Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?

Research aims: This paper discusses the effect of financial literacy and automatic investment technology on intention to invest in the capital market during the early pandemic. Design/Methodology/Approach: The research population was students studying economics and finance in institutions located in...

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Main Author: Nabila Na'ma Aisa
Format: Article
Language:English
Published: Universitas Muhammadiyah Yogyakarta 2021-12-01
Series:Journal of Accounting and Investment
Subjects:
Online Access:https://journal.umy.ac.id/index.php/ai/article/view/12517
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author Nabila Na'ma Aisa
author_facet Nabila Na'ma Aisa
author_sort Nabila Na'ma Aisa
collection DOAJ
description Research aims: This paper discusses the effect of financial literacy and automatic investment technology on intention to invest in the capital market during the early pandemic. Design/Methodology/Approach: The research population was students studying economics and finance in institutions located in Yogyakarta Special Region Province. The sample of 384 respondents was obtained through questionnaires distributed online. To test the impact of financial literacy and automatic investment technology on intention to participate in the capital market, multiple linear regression was used. Research findings: The researchers found that financial literacy and automatic investment technology affected students’ intention to invest in the capital market. The number of students with a moderate level of financial literacy score dominated, followed by the students with low and high literacy scores. Besides, students’ background in economic and finance appeared inadequate to solely determine the financial literacy score. Theoretical contribution/Originality: This paper contributes to the investment area, especially related to the automatic investment technology “Robo advisor,” that is still rarely studied yet, which will be a significant issue in the future. It also provides empirical results, which explain the investment intention through financial literacy. Moreover, this study was conducted during the massive growth of investors in Indonesia during the pandemic. Practitioner/Policy implication: This study provides a useful reference to the financial sector, especially the capital market. Inclusive programs regarding financial literacy should be expanded for wider society to enhance their knowledge and dismiss lack of confidence in capital market participation. Private sectors providing automatic investment technology are suggested to continue developing a more convenient application to be accessible by a broader range of society. Research limitation/Implication: The research included only students as the sample; hence, further research may use a larger area of the sample with various backgrounds and ages. Other determinants, such as norms, environment, risk, and more advanced financial literacy measurement, can also be added to enrich future studies and literature.
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spelling doaj.art-3a5cf44cbd0040ffb51d8c20cb21bfa72022-12-22T02:21:28ZengUniversitas Muhammadiyah YogyakartaJournal of Accounting and Investment2622-38992622-64132021-12-01231496510.18196/jai.v23i1.125175503Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?Nabila Na'ma Aisa0Department of Accounting, Faculty of Economics and Business, Universitas Ahmad Dahlan, Special Region of YogyakartaResearch aims: This paper discusses the effect of financial literacy and automatic investment technology on intention to invest in the capital market during the early pandemic. Design/Methodology/Approach: The research population was students studying economics and finance in institutions located in Yogyakarta Special Region Province. The sample of 384 respondents was obtained through questionnaires distributed online. To test the impact of financial literacy and automatic investment technology on intention to participate in the capital market, multiple linear regression was used. Research findings: The researchers found that financial literacy and automatic investment technology affected students’ intention to invest in the capital market. The number of students with a moderate level of financial literacy score dominated, followed by the students with low and high literacy scores. Besides, students’ background in economic and finance appeared inadequate to solely determine the financial literacy score. Theoretical contribution/Originality: This paper contributes to the investment area, especially related to the automatic investment technology “Robo advisor,” that is still rarely studied yet, which will be a significant issue in the future. It also provides empirical results, which explain the investment intention through financial literacy. Moreover, this study was conducted during the massive growth of investors in Indonesia during the pandemic. Practitioner/Policy implication: This study provides a useful reference to the financial sector, especially the capital market. Inclusive programs regarding financial literacy should be expanded for wider society to enhance their knowledge and dismiss lack of confidence in capital market participation. Private sectors providing automatic investment technology are suggested to continue developing a more convenient application to be accessible by a broader range of society. Research limitation/Implication: The research included only students as the sample; hence, further research may use a larger area of the sample with various backgrounds and ages. Other determinants, such as norms, environment, risk, and more advanced financial literacy measurement, can also be added to enrich future studies and literature.https://journal.umy.ac.id/index.php/ai/article/view/12517financial literacytechnologyintentioninvestmentcapital market
spellingShingle Nabila Na'ma Aisa
Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
Journal of Accounting and Investment
financial literacy
technology
intention
investment
capital market
title Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
title_full Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
title_fullStr Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
title_full_unstemmed Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
title_short Do Financial Literacy and Technology Affect Intention to Invest in the Capital Market in the Early Pandemic Period?
title_sort do financial literacy and technology affect intention to invest in the capital market in the early pandemic period
topic financial literacy
technology
intention
investment
capital market
url https://journal.umy.ac.id/index.php/ai/article/view/12517
work_keys_str_mv AT nabilanamaaisa dofinancialliteracyandtechnologyaffectintentiontoinvestinthecapitalmarketintheearlypandemicperiod