Influence of Financial Literacy, Investment Promotion, and Socioeconomic Status on Stock Investment Decisions Through Risk Perception

Abstract

Introduction: This paper talks about determine and analyze the influence of financial literacy, investment promotion, ocioeconomic status, and risk perception on investment decisions. The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. Purpose: This research aims to determine and analyze the influence of (1) financial literacy on risk perception, (2) investment promotion on risk perception, (3) socioeconomic status on risk perception, (4) financial literacy on stock investment decisions, (5) promotion investment towards stock investment decisions, (6) socioeconomic status towards stock investment decisions, (7) risk perception towards stock investment decisions, (8) financial literacy towards stock investment decisions through risk perception, (9) investment promotion towards stock investment decisions through risk perception, (10) socioeconomic status on stock investment decisions through risk perception. Methods: The object of this research is a stock investment gallery in Southeast Sulawesi. The population in this study are students who invest in shares through investment galleries. The sample for this research was 295 respondents taken using probability sampling techniques based on criteria. The data collection method uses an online questionnaire and the analysis tool used is SEM-PLS Ver 3.0. Results and Conclusion: The research results show that (1) financial literacy has a positive and insignificant effect on risk perception, (2) investment promotion has a positive and significant effect on risk perception, (3) socioeconomic status has a positive and significant effect on risk perception, (4) financial literacy has a negative and insignificant effect on stock investment decisions, (5) investment promotion has a positive and insignificant effect on stock investment decisions, (6) socioeconomic status has a positive and significant effect on stock investment decisions, (7) risk perception has a positive and significant effect on stock investment decisions, (8) financial literacy has no influence on stock investment decisions through risk perception, (9) investment promotion has an influence on stock investment decisions through risk perception, (10) socioeconomic status has an influence on stock investment decisions through risk perception. Research implications: This research can be used as a reference in determining the factors that have the greatest influence that can influence students in investing in shares in the capital market. From the research results, securities companies can pay more attention to the investment promotions given to students by creating new promotional strategies so that students can make investment decisions. The regulator, in this case the Indonesian Stock Exchange, can also further increase students' financial literacy in the capital market so that they know the advantages and risks when they investing in the capital market. Originality/value: This research develops by combining the role of financial literacy, investment promotion to socialize investment products, and the socioeconomic status of students' backgrounds to change students' perceptions of the risks of investing in shares which will ultimately help students to make the right investment decisions in the future. This research also uses the analytical method (SEM-PLS) Structural Equation Model-Partial Least Square which is expected to be able to test all correlations between variables.