Millennials' Behavior: Does Stock Investors' Self-Efficacy Mediate Financial Literacy on Financial Behavior?
Keywords:
Millennials' behavior, Stock investors, Financial Literacy, Financial Self-Efficacy, Financial Behavior
Abstract
Financial literacy among millennials is a fundamental need because many are victims of fraudulent investments. After all, the financial literacy and behavior index is still relatively low. Based on research conducted, almost 86 percent of their financial condition is in the unhealthy category. This novelty perspective sheds light on the influence of both Financial Literacy and Financial Self-Efficacy on this specific group's financial decision-making and behavior. This research is a quantitative type of research with an associative approach. Individual investors participating in The Indonesia Capital Market are the population target in this study. The samples used in this study amounted to 150 models. The sampling technique in this study is purposive sampling. The findings of this study demonstrate a positive relationship between financial literacy and financial self-efficacy. Moreover, the results indicate that financial literacy and self-efficacy significantly impact financial behavior. Furthermore, this study provides evidence supporting the mediating role of financial self-efficacy in the relationship between financial literacy and financial behavior. This conclusion indicates the importance of strengthening financial literacy and self-efficacy in millennial stock investors to encourage positive financial behavior. These steps are expected to help millennial stock investors achieve long-term financial goals better.
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Amagir, A., Groot, W., van den Brink, H. M., & Wilschut, A. (2020). Financial literacy of high school students in the Netherlands: knowledge, attitudes, self-efficacy, and behavior. International Review of Economics Education, 34(February), 100185. https://doi.org/10.1016/j.iree.2020.100185
Andarsari, P. R., & Ningtyas, M. N. (2019). The Role of Financial Literacy on Financial Behavior. Jabe (Journal of Accounting and Business Education), 4(1), 24. https://doi.org/10.26675/jabe.v4i1.8524
Bandura, A. (2006). Toward a Psychology of Human Agency. Perspectives on Psychological Science, 1(2), 164–180. https://doi.org/10.1111/j.1745-6916.2006.00011.x
Budiati, I., Susianto, Y., Adi, W. P., Ayuni, S., Reagan, H. A., Larasaty, P., Setiyawati, N., Pratiwi, A. I., &; Saputri, V. G. (2018). Profile of Indonesian Millennial
Generation. 1–153. www.freepik.com
Chan, C. K. Y., & Lee, K. K. W. (2023). The AI generation gap: Are Gen Z students more interested in adopting generative AI such as ChatGPT in teaching and learning than their Gen X and Millennial Generation teachers? 2018. http://arxiv.org/abs/2305.02878
Chong, K. F., Sabri, M. F., Magli, A. S., & Rahim, H. A. B. D. (2021). The Effects of Financial Literacy, Self-Efficacy, and Self-Coping on Financial Behavior of Emerging Adults *. 8(3), 905–915. https://doi.org/10.13106/jafeb.2021.vol8.no3.0905
Dewi, I. A. K., & Rochmawati, R. (2020). The effect of money attitude on personal financial management behavior: Knowledge and financial self-efficacy as moderation. Journal of Social Science Education, 30(2), 123–134. https://doi.org/10.23917/jpis.v30i2.10956
Fama, E. (1965). The Behaviour of Stock Market Prices. Journal of Business, pp. 64, 34–105. https://doi.org/10.2307/2277297
Fetesond, M., &; Cakranegara, A. (2022). THE INFLUENCE OF FINANCIAL LITERACY, ACADEMIC ABILITY, AND WORK EXPERIENCE ON STUDENT FINANCIAL BEHAVIOR. 9(1).
Goyal, K., & Kumar, S. (2021). Financial literacy: A systematic review and bibliometric analysis. International Journal of Consumer Studies, 45(1), 80–105. https://doi.org/10.1111/ijcs.12605
Gülsün, İ., Malinen, O.-P., Yada, A., & Savolainen, H. (2023). Exploring the role of teachers' attitudes towards inclusive education, their self-efficacy, and collective efficacy in behavior management in teacher behavior. Teaching and Teacher Education, 132, 104228. https://doi.org/10.1016/j.tate.2023.104228
Hasanudin, Nurwulandari, A., &; Caesariawan, I. (2022). The influence of financial literacy, financial efficacy, and financial attitudes on investment decisions through financial behavior. Scientific Journal of Accounting and Humanities, 5(2). https://doi.org/10.23887/jiah.v10i2.25574
Hikmah, H., Siagian, M., &; Siregar, P. (2020). Analysis of Financial Literacy Level, Experienced Regret, and Risk Tolerance in Investment Decisions in Batam. Jesya (Journal of Sharia Economics &; Economics), 3(1), 138–146. https://doi.org/10.36778/jesya.v3i1.142
Joseph, M. (2019). The Influence of Technology and Knowledge Advances on the Millennial Generation's Interest in Investing in the Capital Market. Journal of Management and Business Dynamics, 2(2), 1–13.
Khalid, F. (2020). Factor Affecting Investment Behavior: Mediating Role of Self-Efficacy. Journal of Finance & Economics Research, 5(2), 112–125. https://doi.org/10.20547/jfer2005204
Khodijah, I., Afriani, R. I., Yuliah, Y., &; Octavitri, Y. (2021). The influence of financial literacy and financial attitudes on family financial management behavior during the Covid-19 pandemic with self-efficacy as an intervening variable. National Conference on Applied Business, Education, &Technology (NCABET), 1(1), 630–644. https://doi.org/10.46306/ncabet.v1i1.51
Liu, L., & Zhang, H. (2021). Financial literacy, self-efficacy, and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, p. 32, 100569. https://doi.org/10.1016/j.jbef.2021.100569
Molina-García, A., Cisneros-Ruiz, A. J., López-Subires, M. D., & Diéguez-Soto, J. (2023). How does financial literacy influence undergraduates’ risk-taking propensity? The International Journal of Management Education, 21(3), 100840. https://doi.org/10.1016/j.ijme.2023.100840
Pradinaningsih, N. A., &; Wafiroh, N. L. (2022). The Effect of Financial Literacy, Financial Attitudes and Self-Efficacy on Housewives' Financial Management. E-Journal of Accounting, 32(6), 1518. https://doi.org/10.24843/eja.2022.v32.i06.p10
Ramadani, A. G., Tubastuvi, N., Fitriati, A., & Widhiandono, H. (2023). MILLENNIAL S INVESTMENT DECISION IN CAPITAL MARKET INVESTMENT WITH FINANCIAL BEHAVIOR AS AN INTERVENING. 355–375.
Sampoerno, A. E., &; Haryono, N. A. (2021). The Effect of Financial Literacy, Income, Hedonism Lifestyle, Self-Control, and Risk Tolerance on Financial Management Behavior in the Millennial Generation of Surabaya City. Journal of Management Science, 9(3), 1002–1014. https://doi.org/10.26740/jim.v9n3.p1002-1014
Sari, E. Y. N., & Anam, A. K. (2021). Financial Attitudes, Behavioral Control, Self-Efficacy, and Financial Behavior. Organum: Scientific Journal of Management and Accounting, 4(1), 28–39. https://doi.org/10.35138/organum.v4i1.134
Singh, D., Barreda, A. A., & Singh, N. (2019). THE MEDIATING EFFECT OF FINANCIAL SELF-EFFICACY ON THE FINANCIAL LITERACY-BEHAVIOR RELATIONSHIP : GENERATION Y ’ Keyword s. 6(2), 120–133. https://doi.org/10.18488/journal.29.2019.62.120.133
Suliyanto. (2018). Business Research Methods. Andi.
van der Velde, L. A., van Dijk, W. W., Numans, M. E., & Kiefte-de Jong, J. C. (2022). Extending the Theory of Planned Behavior for Explaining Dietary Quality: The Role of Financial Scarcity and Food Insecurity Status. Journal of Nutrition Education and Behavior, 54(7), 636–646. https://doi.org/10.1016/j.jneb.2022.02.019
Published
2023-10-25
How to Cite
Arienda Gitty Ramadani, Dewi Khornida Marheni, & Hery Haryanto. (2023). Millennials’ Behavior: Does Stock Investors’ Self-Efficacy Mediate Financial Literacy on Financial Behavior?. Asian Journal of Management, Entrepreneurship and Social Science, 3(04), 918-934. Retrieved from http://www.ajmesc.com/index.php/ajmesc/article/view/476
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