Cross-Comparative Study of Millennial Investment Interest: The Roles of Herding Behavior, Risk Perception, and Financial Literacy
##plugins.themes.EpsilonTheme.article.main##
Yulia Citra Pesona*
Nurul Hidayah
The increasing number of capital market participants in Indonesia is displaying a promising pattern, particularly with the active involvement of millennials. Nonetheless, data from the Indonesian Central Securities Depository (KSEI) highlights a notable difference in the amount of Sharia-compliant and traditional investors in the country. A study was conducted to compare the investment preferences of millennials in sharia-compliant and conventional investment options. The study focused on analyzing herding behavior, risk perception, and financial knowledge. The research employed a quantitative approach utilizing the Partial Least Squares (PLS) based Structural Equation Model (SEM) analysis technique. Findings from the data analysis suggest that herding behavior does not strongly influence the investment preferences of millennial investors, whether they are interested in sharia-compliant or conventional investments. Nonetheless, the way in which risks are viewed and understanding of financial matters do impact the inclination of millennial investors towards both sharia and conventional investments in a positive and notable manner. This suggests that many millennial investors possess a solid grasp of financial concepts and are mindful when making investment choices. The findings of this research can be utilized by governmental bodies for research purposes in order to boost the interest of the youth in investments, particularly in sharia-compliant investments, and to promote initiatives that enhance knowledge and understanding of investment options, both sharia-compliant and conventional.
Adiandari, A. M., & Okvitawanli, A. (2023). The Relevance of Financial Literacy to Indonesian Millennials’ Behavior, Awareness, and Financial Independence. Majalah Ilmiah Bijak, 20(1), 97–107. https://doi.org/10.31334/bijak.v20i1.3111
Ajzen, I. (2012). The theory of planned behavior. Handbook of Theories of Social Psychology: Volume 1, 438–459. https://doi.org/10.4135/9781446249215.n22
Ajzen, I. (2020). The theory of planned behavior: Frequently asked questions. Human Behavior and Emerging Technologies, 2(4). https://doi.org/10.1002/hbe2.195
Almansour, B. Y., Elkrghli, S., & Almansour, A. Y. (2023). Behavioral finance factors and investment decisions: A mediating role of risk perception. Cogent Economics and Finance, 11(2). https://doi.org/10.1080/23322039.2023.2239032
Desreza, N., Mulfianda, R., & Nurmalia. (2022). Efforts to Prevent Stunting in Families with Toddlers Based on the Planned Behavior Theory Approach in Lampulo Village, Banda Aceh City. PHARMACOLOGY MEDICAL REPORTS ORTHOPEDIC AND ILLNESS DETAILS (COMORBID), 1(1). https://doi.org/10.55047/comorbid.v1i1.822
Din, S. M. U., Mehmood, S. K., Shahzad, A., Ahmad, I., Davidyants, A., & Abu-Rumman, A. (2021). The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products. Frontiers in Psychology, 11(February), 1–10. https://doi.org/10.3389/fpsyg.2020.600570
Fauzah, D. R., & Amaliyah, K. A. (2023). The Impact of Financial Technology, Islamic Financial Literacy, and Behavioral Biases on Investment Decisions in the Sharia Capital Market. International Journal of Islamic Finance, 01(01), 1–019.
Fernández, B., Garcia-Merino, T., Mayoral, R., Santos, V., & Vallelado, E. (2011). Herding, information uncertainty and investors’ cognitive profile. Qualitative Research in Financial Markets, 3(1), 7–33. https://doi.org/10.1108/17554171111124595
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.
Hsu, Y. L., Chen, H. L., Huang, P. K., & Lin, W. Y. (2021). Does financial literacy mitigate gender differences in investment behavioral bias? Finance Research Letters, 41(September 2020), 101789. https://doi.org/10.1016/j.frl.2020.101789
Indonesia Central Securities Depository. (2023). Statistik Pasar Modal Indonesia. Publikasi PT Kustodian Sentral Efek Indonesia, 1–7.
Irkhami, N. (2010). Analisis Risiko dalam Investasi Islam. Muqtasid: Jurnal Ekonomi Dan Perbankan Syariah, 1(2), 209. https://doi.org/10.18326/muqtasid.v1i2.209-225
Iswanti, R., Endri, E., & Zaerofi, A. (2024). Determinants of Millennial Interest in Investing on Sharia Securities Crowdfunding Platforms in Indonesia. Tazkia Islamic Finance and Business Review, 18(1), 88–119. https://doi.org/10.30993/tifbr.v18i1.355
Kelly, K., & Pamungkas, A. S. (2022). Pengaruh Literasi Keuangan, Persepsi Risiko dan Efikasi Keuangan terhadap Minat Investasi Saham. Jurnal Manajerial Dan Kewirausahaan, 4(3), 556–563. https://doi.org/10.24912/jmk.v4i3.19668
Lestari, W. (2013). Religiusitas Dan Persepsi Risiko Dalam Pengambilan Keputusan Investasi Pada Perspektif Gender. Journal of Business and Banking, 3(2), 189. https://doi.org/10.14414/jbb.v3i2.236
Li, T., Chen, H., Liu, W., Yu, G., & Yu, Y. (2023). Understanding the role of social media sentiment in identifying irrational herding behavior in the stock market. International Review of Economics and Finance, 87(April 2022), 163–179. https://doi.org/10.1016/j.iref.2023.04.016
Patil, Y., & Gokhale, R. (2023). Investing in the Age of Millennials and Gen-Z: A Comparative Analysis. NLDIMSR Innovision Journal of Management Research, 15–28. https://doi.org/10.31794/nldimsr.6.2.2022.15-28
Rahman, R. E., & Ermawati. (2019). Analisis Herding Behavior di Pasar Saham : Studi Kasus ASEAN-5 + US. Bank Indonesia, 1–21.
Rahmawati, N. (2015). Managemen Investasi Syariah. Institut Agama Islam Negeri (IAIN) Mataram.
Ramyakim, R. M., & Widyasari, A. (2022). Investor Pasar Modal Tembus 10 Juta. Kustodian Sentral Efek Indonesia (KSEI), November, 1–3.
Redaksi IAEI. (2024). Indeks Literasi Naik, Apa Dampaknya Bagi Industri Keuangan Syariah? Ikatan Ahli Ekonomi Islam Indonesia (IAEI). https://iaei.or.id/id/berita-dan-artikel/artikel/dampak-indeks-literasi-naik
Rosdiana, R. (2020). Analysis of Investment Interests, Motivation, Social Environment, Financial Literacy (Comparative Study of Generation Z and Millennial Generation). International Journal of Business, Economics and Law, 22(1), 1.
Sari, S. P., & Maulida, A.-Z. (2023). Behavioral Finance and Financial Literacy Affecting Investor Millenial Decision Making Process on Sharia Stock. American Journal of Sciences and Engineering Research, 6(2), 541–552.
Soraya, R., Risman, A., & Siswanti, I. (2023). The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions. Journal of Economics, Finance and Management Studies, 06(07), 3324–3335. https://doi.org/10.47191/jefms/v6-i7-36
Ulfa, R. (2021). Variabel penelitian dalam penelitian pendidikan. Al-Fathonah, 1(1), 342–351.
Usman, B., Sari, W., & Amalia, W. (2023). Perilaku Investor Individu terhadap Pengambilan Keputusan Investasi. Judicious, 4(2), 224–234. https://doi.org/10.37010/jdc.v4i2.1318
Valentina, N., & Pamungkas, A. S. (2022). Pengaruh Financial Literacy, Herding Behavior dan Overconfidence terhadap Investment Decision. Jurnal Manajerial Dan Kewirausahaan, 4(4), 844–851. https://doi.org/10.24912/jmk.v4i4.20535
Wandira, F. D. A., & Purnamasari, P. E. (2023). Peran Perilaku Keuangan Memoderasi Literasi Keuangan, Persepsi Risiko, dan Familiarity terhadap Keputusan Investasi. Inovasi, 10(1). https://doi.org/10.32493/inovasi.v10i1.p163-171.29201
Yahya, I., Raharjo, D. P., & Samsuri, A. (2022). Strategi Edukasi Pasar Modal Syariah di Era Pandemi Covid 19. Jurnal Ilmiah Ekonomi Islam, 8(3), 3647–3653.
Youssef, M., & Waked, S. S. (2022). Herding behavior in the cryptocurrency market during COVID-19 pandemic: The role of media coverage. North American Journal of Economics and Finance, 62(June), 101752. https://doi.org/10.1016/j.najef.2022.101752
