THE INFLUENCE OF SOCIAL MEDIA USAGE TOWARDS FINANCIAL KNOWLEDGE IN AFFECTING INVESTMENT INTENTION: A CASE IN INDONESIA STOCK MARKET

Abstract

Purpose – The purpose of this study is to find out the influence of social media usage towards financial knowledge in affecting investment intentions in the Indonesian Stock Market. Design/methodology/approach – This research was conducted using a quantitative method by distributing online questionnaires via social media and received 254 valid responses. The research used purposive and snowball sampling techniques. The target respondents in this study are social media users that have invested in the Indonesian Stock Market. There are 25 statements given that must be answered. This research was passed the validity and reliability test by using statistical software. Structural equation model was used to test the hypothesis based on theoretical framework. Finding – The results of the hypothesis test analysis found that there was an influence of social media perceived ease of use and social media perceived enjoyment to the financial knowledge but there is no influence towards social media perceived usefulness on financial knowledge. In addition, there is significant influence between financial knowledge and investment intention. Originality/value – This research discussed about the influence of social media usage with three dimensions: perceived usefulness, perceived ease of use, and perceived enjoyment towards financial knowledge in affecting in Indonesian Stock Market. The researcher believed that this topic is the first study in Indonesia.