Investment Decision Judging from Personal Income and Financial Literacy and Demographic Factors: A Study in Tasikmalaya City Rita Tri Yusnita (a*), Ikaputera Waspada (b), Maya Sari (b)
a) Doctoral Program in Management Science, Indonesian University of Education, Bandung, Indonesia
*ritatri[at]upi.edu
b) Faculty of Economics and Business, Indonesian University of Education, Bandung, Indonesia
Abstract
Individual investment decision making will be greatly influenced by the information received, as well as the level of ability and knowledge of the individual about investment (financial literacy), in addition to considering the amount of income they have. 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 community in the city of Tasikmalaya. Primary data was collected through the distribution of questionnaires with snowball sampling technique and collected as many as 247 samples 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 of the city of Tasikmalaya are 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 city community. However, analyzed from other demographics, 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 the city of Tasikmalaya. The results also showed that personal income partially had a significant effect on investment decisions in the community in the city of Tasikmalaya, but partially financial literacy had not a significant effect on investment decisions in the community in the city of Tasikmalaya
Keywords: demographic factors- financial literacy- investment decision- personal income
