Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 05 February 2021
Investment Decisions: The Results of Knowledge, Income, and Self-Control
Siska Atmaningrum, Dwi Sunu Kanto, Zainul Kisman
Trilogi University, Indonesia
Download Full-Text Pdf
10.31014/aior.1992.04.01.324
Pages: 100-112
Keywords: Financial Attitudes, Financial Behavior, Financial Knowledge, Income, Investment Decisions, 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.
References
Aminatuzzahra. (2014). Perception of Influence of Knowledge Financial, Financial Attitude, Social Demography Of Behavior Finance In Making Individual Investment Decisions (Case Studies on Masters Students Diponegoro University Management). Journal of Business and Strategy, 23 (2), 70-96.
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50 (2), 179-211.
Arlinawati, M. (2020). The Influence of Financial Knowledge on Financial Behavior and Financial Position: A Behavioral Approach to Financial Management of Young Workers (Unpublished master’s thesis). Trilogi University, Jakarta, Indonesia.
Arianti, B. F. (2018). The Influence of Financial Literacy, Financial Behavior and Income on Investment Decision. Economics and Accounting Journal, 1 (1), 1-10.
Barclays, A. (2014). Summary of Financial Well-being: The last taboo in the workplace. Why organizations cannot afford to ignore the financial health of their employees.
Bhushan, P., & Medury, Y. (2013). Financial Literacy and its Determinants. International Journal of Engineering, Business and Enterprise Applications, 4 (2), 155-160.
Byrne, A. (2007). Employee Saving and Investment Decisions in Defined Contribution Pension Plans: Survey Evidence from the UK. Financial Service Review, 16 (1), 1-29.
Chin, W. W. (1995). Partial Least Squares is to LISREL as Principal Components Analysis is to Common Factor Analysis. Technology Studies, 2, 315-319.
Damayanti, S., & Fauzi, I. (2020). The Effect of Financial Knowledge and Financial Attitudes on Investment Decisions with Health Value as a Moderating Variable. Economic, Management, and Accounting Journal Ngudi Waluyo University, 1 (1), 36-46.
Erwin, P. P., & Karmini, N. L. (2012). The Influence of Income, Number of Family Members, and Education on the Consumption Patterns of Poor Households in Gianyar District. E-Journal Economic Development, 1 (1), 39-48.
Fitriarianti, B. (2018). The Effect of Financial Literacy, Financial Behavior and Income on Investment Decisions. National Accounting Seminar, 1 (1).
Garber, G., & Koyama, S. M. (2016). Policy-effective Financial Knowledge and Attitude Factors. Working Paper Series 430, 1-47.
Ghozali, I. (2006). Multivariate Analysis Application with SPSS Program (4th edition). Semarang: Diponegoro University Publishing Agency.
Ghozali, I. (2013). Multivariate Analysis Application with SPSS Program (7th edition). Semarang: Diponegoro University Publishing Agency.
Hayhoe, C. R., Leach, L., & Turner, P. R. (1999). Discriminating the number of credit cards held by college students using credit and money attitudes. Journal of Economic Psychology, 20 (6), 643-656.
Henager, R., & Cude, B. J. (2016). Financial Literacy and Long and Short Term Financial Behavior in Different Age Groups. Journal of Financial Counseling and Planning, 27 (1), 3-19.
Herdjiono, I., & Damanik, L. A. (2016). The Influence of Financial Attitude, Financial Knowledge, Parental Income on Behavior Financial Management. Journal of Theory and Applied Management, 9 (3), 226-241.
Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin, 89(7), 309-322.
Humaira, I., & Sagoro, E. M. (2018). Influence of Financial Knowledge, Attitudes Finance, and Personality towards Financial Management Behavior in SME Players at the Batik Handicraft Center, Bantul Regency. Nominal Accounting and Management Research Barometer, 7 (1), 96-110.
Ida, I., & Dwinta, C. Y. (2010). The Effect of Locus of Control, Financial Knowledge, Income on Financial Management Behavior. Business and Accounting Journal, 12 (3), 131-144.
Joo S. (2008). Personal Financial Wellness. In: Xiao J.J. (eds) Handbook of Consumer Finance Research. Springer, New York, NY. https://doi.org/10.1007/978-0-387-75734-6_2
Kim, J., Garman, E. T., & Sorhaindo, B. (2013). Relationships Among Credit Counseling Clients' Financial Wellbeing, Financial Behaviors, Financial Stressor Events, and Health. Journal of Financial Counseling and Planning, 14 (2), 75-87.
Moreland, K. A. (2018). Seeking financial advice and other desirable financial behaviors. Journal of Financial Counseling and Planning, 29 (2), 198-207.
Munawar et al. (2020). Effect of financial literacy and demographic factors on investment decision making . STIE Wikara College. Purwakarta, West Java.
Musdalifa, M. (2016). The Influence of Locus of Control, Financial Knowledge and Income on Investment Decisions of Makassar City People (Unpublished doctoral dissertation). Alauddin State Islamic University, Makassar, South Sulawesi.
Hastings, J., & Mitchell, O. S. (2020). How financial literacy and impatience shape retirement wealth and investment behaviors. Journal of Pension Economics & Finance, 19(1), 1-20.
Putri, N. M. D. R., & Rahyuda, H. (2017). The Effect of Financial Literacy Level and Sociodemographic Factors on Individual Investment Decision Behavior. Economic and Business E-Journal Udayana University, 6 (9), 3407-3434.
Robbins, S. P., & Judge, T. A. (2007). Organization Behaviour.
Sari, D. R. (2017). The Influence of Financial Literacy, Income, and Education on Investment Decisions of Ethnic Chinese Families in Surabaya (Unpublished doctoral dissertation). STIE Perbanas, Surabaya, East Java.
Silvy, M., & Yulianti, N. (2013). Attitudes of financial managers and family investment planning behavior in Surabaya. Journal of Business and Banking, 3 (1), 57-68.
Smith, J. R., Tillman-Hawkins, A., Mosley, A. L., & Assad, J. C. (2019). The Impact of Race, Ethnicity and Gender on Investor Stock Risk Behavior: Implications for Invest Managers. Journal of Management, 7 (1), 21-42.
Sugiyono. (2017). Quantitative Research Methods, Qualitative, and R & D. Bandung: Alfabeta.
Sumtoro, A., & Anastasia, N. (2015). Financial Behavior in Residential Property Investment Decision Making in Surabaya. Finesta, 3 (1), 41-45.
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of Economic Psychology, 54, 164-176.
Vera-Toscano, E., Ateca-Amestoy, V., & Serrano-Del-Rosal, R. (2006). Building financial satisfaction. Social Indicators Research, 77 (2), 211-243.
Vlaev, I., & Elliott, A. (2014). Financial well-being components. Social Indicators Research, 118 (3), 1103-1123.
Wardani, E. K., & Sukirno, S. (2014). Effect of Framing Effect on Investment Decision Making with Locus of Control as a Moderating Variable. Nominal Accounting and Management Research Barometer, 3 (1), 52-60.
Zemtsov, A. A., & Osipova, T. Y. (2016). Financial wellbeing as a type of human wellbeing: Theoretical review. The European Proceedings of Social & Behavioral Sciences EpSBS, 7, 385-392.