Effect of Financial Literacy, Motivation, and Perceived Risk on Students Investment Interest

Abstract

The number of student investors tends to increase every year in Indonesia, but the level of
investment still low compared to other countries. The Indonesia Stock Exchange continues to
encourage the increase of student investment interest by cooperating with establishing
investment galleries in various universities. The purpose of this study is to analyze the effect
of financial literacy, investment motivation, and perceived risk on the student’s investment
interest. This study unit analysis is an active student of Widyatama University with the total
sample are 145 respondents by using a nonprobability sampling technique with Tabachnick
and Fidell formula. This research uses multiple linear regression to find out variables that
have a powerful effect on the student’s investment interest. The study result shows that
investment motivation and perceived risk have a positive effect on the student’s investment
interest in Widyatama University, but financial literacy does not affect the Widyatama
student’s investment interest. Strong motivation and a high understanding of risks can
actually increase student investment interest.