Financial Literacy, Hassle Factor, and Stock Market Participation: Empirical Evidence from Indonesia Stock Exchange

Abstract

The stock market plays an important role in economic development. Although stock investment can provide a high rate of return, in reality, stock market participation is still a big challenge in many countries, including Indonesia. This study aims to explore the influence of financial literacy and the hassle factors on the intention to invest and stock market participation. From the survey, valid feedback was obtained from 401 respondents, with domiciles spread across all major islands in Indonesia, including Java, Kalimantan, Riau, Maluku & Papua, Nusa Tenggara & Bali, Sulawesi, and Sumatra. The research method used in this study is a quantitative method with a 5-point Likert scale measurement. The data is processed using SmartPLS 3.0. The study's results found a positive and significant influence between financial literacy on intention to invest and stock market participation. Meanwhile, the hassle factor was found to have a negative and significant effect on the intention to invest, but there was no effect on stock market participation. Finally, the relationship between the intention to invest and stock market participation was found to have a positive and significant effect.