealed a strong association among financial knowledge, financial behavior, and financial wellness (Adiputra, 2021), (Stella et al, 2020), (Choudhary & Kamboj, 2017), (Gaisina & Kaidarova, 2017), (Kamakia et al, 2017), and (Potrich et al, 2016). Financial knowledge helps to make profitable financial decisions, effective use of financial products and services, improve financial behaviors towards sustainable economic growth and happiness (Atmaningrum et al, 2021), (OECD, 2020), (Nguyen et al, 2017), (Aren & Aydemir, 2014). Training, capacity buildings, and exposures mainly in financial products and services increase financial knowledge.…”

Dampak Behavioral Finance Terhadap Keputusan Investasi dengan Persepsi Risiko sebagai Variabel Moderasi Pada Masyarakat Kota Batam

“…Menurut Ademola et al (2019), Pengetahuan Keuangan mengacu pada kepahaman atas dasar konsep keuangan akan bagaimana performa bisnis dan kondisi bisnis diukur menggunakan model mental untuk memfasilitasi, mendukung atau memperkaya pengambilan keputusan. Atmaningrum et al (2021) menunjukkan bahwa variabel pengetahuan keuangan memiliki hasil yang positif terhadap keputusan investasi. Hasil ini mendukung teori perilaku keuangan yaitu jika seseorang yang memiliki pengetahuan lebih mengenai keuangan maka akan lebih bertanggung jawab dalam manajemen dan penyelesaian masalah saat proses pengambilan keputusan investasi.…”

Financial Literacy, Risk Tolerance, Overconfidence, Experienced Regret, and Demographic Factors on Investment Decisions

“…H5: Gender has a significant effect on Investment Decisions Income and Investment Decision According to Dea (2017) in Putri & Hamidi (2019) income is the result obtained for the sacrifices made by someone in the form of material so that their needs are fulfilled, with this income, decision making will be easier by diverting some of their income to invest. The level of income owned by individuals has a role in investment planning where it is adjusted to their income (Atmaningrum et al, 2021). From this statement, it can be said that individuals with higher incomes tend to invest in larger amounts and have more opportunities than individuals with lower incomes.…”

“…Whether individuals with small or large incomes, investment is necessary for every individual. Regardless of the level of individual income without being accompanied by knowledge and good financial management, financial well-being will be difficult to achieve (Atmaningrum et al, 2021)…”