The Effect of Financial Knowledge on Investment Decisions With Financial Behavior as Mediation

Abstract

The purpose of this study aims to determine the effect of financial knowledge and financial behavior on the investment decisions of Jakarta State University students. In behavioral finance, the role of financial knowledge is very important in making financial decisions. Investors can irrationally make choices. This study uses a verification method with quantitative data. Data collection was carried out using a questionnaire of respondents. Respondents were selected by random sampling technique. In this study, researchers used descriptive data analysis techniques, regression tests, and t-tests with the help of the SPSS software program. The results of this study indicate that financial knowledge has a positive and significant effect on investment decisions. Financial behavior has a positive and significant effect on investment decisions. Young investors should consider financial behavior and increase investment knowledge to make optimal decisions.