The Influence of Financial Knowledge, Financial Behavior Financial Attitude and Risk Tolerance on Investment Decisions of People in Padang

DOI

10.2991/978-94-6463-839-4_93How to use a DOI?

Keywords

Financial Knowledge; Financial Behavior; Financial Attitude; Risk Tolerance; Investment Decisions

Abstract

This study aims to examine the impact of Padang residents’ risk tolerance, financial behavior, financial attitude, and financial knowledge on their investment decisions. All of the people of Padang are the population and subject of this study. Non-probability sampling combined with a purposive sampling strategy was the sample method employed in this investigation. A total of 376 samples were collected. In this study, SEM-PLS is used. The findings demonstrated that financial knowledge had a favorable and significant impact on Padang residents’ financial conduct and attitude. People in Padang who have a favorable and substantial financial attitude also have positive and significant financial conduct, which influences investment decisions. Financial knowledge, financial behavior, and risk tolerance have no effect on investment decisions of people Padang, risk tolerance cannot moderate the relationship between financial knowledge and financial attitude of people in Padang, risk tolerance can moderate the relationship between financial knowledge and financial behavior of people in Padang. The general public can get insight from the research’s conclusions, which can also benefit investors by increasing their knowledge and taking decision-making tactics into consideration. As well as being able to avoid financial risks such as fraud. With individual financial knowledge it will be easier to manage the finances they have. Financial knowledge regarding interest rates, deposits, investments, savings, insurance will make it easier for individuals to carry out these various financial activities. For financial institutions, with this research, financial institutions can target the public to sell appropriate financial products and can see the problems that cause people to be reluctant to invest.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Hanisah Hanisah
AU  - Dina Patrisia
PY  - 2025
DA  - 2025/09/16
TI  - The Influence of Financial Knowledge, Financial Behavior Financial Attitude and Risk Tolerance on Investment Decisions of People in Padang
BT  - Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2022)
PB  - Atlantis Press
SP  - 1129
EP  - 1145
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-839-4_93
DO  - 10.2991/978-94-6463-839-4_93
ID  - Hanisah2025
ER  -