International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (685-693), Month: October 2019 - March 2020, Available at: www.researchpublish.com
The Effect of Financial Literacy, Financial Inclusion and Money Attitude on Investment Interest in the Capital Market Ni Putu Adinda Maharani Hermawan1, A.A.G.P. Widanaputra2 1,2 1,2
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: The purpose of this study was to determine the effect of financial literacy, financial inclusion and money attitude on investment interests in the capital market. This research was conducted at the Faculty of Economics and Business at Udayana University in undergraduate students. The determination of the sample of this study uses the Slovin formula for a known population. From the calculation, it was found that the sample was 98 respondents who were active undergraduate students and had taken capital market theory courses. Data were analyzed using multiple linear regression analysis techniques. The type of data used in this study is quantitative qualitative data, in the form of the results of answers by respondents expressed in the form of numbers from questionnaires that are measured using a Likert scale. The analysis shows that financial literacy, financial inclusion and money attitude have a positive effect on investment interest in the capital market. Keywords: Financial literacy, Financial inclusion, Money Attitude, Investment Interest in the Capital Market.
I. INTRODUCTION Investment is one of the development instruments needed by a nation to improve the welfare of its people. Investment is an investment for one or more assets that are owned and usually for a long time in the hope of getting profit in the future (Sunariyah, 2011: 4). Most people are not aware of the benefits of investing, because it is more important to live life now without thinking about life in the future. One factor that causes everyone to need investment is inflation. Inflation causes the value of our money to decrease. The decrease in purchasing power of money can be avoided by investing it. Investment in the capital market is one alternative investment that is easily accessible to the wider community because of the Indonesia Stock Exchange which facilitates securities trading in Indonesia. Indonesia is a developing country where the financial orientation of its people is still short-term or in the category of saving society. When compared with developed countries whose orientation is more to the long term or in the category of investing society (Putra, 2019). Theory of planned behavior (TPB) states that humans tend to act in accordance with the intentions and perceptions of control through certain behaviors, where the intentions are influenced by behavior, subjective norms and behavioral control (Ajzen, 1985). Research conducted by Putra (2019) shows that capital market training, student perceptions, minimal capital and friendship are some of the factors that influence investment interest. The knowledge someone has as a provision to invest in the capital market can be a factor that influences one's interest in investing (Nandar et al., 2018). According to the Financial Services Authority, financial literacy is knowledge, confidence, and skill, attitude and behavior to improve the quality of decision making and financial management in order to prosper. Financial literacy is increasingly becoming a significant thing needed because in financial literacy there are various ways and knowledge to make someone
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