MODERATING ROLE OF PERCEIVED RISKS IN THE RELATIONSHIP BETWEEN FINANCIAL KNOWLEDGE AND THE INTENTION TO INVEST IN INDONESIA STOCK EXCHANGE FOR MANAGEMENT 2022 STUDENTS IN SBM ITB
Behavioral finance has changed the perspective in financial world since the last few decades. Kahneman and Tversky propose that people judge circumstances relative to a point in time that can be subjective, contrary to the assumptions of classical economic theory that people assess the various state...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/66745 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Behavioral finance has changed the perspective in financial world since the last few decades. Kahneman and Tversky propose that people judge circumstances relative to a point in time that can be subjective, contrary to the assumptions of classical economic theory that people assess the various states of the world in an absolute and objective manner. Perceived risk is an example that could be seen as a factor or an anomaly in financial markets outside the principles of classical finance since it is not part of the rational expectations. This study seeks to determine how perceived risks affect the relationship between financial knowledge (measured by both objective and subjective knowledge) and investment intention in the Indonesia Stock Exchange for Management 2022 School of Business and Management Bandung Institute of Technology students. The researcher collected data from 154 students who have shown interest in investing in the Indonesia Stock Exchange for the last few years. The data is collected through an online questionnaire using Google Form shared using social media LINE. To analyze the data, the researcher used structural equation modeling (SEM) utilizing the Smart PLS 3.3.7 software. The analysis methods use in this research such as descriptive analysis, measurement model, and structural model. The results of this study show that subjective knowledge has a bigger overall impact on the formation of financial knowledge than does objective knowledge. The results show that perceived risks and financial knowledge are positively correlated with intention to invest. The results also show that the connection between financial knowledge and the intention to invest in the Indonesia Stock Exchange is negatively impacted by perceived risks. |
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