Citation:

Komang Aryagus Wiguna, I Dewa Nyoman Badera. "Determinants of Interest and Investment Decisions in the Capital Market for the Millennial Generation in Bali Province" International Research Journal of Economics and Management Studies, Vol. 3, No. 8, pp. 36-43, 2024.

Abstract:

The millennial generation is interested in investing in the capital market because they see the large capital market phenomenon as an opportunity to prepare long-term funds and update information in the economic sector. This research aims to analyze the influence of risk tolerance, financial literacy, and social interaction on investment interest in the capital market for the millennial generation in Bali Province. Furthermore, this research also aims to analyze the influence of risk tolerance, financial literacy, social interaction, and investment interest on investment decisions in the capital market for the millennial generation in Bali Province. The population of this research is all investors domiciled in Denpasar Bali who invest in shares in the capital market. Considering that the population size is unknown, the sample size is determined using the Cochran formula so that a sample of 100 people can be determined. Purposive sampling was the method used for the sample process. The SEMPLS analysis technique was used to analyze the data. The analysis's findings demonstrate that social interaction, financial literacy, and risk tolerance all positively and significantly influence the millennial demographic's interest in investing in Bali Province's capital market. Risk tolerance, financial literacy and investment interest have a positive and significant influence on investment decisions in the capital market for the millennial generation in Bali Province. However, risk tolerance is proven to have no significant influence on investment decisions in the capital market for the millennial generation in Bali Province.

References:

[1] R. Mishra, Financial Literacy, Risk Tolerance and Stock Market Participation. Asian Economic and Financial Review, 8 (12) (2018) 1457-1471.
[2] KSEI, Statistik Pasar Modal Indonesia – Januari 2023. Avaible at hhtp://ksei.co.id/files/Statistik_Publik_Januari_2023_v2_(3).pdf.
[3] A. Rudiwantoro, Langkah Penting Generasi Millennial Menuju Kebebasan Finansial Melalui Investasi. Jurnal Moneter, 5 (1) (2018) 44-51.
[4] R.H. Karatri, F. Faidah, and N. Lailyah, Determinan Minat Generasi Milenial Dalam Investasi Pasar Modal di Pandemi Covid-19. Jurnal Ilmiah Manajemen dan Bisnis, 6(2) (2021) 35-52.
[5] T. Rusdi, N.P.Y. Astiti, A.W.S. Gama, Minat Berinvestasi di Pasar Modal: Pengetahuan, Modal Minimal dan Risiko. Bisma: Jurnal Manajemen, 9(2) (2023) 183-189.
[6] T. Lim, R. Mail, M. Karim, Z. Ulum, M. Mifli, and J. Jaidi, An Investigation of Financial Investment Intention using Covariance-Based Structural Equation Modelling. Global Business & Finance Review, 25 (2) (2020) 37-50.
[7] E. Mankuroane, W. Heerden, S. Schenk, and Z. Koekemoer, Psychological and Behavioural Drivers of Short-Term Investment Intentions. International Journal of Economics and Financial Issues, 12 (4) (2022) 19-27.
[8] R. Nadhifah and M. Anwar, Pengaruh Literasi Keuangan dan Toleransi Risiko Terhadap Keputusan Investasi (Studi pada Warga Desa Sekapuk Kabupaten Gresik). Jurnal Ilmiah Ekonomi dan Bisnis, 14 (2) (2021) 1-11.
[9] A. Wahyuni and R. Kristanto, Pendekatan Psikologi untuk Keputusan Investasi di Masa Pandemi Covid-19. ECONBANK: Journal of Economics and Banking, 4 (2) (2022) 166-180.
[10] R. Mishra, Financial Literacy, Risk Tolerance and Stock Market Participation. Asian Economic and Financial Review, 8 (12) (2018) 1457-1471.
[11] Z. Dickason and S. Ferreira, Establishing a Link Between Risk Tolerance, Investor Personality and Behavioural Finance in South Africa. Cogent Economics & Finance, 6 (1) (2018) 1-13.
[12] C. Lian, Y. Ma and C. Wang, Low Interest Rates and Risk-Taking: Evidence from Individual Investment Decisions. The Review of Financial Studies, 32 (6) (2019) 2108-2148.
[13] N. Ainia and L. Lutfi, The Influence of Risk Perception, Risk Tolerance, Overconfidence, and Loss Aversion Towards Investment Decision Making. Journal of Economics, Business, and Accountancy Ventura, 21 (3) (2018) 401-413.
[14] D. Kumari, The Impact of Financial Literacy on Investment Decisions: With Special Reference to Undergraduates tn Western Province, Sri Lanka. Asian Journal of Contemporary Education, 4 (2) (2020) 110-126.
[15] B. Arianti, The Influence of Financial Literacy, Financial Behavior and Income on Investment Decision. Economics and Accounting Journal, 1 (1) (2018) 1-10.
[16] X. Wu and J. Zhao, Risk Sharing, Siblings, and Household Equity Investment: Evidence from Urban China. Journal of Population Economics, 1 (2) (2019) 1-23.
[17] R. Darvin and B. Norton, Investment and Motivation in Language Learning: What's The Difference? Language Teaching, 5 (6) (2023) 29-40.
[18] E. Mistri and G. Japee, Analyzing The Role of Social Media in Investment Decision With Special Reference to South Gujarat. A Global Journal of Social Sciences, 3 (3) (2020) 60-64.
[19] M. Yang, A. Mamun, M. Mohiuddin, S. Al-Shami, N. Zainol, Predicting Stock Market Investment Intention and Behavior among MalaysianWorking Adults Using Partial Least Squares Structural Equation Modeling. Mathematics, 9 (873) (2021) 1-16.
[20] S. Aren and H. Hamamci, Relationship Between Risk Aversion, Risky Investment Intention, Investment Choices Impact of Personality Traits and Emotion. Kybernetes, 2 (1) (2019) 1-33.
[21] Lai, C. (2019). Personality Traits and Stock Investment of Individuals. Sustainability, 11, pp. 1-20.
[22] J. Ruggie and E. Middleton, Money, Millennials and Human Rights: Sustaining Sustainable Investing. Global Policy, 10 (1) (2019) 144-150.
[23] E. Mankuroane, W. Heerden, S. Schenk, and Z. Koekemoer, Psychological and Behavioural Drivers of Short-Term Investment Intentions. International Journal of Economics and Financial Issues, 12 (4) (2022) 19-27.
[24] G. Nicolini and M. Haupt, The Assessment of Financial Literacy: New Evidence from Europe. International Journal of Financial Study, 7 (54) (2019) 1-20.
[25] T. Badriatin, Persepsi Risiko dan Sikap Toleransi Risiko terhadap Keputusan Investasi Mahasiswa. Perspektif: Jurnal Ekonomi & Manajemen Universitas Bina Sarana Informatika, 20 (2) (2022) 158-163.
[26] J. Lotto, Towards Improving Households' Investment Choices in Tanzania: Does Financial Literacy Really Matter? International Journal Financial Study, 8 (29) (2020) 1-10.
[27] C. K. Y. Chan dan K. K.W. Lee, The AI generation gap: Are Gen Z students more interested in adopting generative AI such as ChatGPT in teaching and learning than their Gen X and millennial generation teachers? Smart Learning Environments, 10(1) (2023) https://doi.org/10.1186/s40561-023- 00269-3.
[28] S.. Lee and K. Kim, Propensity To Plan, Financial Knowledge, Overconfidence and Credit Card Management Behaviors of Millennials. Banks and Bank Systems, 15 (3) (2021) 20-28.
[29] F. Cuandra, Analysis of Investment Interests of Millenial Generation in Batam City With Planned Behavior Theory. Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi), 4 (3) (2020)1784-1809.
[30] R. Rosdiana, Investment Behavior in Generation Z and Millennial Generation. DIJEFA, 1 (5) (2020) 766-780.
[31] J.W. Creswell, Research Design: Pendekatan Kualitatif, Kuantitatif, dan Mixed, Yogyakarta: PT Pustaka Pelajar (2016).
[32] Sugiyono, Metode Penelitian Kuantitatif, Kualitatif dan R&D, Bandung: PT. Alfabet (2017).
[33] I. Asari and H. Kurnianingsih, Analisis Faktor-Faktor yang Mempengaruhi Minat Berinvestasi Generasi Milenial di Surakarta. Jurnal Sinar Manajemen, 9 (1) (2022) 66-74.
[34] A. Mastura, S. Nuringwahyu, D. Zunaida, Pengaruh Motivasi Investasi, Pengetahuan Investasi Dan Teknologi Informasi Terhadap Minat Berinvestasi Di Pasar Modal (Studi Pada Mahasiswa Fia Dan Feb Unisma Yang Sudah Menempuh Mata Kuliah Mengenai Investasi). Jiagabi, 9(1) (2020) 64–75.
[35] B. Widagdo and K. Roz, The Role of Personality Traits, Financial Literacy and Behavior on Investment Intentions and Family Support as A Moderating Variable. Investment Management and Financial Innovations, 19 (2) (2022) 143-153.
[36] M.R. Indrastoto dan R. Juwita, The influence of financial literacy and psychological factors on money market mutual fund investment decisions. Journal of Applied Sciences in Accounting, Finance and Tax, 6(2) (2023) 90-99.
[37] A. Widyasari and D.T. Aruan, The Effect of Social Media Information on Intention to Invest in Indonesia Capital Market: Case of Generation Y. ICEBEES, July 27-28 (2021), Semarang, Indonesia.
[38] A.A. Niswah and B.T. Cahya, Faktor-faktor yang Mempengaruhi Pengambilan Keputusan Investasi di Pasar Modal Dengan Minat Investasi Sebagai Variabel Intervening. JEBISKU: Jurnal Ekonomi dan Bisnis Islam IAIN Kudus, 1(2) (2023) 24-39.

Keywords:

Financial Literacy, Investment Decisions, Investment Interest, Risk Tolerance, Social Interaction.