Intention to Invest Based on Investors Financial Literacy and Perceptual Antecedent: Evidence in Indonesia

Abstract

This research aims to examine the factors that influence intentions to invest. Determining investor intentions uses the Theory of Planned Behavior (TPB). Behavioural theory is one of the factors that influence intentions to invest. Previous studies have shown different results about intentions to invest. Therefore, this study reveals more closely related factors affecting investors' intention to invest based on attitude, financial literacy, and perceptual antecedents. The respondents of this study were Surabaya stock investors, with 100 respondents. The sampling technique uses snowball sampling—data analysis techniques using Partial Least Square. The results showed that financial literacy did not affect attitude towards the brand, perceived risk had no effect on attitude towards the brand, perceived risk had a negative effect on perceived return, the perceived Trust had no effect on attitude toward the brand, perceived Trust did not affect perceived risk, the perceived Trust did not affect effect on perceived return, the perceived return has a positive impact on attitude towards the brand, brand familiarity has a positive impact on attitude towards the brand, brand familiarity does not affect perceived risk, brand familiarity has a positive effect on perceived Trust. Attitude towards the brand positively impacts the intention to invest in stock investors in Surabaya.