Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

Vol. 03, No. 10, October 2023

e-ISSN: 2807-8691 | p-ISSN: 2807-839X

IJSSR Page 2399

https://doi.org/10.XXXXX/ijssr.xxxx.xx

This work is licensed under a Attribution-ShareAlike 4.0 International (CC BY-SA 4.0)

The Influence of Financial Literacy, Investment

Experience, and Overconfidence on Investment Decisions

in National University Master of Management Study

Program Students with Risk Tolerance as an Intervening

Variable

Dessy Yuliani

, Andini Nurwulandari

Management Study Program, Faculty of Economics and Business, Universitas Nasional, Indonesia

Email: dessyulianih14@gmail.com

, andinman[email protected]

Keywords

ABSTRACT

Financial Literacy, Investment

Experience, Overconfidence,

Investment Decisions, Students

This research uses a quantitative approach and Partial Least

Square- Structural Equation Modeling (PLS-SEM) to test the

relationship between the variables Financial Literacy (X1),

Investment Experience (X2), Overconfidence (X3), Risk Tolerance

(Z), and Investment Decisions ( Y) for National University Master of

Management study program students. The results of descriptive

statistical analysis reveal that Financial Literacy, Investment

Experience, and Overconfidence have a positive and significant

effect on Risk Tolerance, while Financial Literacy, Investment

Experience, and Overconfidence have a positive effect on Investment

Decisions. However, the results of the analysis show that Financial

Literacy has an insignificant influence on Investment Decisions,

while Investment Experience and Overconfidence have a positive

and significant influence on Investment Decisions. Risk Tolerance

also has a positive and significant effect on Investment Decisions. In

addition, this research finds that Risk Tolerance mediates the

relationship between Financial Literacy, Investment Experience,

and Investment Decisions. In other words, the greater the Financial

Literacy and Investment Experience, the Risk Tolerance will

increase, which in turn will increase Investment Decisions. The

results of this research provide important insights for National

University Master of Management study program students and

other stakeholders in understanding the factors that influence

investment decisions, as well as the importance of understanding the

level of financial literacy and investment experience in managing

risk and making wise investment decisions.

INTRODUCTION

In the current era of industrial revolution 4.0, every individual is required to have the ability and

understanding of managing financial resources effectively and efficiently. Society will not only be faced

with increasingly complex problems such as financial products, but in the future will also have to bear

financial risks.

Investment Decisions are a policy or decision taken to invest capital in one or more assets to gain

profits in the future or the problem of how people should allocate funds into forms of investment that

will bring profits in the future (Ismiyanti & Mahadwartha, 2020). Since the Indonesian capital market

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2400

has existed, it has increased in depth in the last few years (2019), it is useful to know what factors cause

investment decision behavior (Nuzula, Sisbintari, & Handayani, 2019).

According to the initial survey regarding investment decisions carried out in April 2022 on a

sample of 30 students from the National University Postgraduate Management Study Program with the

criteria of students who had carried out investment activities for a minimum period of one month,

several influences and problems regarding investment decisions were found, namely: 25% respondents

feel there is minimal security in investing, 21.9% of respondents feel that the income/return they get is

small, 18.8% feel that the value of money invested in the future is not too high, 18.8% of respondents

have a low level of tolerance in investing so afraid of making investments, 12.5% of respondents felt that

investments had a low level of liquidity, and the remaining 3% of respondents chose something else,

namely they felt they had no experience in investing (Ahmad, 2020). Then other factors were found that

had an impact on the investment decisions of National University Postgraduate Management Study

Program students, most of which were regarding financial literacy, experience in investing, self-

confidence regarding investing, and risk tolerance in investing (Antony & Joseph, 2017).

This data is supported by data from the Financial Services Authority (2017) which shows that

investment in Indonesia has now become a very attractive investment destination. Investment in

Indonesia has now also developed into a source of long-term funding for the world. Investments that

usually provide high levels of return can certainly carry high risks (Malik, Hanif, & Azhar, 2019). The

low and high risks in Indonesia are greatly influenced by the factors of Financial Literacy, Investment

Experience, Overconfidence and Risk Tolerance (Addinpujoartanto & Darmawan, 2020). It was also

stated that in 2016, the Composite Stock Price Index (IHSG) grew extraordinarily, beating the main

indices in Asia such as South Korea's Kospi and Japan's Nikkei. Therefore, analyze beforehand before

making investment decisions which will be selected.

This analysis is one way to minimize existing risks. Investment Decisions are influenced by several

factors, one of which is Financial Literacy, reported by (Brahmana, 2022). Low financial literacy causes

widespread investment fraud: the Indonesian Financial Services Authority (OJK) recorded losses of

more than IDR 110 trillion in 2022 due to investment fraud, eight times higher than in 2018 which was

only IDR 14 trillion. So this has an impact on reducing the level of risk tolerance and Investment

Decisions (Ma & Wang, 2022). In the curriculum, the concept of financial literacy is not only about

understanding investment but needs to be emphasized on the risk perspective (Asfira, Rokhmawati, &

Fathoni, 2019). Financial literacy will lead to greater risk tolerance and investors must then choose the

risk of investment securities to match the high level of risk tolerance experienced by investors (Awais,

Laber, Rasheed, & Khursheed, 2016). So it can be obtained that the higher a person's financial

knowledge, the more investors will be very careful in taking risks in taking risks in shares and will take

relatively high risks.

The next factor that can influence Investment Decisions is Investment Experience. Indonesian

people, especially millennials, use very little of their income for investment experience and Investment

Decisions According to (Dinisari, 2019). The way to invest that is often used is by saving, in other words,

Indonesian people, especially Millennials, have a low risk ability in making investment decisions due to

the lack of investment experience they have. In the research of (Awais et al., 2016) research resulted

that higher investment experience will have an impact on high risk tolerance and investors will choose

the risk of investment securities to match the high level of risk tolerance experienced by investors

depending on how much experience the investor (Fujiki, 2021).

The next factor that can influence Investment Decisions is Overconfidence or high self-confidence.

Overconfidence is obtained when investment knowledge and experience is sufficient or even high. The

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2401

research results of (Ul Abdin, Qureshi, Iqbal, & Sultana, 2022) show that overconfidence or cognitive

bias influences investment decisions through risk tendencies. Investors who are overconfident also tend

to have an optimistic view of trades carried out by Lee-lee, et al., (2016). According to research by Ma,

et al., (2022) it has a positive relationship and will be stronger if the Financial Literacy relationship is

added. Risk Tolerance positively mediates the influence of Overconfidence on Investment Decisions in

(Kasoga, 2021), which shows that investors who have an attitude of Overconfidence will tolerate

existing risks so that the level of Risk Tolerance is high, then this influences Investment Decisions

(Budiarto & Susanti, 2017).

Next is the risk tolerance factor, many theories and research support this, one of the underlying

theories is the Markowitz market portfolio principle which explains portfolio allocation based on

expected returns and risks (Nuzula et al., 2019)(Kasoga, 2021). Reported by (Awais et al., 2016)

Investors must pursue risk in their financial decisions, this is contrary to research conducted by (Pyles,

Li, Wu, & Dolvin, 2016) which states that from the results of his research, the level of risk tolerance is

often not included. in investment decisions (Hermansson & Jonsson, 2021).

According to research by (Muslim & Perdhana, 2017) a research gap is a problem that has not

been fully researched or has never been researched by previous research. The research gap in a study

is generally unique and makes a difference between one research and another. Based on the description

above as a whole, there are several research gaps resulting from previous research that can be

developed. The research gap in this research can be explained, namely from the variables Risk

Tolerance, Financial Literacy, Investment Experience, and Overconfidence (Candiya Bongomin, Munene,

Ntayi, & Malinga, 2017)(Perveen, Ahmad, Usman, & Liaqat, 2020).

METHODS

The type of research used in this research is quantitative research whose research objectives

are more directed at showing relationships between variables, verifying theories, making predictions

and generalizing. Based on the explanation of quantitative research methods, the phenomenon of cause

and effect relationship shows the existence of independent and dependent variables which can be

explained that the independent variables consist of Financial Literacy (X1), Investment Experience (X2),

Overconfidence (X3) (Lestari, 2022). The dependent variable is Investment Decisions (Y) and the

Intervening Variable Risk Tolerance (Z) at the Jakarta Medical Center. In this study, Partial Least Square-

Structural Equation Modeling (PLS-SEM) was used (Abdillah & Hartono, 2015).

Descriptive statistical analysis is analysis carried out to determine the existence of independent

variables, either only on one or more variables (stand-alone variables or independent variables) without

making comparisons of the variables themselves and looking for relationships with other variables

(Sugiyono, 2018). This research aims to test hypotheses regarding the cause-and-effect relationship

between the variables Financial Literacy, Investment Experience, Overconfidence, Risk Tolerance, and

Investment Decision.

RESULTS

Description of Research Results

In this research, the data source used is primary data with a sample size of 97 Postgraduate

Students at the National University Management Study Program who are still active and have carried

out investment activities in the capital market with a total of 90 valid questionnaire data (Ghozali &

Latan, 2015). Questionnaire research was conducted throughgoogle form in the period 22 May- 29 May

2023. PLS is an alternative data processing from the SEM approach which is based on covariance to be

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2402

based on variance. PLS aims to test the predictive relationship between constructs by seeing whether

there is a relationship or influence between the constructs.

1. Gender

The following is the distribution of respondents based on gender groups which is presented in

the following table & diagram:

Table 1

Description of Respondents Based on Gender

Gender

Amou

Percenta

Man

54%

Woman

46%

Amount

100%

Figure 1

Description of Respondents Based on Gender

Source: Data processed by the Author (2023)

Based on the table and diagram in Figure 4.1 which determines respondents based on gender, it

is known that some of the respondents were male with a total of 49 respondents with a percentage

of 54%, while there were 45 female respondents with a percentage of 46%. So it can be concluded

that the majority of respondents in this study based on gender were men, namely 49 respondents

with a percentage of 54%.

2. Long Time in Investing

The following is the distribution of respondents based on groups with a long history of investing

which is presented in the following table & diagram:

Gender

54%

46%

Male Female

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2403

Table 2

Description of Respondents Based on Length of Investing

Duration

Investment

Amount

Percentage

1-3 Months

3-12 Months

63%

1-3 Years

23%

3-10 Years

Amount

100%

Figure 2

Description of Respondents Based on Length of Investing

Source: Data processed by the Author (2023)

Based on the table and diagram in Figure 4.2 which determines respondents based on the length

of time they have invested, it is known that for the group that has been investing for 1-3 months,

there are 8 respondents with a percentage of 9%, for the group that has been investing for 3-12

months, there are 57 respondents with a percentage of 63%. The old group investing for 1-3 years

was 21 respondents with a percentage of 23%, and the old group investing for 3-10 years was 4

respondents with a percentage of 5%. So it can be concluded that the majority of respondents in this

study based on the long-standing group in investing are investors who invest within a period of 3-12

months, namely 57 respondents with a percentage of 63%.

3. Monthly Income

The following is the distribution of respondents based on monthly income groups which is

presented in the following table & diagram:

length of time in investing

23%

63%

1-3 Monts 3-12 Months 1-3 Years 3-10 Years

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2404

Table 3

Description of Respondents Based on Monthly Income

Monthly Income

Amount

Percentage

< IDR 5,000,000.00

IDR 5,000,000.00-

IDR 10,000,000.00

61%

IDR 10,000,000.00-

IDR 20,000,000.00

23%

> IDR 20,000,000.00

Amount

100%

Figure 3

Description of Respondents Based on Monthly Income

Source: Data processed by the Author (2023)

Based on the table and diagram in Figure 4.3 which determines respondents based on their

monthly income, it is known that for the income group < IDR 5,000,000.00 there are 8 respondents

with a percentage of 9%, the income group is IDR 5,000,000.00- IDR 10,000,000.00 a total of 55

respondents with a percentage of 61%, the income group of IDR 10,000,000.00- IDR 20,000,000.00

was 21 respondents with a percentage of 23%, and the income group > IDR 20,000,000.00 was 6

respondents with a percentage of 7%. So it can be concluded that the majority of respondents in

this study based on the type of income per month have an income of IDR 5,000,000.00 - IDR

10,000,000.00, namely 55 respondents with a percentage of 61%.

Discussion

Monthly Income

23%

61%

< Rp 5.000.000,00 Rp 5.000.000,00-

Rp 10.000.000,00

Rp 10.000.000,00-

< Rp 20.000.000,00

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2405

Based on the results of the discussion that has been carried out above, the following is a

summary of the research results:

Table 4

Summary of research results

Variable

Conclusion

FL -> RT

Accepted

IE -> RT

Accepted

Ov -> RT

Accepted

FL -> ID

Rejected

IE -> ID

Accepted

Ov -> ID

Accepted

FL -> RT -> ID

Accepted

IE -> RT -> ID

Accepted

Ov -> RT -> ID

Rejected

RT -> ID

Accepted

Source: Data processed by the Author (2023)

Financial Literacy directly has a positive and significant effect on Risk Tolerance

The research results show that the high and lowFinancial Literacy become a benchmark for

student success in determiningRisk Tolerance investment. High and lowFinancial Literacy investors will

increase the valueRisk Tolerance investors, and vice versa. This is related to low financial literacy

causing widespread investment fraud: Indonesian Financial Services Authority (OJK), the following

statement is in line with the rise in investmentbulgingwhich is widespread among students, the higher

it isFinancial Literacy, the higher the level of tolerance that students will have in investing because they

are not worried about fraud because they already know the risks involved. And also having adequate

financial information and literacy can improve your analytical skills regarding investment risks which

then have an impactRisk Tolerance The higher the level, the more students will be aware of the need to

study investment risks when financial literacy becomes higher.

This is in line with (Awais et al., 2016) namely, investors must pursue risk for their financial

decisions. High financial literacy will lead to greater risk tolerance, with increased levels of knowledge

about financial information and improved analytical skills, investors can increase their capacity to

manage investments efficiently. In this investment, investors are also aware that they need to know a

lot of knowledge to face risky situations.

Investment Experience directly has a positive and significant effect on Risk Tolerance

The research results show that the high and lowInvestment Experience will increase valueRisk

Tolerance, vice versa. Students who have experience in investing will help them choose and handle

investment risks that they will take on in the future. According to this research, more or less investment

experience will have a big influenceRisk Tolerance students in investing because students will be wiser

in handling risks in the future.Investment Experience in the past, both success and failure will form

decisionsRisk Tolerance towards a higher level, because students have experienced both failure and

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2406

success in investing which can be used as learning and then have an impact on acceptanceRisk Tolerance

in investing.

This is in line with (Awais et al., 2016) an investor who has greater experience will lead to

greater tolerance for investment securities products. Investors are aware that their investment

experience will help them to handle risks in investing, they will be wiser because they learn from past

experiences to overcome risky situations and handle them correctly. The results of this research

showInvestment Experience has a positive and significant relationship withRisk Tolerance.

Overconfidence directly has a positive and significant effect onRisk Tolerance

The results of this research show that the high and low Overconfidence will increase valueRisk

Tolerance, and vice versa.Overconfidence A high level will make students feel comfortable in investing

which will then increaseRisk Tolerance according to the profit you want to achieve. The better the self-

confidence in investing, the better the student's level of risk tolerance in investing.Overconfidence

Students must continue to improve in order to achieve a high level of risk tolerance so that future

investment returns can achieve maximum results and students can be confident in exploring high risks

and able to accept these risks, so as to increase interest in investing in Indonesia.

This is in line with (Ul Abdin et al., 2022) which states that all high-class investors have an

attitudeoverconvidence have illusions of control, optimism, and self-attribution. This tendency makes

investors have better decisions regarding investment risks,return, and higher investment satisfaction.

Financial Literacy directly has a positive and insignificant effect onInvestment Decisions

The research results show that the high and lowFinancial Literacy cannot be a benchmark for

determining student successInvestment Decisions. It meansFinancial Literacy not optimal in supporting

students to decide what to doInvestment Decisions. The higher the levelFinancial Literacy The better

investors will be, the higher the accuracy in making investment decisions, and individuals with higher

literacy will be more likely to be involved in preparing investment/financial plans more clearly in the

future. However, this research has not shown the accuracy of literacy as a step in making investments.

This is also thought to be due to the lack of information and literacy received regarding finance and

financial investment, students are still taboo about financial literacy information for making investment

decisions (Hasanudin, Nurwulandari, & Caesariawan, 2022).

The results of this research are in line with research conducted by (Ariani, 2015) which has

resultsFinancial Literacy does not have a significant effect onInvestment Decisions, the results of the

research are that good financial literacy alone is not enough to produce good investment decisions, it

must be accompanied by other factors that can support these decisions.

Investment Experience directly has a positive and significant effect onInvestment Decisions

The results of this research show that the high and lowInvestment Experience will increase

valueInvestment Decisions, likewise vice versa.Investment Experience high levels in students will

increase investment decisions.Investment Experience will lead to learning from mistakes and successes

in the past, so that students are confident in their investment decisions in the present or in the future

due to existing experience and will then become wiser and more efficient inInvestment Decisions.

Investment Decisions which is based onInvestment Experience will minimize feelings of dissatisfaction

and disappointment in investing as well as tackle investment fraud which is currently rampant.

This is in line with (Awais et al., 2016), stated thatInvestment Experience positively related

toinvestment decision, investor experience is very useful forinvestment decision In the future, wise

investors learn from past experiences to improve their abilities and overcome situations that impact

investment decisions.

Overconfidence directly has a positive and significant effect on Investment Decisions

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2407

The results of this research show that the high and lowOverconfidence will increase

valueInvestment Decisions, and vice versa.Overconfidence high levels can have a positive impact

onInvestment Decisions, this is because students have

Overconfidence those who are high will have the courage to make decisions in investing, and

believe that they will get itreturn that corresponds to what they invest.Overconfidence Not only is it

found in students who have been investing for a long time, but it is also high in students who are still

beginners in investing, so it can be concludedInvestment Decisions greatly influenced by

Overconfidence the highest.

This research, in line with research conducted by (Kansal & Singh, 2018) namely,Overconfidence

have a significant impact onInvestment Decisions. This research states thatoverconvidence investors

are influenced by several factors, namely: investors who have high income, and have investment

experience and invest in shares with high risk which can increaseoverconvidence investors and can

improve investment decisions.

Financial Literacy indirectly has a positive and significant effect on Investment Decisions

through Risk Tolerance

The results of this research show that Risk Tolerance is able to mediate the relationship between

Financial Literacy and Investment Decisions. Financial High literacy is able to increase information and

knowledge about finance and investment which can increase students' risk tolerance and encourage

students to choose higher risk tolerance in investing in order to get a higher level of return. Financial

Literacy related to financial information can enable students to overcome high risks in investing.

A high level of financial literacy will lead to a large risk tolerance and then investors will choose

the risk of securities to match the high level of risk tolerance. When students have knowledge about

finance and investment risks, this will lead to increased risk tolerance, because students know the

benchmark between risk and the investment return they will get, thereby improving students'

investment decisions.

This research is useful to help investors obtain their financial information and realize that there

is still a lot of knowledge they must have to face and help them to handle risky investments. Financial

Literacy is proven to be an important determinant in investment decisions and the Risk Tolerance that

investors will carry (Awais et al., 2016).

Investment Experience indirectly has a positive and significant effect onInvestment Decisions

through Risk Tolerance

The results of this research showRisk Tolerance able to mediate relationshipsInvestment

Experience toInvestment Decisions. Students' experience in investing influencesRisk Tolerance which

will be chosen by students, the higherInvestment Experience then the higher it isRisk Tolerance which

will be chosen by internal studentsInvestment Decisions. This is because students can overcome the

risks of failure from their past experiences, and also know the levelreturn which they will get ifRisk

Tolerance they choose high in investment decisions. In this case, students can also know risks such as

fake investments, so students will do itInvestment Decisions withRisk Tolerance high, but still pay

attention to the validity of the investment product, this is because students' experience in investing in

the past is high.

This research is in line with (Awais et al., 2016) which produced research thatInvestment

Experience high influence onRisk Tolerance will make investors choose a higher type of risk in

investment decisions that is in accordance with the investor's experience. This research concludes that

an investor's past experience can be very helpful in helping them handle risky investments.

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2408

Overconfidence indirectly has a positive and insignificant effect onInvestment Decisions through

Risk Tolerance

The results of this research showRisk Tolerance unable to mediate the

relationshipOverconfidence toInvestment Decisions. Although investors who have a high level of self-

confidence will tolerate the existing risks so they will make investment decisions wiselyRisk Tolerance

high, but in this study the results showed that the possibility of excessive self-confidence is not always

a good factor in investment decisions throughRisk Tolerance. It was also found that some students did

not have a tasteOverconfidence which is high when you know the risks in investing, thus causing it to

be lowRisk Tolerance toInvestment Decisions. FeelOverconfidence students are pressured to assess

investment risks, resulting in low levels of investmentrisk tolerance toInvestment Decisions, so that

students tend to think too much about the impact of risks and investment decisions, thus creating low

biasoverconfidence toinvestment decisions throughrisk tolerance.

This is in line with (Wulandari & Iramani, 2014) who found that resultoverconvidence does not

have a significant effect oninvestment decisions throughrisk tolerance. This is because someone has

itOverconfidence high will consider lowRisk Tolerance so that when making investment decisions it

tends to be detrimental to resultsInvestment Decisions the. The results of investment decisions tend to

appear non-objective becauseOverconfidence which is excessive and does not judge wellRisk Tolerance

the chosen.

Risk Tolerance has a direct positive and significant effect onInvestment Decisions

The results of this research show that the high and lowRisk Tolerance will increase

valueInvestment Decisions, and vice versa.Risk Tolerance high levels can have a positive impact

onInvestment Decisions, This is due toRisk Tolerance has been found to substantially influence

investment decision making in various financial markets (Hassan, Shahzeb, Shaheen, Abbas, & Hameed,

2013). In this research, students who understand investment risks and haveRisk Tolerance those who

are high will be easy and ready to decide to invest because the student already understands the risks of

investing.Risk Tolerance The high level will direct students to be brave in learningInvestment Decisions

because they are sure of the levelreturn what will be obtained from this decision. In this study, it was

found that students had levelsRisk Tolerance those who are high will tend to have clear, efficient and

wise investment goalsInvestment Decisions.

This is in line with research, (Kasoga, 2021) which shows that investors who are ready to take

risks are ready to buy shares, it was found thatRisk Tolerance influenceInvestment Decisions positively.

It can be concluded that the levelRisk Tolerance an investor plays an important role in

decidingInvestment Decisions.

CONCLUSION

Financial Literacy has a positive and significant effect on Risk Tolerance in National University

Master of Management study program students. The greater the Financial Literacy carried out, the

greater the investment Risk Tolerance will increase. Investment Experience has a positive and

significant effect on Risk Tolerance in National University Master of Management study program

students. The longer the investment experience, the more investment risk tolerance will increase.

Overconfidence has a positive and significant effect on Risk Tolerance in National University Master of

Management study program students. The greater the Overconfidence, the greater the investment Risk

Tolerance. Financial Literacy has a positive and insignificant effect on Investment Decisions among

National University Master of Management study program students. High and low Financial Literacy is

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2409

not a benchmark for high and low Investment Decisions. Investment Experience has a positive and

significant influence on Investment Decisions in students of the Master of Management study program

at National University. The greater the Investment Experience, the greater the Investment Decisions will

be. Overconfidence has a positive and significant effect on Investment Decisions in National University

Master of Management study program students.

The greater the Overconfidence, the greater the Investment Decisions. Financial Literacy

indirectly has a positive and significant effect on Investment Decisions through Risk Tolerance in

students of the Master of Management study program at National University. The greater it is Financial

Literacy, Investment Decisions will increase through Risk Tolerance as an intervening variable.

Investment Experience indirectly has a positive and significant effect on Investment Decisions through

Risk Tolerance in students of the Master of Management study program at National University. The

greater the Investment Experience, the more Investment Decisions will increase through Risk Tolerance

as an intervening variable. Overconfidence indirectly has a positive and insignificant effect on

Investment Decisions through Risk Tolerance in National University Master of Management study

program students. High or low Overconfidence is not a benchmark for high and low Investment

Decisions through Risk Tolerance as an intervening variable. Risk Tolerance has a positive and

significant effect on Investment Decisions among students in the Master of Management study program

at National University. The greater the Risk Tolerance, the greater the Investment Decisions.

REFERENCES

Abdillah, Willy, & Hartono, Jogiyanto. (2015). Partial least square (PLS) Alternatif structural equation

modeling (SEM) dalam penelitian bisnis. Yogyakarta: Penerbit Andi, 22, 103–150.

Addinpujoartanto, Nur Ariefin, & Darmawan, Surya. (2020). Pengaruh Overconfidence, Regret Aversion,

Loss Aversion, Dan Herding Bias Terhadap Keputusan Investasi Di Indonesia. Jurnal Riset Ekonomi

Dan Bisnis, 13(3), 175–187. https://doi.org/10.26623/jreb.v13i3.2863

Ahmad, Maqsood. (2020). Does underconfidence matter in short-term and long-term investment

decisions? Evidence from an emerging market. Management Decision, 59(3), 692–709.

Antony, Anu, & Joseph, Ansted Iype. (2017). Influence of behavioural factors affecting investment

decision—An AHP analysis. Metamorphosis, 16(2), 107–114.

https://doi.org/10.1177/0972622517738833

Ariani, Sofi. (2015). Pengaruh literasi keuangan, locus of control, dan etnis terhadap pengambilan

keputusan investasi. Stie Perbanas Surabaya.

Asfira, Nur, Rokhmawati, Andewi, & Fathoni, Ahmad Fauzan. (2019). Pengaruh financial literacy dan

investment experience terhadap risk tolerance dan investment decision. Jurnal Ekonomi, 27(4),

340–352. https://doi.org/10.31258/je.27.4.p.340-352

Awais, Mustabsar, Laber, M. Fahad, Rasheed, Nilofer, & Khursheed, Aisha. (2016). Impact of financial

literacy and investment experience on risk tolerance and investment decisions: Empirical evidence

from Pakistan. International Journal of Economics and Financial Issues, 6(1), 73–79.

Brahmana, R. K. (2022). Vice. Retrieved from https://www.vice.com/Id/Article/Y3p74j/Indonesia-

Marak-Investasi- Bodong-Ojk-Catat-Kerugian-Penipuan-Investasi-2022-Mencapai-Rp110- Triliun

Budiarto, Angga, & Susanti, Susanti. (2017). Pengaruh financial literacy, overconfidence, regret aversion

bias, danrisk tolerance terhadap keputusan investasi (studi pada investor PT. Sucorinvest central

gani galeri investasi BEI universitas negeri surabaya). Jurnal Ilmu Manajemen (JIM), 5(2), 1–9.

Candiya Bongomin, George Okello, Munene, John C., Ntayi, Joseph Mpeera, & Malinga, Charles Akol.

(2017). Financial literacy in emerging economies: Do all components matter for financial inclusion

of poor households in rural Uganda? Managerial Finance, 43(12), 1310–1331.

International Journal of Asian Education,

Dessy Yuliani

, Andini Nurwulandari

IJSSR Page 2410

https://doi.org/10.1108/MF-04-2017-0117

Dinisari, M. .. (2019). Finansial Bisnis.com. Retrieved November 6, 2019, from

https://finansial.bisnis.com/Read/20191106/55/1167422/Kesadaran- Investasi-Generasi-

Milenial-Rendah-Konsumsi-Masih-Tinggi

Fujiki, Hiroshi. (2021). Crypto asset ownership, financial literacy, and investment experience. Applied

Economics, 53(39), 4560–4581. https://doi.org/10.1080/00036846.2021.1904125

Ghozali, Imam, & Latan, Hengky. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan

program smartpls 3.0 untuk penelitian empiris. Semarang: Badan Penerbit UNDIP.

Hasanudin, Hasanudin, Nurwulandari, Andini, & Caesariawan, Iqbal. (2022). Pengaruh literasi

keuangan, efikasi keuangan, dan sikap keuangan terhadap keputusan investasi melalui perilaku

keuangan. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(2), 581–597.

https://doi.org/10.32670/fairvalue.v5i2.2318

Hassan, E. U., Shahzeb, F., Shaheen, M., Abbas, Q., & Hameed, Z. (2013). Measuring validity of

determinants of individual investor decision making investing in Islamabad stock exchange of

Pakistan. Middle East Journal of Scientific Research, 14(10), 1314–1319.

Hermansson, Cecilia, & Jonsson, Sara. (2021). The impact of financial literacy and financial interest on

risk tolerance. Journal of Behavioral and Experimental Finance, 29, 100450.

https://doi.org/10.1016/j.jbef.2020.100450

Ismiyanti, Fitri, & Mahadwartha, Putu Anom. (2020). Investment experience to expected return:

Consequences of risk behavior. In Advances in Business, Management and Entrepreneurship (pp.

310–313). CRC Press.

Kansal, Priya, & Singh, Seema. (2018). Determinants of overconfidence bias in Indian stock market.

Qualitative Research in Financial Markets, 10(4), 381–394.

Kasoga, Pendo Shukrani. (2021). Heuristic biases and investment decisions: multiple mediation

mechanisms of risk tolerance and financial literacy—a survey at the Tanzania stock market. Journal

of Money and Business, 1(2), 102–116. https://doi.org/10.1108/JMB-10-2021-0037

Lestari, Evi. (2022). Pengaruh Literasi Keuangan, Overconfidence, Herding, dan Risk Tolerance terhadap

Keputusan Investasi Mahasiswa di Pasar Modal (Studi pada Mahasiswa di Kota Makassar).

Universitas Hasanuddin.

Ma, Ruizhe, & Wang, Yuhan. (2022). A Comparative Study on the Impact of Financial Literacy and

Overconfidence on Risk Attitudes. Asian Business Research, 7(3), 30.

https://doi.org/10.20849/abr.v7i3.1122

Malik, Muhammad Shaukat, Hanif, Muhammad Imran, & Azhar, Muhammad Zohaib. (2019). The impact

of overconfidence bias on investment decisions: Mediating role of risk tolerance. International

Journal of Research and Innovation in Social Science, 3(8), 154–160.

Muslim, Muhamad Ihwanul, & Perdhana, Mirwan Surya. (2017). Glass ceiling: sebuah studi literatur.

Jurnal Bisnis Strategi, 26(1), 28–38. https://doi.org/10.14710/jbs.26.1.28-38

Nuzula, Nila Firdausi, Sisbintari, Ika, & Handayani, Siti Ragil. (2019). The use of technical analysis, source

of information and emotion and its influence on investment decisions. Journal of Behavioral and

Experimental Finance, 22, 51–56. https://doi.org/10.1016/j.jbef.2019.02.004

Perveen, Nasira, Ahmad, Ashfaq, Usman, Muhammad, & Liaqat, Faiza. (2020). Study of investment

decisions and personal characteristics through risk tolerance: Moderating role of investment

experience. Amazonia Investiga, 9(34), 57–68. https://doi.org/10.34069/AI/2020.34.10.6

Pyles, Mark K., Li, Yongping, Wu, Shifang, & Dolvin, Steven D. (2016). Cultural influences on risk

tolerance and portfolio creation. Journal of Behavioral and Experimental Finance, 9, 43–55.

Inrernational Journal of Social Service and Research https://ijssr.ridwaninstitute.co.id/

IJSSR Page 2411

https://doi.org/10.1016/j.jbef.2016.01.001

Ul Abdin, Syed Zain, Qureshi, Fiza, Iqbal, Jawad, & Sultana, Sayema. (2022). Overconfidence bias and

investment performance: A mediating effect of risk propensity. Borsa Istanbul Review, 22(4), 780–

793. https://doi.org/10.1016/j.bir.2022.03.001

Wulandari, Dewi Ayu, & Iramani, Rr. (2014). Studi experienced regret, risk tolerance, overconfidance

dan risk perception pada pengambilan keputusan investasi. Journal of Business & Banking, 4(1),

55–66. https://doi.org/10.14414/jbb.v4i1.293

(2023)

First publication right:

Asian Journal of Engineering, Social and Health (AJESH)

This article is licensed under: