Young Investors Research Articles

INVESTMENT BEHAVIOR OF B-SCHOOL GEN Z AMIDST GEOPOLITICAL TENSION

This study investigates the investment behavior of Gen Z students from business schools (B-schools) in Bangalore, India, amidst geopolitical tensions, focusing on their financial strategies, risk tolerance, and psychological responses. Utilizing data from 52 respondents collected through a structured questionnaire, the research highlights the cautious yet optimistic approach of these finance-trained individuals during periods of market volatility. Findings reveal that while 78.8% of respondents exhibit high-risk tolerance, their preference for holding investments and reliance on both self-research and financial advisors indicate a conservative, informed strategy emphasizing long-term stability. The majority identified retirement savings as a primary investment goal, showcasing a forward-looking perspective despite limited investment experience. The study also uncovers significant psychological impacts, with 32.7% of respondents expressing anxiety during geopolitical tensions, highlighting the role of external uncertainties in shaping investor sentiment. Moreover, respondents demonstrated a nuanced understanding of market dynamics, with 55.8% acknowledging the long-term impact of geopolitical events on the Indian stock market. Their behavior, including a preference for sectoral diversification and reliance on expert analysis, reflects the application of theoretical financial knowledge to practical investment scenarios. By analyzing the unique responses of B-school Gen Z during geopolitical crises, this research bridges gaps in existing literature, offering insights into how finance-educated individuals navigate uncertainty. These findings hold implications for enhancing financial education to build resilience and confidence in young investors while contributing to broader market strategies and risk management practices during periods of geopolitical instability.

An empirical approach assessing the impact of financial product innovation towards investors’ risk adjusted return: An event study technique

The purpose of this study is to explore new financial product’s impact on the behaviour of individual investors. To analyze investors’ risk and return expectations, this article investigates trading volumes before and after the introduction of financial product innovation. An event research technique was used to gather data from the National Stock Exchange. Data was analyzed using descriptive statistics and the Sharpe ratio approach, which were provided by different investors. The research results highlight that individual investors’ overreaction behaviour is brought out by financial product innovation. Furthermore, the study’s results imply that rising trading volumes are not entirely explained by updated risk-adjusted returns and that new financial products lead to excessive trading by investors and lowering returns. Higher trading volumes are not explained by better risk-adjusted returns. Young investors often respond irrationally to information offered by financial advisors, resulting in short-term gains at the expense of long-term gains. The study demonstrates that the development of innovative financial products does not always result in investors’ long-term prosperity. Worse outcomes and excessive trading could follow from it. The paper concludes by providing various real-world implications that the benefits and drawbacks of innovative financial products should be spelled out in detail by financial institutions and representatives. his research contributes to the implementation of individual investors’ overreaction behaviour that is brought out by financial product innovation. It highlights that higher trading volumes are not explained by better risk-adjusted returns.

Determinants of investment satisfaction among young investors in Indonesia

Indonesian stock market is dominated by young and relatively inexperienced traders who often depend on the recommendations of influencers or bloggers in social media. This will then make them dependent and conduct frequent trading, which also means higher transaction costs that diminish their profits and increase their risks, thus decreasing investor satisfaction. Therefore, this study aimed to examine the impact of perceived investor sophistication and social media influence on investment satisfaction mediated with perceived investment return as a mediating element. The analysis focused on young investors aged 18 to 30 who have invested in shares on the Indonesian Stock Exchange for at least one year. A quantitative method was adopted using questionnaires to collect data from 344 respondents. Furthermore, data were analyzed using Structural Equation Modeling – Partial Least Square (SEM-PLS) with SMART PLS 4.0 software. The results showed that both perceived investor sophistication and investment return significantly affected investment satisfaction with beta coefficients of 0.416 and 0.358, respectively. Perceived investor sophistication also significantly influenced perceived investment return with a beta coefficient of 0.557. Additionally, social media influence significantly affected perceived investment return with a beta coefficient of 0.103. This social media influence did not directly impact investment satisfaction but through the perceived investment return, which was further found to fully mediate the impact of social media influence on investment satisfaction. Perceived investment return also partially mediated the effect of investor sophistication on Investment Satisfaction.

The Influence of Digital Trading Applications on Financial Markets

The word "fintech" refers to a new technology that aims to make financial services better and more automated. Investment management, retail banking, artificial intelligence, block chains, mobile payments, stock trading, and other industries are increasingly included in the fintech sector. With today's high-tech electronic trading on the stock exchange, ordinary investors can purchase or sell shares in a matter of seconds, giving investors the opportunity to efficiently perform their research before investing in equities. This paper, thus, talks about the emergence of fintech, which has led to the development of various mobile trading applications like Zerodha, Grow, Upstox, Angel Broking, etc. These apps have become popular among young investors in recent years because of their low-cost broking services. In this study, both primary and secondary data have been used. Primary survey-based research has been used to know the experiences of people belonging to different age groups on trading apps, and secondary data for statistical figures and other factual points has been used from verified stock exchange data and websites of trading apps. This paper will also shed light on the various seamless services offered by such broking applications, which have drastically changed the way the market functions. Investors could easily browse through the available investments, order what they wanted, and manage their portfolio with a single tap from their phone, making adjustments right away. The paper will go on to explain how stock trading applications have affected the financial markets by encouraging an increasing number of people to participate in the process of constructing economies by trading in financial assets. The report can assist policymakers in determining the advantages and hazards of using these new technologies, as well as the repercussions of their use. It offers legislative recommendations that are meant to encourage the use of AI in finance while making sure that its application is consistent with fostering market integrity, financial stability, and competition while safeguarding financial consumers. To support and encourage the use of responsible AI, emerging dangers from the deployment of AI techniques need to be detected and mitigated.

ANALYSIS OF FACTORS AFFECTING INVESTMENT DECISIONS WITH FINANCIAL TECHNOLOGY AS AN INTERVENING VARIABLE AMONG STUDENTS OF THE INSTITUTE OF BUSINESS AND TECHNOLOGY PELITA INDONESIA

The purpose of this study is to analyze the influence of financial literacy, self-efficacy and income on investment decisions, as well as whether Financial Technology is able to mediate the influence. The research contributes to the fields of financial behavior and investment decision-making by examining how Financial Literacy, Self-Efficacy, and Income impact students' investment decisions in an academic setting, with a particular focus on the mediating role of Financial Technology (Fintech). The data analysis technique used in this study was SEMPLS with the help of the SmartPLS application. The results of the test were as follows: (1) Financial literacy has a significant positive effect on the investment decisions of Pelita Indonesia students; (2) Self-efficiency had a positive and insignificant effect; and (3) Income had an insignificant positive effect; (4) Financial Technology mediates the effect of Financial literacy on the Investment Decisions of students; and (5) Financial Technology does not mediated the impact of Income on the decision of students. The findings could inform educational institutions and policymakers on how to improve financial literacy programs and support fintech adoption to foster better financial outcomes among students, potentially leading to more financially empowered and responsible young investors.

The Effects of FOMO on Investment Behavior in the Stock Market

This study explores the impact of Fear of Missing Out (FOMO) on stock market investment behavior, focusing on how psychological and emotional factors influence investors' decision-making processes. The primary objective of the research is to investigate the relationship between FOMO and key behavioral trends, such as overtrading, speculative investing, and the formation of asset bubbles. A qualitative research approach was employed, utilizing a literature review of existing studies on behavioral finance, FOMO, and stock market dynamics. The findings indicate that FOMO significantly affects investors by amplifying emotional reactions to market trends, leading to irrational decisions that prioritize short-term gains over long-term financial stability. Social media and technology play a critical role in amplifying FOMO, creating herd behavior that contributes to market volatility and speculative bubbles, as seen in phenomena like "meme stocks." The study also reveals that younger investors are more susceptible to FOMO, largely due to their reliance on social media for investment advice. The results suggest that enhancing financial literacy and promoting disciplined, long-term investment strategies are essential for mitigating the negative effects of FOMO. Regulatory interventions targeting misinformation on digital platforms may also help reduce the prevalence of FOMO-driven investment behavior. Future research should further investigate the psychological mechanisms behind FOMO and explore the long-term sustainability of FOMO-driven market practices.

FINANCIAL LITERACY, RISK TOLERANCE, RETURN, AND INTEREST IN STUDENT INVESTMENT DECISIONS

Investing in the capital market is growing rapidly in Indonesia, as evidenced by the increasing number of investors registered at PT Kustodian Sentral Efek Indonesia and most of them are young investors under 30 years old. The objective of this research is to examine how financial literacy, risk tolerance, return, and interest affect decision-making when it comes to investments. The participants involved in this study are students enrolled in the Bachelor of Accounting program at Udayana University's Faculty of Economics and Business from the graduating classes of 2020 and 2021. The sample was determined using the purposive sampling technique, a sample of 242 respondents was obtained. The data analysis technique uses multiple linear regression analysis. The results of the analysis prove that financial literacy, risk tolerance, return, and interest have a positive effect on students' decision to invest. The results of this study can provide empirical support in behavioral finance theory and theory of planned behavior which explain behaviors related to students' decisions to invest.

Pengaruh Literasi Keuangan, Motivasi Investasi, dan Locus of Control Terhadap Keputusan Investasi Mahasiswa Akuntansi

In recent years, the interest in investment among young investors in Indonesia, especially those under the age of 30, has increased significantly. Nevertheless, low financial literacy remains a problem faced by many young people, which can pose risks to their investment decisions. This study aims to examine the influence of financial literacy, investment motivation, and locus of control on the investment decisions of accounting students. This research uses a quantitative approach with a survey method. The population of this study consists of accounting students from various universities in Indonesia. The sampling technique used is purposive random sampling, with a total of 100 respondents selected as the sample. Primary data was collected through the distribution of questionnaires, and data analysis was conducted using SPSS version 25 software. The results of the study indicate that financial literacy, investment motivation, and locus of control have a significant influence on investment decisions

Stock Market Participation Awareness among University Students in Nepal

Financial Literacy amongst students is very important aspects. Therefore, as part of Financial Literacy, a study was conducted amongst 120 students of various colleges and fields to explore the awareness level of stock market investments in the Kathmandu valley. With a growing number of young investors entering the financial market, this research seeks to understand the factors that influence students' engagement with the stock market, particularly in a developing economy like Nepal. The study employs both qualitative and quantitative methodologies, including surveys distributed to students across various colleges in Nepal. Findings reveal that while there is moderate awareness about the stock market among students, actual participation remains limited. The main barriers include a lack of financial literacy, limited disposable income, and perceived risks associated with stock investments. Furthermore, cultural attitudes towards saving and investing also play a significant role in shaping students' engagement with the stock market. The research underscores the importance of integrating financial education from the school level itself to equip students with the knowledge and confidence to participate in the stock market. This study contributes to the existing literature on financial literacy and investment behaviors, offering insights into the unique challenges faced by students in developing countries like Nepal. It emphasizes the need for targeted interventions to enhance financial literacy and foster a more inclusive financial ecosystem.

Impact of Heuristic Behavior and Risk Perception on Investment Decisions by Young Investors

This research examines how young investors' heuristic behaviour and risk perception influence their decision-making in investments within the Faculty of Economics and Business at Lambung Mangkurat University. The variables under investigation in this study include heuristic behaviour and risk perception as independent factors, with investment decision-making as the dependent variable. The study population encompassed 2,901 students in the Faculty of Economics and Business at Lambung Mangkurat University. The sample size was determined through purposive sampling, resulting in a final sample of 66 participants with investment experience. Primary data was collected via a questionnaire. The analysis employed multiple linear regression using the SPSS version 26 software. The findings demonstrate that heuristic behaviour and risk perception significantly influence investment decision-making. The implication of this research is to provide an understanding that it is essential to consider fundamental and technical analysis in investment decisions

Beyond age: Decoding the investment DNA of generations Z and Y in Indonesia

Investment decisions are a matter of how individuals should allocate funds into investment forms that provide future benefits. This paper investigates the impact of financial literacy, perceptions of risk and returns, family background, income, and financial technology proficiency on investment decisions among Generations Z and Y in Indonesia. This study uses a quantitative approach, using primary data from 240 respondents through purposive sampling. Primary data were collected through a questionnaire survey to collect respondents’ perceptions and investment decisions. The Likert scale assesses indicators by eliciting responses to statements and questions. The Structural Equation Model Partial Least Square (SEM-PLS) approach was employed for analysis utilizing WarpPLS 8.0 software. The results show that financial literacy, risk and return perception, income, and fintech proficiency significantly influence investment decisions (p < 0.05), while family background does not (p > 0.05). In addition, fintech proficiency mediates the effects of financial literacy, risk perception, family background, and income on investment decisions (p < 0.05). These findings suggest that improving financial literacy and fintech skills can lead to better investment decisions among young investors. This study highlights the need for targeted financial education programs and innovative fintech solutions to support informed investment choices. Further research is recommended to explore additional factors influencing investment decisions and to develop strategies to improve financial decision-making in this demographic group.

Solo Raya Young Muslims Generation Decision to Invest in Sharia Stocks and Green Investment

The younger generation, particularly Muslims, faces concerns about an uncertain future, particularly regarding job opportunities. The unemployment rate in Indonesia has shown an increase, predominantly among the younger generation. This study aims to examine the impact of financial literacy, perceived risk, and high self-confidence on the decision to invest in stocks, particularly Islamic stocks. The research was conducted in the Solo Raya area with 125 Muslim youth investors as respondents, consisting of millennials and Generation Z. The analysis technique used was multiple regression, conducted using SPSS software version 24. The regression results, with a significance value below 0.05, indicate a significant influence of financial literacy, perceived risk, and high self-confidence on the investment decisions of young Muslim investors. Good financial knowledge encourages the younger generation to invest in stocks with confidence, anticipating substantial profits in the future. Perception of risk remains a consideration, leading young investors to delay investment decisions until they feel highly confident.

Youth Investment Trends : Analysing the Rise of Young Investors in the Stock Market : Indian Vs U.S. Stocks

This study explores why young Indian investors are increasingly favouring U.S. stocks over domestic ones. Through surveys & interviews with investors aged 18-35, we uncover key influences such as the allure of global brands, the perceived stability of U.S. markets, and the power of social media. While tech innovations and easy access to trading platforms boost their enthusiasm, a gap in financial literacy poses risks. The reasons causing young investors to prefer US stocks over Indian stocks are higher returns, stability & global exposure. We highlight the need for better education and support to harness this demographic’s potential, aiming to democratize investment opportunities in the digital age

The Role of Self-Determination Theory in Shaping Investment Readiness Among Young Investors

This study explores the investment readiness of students from the Faculty of Economics and Business at Universitas Negeri Makassar using the Self-Determination Theory (SDT) framework. Both intrinsic and extrinsic motivation were found to play crucial roles in influencing investment readiness. Intrinsic motivation drives students to develop their knowledge and skills, while extrinsic motivation is triggered by financial rewards and social recognition. The main barriers identified include low financial literacy, limited access to information, and resistance to new technologies. The study suggests that enhancing financial education and digital literacy through comprehensive programs and supportive environments is essential to overcoming these obstacles and improving students' investment readiness. By addressing these barriers, educational institutions can better prepare young investors for successful financial decision-making, equipping them with the necessary tools and confidence to navigate the investment landscape.

Investment Knowledge in the Young Generation: A Theory of Reasoned Action Perspective

This study aims to explore the investment knowledge of students from the Faculty of Economics and Business at Universitas Negeri Makassar using the Theory of Reasoned Action framework. Basic investment knowledge is crucial for prospective investors to avoid irrational investment practices, such as gambling, following trends without analysis, falling victim to fraud, and facing significant financial losses. Adequate knowledge, experience, and business instincts are essential for analyzing which assets to invest in within the capital market. Understanding the correct methods of investing is vital to minimize the risk of losses, particularly in stock market investments. While the growth of investors in Indonesia's capital market is promising, the overall interest in investing remains relatively low compared to other countries. This study underscores the importance of enhancing investment education to better prepare young investors. By increasing their financial literacy and decision-making capabilities, we can help foster a more robust investment culture and contribute to the financial well-being of the young generation.

How Investment Behaviour of Young Investors? A Case Study on The Indonesia Stock Exchange

This research aims to dig deeper into the investment behavior of young investors on the Indonesian Stock Exchange. This research was conducted in Bali Province, especially the Denpasar City area. The sample was determined using convenience sampling with a total sample of 180 young investors, namely the millennial generation and generation z in Denpasar City. Data was obtained directly from distributing questionnaires via Google Form. The data analysis technique used is SEM-PLS analysis. The research results show that, 1) herding behavior effect investment decision making, 2) heuristic bias has no effect on investment decision making, 3) anchoring bias effect investment decision making, 4) the level of overconfidence an investor has will improve the investment decision making process , 5) herding behavior does not have a significant effect on the level of overconfidence, 6) heuristic bias can increase the level of overconfidence, 7) anchoring bias can increase the level of overconfidence, 8) overconfidence cannot increase the effect of herding behavior to improve investment decisions, 9) overconfidence can increasing the effect of heuristic bias to improve investment decisions, and 10) overconfidence can increase the effect of anchoring bias to improve investment decisions. Future researchers can further examine overconfidence in mediating the effect of herding behaviours on investment decision making, and the effect of heuristic bias on investment decision making. Young investors in Denpasar City are advised to increase their knowledge and investment skills in the capital market to reduce the risk of bias in making investment decisions.

The Interpretation Of Tropical Architecture in Designing Business Hotel In Medan

The increasing level of urbanization is in line with the need for housing. Not only that, but also the increase in people's need for a place to live has led to an increase in land prices. The city of Medan is one of the developing cities that many people pay attention to. The development of this city has attracted many people's attention, making young investors and young business people who are part of the community who have a contemporary and instant lifestyle and lifestyle, so that the need for lodging places becomes a priority. And due to the increase in the value of existing land in the city of Medan, lodging buildings that have good land efficiency are needed, such as mid-rise and high-rise buildings. Nowadays, hotels are not just a place to stay anymore for visitors doing business or tourism. But over the times, hotels are currently used to accommodate weddings, meetings, parties, and are often also used as recreational or entertainment facilities for the community. Seeing the small number of four-star hotels in Medan City, especially in Polonia District, is the reason why additional four-star hotel buildings are needed. Therefore, from these problems, the authors feel compelled to play a role in implementing ideas, ideas, and knowledge about four-star hotels, by designing business hotels with four-star facilities using a tropical architectural approach.

Financial technology, social media influencers, and experience of cryptocurrency investment decisions: Financial literacy’s role

This study evaluates the impact of financial technology usage, social media influencer presence, and investment experience on cryptocurrency investment decisions, considering financial literacy as a moderating factor. Financial technology refers to using technology in financial systems to create new service products, technologies, and business models. Social media influencers have gained fame and exert significant influence over their followers on social media platforms. Meanwhile, investment experience encompasses the duration of an investor's experience in trading transactions. Data for the study were obtained through a Google Form questionnaire distributed via social media to cryptocurrency investors aged 20 to 30 in the Jabodetabek area. Convenience sampling technique was employed to obtain a sample of 192 respondents. Data analysis was conducted using the SEM-PLS method with SmartPLS software. The results indicate that using financial technology and social media influencers positively influences cryptocurrency investment decisions, while investment experience does not significantly impact. However, financial literacy does not strengthen the influence of financial technology usage, social media influencers, and investment experience on cryptocurrency investment decisions. The research findings indicate that enhancing financial literacy among young investors should be prioritized. This can be achieved through formal education programs and financial literacy campaigns. Practitioners in the financial industry also need to provide financial education to their clients and offer educational content on cryptocurrency. These measures can help mitigate uncontrolled investment risks and promote informed investment decisions, thereby contributing to the stability of the financial market and the financial protection of the wider community.

Young Investors' Decision to Select Islamic Mutual Fund Investment Applications for Students in Jember: The Impact of Brand Image, Electronic Word of Mouth, and Perceived Ease of Use

This study aims to determine the effect of brand image, electronic word of mouth, and perceived ease of use on young investors decisions in choosing Islamic mutual fund investment applications for students in Jember. This type of research uses explanatory research and uses a quantitative approach. Researchers used primary data obtained from distributing questionnaires to students in Jember with a sample of 150 respondents. The technique used was purposive sampling technique to select samples. Multiple linear regression analysis is the method used in this study using SPSS software version 26. This study shows the results that the t test (partial) variable electronic reviews and perceived convenience affect young investors in choosing an Islamic mutual fund investment application while brand image does not affect young investors decisions in choosing investment applications

Analysis of Young Investor’s perception, apprehension and decision making in Indian Stock Market

This master thesis aims to explore the perception, apprehensions, and decision making processes of young investors in the Indian stock market. With the rise of digital platforms and increased accessibility to financial information, understanding how young investors navigate the complexities of stock market investments becomes crucial. The study employs a qualitative approach, utilizing interviews and surveys to gather insights into the factors influencing the investment behaviour of young individuals. The findings of this research are expected to shed light on the unique challenges and opportunities faced by young investors, contributing to the development of tailored investment strategies and educational initiatives. The report contains the introduction of the Stock Markets and the study about the investors and traders in these. It also contains the methods and techniques adopted by me while doing this research project under the head ‘Research Methodology’. A structured questionnaire was designed and it consisted of close ended and rating scale. Respondents were asked to tick one option in multiple choice questions and were asked to rate certain given parameters on rating scale. Data is presented with the help of self-explanatory charts. Interpretations have been made together. And the most crucial, the ‘Findings’ section bears my personal comments. This report is a written account of what I learnt and experienced during training and I have tried to complete this report with as much perfection as possible to make it more meaningful and purposeful.