The financial literacy of students and investment decisions in the Indonesia stock exchange

Murviana Koto, Delyana Rahmawany Pulungan


This study aims to analyze how the role of student financial literacy is in influencing the investment decision in the Indonesia Stock Exchange. The populations are the students of Economic and Business Faculty in University of Muhammadiyah Sumatera Utara. This is an explanatory research using descriptive analysis and causality test with SPSS tool. The samples of this research are 198 students who had ever got series of subjects related to financial management, investment and capital market. The results have shown that there are differences in the level of financial literacy in students. The results of this study also indicate that the financial literacy of students do not significantly influence their investment decision in the Indonesia Stock Exchange. The high level of financial literacy on the students is not the only factor in investment decision making. There are other factors that also influence the student investment decision making when investing in The Indonesia Stock Exchange.

Full Text:



Al-Tamimi, H. A. H., & Al-Anood Bin Kalli, A. (2009). Financial Literacy and Investment Decisions of UEA Investors. The Journal of Risk Finance, Vol. 10 Iss 5.

D. J. Beal, & S. B. Delpachita. (2003). Financial Literacy among Australian University Students. Economic Papers. Vol. 22 (1), 65-78.

H. Chen, & R.P. Volpe. (1998). An Analysis of Personal Financial Literacy Among College Students. Financial Services Review, 7(2), 107-128.

K. Chinen, E. Hideki. (2012). Effect of Attitude and Background on Personal Finance Ability: A Student Survey in the United State, 29(1), 33-45.

Keown, L. A. (2011). The Financial Knowledge of Canadians. Component of Statistics Canada Catalogue, 11-008-X, 30-39.

Krishna, A., Rofaida, R., & Sari, M. (2010). Analysis of the Level of Financial Literacy among Students and the Factors that Influence. Pro-ceedings of the 4th International Conference on Teacher Education; Join Conference UPI & UPSI Bandung, Indonesia.

Nidar, S. R., & Bestari, S. (2012). Personal Literacy among University Students (Case Study at Padjajaran University Students, Bandung, Indonesia). World Journal of Social Science, 2(4), 162-171.

Madura, J. (2011). Personal Finance. Fourth Edition. United State of America: Pearson Education, Inc..

Margaretha, F., Pambudhi, R. A. (2015). Financial Literacy Level on Student S-1 Faculty of Economics. JMK, 17(1), 76-85.

Maarten, v. R., Annamaria, L., & Rob, A. (2011). Financial Literacy and Stock Market Participation. Journal of Financial Economics. 101, 449-472.

Mason, C. L.J., Wilson, R. M. S., (2000). Conceptualizing Financial Literacy Business School Research Series.

M. A. Hilgert, J. M. Hogarth, S. G. Beverly. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin, 89, 309-322.

M. van Rooij, A. Lusardi, R. Alessie. (2011). Financial Literacy and Stock Market Participation. University of Michigan Retirement Research Center Working Paper, 162.

OJK (2016). National Survey of Literacy and Financial Inclusion. Accessed 24 Juni 2017.

Rahim, S. H., Rashid, R. A., Hamed, A. B. (2016). Islamic Financial literacy and its Determinants among University Students: An Exploratory Factor Analysis. International Journal of Economics and Financial Issues. 6(S7), 32-35.

Rahim, S. H., Rashid, R. A., Hamed, A. B. (2016). Factor Analysis of Islamic Islamic Financial Literacy and its Determinants: A Pilot Study. The European Proceedings of Social & Behavioural Sciences International Soft Science Conference 2016.

Remund, D. L. (2010). Financial Literacy Explicated: The Case for a Clear Definition in an Increasingly Complex Economy. The Journal of Consumer Affair, 44(2), 276-295.

Sabri, M. F., Othman, M. A., Masud, J.,Paim, L., MacDonald, M., & Hira, T.K. (2008). Financial Behavior and Problems among College Students in Malaysia: Research and Education Implication. Consumer Interest Annual, 54, 166-170.

S. J. Huston. (2010). Measuring Financial Literacy, The Journal of Customer Affairs, 44(2), 296-316.

Widayati, I. (2012). Factors Affecting the Financial Literacy of UB Faculty of Economics and Business Students. Journal of Accounting for Education, 1(1), 89-99.


  • There are currently no refbacks.

Copyright © 2017 Syiah Kuala University

ISSN: 2345-6789

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.