The Effect of Financial Literacy Level and Demographic Factors on Investment Decision

Abstract

<p>The aim of this research is to find out the effect of financial literacy level and demographic factors on investment decision on government employees in Kalibawang Community Health Center, Kulon Progo, Yogyakarta. The population of this research is the government employees in Kalibawang Community Health Center, 29 of them are treated as the sample of this research. The sampling technique used in this research is purposive sampling. The respondents are those who have been doing investment. The data used in this research are collected with questionnaires. The data analysis technique used in this research is the Chi Square test. The result shows that financial literacy does not affect investment decision. However, out of the demographic factors, only age, income and investment experience affect investment decision. Meanwhile, the others demograpic factors such as gender and education do not affect investment decision.</p>

Islamic Financial Literacy and Its Influence on Student Financial Investment and Behavior

“…This result contradicts the research Violeta and Linawati (2019) and Ariadi et al (2015)which shows that gender influences a person's investment decisions. However, several studies agree with the results of this study, such as Wahyuni and Pramono (2021) and Senda et al (2020), that there is no influence between gender and one's investment decisions. In this study, this could be due to the similarity of the age range and level of education taken by both male and female respondents, so that the information obtained tends to be the same.…”

The Analysis of Financial Literacy and Its Impact on Investment Decisions: A Study on Generation Z In Jakarta

“…Researches conducted by Alaaraj and Bakri, (2020), Kumari, (2020), Abdeldayem, (2016), Awais et al, (2016), and Putri and Hamidi, (2019) showed impacts of financial literacy on investment decisions. However, there is also a research, conducted by Senda et al, (2020), finding that financial literacy did not influence investment decision. With such gap, researchers aim to examine the influence of financial literacy on investment decision.…”

“…Previous researches in Indonesia focused solely on measurement of individual financial literacy index across professions including lecturers (Setyawati & Suroso, 2016), employees (Sobaya et al, 2016), and SME proprietors (Ariwibawa, 2016); (Hakim et al, 2017). Meanwhile, Arianti (2018) and Senda et al (2020) found that financial literacy had no significant influence on investment decision. Baihaqqy et al, (2020) in their research also state that high financial literacy will not have a major impact on investment decision making.…”

The Determinant Factors of Personal Financial Management of Indonesian Migrant Workers in Hongkong

“…The research conducted by Agarwal et al, ( 2009) (as cited in Safira, 2018) shows that 30-40 year of age range has higher level of financial literacy. Suhartono and Qudsi (2009) (as cited in Senda et al, 2020) state that the age groups that can distinguish the investment decision period are as follows: 1) Group one, the group of people who have just started working, need fund for weeding preparation, and/or to get their first home (20-30 years old); 2) Group two, the group of people who are already married and have children (30-45 years old); 3) Group three, the group of people who need fund for their children"s tuition, marriage, treatment and pension preparation (45-55 years old); 4) Group four, the group of people who use their income for health and pension period (55 years old above). Academic Background.…”