Factors That Encourage Investors to Decide to Invest in Shares in the Capital Market for the 2020-2023 Period (Covid-19 Pandemic): Systematic Literature Review

Abstract

Investment is a very important element for a country because it has two roles, namely as a supporter of income and a driver of economic growth. In this research, the author analyzes what factors encourage investors to decide to invest in shares in the capital market. This research uses the Systematic Literature Review (SLR) method. This research comes from articles published in 2020-2023 found in Publish or Perish and Google Scholar. Data is collected, identified and assessed before being systematically reviewed with the aim of supporting further research. The results of this review show that during the Covid-19 pandemic, many investors made stock investment decisions in the capital market due to psychological factors. As a result of the economic problems that have arisen as a result of the Covid-19 pandemic, many people's perspectives have changed from previously preferring traditional investments such as deposits to looking for investment options that provide high returns such as mutual funds and shares with different investment objectives. This is also supported by the rapid development of digital and information technology during the Covid-19 pandemic, which has caused public participation in the capital market to increase. Many fintech companies that adopt automatic investment technology are able to remove obstacles for potential investors who lack investment literacy and limited capital without having to study and understand the entire investment scheme in the capital market. Apart from that, financial literacy is also mentioned as a factor that can determine stock investment decisions because the knowledge that comes from literacy will strengthen stock investment decisions.