IDEAS home Printed from https://ideas.repec.org/a/uii/jekife/v11y2025i2p241-257id38560.html
   My bibliography  Save this article

Factors affecting investment decision in Indonesia: Mediating role of intention to invest

Author

Listed:
  • Hartomi Maulana
  • Alfina Zein Syarifa Ulya
  • Syahruddin Syahruddin
  • M. Kurnia Rahman Abadi
  • Ely Windarti Hastuti
  • Soritua Ahmad Ramdhani Harahap

Abstract

Purpose – This study examines the effects of digital financial literacy and cognitive ability on investment decisions. The study also investigates how the intention to invest mediates the relationship between digital financial literacy, cognitive ability, and Sharia investors’ decisions.Methodology – The methodology used in this study is a quantitative approach with probability sampling techniques of the cluster sampling method. The sample determination was performed using the Slovin formula. As a result, 400 respondents from seven major cities in East Java were obtained. Partial Least Square - Structural Equation Modelling (PLS-SEM) was used as an analysis technique.Findings – The results indicate that digital financial literacy and cognitive ability have a significant effect on investment decisions. Investment intention has been proven to act as a mediating variable linking digital financial literacy and cognitive ability with investment decisions.Implications – It is important for investors to have a good level of digital financial literacy and adequate cognitive abilities to improve investment decision-making. Investment intention is an important factor mediating the influence of both variables on investment decisions.Originality – This study contributes significantly to the comprehension of the factors that influence investment decisions, as well as the contribution of investment intention to the process.

Suggested Citation

  • Hartomi Maulana & Alfina Zein Syarifa Ulya & Syahruddin Syahruddin & M. Kurnia Rahman Abadi & Ely Windarti Hastuti & Soritua Ahmad Ramdhani Harahap, 2025. "Factors affecting investment decision in Indonesia: Mediating role of intention to invest," Jurnal Ekonomi & Keuangan Islam, Faculty of Economics, Universitas Islam Indonesia, vol. 11(2), pages 241-257.
    • Handle: RePEc:uii:jekife:v:11:y:2025:i:2:p:241-257:id:38560
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEKI/article/view/38560
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:jekife:v:11:y:2025:i:2:p:241-257:id:38560. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEKI/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.