Factors Affecting The Intention to Invest in Cripto Assets Among Indonesian Youth
Abstract
Main Purpose - This study aims to determine the role of financial risk tolerance in mediating the impact of digital financial literacy, investment experience, and e-payment behavior on intention to invest.
Method - This research is a type of explanatory research with a survey method and as many as 215 respondents filled out a questionnaire with valid answers which were then used for analysis. Hypothesis testing uses a structural equation model (SEM) and is processed using Smart PLS-SEM.
Main Findings - This research proves that there is a positive and significant role of financial risk tolerance in mediating the impact of digital financial literacy, investment experience, and e-payment behavior on intention to invest. In addition, this study shows that most members of the younger generation have a level of risk tolerance or risk profile that falls into the moderate category or loss-adverse category in the aspects of risk speculation, investment risk, and financial risk evaluation.
Theory and Practical Implications - This study provides policy directions for related parties to increase digital finance adoption and financial literacy in the context of financial inclusion. This research reinforces that digital financial literacy is important, especially in terms of digital financial knowledge for young people.
Novelty - This study uses the risk tolerance profile variable as a variable that mediates the relationship between digital financial literacy and investment intentions using consumer behavior theory.
Keywords
Full Text:
PDFReferences
Adil, M., Singh, Y., & Ansari, M. S. (2022). Does financial literacy affect investor’s planned behavior as a moderator? Managerial Finance, 48(9–10), 1372–1390. https://doi.org/10.1108/MF-03-2021-0130
Ahmad Fauzi, A. W., Husniyah, A. R., Mohamad Fazli, S., & Mohamad Amim, O. (2017a). Financial Risk Tolerance as a Predictor for Malaysian Employees’ Gold Investment Behavior. Eurasian Studies in Business and Economics, 7, 63–76. https://doi.org/10.1007/978-3-319-54112-9_5
Ahmad Fauzi, A. W., Husniyah, A. R., Mohamad Fazli, S., & Mohamad Amim, O. (2017b). Financial Risk Tolerance as a Predictor for Malaysian Employees’ Gold Investment Behavior. Eurasian Studies in Business and Economics, 7, 63–76. https://doi.org/10.1007/978-3-319-54112-9_5
Almeida, J., & Gonçalves, T. C. (2023). A systematic literature review of investor behavior in the cryptocurrency markets. Journal of Behavioral and Experimental Finance, 37, 100785. https://doi.org/10.1016/j.jbef.2022.100785
Arias-Oliva, M., Pelegrín-Borondo, J., & Matías-Clavero, G. (2019). Variables influencing cryptocurrency use: A technology acceptance model in Spain. Frontiers in Psychology, 10(MAR), 1–13. https://doi.org/10.3389/fpsyg.2019.00475
B. Vimala, & Alamelu, K. (2018). Financial Literacy, Perceived Risk Attitudes and Investment Intentions Among Women. Paripex - Indian Journal of Research, 7(November 2018), 4–7.
Bullmann, D., Klemm, J., & Pinna, A. (2021). In Search for Stability in Crypto-Assets: Are Stablecoins the Solution? In SSRN Electronic Journal (Issue 230). https://doi.org/10.2139/ssrn.3444847
Chin, W. W. (2010). How to Write Up and Report PLS Analyses. Handbook of Partial Least Squares, 655–690. https://doi.org/10.1007/978-3-540-32827-8_29
Cristofaro, M., Giardino, P. L., Misra, S., & Phan, Q. T. P. and H. H. (2023). Behavior or culture ? Investigating the use of cryptocurrencies for electronic commerce across the USA and China. Management Research Review, 46(3), 340–368. https://doi.org/10.1108/MRR-06-2021-0493
Dew, J., & Xiao, J. (2011). The financial management behavior scale: Development and validation. https://scholarsarchive.byu.edu/facpub/4521/
Echchabi, A., Omar, M. M. S., & Ayedh, A. M. (2021). Factors influencing Bitcoin investment intention : the case of Oman. International Journal of Internet Technology and Secured Transactions, 11(1), 1–15.
Edwards, F. R., Hanley, K., Litan, R., & Weil, R. L. (2019). Crypto Assets Require Better Regulation: Statement of the Financial Economists Roundtable on Crypto Assets. Financial Analysts Journal, 75(2), 14–19. https://doi.org/10.1080/0015198X.2019.1593766
Ehret, T., & Hammond, S. (2022). Cryptocurrency regulations by country. Regulatory Intelligence, 20–29.
Gazali, H. M., Ismail, C. M. H. B. C., & Amboala, T. (2018). Exploring the intention to invest in cryptocurrency: The case of bitcoin. Proceedings - International Conference on Information and Communication Technology for the Muslim World 2018, ICT4M 2018, March 2021, 64–68. https://doi.org/10.1109/ICT4M.2018.00021
Gilliam, J., Chatterjee, S., & Grable, J. (2010). Measuring the Perception of Financial Risk Tolerance: A Tale of Two Measures. Journal of Financial Counseling and Planning, 21(2), 40–53. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2061313
Grable, J. E. (2008). Risk Tolerance. Handbook of Consumer Finance Research, 3–19. https://doi.org/10.1007/978-0-387-75734-6_1
Grable, J. E. (2016). Financial Risk Tolerance. Handbook of Consumer Finance Research, 19–31. https://doi.org/10.1007/978-3-319-28887-1_2
Grable, J. E., Joo, S. H., & Kruger, M. (2020). Risk tolerance and household financial behaviour: A test of the reflection effect. IIMB Management Review, 32(4), 402–412. https://doi.org/10.1016/J.IIMB.2021.02.001
Gunawan, V., Dewi, V. I., Iskandarsyah, T., & Hasyim, I. (2021). Women’s Financial Literacy: Perceived Financial Knowledge and Its Impact on Money Management. Economics and Finance in Indonesia, 67(1), 63–74. https://doi.org/10.47291/EFI.V67I1.720
Gupta, S., Gupta, S., Mathew, M., & Sama, H. R. (2021). Prioritizing intentions behind investment in cryptocurrency: a fuzzy analytical framework. Journal of Economic Studies, 48(8), 1442–1459. https://doi.org/10.1108/JES-06-2020-0285
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage, 390.
Hair, J. F., Jr.Hult, M., G. T., Ringle, C. M., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). https://books.google.co.id/books?hl=id&lr=&id=6z83EAAAQBAJ&oi=fnd&pg=PT11&dq=hair+2016&ots=tmt_mBw0wM&sig=4b2vrJKGkE_hVt2C9z2OWD32aak&redir_esc=y#v=onepage&q=hair 2016&f=false
Houben, R., & Snyers, A. (2020). Crypto-assets – Key developments, regulatory concerns and responses. In Study for the Committee on Economic and Monetary Affairs, Policy Department for Economic, Scientific and Quality of Life Policies, European Parliament, Luxembourg (Issue April). https://doi.org/10.4324/9780429351921-29
Jamal, A. A. A., Ramlan, W. K., Mohidin, R., & Osman, Z. (2016). Determinants of Savings Behavior Among University Students In Sabah, Malaysia. International Journal of Accounting, Finance and Business, 1(1), 24–37. http://www.ijafb.com/PDF/IJAFB-2016-01-09-04.pdf
Kasoga, P. S. (2021). Heuristic biases and investment decisions: multiple mediation mechanisms of risk tolerance and financial literacy—a survey at the Tanzania stock market. Journal of Money and Business, 1(2), 102–116. https://doi.org/10.1108/jmb-10-2021-0037
Liu, Y., & Tsyvinski, A. (2021). Risks and returns of cryptocurrency. Review of Financial Studies, 34(6), 2689–2727. https://doi.org/10.1093/rfs/hhaa113
Mishra, R. (2018). Financial literacy, risk tolerance and stock market participation. Asian Economic and Financial Review, 8(12), 1457–1471. https://doi.org/10.18488/journal.aefr.2018.812.1457.1471
Morgan, P. J., & Trinh, L. Q. (2020). Fintech and Financial Literacy in Viet Nam (ADBI Working Paper Series). https://www.adb.org/publications/fintech-and-financial-literacy-viet-nam
Nguyen, Linh T.M., Gallery, G., & Newton, C. (2016). The influence of financial risk tolerance on investment decision-making in a financial advice context1. Australasian Accounting, Business and Finance Journal, 10(3), 3–22. https://doi.org/10.14453/AABFJ.V10I3.2
Nguyen, Linh Thi My, Nguyen, P. T., Tran, Q. N. N., & Trinh, T. T. G. (2022). Why does subjective financial literacy hinder retirement saving? The mediating roles of risk tolerance and risk perception. Review of Behavioral Finance, 14(5), 627–645. https://doi.org/10.1108/RBF-03-2021-0036
Pham, Q. T., Phan, H. H., Cristofaro, M., Misra, S., & Giardino, P. L. (2021). Examining the Intention to Invest in Cryptocurrencies. International Journal of Applied Behavioral Economics, 10(3), 59–79. https://doi.org/10.4018/ijabe.2021070104
Pompian, M. (2018). Risk Profiling through a Behavioral Finance Lens. In Risk profiling and tolerance: Insights for the private wealth manager (pp. 17–34). https://books.google.co.id/books?hl=id&lr=&id=5PCqCwAAQBAJ&oi=fnd&pg=PT6&dq=RISK+PROFILING+THROUGH+A+BEHAVIORAL+FINANCE+LENS&ots=7ylKfrBXMJ&sig=uwHcXZy-U-4OeOJL6W9nCrNUOoI&redir_esc=y#v=onepage&q=RISK PROFILING THROUGH A BEHAVIORAL FINANCE LENS&f=false
Prasad, H., Meghwal, D., & Dayama, V. (2018). Digital Financial Literacy: A Study of Households of Udaipur. Journal of Business and Management, 5(I), 23–32. https://doi.org/10.3126/jbm.v5i0.27385
Rejeb, A., Rejeb, K., & G. Keogh, J. (2021). Cryptocurrencies in Modern Finance: A Literature Review. Etikonomi, 20(1), 93–118. https://doi.org/10.15408/etk.v20i1.16911
Ringle, C. M., Sarstedt, M., Mitchell, R., & Gudergan, S. P. (2018). Partial least squares structural equation modeling in HRM research. The International Journal of Human Resource Management, 31(12), 1617–1643. https://doi.org/10.1080/09585192.2017.1416655
Samanez-Larkin, G., Mottola, G., Heflin, D., Yu, L., & Boyle, P. (2020). Overconfidence in financial knowledge associated with financial risk tolerance in older adults. https://doi.org/10.31234/OSF.IO/P5GEC
Samsuri, A. (2019). Effects of Risk Tolerance and Financial Literacy to Investment Intentions. International Journal of Innovation, Creativity and Change, 10(9), 40–54. www.ijicc.net
Samsuri, A., Ismiyanti, F., & Narsa, I. M. (2019). The effects of risk tolerance and financial literacy to investment intentions. International Journal of Innovation, Creativity and Change, 10(6), 280–294.
Setiawan, M., Effendi, N., Santoso, T., Dewi, V. I., & Sapulette, M. S. (2020). Digital financial literacy, current behavior of saving and spending and its future foresight. Economics of Innovation and New Technology, 31(4), 320–338. https://doi.org/10.1080/10438599.2020.1799142
Soehartono, & Pati, U. K. (2019). The Regulation of Cryptocurrency Investation in Indonesia. Advances in Social Science, Education and Humanities Research, 358, 209–212. https://doi.org/10.2991/ICGLOW-19.2019.54
Stix, H. (2019). Ownership and purchase intention of crypto-assets – survey results (No. 226; Working Paper, Issue 226).
Sukumaran, S., Bee, T. S., & Wasiuzzaman, S. (2022). Cryptocurrency as an Investment: The Malaysian Context. Risks, 10(4). https://doi.org/10.3390/risks10040086
Taniady, V., Permatasari, S. P., & Nugraha, R. W. (2022). Crypto Asset-Trade Resilience During The Covid-19 Pandemic In Indonesia. Jurnal Jurisprudence, 11(1), 31–43. https://doi.org/10.23917/jurisprudence.v11i1.13340
Tavor, T., & Garyn-Tal, S. (2016). Risk tolerance and rationality in the case of retirement savings. Studies in Economics and Finance, 33(4), 688–703. https://doi.org/10.1108/SEF-10-2015-0240
Tony, N., & Desai, K. (2020). Impact of digital financial literacy on digital financial inclusion. International Journal of Scientific and Technology Research, 9(1), 1911–1915.
Wang, A. (2009). Interplay of Investors’ Financial Knowledge and Risk Taking. Journal of Behavioral Finance, 10(4), 204–213. https://doi.org/10.1080/15427560903369292
Zhao, H., & Zhang, L. (2021). Financial literacy or investment experience: which is more influential in cryptocurrency investment? International Journal of Bank Marketing, 39(7), 1208–1226. https://doi.org/10.1108/IJBM-11-2020-0552
Zulaihati, S., Susanti, S., & Widyastuti, U. (2020). Teachers’ financial literacy: Does it impact on financial behaviour? Management Science Letters, 10(3), 653–658. https://doi.org/10.5267/j.msl.2019.9.014
DOI: https://doi.org/10.17509/jaset.v15i1.56897
Refbacks
- There are currently no refbacks.
Jurnal ASET (Akuntansi Riset) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
View My Stats Visitor