LITERASI KEUANGAN, OVERCONFIDENCE, DAN TOLERANSI RISIKO TERHADAP KEPUTUSAN INVESTASI

Abstract

The rise in illegal investment insidents in Batam indicates that people’s financial literacy is still lited. The high level of overconfidence among some people cause many of them to become victims of investment fraud in Batam. This occurs because people want to gain instant profits wthouth thinking about the risks.The method in this research uses a kuantitatif approach. This reserarch aims to evaluate the influence of financial literacy, overconfidence and risk tolerance on investment decision in Batam. The population in this study were accounting student from five universities in Batam. Sampling using purposive sampling technique, obtained 302 respondents. The results of this research state that financial literacy has a positive and significant effect on investment decision, overconfidence has a positive and significant effect on investmenct decisions, and risk tolerance has a positive and significant effect on investment decision. the result on the F test state that financial literacy, overconfidence and risk tolerance together has a positive and significant effect on investment decisions.The coefficient of determination test in this study was 0,670 or 67% of the variable investment decision. Meanwhile, the remaining 33% was influenced variables not identified in this research.