Smart investing: Unveiling key drivers of strategic investment for investors in the Indonesia Stock Exchange

  • 136 Views
  • 32 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

To achieve the optimal investment decision, people should have better financial literacy. A better understanding of stock investment can be obtained through having experience investing in the stock market. Besides experience, influences from financial socialization agents such as family, friends, education, and media will improve financial knowledge. Hence, it will determine investments wisely. The aim of this study is to determine the degree to which financial experience, family, peers, formal education, media, and financial literacy have direct on impact investment decisions and furthermore to determine the role of financial literacy as mediating variable between financial experience, family, peers, formal education, media, and investment decisions. Investors who have already registered on the Indonesia Stock Exchange are the respondents to this study. Only those investors are allowed to invest in the Indonesian stock market. There are 716 respondents who were analyzed using self-administered questionnaires and structural equation modeling (SmartPLS). Findings show that peers and financial literacy have a direct positive impact (p<0.05) on investment decisions, while financial experience, family, education, and media do not (p>0.05). Additionally, financial experience, peers, education, and media have a significant positive effect on financial literacy (p<0.05), while family does not (p>0.05). Financial literacy is shown to mediate the relationship between financial experience, peers, education, media, and investment decisions (p<0.05) but not with family (p>0.05). This implies that having financial experience improves financial literacy, which leads to better investment decisions. Furthermore, peers, education, and media all play an important role in increasing financial literacy to make optimal investment decisions.

Acknowledgment
We want to express our sincere gratitude to Universitas Multimedia Nusantara for providing the grant to support this project. Without the generous support, the successful completion of this project would not have been possible. Additionally, we extend our appreciation to the editors and reviewers for their valuable input, which significantly contributed to enhancing the quality of this paper.

view full abstract hide full abstract
    • Figure 1. Research framework
    • Table 1. Common method bias analysis
    • Table 2. Demographic profile of the respondents
    • Table 3. Convergent validity and construct reliability
    • Table 4. Discriminant validity – Hetero-Trait-Mono-Trait
    • Table 5. Results of the structural model assessment for direct and indirect effect
    • Table 6. Coefficient of determination and predictive relevance
    • Table A1. Questionnaire survey
    • Conceptualization
      Ika Yanuarti Loebiantoro, Eaw Hooi Cheng, Nursyamilah Annuar
    • Data curation
      Ika Yanuarti Loebiantoro
    • Formal Analysis
      Ika Yanuarti Loebiantoro, Eaw Hooi Cheng
    • Investigation
      Ika Yanuarti Loebiantoro
    • Methodology
      Ika Yanuarti Loebiantoro, Nursyamilah Annuar
    • Project administration
      Ika Yanuarti Loebiantoro
    • Validation
      Ika Yanuarti Loebiantoro, Eaw Hooi Cheng, Nursyamilah Annuar
    • Visualization
      Ika Yanuarti Loebiantoro
    • Writing – original draft
      Ika Yanuarti Loebiantoro
    • Supervision
      Eaw Hooi Cheng, Nursyamilah Annuar
    • Writing – review & editing
      Eaw Hooi Cheng, Nursyamilah Annuar
Related Articles

  • Perceived health risk, online retail ethics, and consumer behavior within online shopping during the COVID-19 pandemic

    Yuniarti FihartiniORCID , Arief HelmiORCID , Meydia HassanORCID , Yevis Marty OesmanORCID doi: http://dx.doi.org/10.21511/im.17(3).2021.02
    Innovative Marketing Volume 17, 2021         Issue #3         pp. 17-29 Views: 4524 Downloads: 1730 TO CITE АНОТАЦІЯ

    The risk of virus contracting during the COVID-19 pandemic has changed consumer preference for online shopping to meet their daily needs than shopping in brick-and-mortar stores. Online shopping presents a different environment, atmosphere, and experience. The possibility of ethical violations is higher during online than face-to-face transactions. Therefore, this study was conducted to investigate the influence of perceived health risk and customer perception of online retail ethics on consumer online shopping behavior during the COVID-19 pandemic, involving seven variables, namely perceived health risk, security, privacy, non-deception, reliability fulfillment, service recovery, and online shopping behavior. The data were collected through an online survey by employing the purposive sampling technique to a consumer who has shopped online during the COVID-19 pandemic in Indonesia. 315 valid responses were obtained and analyzed through quantitative method using SEM-Amos. The results showed that perceived health risk and four variables of online retail ethics including security, privacy, reliability fulfillment, and service recovery affected online shopping behavior. Meanwhile, non-deception was found to have an insignificant effect. The coefficient value proved perceived health risk to be more dominant in influencing online shopping behavior than the variables of online retail ethics. Thus, consumers pay more concern for their health during online shopping. However, positive consumer perceptions of the behavior of online retail websites in providing services also can encourage consumers to shop online during this pandemic.

  • Industrial Revolutions and their impact on managerial practice: Learning from the past

    Lucia KohnováORCID , Nikola SalajováORCID doi: http://dx.doi.org/10.21511/ppm.17(2).2019.36
    Problems and Perspectives in Management Volume 17, 2019         Issue #2         pp. 462-478 Views: 4229 Downloads: 1795 TO CITE АНОТАЦІЯ

    Technological changes that come with industrial revolution have largely affected businesses, as well as society. With the current technological shift and Fourth Industrial Revolution, many questions arise regarding the impacts and effects on current ways businesses operate. This study presents a retrospective analysis and overview of previous industrial revolutions. The aim of the retrospective analysis is to identify common characteristics that may lead to lessons learned for the forthcoming Fourth Industrial Revolution and thus complement the current debate on technological change. All previous industrial revolutions have led to change in business environments and new challenges for managers and owners. The findings show that all previous revolutions have led to increase in the number of service jobs created. The key approach of successful countries during the times of industrial revolution has included education as the source of new skills and knowledge necessary for adaption. Countries that were able to produce high skilled people could not only invent, but also adapt to new technologies sooner than others. Similarly, these approaches included introduction of new managerial practices in order to be able to utilize new technologies and new skilled workers effectively. The research article processes secondary data together with literature review on this topic.

  • Human resource management in promoting innovation and organizational performance

    I Gede RianaORCID , Gede SuparnaORCID , I Gusti Made SuwandanaORCID , Sebastian KotORCID Researcher ID, Ismi RajianiORCID Researcher ID doi: http://dx.doi.org/10.21511/ppm.18(1).2020.10
    Problems and Perspectives in Management Volume 18, 2020         Issue #1         pp. 107-118 Views: 3570 Downloads: 852 TO CITE АНОТАЦІЯ

    Human resource management (HRM) is one of the elements enabling an organization to remain competitive in turbulence conditions. The effective practice of HRM makes competent and innovative employees contributing to the achievement of organizational objectives. This study aims to analyze HRM practices in creating innovation and organizational performance. The questionnaire was used to measure the respondents’ perceptions of variables used by a Likert scale. A survey of 126 manager samples and middle managers at export-oriented short and medium enterprises (SMEs) in Bali, Indonesia, was conducted to test the model. The analysis has shown that the proposed model was proven to be compliant with the research hypotheses. HRM significantly affects organizational performance and innovation, and it was found out that innovation can improve organizational performance. However, in the process of simultaneous testing, it was found out that innovation cannot improve organizational performance. The lack of attention to investments in human resources became one of the barriers to SMEs in creating innovation.

Download Preview
Close
Investment Management and Financial Innovations
Investment Management and Financial Innovations