The role of personality traits, financial literacy and behavior on investment intentions and family support as a moderating variable

  • Received April 17, 2022;
    Accepted May 11, 2022;
    Published May 17, 2022
  • Author(s)
  • DOI
  • Article Info
    Volume 19 2022, Issue #2, pp. 143-153
  • Cited by
    4 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

Investment refers to various actions taken by individuals, including the younger generation in Indonesia, to prepare for the future. There are many programs around investment offered by the government in Indonesia for the short to long term. Therefore, this study aims to examine the direct and indirect effects of personality traits, financial literacy, and behavior and family support on investment intentions using a quantitative approach. In addition, this study is also intended to add to the limited empirical evidence regarding investment among students in Indonesia. The model of this research framework is based on collaboration between theory and previous research as a reference in strengthening the justification of the findings. The sample consisted of 341 students spread throughout Indonesia, while the data was collected using a questionnaire distributed online and analyzed using the Smart-PLS. The overall findings of this study indicate that personality, financial literacy, and behavior have a significant effect on investment intentions among students in Indonesia. Furthermore, financial behavior indicates the role of intermediaries, while family support does not strengthen the effect of financial literacy on investment intentions among students in Indonesia. The students who take financial management courses will be more aware of the importance of financial literacy and financial behavior for investment intentions. Recommendations for further research can relate other variables affecting investment intentions that were not examined in this study.

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    • Figure 1. Study conceptual framework
    • Figure 2. Data processing results using SmartPLS
    • Table 1. Respondents’ demographics
    • Table 2. Convergent validity test results
    • Table 3. Reliability test results
    • Table 4. Outer test results of the Personality Traits variable model
    • Table 5. Results of the outer model test of the Financial Literacy variable
    • Table 6. Results of the outer model test of the Financial Behavior variable
    • Table 7. Results of the outer model test of the Family Support variable
    • Table 8. Results of the outer model test of the Investment Intention variable
    • Table 9. Results of direct and indirect effect
    • Conceptualization
      Bambang Widagdo, Kenny Roz
    • Project administration
      Bambang Widagdo, Kenny Roz
    • Supervision
      Bambang Widagdo
    • Validation
      Bambang Widagdo, Kenny Roz
    • Writing – original draft
      Bambang Widagdo, Kenny Roz
    • Writing – review & editing
      Bambang Widagdo, Kenny Roz
    • Data curation
      Kenny Roz
    • Formal Analysis
      Kenny Roz