Analysis of Financial Literacy and Financial Behavior on Stock Investment Decisions: A Case Study of Students of the Faculty of Economics and Business, University of Muhammadiyah Pontianak

Profitability, Financial Literacy; Financial Behavior; Invest Stock

Authors

  • Hafidz Hidayatullah Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Pontianak, Indonesia
  • Dedi Hariyanto
    dedi.hariyanto@unmuhpnk.ac.id
    Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Pontianak, Indonesia
  • Heni Safitri Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Pontianak, Indonesia
November 8, 2022

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The purpose of this research is to examine how students in the Faculty of Economics and Business at the University of Muhammadiyah Pontianak's see the relationship between financial literacy and financial behavior when making stock investment decisions. Purposive sampling was employed for this analysis. We used a random sample of 100 people who met our criteria. Analytical procedures include a validity and reliability test on the instrument, a test of the classical assumptions of normality, multicollinearity, and linearity, and various statistical analyses such as multiple linear regression, correlation analysis, R2 analysis, the F statistic test, and partial effect analysis (t statistical test). Both the validity and reliability tests yielded positive results, demonstrating the data's validity and trustworthiness. The data has been shown to have a normal distribution, there is no multicollinearity, and the linear relationship between the variables in the model is supported by the results of the linearity test. The examination of the correlation coefficient (R) of 0.774 indicates that the association between Financial Literacy and Financial Behavior with Investment Decisions is quite high. The regression equation produced is Y = -35.291 + 10.056 X1 + 7.537 X2. The coefficient of determination (R2) indicates that knowledge of personal finance accounts for 60% of the variance in investing decisions, while other factors account for the remaining 40%. The simultaneous influence test (F test) shows that both financial knowledge and financial conduct have a substantial impact on investment choices. Stock investing decisions are influenced by both financial literacy and financial conduct, as shown by the partial effect test (t statistical test).