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The Influence Of Education And Experience Toward Investment Decision With Moderated By Financial Literacy

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  • Khaira Rizfia Fachrudin

    (University of Sumatera Utara)

  • Khaira Amalia Fachrudin

    (University of Sumatera Utara)

Abstract

Stock right investment decision is expected to provide the expected profit. This research aims to determine the influence of education and experience toward investment decision with moderated financial literacy by individual investors in the city of Medan. This study used primary data by questionnaire and the sample consisted of 250 respondents who are investor active in the city of Medan – Indonesia. Data analysis using descriptive statistical analysis and Structural Equation Modelling. The results showed that investors with the highest level of education is undergraduate 46.80%. The experience of investors invest in stocks that have been investing in shares over 3 years is the largest number as many as 36.00%. Education and investment experience have no significant relationships directly at alpha 5% toward the investment decision. Financial literacy is found to strengthen the links between education and experience toward investment decisions. The implication is that financial literacy is indispensable for the right investment decision.

Suggested Citation

  • Khaira Rizfia Fachrudin & Khaira Amalia Fachrudin, 2016. "The Influence Of Education And Experience Toward Investment Decision With Moderated By Financial Literacy," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(2), pages 51-60, December.
    • Handle: RePEc:pcz:journl:v:14:y:2016:i:1:p:51-60
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    References listed on IDEAS

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    2. Renu Isidore & C. Joe Arun, 2023. "The Moderating Effect of Financial Literacy on the Relationship Between Decision-Making Tools and Equity Returns in the Indian Secondary Equity Market," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 15(1), pages 185-211.
    3. Vido Novianggie & Nadia Asandimitra, 2019. "The Influence of Behavioral Bias, Cognitive Bias, and Emotional Bias on Investment Decision for College Students with Financial Literacy as the Moderating Variable," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(2), pages 92-107, April.
    4. M. Hirdinis, 2024. "The Risks To Investment Decisions: Can Financial Knowledge And Investor'S Experience Be Moderate?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 19(3), pages 137-155, December.
    5. Chakanika, Precious & Qutieshat, Abubaker, 2025. "Financial Literacy for Women, A case of Malawi," MPRA Paper 127390, University Library of Munich, Germany.
    6. AsleBagh, Pegah & Bonyadi Naeini, Ali & Moeeni, MohammadReza, 2024. "Investigating the effect of three different factors including experience, personality and color on the decision-making process in stock markets using EEG," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
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