Abstract

Author:
Girang Permata Gusti, Giriati, Wendy

Doi: 10.26480/mbmj.02.2024.67.72

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

This research aims to examine the influence of financial literacy on investment decisions among investors in Indonesia, to contribute to the understanding and development of financial literacy policies at the national level. A sample of 571 respondents was selected through purposive sampling. A structured questionnaire was used to collect data on exogenous variables (financial literacy) and endogenous variables (investment decisions), as well as control variables (education, age, and income). Data analysis using WarpPLS allows the evaluation of simultaneous relationships between variables in the structural model. The findings show that financial literacy has a positive and significant effect on investment decisions. It is hoped that the conclusions of this research will provide an in-depth understanding of the relationship between financial literacy and investor investment decisions in Indonesia, as well as become a basis for developing more effective policies in increasing financial literacy and management among the investing community.