The Effect of Financial Literacy and Income on Investment Decisions
DOI:
https://doi.org/10.22441/indikator.v7i1.17331Abstract
This research is a quantitative research with descriptive analysis which aims to determine the effect of financial literacy and income on investment decisions. Good financial financial literacy can help in investment decisions from illegal investments or fraudulent investment portals and thus income becomes a benchmark for the ability to make the best investment decisions for the future. In this study the population is the number of permanent employees at PT. Indotech Scientific with 30 research respondents. Data collection is done by distributing google forms to respondents. The research technique uses non-probability sampling through a purposive sampling approach. In data analysis assisted by using SPSS version 25 . This research applies to multiple regression analysis, t test, F test and coefficient of determination to test financial literacy and income on investment decisions. Based on statistical tests that have been carried out, it is found that financial literacy and income have a positive and significant effect on investment decisions for employees of PT. Indotech ScientificReferences
Anjani, BB (2012). Analysis of Factors Influencing Investment Decisions in Food and Beverages Companies on the Indonesia Stock Exchange. Diponegoro Journal of Accounting, 1, 1–83.
Apriyanti, Amelia & Rifka Ramadita. (2022). Effect of Financial Literature, Financial Technology, and Income Against Financial Behavior. Scientific Journal of Management and Business Vol 6 No. 3.
Artina, N., & Cholid, I. (2018). The Influence of Financial Literacy Level and Demographic Factors on Investment Decision Making (Case Study of South Sumatra Regional Personnel Agency Office Employees). Journal of Finance and Business Vol.16 No.1, 84-99.
Bongomin, GO, Ntayi, J., Munene, JC, & Nkote, I. (2016). Social Capital: Mediator of Financial Literacy. Review of International Business Vol.26 No.2 , 291-312.
Bramastuti, Novia. (2009). The Effect of School Achievement and Family Income Level on Entrepreneurial Motivation of Bakti Oetama Ondangrejo Karanganyar High School Students. Thesis of UMS Accounting Education Department: Unpublished.
Budiarto, A., & Susanti. (2017). Effect of Financial Literacy, Overconfidence, Regret Aversion Bias, and Risk Tolerance on Investment Decisions. Journal of Management Science Vol 5 No 2, 2.
Ghozali, Imam. (2018). Multivariate Analysis Application with IBM SPSS Program
. Diponegoro University Publishing Agency: Semarang.
Fachrudin, K. R, & Fachrudin, KA (2016). The Influence of Education and Experience Toward Investment Decision with Moderated by Financial Literacy. Polish Journal of Management Studies Vol.14. No.2, 51-60 .
Hartono, Jogiyanto. 2016. Portfolio Theory and Investment Analysis. Tent h Edition.Yogyakarta. Press.(retrieved: 15 December 2018).
Houston. (2010). Fundamentals of Financial Management Book 1 (II edition). Jakarta: Four Salemba.
Indrawati. (2015). Management and Business Research Methods Convergence of Communication and Information Technology . Bandung: PT Refika Aditama.
Kartawinata, BR, & Mubaraq, MI (2018). The Effect of Financial Competence on Literacy Finance for Women in Makassar. Journal of Economics and Economics Education Studies Vol 2 No 2, 92
Kholilah, N. Al, & Iramani, R. (2013). Study of Financial Management Behavior in Surabaya Society. Journal of Business and Banking, 3(1), 69. https://doi.org/10.14414/jbb.v3i1.255
Priyatno, Duwi. 2016. Learning Data Analysis Tools and Processing Methods With SPSS Practical and Easy to Understand for Beginner and Intermediate Levels . Yogyakarta: Gava Media.
Putri, WW, & Hamidi, M. (2019). Effect of Financial Literacy, Financial Efficacy, and Demographic Factors on Investment Decision Making (Case Study on Master of Management Students, Faculty of Economics, Andalas University, Padang). Scientific Journal of Management Economics Students Vol. 4 No.1., 398-412.
Samryn. (2016). Introduction to Accounting Accounting Methods For Report Elements Finance Enriched With Irfs & Banking Perspectives . Jakarta: Rajawali.
Sujarweni, VW (2015). Business and Economic Research Methods . Yogyakarta: New Press Library.
Tandelilin, E. (2010). Portfolio and Investment Theory and Applications . Yogyakarta: Kanisius
Xu, Lisa., and Bilal Zia. 2012. Financial Literacy around the World-An Overview of the Evidence with Practical Suggestions for the Way Forward. The World Bank: Finance and Private Sector Development
Published
How to Cite
Issue
Section
License
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that:
1. This paper has not been published in the same form elsewhere.
2. It will not be submitted anywhere else for publication prior to acceptance/rejection by this Journal.
3. A copyright permission is obtained for materials published elsewhere and which require this permission for reproduction.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
1. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in the Work.
2. Authors may reproduce or authorize others to reproduce the Work or derivative works for the authors personal use or for company use, provided that the source and the UMB copyright notice are indicated, the copies are not used in any way that implies UMB endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
3. Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
This work is also licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.









