The Influence of Financial Literacy and Gender Diversity on Digital Investment Decisions

Nodirbek Bakirov, Budi Supriatono Purnomo, Irsyad Fauzan Prasetia

Abstract


This study examines the effects of financial literacy and gender on investment decisions among 115 Accounting students at the Indonesia University of Education (UPI) who use digital banking services. Employing a quantitative approach with multiple linear regression analysis, the findings reveal that financial literacy significantly and positively influences investment decisions (β = 0.614, p < 0.001), fostering more rational choices. Conversely, gender shows a weaker, statistically non-significant positive effect at the 5% level (β = 0.198, p = 0.083). Simultaneously, both variables account for 32% of the variance in investment decisions (R² = 0.32). These findings support Behavioral Finance Theory, proving that cognitive capability plays a far more crucial role than demographic characteristics in shaping investment behavior within a digital environment. Consequently, enhancing financial literacy among university students is vital to promoting responsible investment decision-making in the digital financial ecosystem.


Keywords


Digital Banking Services; Financial Literacy; Gender Diversity; Investment Decisions

References


Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697.

DOI: https://doi.org/10.1111/ecin.12255

Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. Quarterly Journal of Economics, 116(1), 261–292.

DOI: https://doi.org/10.1162/003355301556400

Bannier, C. E., & Neubert, M. (2016). Gender differences in financial risk taking: The role of financial literacy and risk tolerance. Economics Letters, 145, 130–135.

DOI: https://doi.org/10.1016/j.econlet.2016.05.033

Bucher-Koenen, T., Lusardi, A., Alessie, R., & van Rooij, M. (2017). How financially literate are women? An overview and new insights. Journal of Consumer Affairs, 51(2), 255–283.

DOI: https://doi.org/10.1111/joca.12121

Demirgüç-Kunt, A., Klapper, L., Singer, D., & Ansar, S. (2022). The Global Findex Database 2021: Financial inclusion, digital payments, and resilience in the age of COVID-19. World Bank.

Official report: World Bank Global Findex 2021 (OECD)

Bayar, Y., Sezgin, H. F., Öztürk, Ö. F., & Şaşmaz, M. Ü. (2020). Financial literacy and financial risk tolerance of individual investors: Multinomial logistic regression approach. SAGE Open, 10(3).

DOI: https://doi.org/10.1177/2158244020945717

Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316.

DOI: https://doi.org/10.1111/j.1745-6606.2010.01170.x

Bottazzi, L., & Lusardi, A. (2021). Stereotypes in financial literacy: Evidence from PISA. Journal of Corporate Finance, 71, 101831.

DOI: 10.1016/j.jcorpfin.2020.101831

Kaiser, T., Lusardi, A., Menkhoff, L., & Urban, C. (2022). Financial education affects financial knowledge and downstream behaviors. Journal of Financial Economics, 145(2), 255–272.

DOI: https://doi.org/10.1016/j.jfineco.2021.09.022

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.

Official article: American Economic Association

DOI: https://doi.org/10.1257/jel.52.1.5 (Topcat)

Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: An overview. Journal of Pension Economics & Finance, 10(4), 497–508.

DOI: https://doi.org/10.1017/S1474747211000448

Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358–380.

DOI: https://doi.org/10.1111/j.1745-6606.2010.01173.x

Organisation for Economic Co-operation and Development. (2020). OECD/INFE 2020 International Survey of Adult Financial Literacy. OECD Publishing.

Official publication: OECD/INFE 2020 International Survey of Adult Financial Literacy

DOI: https://doi.org/10.1787/145f5607-en (OECD)

Organisation for Economic Co-operation and Development. (2024). OECD Economic Surveys: Indonesia 2024. OECD Publishing.

Official publication: OECD Economic Surveys: Indonesia 2024

Bannier, C. E., & Neubert, M. (2016). Gender differences in financial risk taking: The role of financial literacy and risk tolerance. Economics Letters, 145, 130–135.

DOI: https://doi.org/10.1016/j.econlet.2016.05.033

Thaler, R. H. (2016). Behavioral economics: Past, present, and future. American Economic Review, 106(7), 1577–1600.

DOI: https://doi.org/10.1257/aer.106.7.1577

van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472.

DOI: https://doi.org/10.1016/j.jfineco.2011.03.006

van Rooij, M., Lusardi, A., & Alessie, R. (2012). Financial literacy, retirement planning and household wealth. The Economic Journal, 122(560), 449–478.

DOI: https://doi.org/10.1111/j.1468-0297.2012.02501.x

Xu, L., & Zia, B. (2012). Financial literacy around the world: An overview of the evidence with practical suggestions for the way forward (Policy Research Working Paper No. 6107). World Bank.

Official report: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/264001468340889422

Fonseca, R., Mullen, K. J., Zamarro, G., & Zissimopoulos, J. (2012). What explains the gender gap in financial literacy? The role of household decision making. Journal of Consumer Affairs, 46(1), 90–106.

DOI: https://doi.org/10.1111/j.1745-6606.2011.01221.x




DOI: https://doi.org/10.17509/jrak.v14i2.98076

Refbacks

  • There are currently no refbacks.


Creative Commons License

Jurnal Riset Akuntansi dan Keuangan  is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats