Investment Decision Judging from Personal Income, Financial Literacy and Demographic Factors

DOI

10.2991/aebmr.k.220701.016How to use a DOI?

Keywords

demographic factors; financial literacy; investment decisions; personal income

Abstract

This study aims to determine the behavior of individuals in making family investment decisions in terms of personal income and financial literacy as well as demographic factors in the Tasikmalaya community. Primary data were collected through the distribution of questionnaires with snowball sampling technique and as many as 247 samples were collected during the period March-May 2021. The data were analyzed by crosstabs analysis and multiple regression analysis. The results of the descriptive analysis showed that the people in Tasikmalaya were more likely to choose to invest in moderate-risk assets, with a high level of financial literacy. The results of the crosstabs analysis showed that there was no significant difference in determining the choice of investment type, between women and men in the Tasikmalaya community. However, analyzed from other demographic items, namely education, marital status, occupation, income, and age, there were significant differences in determining the choice of investment type. The results of the multiple regression test showed that personal income and financial literacy simultaneously had a positive and significant effect on investment decisions for people in Tasikmalaya. The results showed that personal income partially had a significant effect on investment decisions for the community in Tasikmalaya, but partially a financial literacy did not have a significant effect on investment decisions for the community in Tasikmalaya. This implies that, in determining the choice of investment type, the people of Tasikmalaya considered the amount of income more than using an understanding of financial literacy.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Rita Tri Yusnita
AU  - Ikaputera Waspada
AU  - Maya Sari
PY  - 2022
DA  - 2022/07/12
TI  - Investment Decision Judging from Personal Income, Financial Literacy and Demographic Factors
BT  - Proceedings of the 6th Global Conference on Business, Management, and Entrepreneurship (GCBME 2021)
PB  - Atlantis Press
SP  - 67
EP  - 71
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220701.016
DO  - 10.2991/aebmr.k.220701.016
ID  - Yusnita2022
ER  -