Abstract:
Purpose – The purpose of this research is to determinant factors of investment decisions for the young generation in Jabodetabek, Indonesia.
Design/methodology/approach – In order to conduct this study, quantitative research was chosen with online questionnaires with 20 statements. 258 respondents responded to this survey, specially targeted for the young generation who has experience with investment in Jabodetabek. Structural Equation Model (SEM) was used to test the hypothesis based on the theoretical framework.
Findings – The research found that financial literacy has no significant influence on risk tolerance, investment experience has a significant influence on risk tolerance and risk tolerance has a significant influence on investment decision.
Originality/value – The study regarding determinants of investment decision for a young generation has not been done before in Indonesia. The previous research paper already conducted at Pakistan with title Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions.
