CAN INVESTMENT OUTCOME BE IMPROVED BY HIGHER FINANCIAL LITERACY? A STUDY CASE OF INDONESIA MILLENIALS

• Main Author: Dwi Putra Lubis, Fauzan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/34825
• Institution: Institut Teknologi Bandung

Investment activity in Indonesia is proliferating and is becoming increasingly popular. Investment is known as a financial activity which includes the purchase of assets such as bonds, stocks, real estate, and other types of investment instruments. This activity is popular among the young generation. Investment considered being successful when an investor gets a better investment outcome, but everyone cannot get a high return and achieve a successful investment. There is a need to have extensive knowledge to beat the market. This issued leads to the need for seeing the determinant that can improve investment outcome. In order to find the determinant we do some literature review and choose financial literacy and confidence level as the model with demographical variables. The proposed model was analyzed using a logistic regression model with data provided by 445 Millennials in Indonesia. The study result shows that the model is a good fit for explaining financial literacy, confidence level, and investment outcome. The result shows that the level of financial literacy is low among millennial generation; men tend to have a higher knowledge than women. Furthermore, several demographical variables have a positive impact on investment outcomes such as gender, age, monthly investment spending, and risk profile.moreover, financial literacy level also has a positive impact on investment outcome. Our last finding suggests conflicting result, overconfidence investor in this study have a definite relation to investment outcome. This condition might happen because the overconfident investor possessed adequate knowledge about literacy.