The Effect of Financial Literacy, Risk Aversion, Risk Tolerance, and Investment Knowledge on Investment Decisions with Locus of Control as a Moderating Variable (Case Study: Accounting Students in Jakarta)
Analysis shows financial literacy and investment knowledge significantly influence decisions in accounting students, highlighting locus of control's role.
Key Points
Investment decisions are significantly influenced by financial literacy, risk aversion, risk tolerance, and investment knowledge.
The analysis employed Structural Equation Modeling (SEM) using 150 accounting students from Jakarta, revealing a high model strength with R-square of 0.944.
Locus of control moderates the link between financial literacy and investment knowledge but does not impact risk aversion and risk tolerance.
Strengthening financial literacy and fostering self-confidence through investment training can enhance decision-making effectiveness.