The Influence of Financial Literacy and Investment Confidence on Investment Decisions through Risk Perception among Millennial Investors

Asep Gema Nurohmat; Asep Somantri; Nisa Septiani

doi:10.61132/jukerdi.v2i5.1520

Authors

Asep Gema Nurohmat Sekolah Tinggi Ilmu Ekonomi Gema Widya Bangsa
Asep Somantri Sekolah Tinggi Ilmu Ekonomi Gema Widya Bangsa
Nisa Septiani Sekolah Tinggi Ilmu Ekonomi Gema Widya Bangsa

DOI:

https://doi.org/10.61132/jukerdi.v2i5.1520

Keywords:

Financial Literacy, Investment Confidence, Investment Decision, Millennial Investors, Risk Perception

Abstract

This study examines the influence of Financial Literacy and Investment Confidence on Investment Decision through the mediating role of Risk Perception among millennial investors. The research employed a quantitative approach with an explanatory design. Data were collected using questionnaires from 150 millennial investors selected through purposive sampling based on investment experience, knowledge of investment instruments, and previous decision-making experience. The variables included Financial Literacy, Investment Confidence, Risk Perception, and Investment Decision, measured using a five-point Likert scale. Data analysis was performed using Structural Equation Modeling–Partial Least Squares (SEM-PLS), including validity, reliability, direct effect, and mediation testing. The results show that Financial Literacy and Investment Confidence have positive and significant effects on Risk Perception and Investment Decision. Risk Perception also significantly influences Investment Decision and partially mediates the relationship between Financial Literacy, Investment Confidence, and investment decisions. These findings indicate that millennial investment decisions are influenced not only by financial knowledge and confidence but also by investors’ ability to perceive and evaluate risks. This study contributes to understanding the cognitive and psychological factors underlying investment behavior and provides implications for improving investment literacy and risk management capabilities.

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