Factors Affecting Investment Decisions On Millennials And Gen Z

Annabella Claudia Kurniadi; Christian Herdinata

doi:10.24912/jm.v28i3.2009

Authors

Annabella Claudia Kurniadi Magister Management, School of Business and Management, Ciputra University, Surabaya
Christian Herdinata Doctor of Management and Entrepreneurship, School of Business and Management, Ciputra University, Surabaya

DOI:

https://doi.org/10.24912/jm.v28i3.2009

Keywords: Financial Literacy; Investment Behavior; Investment Tolerance; Millenial; Gen Z.

Abstract

Since 2019, capital market investors have surged, primarily those under 40 years old, called millennials and Gen Z. However, the financial literacy of Indonesians is low, with victims of fictitious investment cases increasing yearly. This study aims to determine the effect of Financial Literacy (FL) and Investment Experience (IE) on Investment Decisions (ID) with Risk Tolerance (RT) as a mediating variable. The method used is Partial Least Square and involves 185 stock investors aged 18 to 40 years domiciled in Java and Bali, using a purposive sampling technique and the Hair formula. This study found that FL and IE have a significant and positive effect on ID, FL and IE have a significant and positive effect on RT, RT has a significant effect and positive on ID, FL and IE have a significant and positive effect on ID through RT.

Author Biographies

Annabella Claudia Kurniadi, Magister Management, School of Business and Management, Ciputra University, Surabaya

aclaudia03@magister.ciputra.ac.id

Christian Herdinata, Doctor of Management and Entrepreneurship, School of Business and Management, Ciputra University, Surabaya

christian.herdinata@ciputra.ac.id

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