The Role of Financial Literacy and Investment Knowledge on Investment Decisions Through Investment Interests of Stiema Students

Abstract

Investment decisions are decisions taken by someone to determine and invest their capital in a particular asset to gain profit in the future. The purpose of this study was to determine the role of financial literacy and investment knowledge on investment decisions through investment interest in STIEMA Master of Management Students. The population in this study were all STIEMA Master of Management students totaling 137 students. The sample using the Slovin formula totaling 102 students. The data analysis technique used descriptive statistical analysis of the Structural Equation Model (SEM) with the Lisrel program. The results of this study indicate that investment decisions are not influenced by financial literacy and investment knowledge, while investment decisions are influenced by investment interest and investment interest is influenced by financial literacy and investment knowledge. The suggestions given are expected that universities provide education on financial literacy management and investment knowledge and students can further improve their investment skills and knowledge.