The Role of Financial Knowledge, Income Level, Financial Behavior, and Regret Experience in Shaping Investment Decisions: A Study of Sme Business Owners With Locus of Control as A Mediator

Authors

  • Gita Rosiliana Abidin Universitas Muhammadiyah Purwokerto
  • Naelati Tubastuvi Universitas Muhammadiyah Purwokerto
  • Eko Haryanto Universitas Muhammadiyah Purwokerto
  • Erny Rachmawati Universitas Muhammadiyah Purwokerto

DOI:

https://doi.org/10.33506/sl.v13i2.3074

Keywords:

Financial Knowledge, Income Level, Financial Behavior, Regret Experience Investment Decisions, Locus of Control

Abstract

This research aims to examine investment decisions influenced by financial knowledge, income level, financial behavior, regret experience, and locus of control. This research differs from previous research, namely using the locus of control variable as a mediating variable and adding the financial behavior variable and the regret experience variable as independent variables. The investment decisions examined in this research focus on investment. As for population and sample methodology, was MSME business actors in Banjarnegara, Indonesia who already had a legal permit; using the purposive sampling method, the sampling is 180 respondents which was obtained from the Slovin formula calculation. Data analysis techniques use Structural Equation Model (SEM) PLS. The results of this study state that: first, financial knowledge and regret experience have no effect on locus of control, while income level and financial behavior have an positive effect on locus of control. second, financial knowledge, income level, financial behavior and experience of regret influence investment decisions. third, locus of control cannot mediate the influence of financial knowledge and experience of regret on investment decisions, but on the influence of income level and financial behavior on investment decisions, locus of control has a mediating role.

References

Adiputra, I. G. A., Ruslim, H., & Sumadinata, R. (2023). Determine of Demographic Factor, Financial Literacy, And Internal Locus of Control on The Investment Decision Of Individual Investor. Jurnal Akuntansi Manado (JAIM), 4(2), 356–366. https://doi.org/10.53682/jaim.vi.6336

Amanda, Bambang Widagdo, & Fika Fitriasari. (2023). The Effect of Financial Literacy, Personal Income, and Locus of Control in Long-Term Gold Investment Decision. Jamanika (Jurnal Manajemen Bisnis Dan Kewirausahaan), 3(02), 120–129. https://doi.org/10.22219/jamanika.v3i02.25502

Atmaningrum, S., Kanto, D. S., & Kisman, Z. (2021). Investment Decisions: The Results of Knowledge, Income, and Self-Control. Journal of Economics and Business, 4(1), 100–112. https://doi.org/10.31014/aior.1992.04.01.324

Central Statistics Agency (BPS). (2018). Kota Makassar dalam Angka 2018.

Damayanti, D., Tubasuvi, N., Purwidianti, W., & Aryoko, Y. P. (2023). Financial Management Behavior: The Influence of Financial Knowledge, Financial Attitude, and Financial Literacy Mediated by Locus of Control. Indonesian Journal of Business Analytics (IJBA), 3(6), 2331–2350. https://journal.formosapublisher.org/index.php/ijba

Damayanti, S., & Fauzi, I. (2020). Pengaruh Pengetahuan Keuangan Dan Sikap Keuangan Terhadap Keputusan Investasi Dengan Nilai Kesehatan Sebagai Variabel Moderating.

Adiputra, I. G. A., Ruslim, H., & Sumadinata, R. (2023). Determine of Demographic Factor, Financial Literacy, And Internal Locus of Control on The Investment Decision Of Individual Investor. Jurnal Akuntansi Manado (JAIM), 4(2), 356–366. https://doi.org/10.53682/jaim.vi.6336

Amanda, Bambang Widagdo, & Fika Fitriasari. (2023). The Effect of Financial Literacy, Personal Income, and Locus of Control in Long-Term Gold Investment Decision. Jamanika (Jurnal Manajemen Bisnis Dan Kewirausahaan), 3(02), 120–129. https://doi.org/10.22219/jamanika.v3i02.25502

Atmaningrum, S., Kanto, D. S., & Kisman, Z. (2021). Investment Decisions: The Results of Knowledge, Income, and Self-Control. Journal of Economics and Business, 4(1), 100–112. https://doi.org/10.31014/aior.1992.04.01.324

Central Statistics Agency (BPS). (2018). Kota Makassar dalam Angka 2018.

Damayanti, D., Tubasuvi, N., Purwidianti, W., & Aryoko, Y. P. (2023). Financial Management Behavior: The Influence of Financial Knowledge, Financial Attitude, and Financial Literacy Mediated by Locus of Control. Indonesian Journal of Business Analytics (IJBA), 3(6), 2331–2350. https://journal.formosapublisher.org/index.php/ijba

Damayanti, S., & Fauzi, I. (2020). Pengaruh Pengetahuan Keuangan Dan Sikap Keuangan Terhadap Keputusan Investasi Dengan Nilai Kesehatan Sebagai Variabel Moderating. Jurnal Ekonomi, Manajemen Dan Akuntansi (JEMA) Universitas Ngudi Waluyo, 1(1), 36–46.

Fitra, H., Rasyid, R., & Susanti, Y. (2018). The Influence of Locus of Control and Financial Knowledge to Employee Investing Decision PT. Pertamina (Persero) Branch of Padang. 57(Piceeba), 174–184. https://doi.org/10.2991/piceeba-18.2018.45

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2019). Multivariate Data Analysis. In Book (Vol. 87, Issue 4).

Hikmah, H., Siagian, M., & Siregar, P. (2020). Analisis Tingkat Literasi Keuangan, Experienced Regret, dan Risk Tolerance pada Keputusan Investasi di Batam. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 3(1), 138–146. https://doi.org/10.36778/jesya.v3i1.142

Masdupi, E., & Rasyid, R. (2020). Financial Management Behavior at Productive Age Community in Bukittinggi. 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019), 1(1), 673–681.

Nisak, S., & Santoso, R. A. (2023). Ability Locus of Control in Mediating Islamic Attitude and Knowledge on Financial Behavior. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 18(2), 120–135. https://doi.org/10.24269/ekuilibrium.v18i2.2023.pp120-135

Nugraha, R. K., Eksanti, A. P., & Haloho, Y. O. (2022). The Influence Of Financial Literacy And Financial Behavior On Investment Decision. 8(1), 68–78.

Perry, V. G., & Morris, M. D. (2005). Who Is In Control? The Role Of Self‐Perception, Knowledge, And Income In Explaining Consumer Financial Behavior. Journal of Consumer Affairs, 39(2), 299–313.

Pertiwi, T. K., Wardani, N. I. K., & Septentia, I. (2020). Knowledge, Experience, Financial Satisfaction, And Investment Decisions: Gender As A Moderating Variable. Jurnal Manajemen Dan Kewirausahaan, 22(1), 57–64.

Pompian, M. M. (2012). Behavioral Finance And Wealth Management: How To Build Investment Strategies That Account For Investor Biases. John Wiley & Sons.

Puspadini, M. (2023). Investasi Bodong Berulah Lagi di RI! Bikin Rugi Rp 150 Miliar. CNBC Indonesia. https://www.cnbcindonesia.com/market/20231221133832-17-499228/investasi-bodong-berulah-lagi-di-ri-bikin-rugi-rp-150-miliar

Robb, C. A., Babiarz, P., & Woodyard, A. (2012). The Demand For Financial Professionals’ Advice: The Role Of Financial Knowledge, Satisfaction, and Confidence. Financial Services Review, 21(4), 291–306.

Rotter, J. B. (1966). Generalized Expectancies For Internal Versus External Control Of Reinforcement. Psychological Monographs: General and Applied, 80(1), 1–9.

Sari, A. L. A., & Widoatmodjo, S. (2023). Pengaruh Literasi Keuangan, Gaya Hidup, dan Locus of Control terhadap Perilaku Keuangan Mahasiswa di Jakarta. Jurnal Manajerial Dan Kewirausahaan, 5(2), 549–558. https://doi.org/10.24912/jmk.v5i2.23426

Vera-Toscano, E., Ateca-Amestoy, V., & Serrano-Del-Rosal, R. (2006). Building Financial Satisfaction. Social Indicators Research, 77(2), 211–243.

Wardani, A. K., & Lutfi, L. (2017). Pengaruh Literasi Keuangan, Experienced Regret, Risk Tolerance, Dan Motivasi Pada Keputusan Investasi Keluarga Dalam Perspektif Masyarakat Bali. Journal of Business & Banking, 6(2), 195–214. https://doi.org/10.14414/jbb.v6i2.996

Widi Asih, S., & Khafid, M. (2020). Pengaruh Financial Knowledge, Financial Attitude dan Income terhadap Personal Financial Management Behavior melalui Locus Of Control sebagai Variabel Intervening How to Cite. Eeaj, 9(3), 748–767. https://doi.org/10.15294/eeaj.v9i1.42349

Wulandari, D. A., & Iramani, R. (2014). Studi Experienced Regret, Risk Tolerance, Overconfidance dan Risk Perception Pada Pengambilan Keputusan Investasi Dosen Ekonomi. Journal of Business & Banking, 4(1), 55–66.

Yundari, T., & Artati, D. (2021). Analisis Pengaruh Literasi Keuangan, Perilaku Keuangan dan Pendapatan Terhadap Keputusan Investasi. Jurnal Ilmiah Mahasiswa Manajemen, Bisnis Dan Akuntansi, 3(3), 609–622.

Downloads

Published

2024-05-13

How to Cite

Abidin, G. R., Tubastuvi, N., Haryanto, E., & Rachmawati, E. (2024). The Role of Financial Knowledge, Income Level, Financial Behavior, and Regret Experience in Shaping Investment Decisions: A Study of Sme Business Owners With Locus of Control as A Mediator . SENTRALISASI, 13(2), 220–236. https://doi.org/10.33506/sl.v13i2.3074