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Financial Literacy, Risk Perception, and Herding Effects on Investment Decisions

Author

Listed:
  • Dian Primanita Oktasari

    (Faculty of Economics and Business, Universitas Mercu Buana, Indonesia)

  • Nunu Nurjaya

    (Faculty of Economics and Business, Universitas Mercu Buana, Indonesia)

  • Subur Karyatun

    (Faculty of Economics and Business, Universitas Mercu Buana, Indonesia)

Abstract

This study aims to analyze financial literacy, risk perception, and herding and its impact on investment decisions. The population in this research is an investor in Jakarta. The sample used is 100 respondents. Calculate based on Lameshow’s formula. The method of data collection using the survey method, with the research instrument is a questionnaire. The data analysis method uses descriptive analytics. This study proves that financial literacy has a positive and significant effect on investment decisions, risk perception has a positive and significant effect on investment decisions and herding has not had a significant effect on investment decisions.

Suggested Citation

  • Dian Primanita Oktasari & Nunu Nurjaya & Subur Karyatun, 2023. "Financial Literacy, Risk Perception, and Herding Effects on Investment Decisions," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(06), pages 22-29, June.
    • Handle: RePEc:bjc:journl:v:10:y:2023:i:06:p:22-29
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    References listed on IDEAS

    as
    1. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    2. Mydhili Virigineni & M. Bhaskara Rao, 2017. "Contemporary Developments in Behavioral Finance," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 448-459.
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