Citation:

Km Diah Monika Pradnyawati, I Nyoman Kusuma Adnyana Mahaputra, I Putu Mega Juli Semara Putra. "The Role of Investment Interest in Mediating the Influence of Financial Literacy, Herding Behavior, and Parental Income on Stock Investment Decisions Among Gen Z" International Research Journal of Economics and Management Studies, Vol. 5, No. 7, pp. 189-201, 2026. Crossref. https://doi.org/10.56472/25835238/IRJEMS-V5I7P124

Abstract:

Generation Z's participation in the capital market is increasing, but is not matched by a proportional asset contribution, indicating a gap between interest and actual investment decisions. This study aims to obtain empirical evidence regarding the role of investment interest in mediating the influence of financial literacy, herding behavior, and parental income on stock investment decisions in Generation Z. The study uses a quantitative approach with a causality design. The population is Generation Z in Bali Province aged 14–29 years who have registered as capital market investors. The sample was determined by a purposive sampling method of 384 respondents based on the Krejcie and Morgan (1970) Table at a 95% confidence level and a 5% margin of error. The data analysis technique used was SEM-PLS. The results show that financial literacy has a positive and significant effect on investment interest and on investment decisions through the mediation of investment interest. Herding behavior does not have a significant effect on investment interest. Parental income has a significant direct effect on investment decisions, but does not have an effect on investment interest. Financial literacy has a direct effect on investment decisions, while the interest in investing mediates this relationship, but there is no mediation of herding behavior and parental income. The implications for this study suggest that the financial literacy programs targeting Generation Z should be strengthened; there is a need to increase analytical independence in order to avoid speculative herding behavior and create synergy between parental assistance with regularly available investment funds and responsible investor education.

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Keywords:

Investment Interest, Financial Literacy, Herding Behavior, Parental Income, Investment Decisions.