JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, dan Akuntansi) Vol. 4 No.

3, 2020

ANALYSIS OF INVESTMENT INTERESTS OF MILLENIAL

GENERATION IN BATAM CITY WITH PLANNED BEHAVIOR
THEORY
Fendy Cuandra
Universitas Internasional Batam
Email : [email protected]

ABSTRACT
The purpose of this research is to study the factors of attitude, subjective norms,
financial self-efficacy, financial knowledge, and personality traits of young investors
towards investment intentions (The Planned Behavior Theory). The research method
used is causal comparative research with students in Batam City with an age range of
20-34 years. There is a moderating variable and two mediating variables that are used to
analyze whether this variable is related to investment intention. The results showed that
the variable of financial knowledge mediated by attitude has a direct effect on
investment intention. The variable of investor personality traits that is mediated by
financial independence has an indirect effect on investment intentions. In addition, risk-
taking indicators on investor personality traits are affecting overall financial self-
efficacy towards investment intentions in the millennial generation. Positive
significance also occurs in the investor personality variable on financial knowledge,
while the Theory of Planned Behavior (TPB) variable on investment intention has a
significant effect only on the attitude and subjective norm variables. The financial self-
efficacy variable on investment intention is not significant for millennials.

Keywords: Theory Planned Behaviour (TPB), Attitudes, Subjective Norms, Financial

self efficacy, Financial Knowledge, Investor Personality traits, Investment intention

PRELIMINARY
The Indonesia Stock Exchange (IDX), is an investment option that is easily
accessible to the general public today. However, current investment is something new
for the Indonesian people. According to a news site (tirto.id), even though the mutual
fund is 26 years old, the number of investors in Indonesia has still slightly increased in
terms of investment. Data from the Indonesian Central Securities Depository (KSEI) for
July 2019 shows that the number of Indonesian capital market investors is 2 million
Single Investor Identification (SID). When compared with the realization of the first
quarter in March 2019, it increased by 17.64 percent. Although it is increasing,
compared to the entire population of Indonesia, the number of Indonesian investors has
increased relatively small (Liputan 6.com, 2019).
In the situation of economic development in Indonesia, the millennial generation
plays an important role in the investment knowledge base. Because millennials are

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expected to be ideal and active investors in building investment in the Indonesian

capital market. According to BPS data, the number of millennials in the age range of
20-34 years in 2019 reached 23.77 percent of the total population of 268 million.
Therefore, almost a fifth of Indonesia's population this year are millennials (tirto.id,
2018). However, data from the Indonesian Central Securities Depository (KSEI) states
that only 1.6 million millennials in Indonesia participate in the capital market, both
stocks and mutual funds.
The government has held various educational programs aimed at making
millennials more aware of the capital market. So that with the strategy implemented by
the Indonesia Stock Exchange (IDX) through the "Let's Save Stocks" action, it can
persuade people to start investing early and to mobilize education about investment and
advance the Indonesian capital market. Although these programs are frequently
implemented, public interest in capital market investment has not yet increased.
According to the results of a survey by Luno, a global asset exchange company, as
many as 69% of Indonesian millennials let their money settle in their bank accounts and
nearly 80% of millennials have a consistent and disciplined financial budget plan. Even
though millennials are smart in managing money, many don't know how to invest. The
survey results also show that 20% of millennials do not invest at all and 50% of
millennials do not know information about how to invest and the rest are millennials
who invest. The survey results show that Indonesian millennials want to invest but
many of them are still doubtful about how to invest (Beritagar.id, 2019).
In addition, millennial behavior in meeting their needs is also very high, so many
of them use savings for purposes other than investment. Most of the millennials use
savings of 10.7% and insurance of 6.8% while investment is only 2%. Compared to the
amount of investment made by millennials, the level of spending by millennials is
higher.
According to data from the Kepri Regional Financial Economic Study (2019), the
number of people in Riau Islands who saved funds in the form of savings based on third
party funds was 7.38% in the first quarter with 2.42 million accounts under 10 million
rupiah in banks, of which half of account users are residents of Batam City aged 15
years and over. So it can be concluded that half of the owners of bank savings in Batam

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are millennials. However, even though many millennials in Batam choose savings as a
place to invest, many of them are still less interested in investing.
Therefore, a research was conducted to examine millennial investor interest from
the factors that influence investment interest. Based on the above problems, the authors
conducted a study entitled "Analysis of Factors Affecting Investment Interest among
Millennials in Batam City (Using Theory Planned Behavior)". The following is the
formulation of the research problems, namely:
1. Millennial behavior greatly affects investment interest. Millennial behavior in
investing is currently lacking, because millennials prefer to save rather than invest.
In addition, millennial investment knowledge is still lacking. This is due to a lack
of information regarding investment in the capital market.
2. Millennial investment knowledge is currently lacking. This is due to a lack of
information about investment and the high level of millennial expenditure so that
it affects the personality traits of millennials in investing.
3. Financial Self Efficacy (FSE) behavior is one of the behavioral factors that affect
the personality traits of millennials regarding investment interest. The FSE
behavior on millennial personality traits is still lacking. This is due to the fact that
many millennials still do not believe in investing, thus affecting interest in
investment.
4. Behaviors such as subjective norms, attitude and Financial Self Efficacy (FSE) are
used as variables to measure whether these behaviors affect investment interest
among millennials.
The research aims to see the influence of several factors of investment interest on
millennials in investing and to see whether behavioral factors such as Subjective Norms,
Attitude and Financial Self Efficacy (FSE) are behavioral factors that affect investment
interest among millennials. This research was also conducted to examine the personality
traits and investment knowledge that millennials have, whether they can influence
investment interest.

LITERATURE REVIEW AND STUDY FOCUS

Research conducted by Ali (2011) aims to see investors' interest in investing in
stock companies. The sample was taken from portfolio business management students at
the University of Victoria, Australia. This research shows that perceived risk, perceived

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return, and perceived trust have a significant effect on investment intentions. Meanwhile,
brand attitude only mediates the partial relationship between perceived returns,
perceived risks and perceived trust in investment intentions.
The purpose of Alleyne and Broome's (2011) research is to determine the causes
that influence investment decisions. This study uses a sample of business students. The
results show that risk propensity on investment intention has a significant effect.
Meanwhile, investment intention as the dependent variable does not moderate the
relationship between TPB and risk propensity.
Ibrahim and Arshad (2017) in their research aim to examine the effect of product
involvement, subjective norms and perceived behavioral control on investment
intentions of investors in Pakistan. The research analysis shows that product
involvement and subjective norms have a significant effect on investors' investment
intentions in Pakistan. On the other hand, the perception of behavioral control on
investment intentions is not significant.
Abduh and Hussin's research (2018) examined the factors of investor interest in
choosing Islamic sharia investments in the Malaysian capital market. Research shows
subjective norms and religiosity on interest in Islamic investment have a significant
positive effect. Meanwhile, attitude has a positive but not significant effect on intention
on Islamic investment intention.
Ezama et al. (2014) in understanding the capital market and investor behavior in
the financial sector on 127 investors using the snowball technique. The results of the
study explained that 63% explained investor interest and 48% investment behavior.
Research by Kautonen et al. (2013) aims to predict entrepreneurial behavior by
applying Planning Behavior Theory (TPB). Respondents of this study came from a
population in Finland based on survey data for 2006 and 2009. The results of this study
show subjective norms and perceived behavioral control on entrepreneurial intention
have a significant effect.
Research by Koropp et al. (2014) aims to identify investment intention decisions
in companies that are mostly influenced by family norms, attitudes, perceptions of
behavior control. This study used a sample of 118 German investor families. The results
showed that family norms and attitudes towards investment intention had a positive

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effect. Meanwhile, the perception of behavior control on investment intention has a

negative effect.
Mahastanti and Hariady (2014) in their research which analyzes the causes of
investment interest, especially for women in Indonesia. The questionnaire in this study
was given and distributed to female lecturers at the university as a sample. The results
of the analysis show that investment intention to purchase financial products is
influenced by perceptions of behavioral control and risk preferences. Meanwhile,
variables that do not affect investment intention are subjective norms and attitudes.
Research by Montford and Goldsmith (2015) aims to examine gender and
investment risk and the role of financial self-efficacy (FSE) in investment interest. The
study sample used data from 182 US students. The results of the study indicate that the
risk taking for women in investing is less than that of men. Meanwhile, the FSE variable
has a positive effect on risk taking in determining investment interest in an investment
portfolio.
Research by Nandan and Saurabh (2016) which analyzes the empirical
relationship with personality traits and investment intentions is mediated by attitudes
toward financial risk. Samples were taken from 313 students of class Y from the
Allahabad technical institute, India. The results showed that neuroticism, extraversion
and openness to experience affect short-term investment intentions mediated by
attitudes toward financial risk. Meanwhile, the agreement is partially related to short-
term investment intentions and has no significant effect on long-term investment
intentions. Meanwhile, conscientiousness has a significant effect on short-term
investment intention. The Hypothesis formula is shown below:
H1: Attitude mediates the relationship between financial knowledge and investment
intention
H2: Financial knowledge has a positive effect on the personality traits of individual
prospective investors.
H3a: FSE mediates the relationship between personality traits and investment
intentions
H3b: FSE moderates the relationship between personality traits and investment
intentions
H4: Investment intention is positively related to attitude, subjective norms, and FSE

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RESEARCH METHODS
In examining the level of influence of the independent variable on the dependent
variable, personality traits, financial knowledge and the theory of planned behavior
(subjective norms, self-efficacy & attitudes) are used as independent variables and
investment intention as the dependent variable. The approach in this study uses causal
comparative research which aims to observe the cause and effect of problems in the
dependent variable on the dependent variable. In addition, it also observes various
groups of several variables and identifies the main factors causing these differences
(Gay et al., 2010).
According to Sugiyono (2013) the object of research is rational, valid and reliable
data regarding certain variables. In this study, the objects taken were students in Batam
City. Because currently, students are the big target of all investors in Indonesia as well
as the biggest driver for investment progress (CNBC Indonesia, 2019). The study
population came from among students who are still active in Batam City.
Based on Higher Education Data from the Ministry of Research, Technology and
Higher Education, data on active Batam City public and private university students
currently reaches 19,817 (https://forlap.ristekdikti.go.id/). Selection of samples with the
right method can describe the actual population conditions accurately and can save
research costs effectively ((Zulkarnaen, W., & Herlina, R. 2018:99). Due to the large
number of samples, the sample selection method used purposive sampling, which is a
sampling technique that was not selected randomly or specifically. The sample in this
study were active students in Batam aged 20-34 years who were collected using a
questionnaire.
Determination of the amount using the 1:10 method. Because according to (Hair
et al., 2014) the number of statements or questions to be tested is multiplied by 10 to
test the validity of the study. There are 25 questionnaires in this study. So, 25 statements
x 10 = 250. Therefore, the number of samples obtained is approximately 250 samples.
The dependent variable in the study is investment intention. According to Winkel
from a quote from Timothi (2016), interest is a tendency that creates feelings of interest
in a subject from a particular field and is interested in running that field. Investment
intention is a very strong desire that exists within a person so as to make someone
understand for themselves about investing to put it into practice. The measurement of

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the investment intention variable in this study consists of 3 (three) statements with a
Likert scale measurement starting from strongly disagree (1), disagree (2), neutral (3),
agree (4), and strongly agree (5).
Financial knowledge is the basic knowledge of individual finances in making
financial decisions. Financial knowledge in the form of investment perceptions, basic
skills in stock valuation, both the level of risk and the rate of return. This is so that
investors can prevent unwanted things when making investments. In addition, the lack
of financial knowledge will have an impact on the lack of investment intention to invest.
Theory of Planned Behavior (TPB) is a theory to measure positive and negative
behavior and explain a person's intention and also explain that person's behavior. In this
study, there are 3 main behaviors, namely: attitude, subjective norms and financial self-
efficacy. These three behaviors are measures of behavior towards investment interest.
Personality traits, namely how subjects can interact with the environment or other
individuals. In investing, the personality traits that each investor has are different.
Therefore, personality traits also affect investment intention in individuals. In this study,
Preference for Innovation (PI) and Risk Taking Propensity (RTP) are determinants of
investment interest. According to Durand et al. (2013), both of these traits are the
dominant personality traits for investors.
Primary data is obtained and received directly by the author with data collection
techniques on the questionnaire by giving several statements to respondents in the form
of open or closed statements and can be given directly or sent via the internet or post
(Sugiyono, 2013).
Structual Equaliation Modeling (SEM) is a technique for building and testing
statistical models in this study in the form of a model. The equation model uses Partial
least squares path modeling (PLS-SEM) with the development of the previous model.
The aim is to examine the predictive relationship between constructs (Ghozali & Latan,
2012).
The conceptualization of reflection in this study is seen from each question
indicator that reflects the construct variables under study. Data analysis in this study
was carried out when all the questionnaires had been filled in by the respondent.
Furthermore, the data from respondents was made in tabulated form. Then the data is
processed in the PLS application where this application can process data automatically

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in accordance with the procedures for the PLS version 3.0 smart teaching module. The
CMB test occurs because of an error in testing all construct variablesprocessed by the
SPSS software. The CMB test is said to be successful if the variance value is more than
50%.
The validity test uses outer loading and Average Variance Extracted (AVE) as a
determination for valid or invalid questions of an item which is usually used in a
significance test with a size of 0.5, which means that an item is considered valid. This
statement is in accordance with the opinion of Hair et al. (2014).
The reliability test is said to be valid if the indicators of the questionnaire
statement are consistent over time. Reliability testing in research uses composite
reliability. Because the reliability value is higher, which is above 0.7, so the reliability
of more than 0.7 is good enough. Therefore, composite reliability is called closer
approximation with the assumption of accurate parameters (Chin, 2010).
Path coefficients to see the positive or negative effect of one variable on other
variables. The research significance is seen from the path coefficient table in the T-
Statistic column (Ghozali & Latan, 2012). The effect value is seen through the sample
mean on the calculated data in Smart PLS. Path coefficients are said to be influential if
the significance level is 5% and the T-statistic is more than 1.96 or P-values> 0.05 (Hair
et al., 2014). To see the effect of the moderating effect, it can be seen from the sample
mean. If the sample mean is bigger, the effect is getting bigger.
To see the correlation between the dependent and independent variables in this
study using the Indirect Effect. This test is said to have an indirect effect on other
variables if the T-statistic value is less than 1.96 and the P-value is <0.05 (Hair et al.,
2011).
The coefficient of determination or the R test is used to calculate how strong the
model is in explaining the dependent variable on other variables. The R square adjusted
in this study consists of only one dependent variable. A good square adjusted R value is
seen from the high value generated, so the resulting model will be better (Ghozali &
Latan, 2012).

ANALYSIS AND DISCUSSION

As many as 386 questionnaires were distributed, there were 12 outlier
questionnaires and the rest were valid and ready to use. Based on the frequency, it can

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be seen that 228 (61%) respondents were female and male respondents were 146 (39%).
So it can be concluded that the respondents according to gender are more women than
men.
The average respondents aged 21-25 years were 312 (83.4%) of respondents.
Meanwhile, 49 (13.1%) respondents aged 16-20 years and 13 (3.5%) aged 26-30 years.
The average occupation consists of students while working for 263 (70.3%) respondents,
3 (0.8%) civil servants, 11 (2.9%) self-employed respondents, 56 (15%) private
employees. %) respondents, and students by 41 (11%).
144 (38.5%) respondents had an income of IDR 2,000,001-IDR 4,000,000.
Respondents with an income of Rp.4,000,001 - Rp. 6,000,000 were 157 (42%).
Meanwhile, 63 (16.8%) of less than IDR 2,000,000 (16.8%) and only 3 (0.8%)
respondents with an income of more than IDR 8,000,000.
The respondents who graduated from junior high school at 0 and 169 (45.3%) of
respondents who graduated from senior high school. While the respondents with
undergraduate degrees were 198 (53.1%) respondents and S2 graduates were 6 (1.6%).
363 (97.1%) respondents have single status. Respondents who have a widow or
widower relationship status do not exist at all. Meanwhile, respondents who had married
relationship status were 11 (2.9%).
Data on respondents who have or have not made investments. As many as 159
(42.5%) respondents have made investments and 215 (57.5%) respondents have never
made investments. This test is conducted to ensure that there are no errors in the
research under study. The results of processing through the SPSS version 25 application
showed a variance value of 24.657% (<50%).
The validity test aims to calculate the suitability between the outcome indicators
of the variables and the measured theoretical concepts and to determine the state of the
indicators of these variables. This test uses Outer Loadings and Average Variance
Extracted (AVE).
Reliability testing is a test in measuring indicators of variables or constructs.
This test is said to be reliable if from time to time the answers to the questions are
consistent or stable. The questionnaire is said to be reliable if the composite reliability
is> 0.7.

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The results of the independent variable test on the dependent variable indicate a
direct influence through the path coefficients test. The path coefficient has an effect if
the sample mean is below 5% and the T-Statistic value is more than 1.96.
Tests are carried out to determine which variables have an indirect effect on
other variables if the significance is less than 0.5 and the T-Statistic is more than 1.96.
H1: The relationship between financial knowledge and attitudes towards investment
intention is significant and positive, with a P-value of 0.000 (T-Statistic> 1.96 =
significant). The results showed that financial knowledge and investment intention
were partially mediated by attitudes that showed significant positive results.
Therefore, one's investment knowledge can influence one's attitude towards
investment interest. This is in accordance with the results of research by
Reyhanloo et al. (2016), as well as Akhtar and Das (2017).
H2: In a study conducted, the risk taking propensity indicator on the investor
personality traits variable on financial knowledge had a significant positive effect
with a P-value of 0.000 (T-Statistic> 1.96 = significant). Because someone with
good financial knowledge will be able to make the right risks and vice versa, the
lack of financial knowledge that is owned will affect the personality
characteristics of investors who cannot control the risks they face. The results of
this test are in accordance with the research of Wang (2009), Almenberg and
Dreber (2015), and Akhtar and Das (2017).
H3a: The relationship between investor personality traits and financial self-efficacy is
positive with a P value of 0.000 (T-Statistics> 1.96 = significant). Meanwhile, the
relationship between financial self-efficacy (FSE) and intention to invest has no
significant relationship with a P value of 0.896 (T-Statistics> 1.96 = significant).
Thus, the overall personality traits of investors and investment intentions are
mediated by the FSE. These results are in line with Akhtar and Das' (2017)
research which shows that personality traits and investment intentions do not have
a significant effect, but if there is FSE as an intermediary variable it can predict
investment intentions. This study is similar to that of Young et al. (2012) and
Akhtar and Das (2017).
H3b: From the tests conducted, financial self-efficacy (FSE) as a moderator variable
has a significant effect on investor personality traits and investment intentions

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with a P-value of 0.003 (T-Statistic> 1.96 = significant). In this study, there are
two indicators of investor personality traits, namely Preference for Innovation (PI)
and Risk Taking Propensity (RTP). However, the PI indicator does not moderate
the relationship between the FSE variable and investment intention. Meanwhile,
the RTP indicator fully moderates the relationship between the FSE variable and
investment intention. So that the RTP indicator affects FSE as a moderating
variable of investment intention. This is in accordance with the research of Akhtar
and Das (2017), and Pittaway et al. (2010).
H4: The relationship between planned behavior (attitude, subjective norms & financial
self-efficacy) on investment intention has a significant positive relationship with a
P value of 0.000 (T-Statistic> 1.96 = significant) only on the attitude and
subjective norm variables. While the relationship is not significant in the variable
financial self-efficacy on investment intention with a P-value of 0.896. This is in
line with Sondari's (2015) research which shows that subjective attitudes and
norms have a significant effect on investment intentions, while financial self-
efficacy fails to show a significant effect on investment intentions.
The relationship between knowledge and financial attitudes shows a value of
23.7%, which means 23.7% explains the relationship between investment knowledge
and investor attitudes, the remaining 76.3% is influenced by other variables. The
relationship between investor personality traits and financial knowledge is 11.7%,
which means 11.7% explains the relationship between investor personality traits and
investment knowledge, while the remaining 88.3% is influenced by other variables.
The relationship between investor personality traits and financial self-efficacy
shows a value of 13.8% which means 13.8% explains the relationship between investor
personality traits and financial self-efficacy in investors, the remaining 86.2% is
influenced by other variables. The relationship between the theory of planned behavior
(attitudes, subjective norms, & financial self-efficacy) of investor personality traits and
financial knowledge on investment intentions shows a value of 59.3%, which means
59.3% explains the relationship between behavior, knowledge and investors personality.
nature towards investing. intention, the rest is influenced by other variables at 40.7%.

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CONCLUSION, LIMITATIONS AND SUGGESTIONS

Research conclusions regarding the relationship of several variables to
investment intention Primary data processed by 374 respondents showed that:
1. The hypothesis of financial knowledge mediated by attitude has a significant direct
effect on investment intention among millennials in Batam. Knowledge is needed in
determining investment decisions and taking risks because with knowledge about
investment, the higher one's investment intention will be to invest. Because the
financial knowledge possessed by millennials in Batam is very good, when there is
a desire or interest in investment they will have the right attitude in determining the
decision to invest in the capital market. This hypothesis is in accordance with the
research of Wang (2009), Phan and Zhou (2014), Akhtar and Das (2017),
Reyhanloo et al. (2016), Tamimi and Kalli (2009) and Lusardi and Mitcell (2014).
2. The hypothesis shows that there is a significant relationship between positive
personality traits of investors and financial knowledge. Personality traits can be
seen from taking risks. The knowledge they have makes millennials in Batam think
that the risks or returns faced in investing need not be feared. Because the
personality traits that each individual has are different. There are those who accept
high risks, but there are also those who receive low returns. Therefore, someone
who is knowledgeable tends to be good at investment management. From the
questionnaire distributed among millennials in Batam, they tend to prefer safer
investments, because investment security is an important aspect but does not mean
avoiding risk. Millennials in Batam also dare to take risks as long as the return they
get is high. Therefore, millennial personality towards investment interest is not only
influenced by financial knowledge but also investor personality traits. The results of
this hypothesis are in accordance with Wang (2009) which shows that the
relationship between financial knowledge and risk taking is seen from good
knowledge about investment, both from education and experience, which has a
positive effect on one's behavior. So that this behavior becomes a person's
personality in making choices or decisions in investing. This hypothesis is the same
as the research of Lusardi and Mitcell (2014), Almenberg and Dreber (2015) and
Akhtar and Das (2017).

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3. The hypothesis of Investor personality traits that are directly mediated by Financial
Self Efficacy (FSE) on investment intention does not have a significant positive
effect. The results show that the FSE variable does not affect the personality traits
of investors on investment interest. If we look at demographics, the average
millennial in Batam is already working and is not worried about the pension
security that the company has borne. Therefore, the personality trait of millennials
towards investing in the capital market arises because of the behavior of trust in
investment, so that millennials in Batam can easily take risks without worrying.
This is the same as research from Young et al. (2012), Nga and Yien (2013), Akhtar
and Das (2017) and Nandan and Saurabh (2016).
4. Meanwhile, the analysis of the research hypothesis on the relationship between
investor personality traits that is moderated by FSE on investment intention has a
significant positive result. Because the higher FSE behavior will affect a person's
interest in investing, which means that the higher the confidence to invest and the
strength of external influence or encouragement to invest will affect one's
personality on investment interest. Research is the same as research by Akhtar and
Das (2017), Durand et al. (2013) and Pittaway et al. (2010).
5. Furthermore, the relationship between the theory of planned behavior consisting of
attitude, subjective norm and financial self-efficacy. The three behaviors that have a
significant effect are only attitude and subjective norm which have a significant
positive relationship. This is because the people of Batam think that investing is a
good idea and there is encouragement from friends or the opinion of respected
people, thus affecting one's investment interest. This is the same as research by
Alleyne and Broome (2011). Meanwhile, financial self-efficacy does not have a
significant effect because this behavior is not in accordance with millennial
behavior in Batam. This behavior is inappropriate because millennials in Batam
believe that information about investment is currently open. So, millennials in
Batam don't feel worried when making investments. This is consistent with research
by Sondari (2015), which shows attitude and subjective norms significantly
influence investment intention, while financial self-efficacy fails to show a
significant effect on intention to invest.

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Limitations during the study of the research, namely:

1. Filling in this questionnaire is only filled in online without any further interviews
regarding the answers from respondents.
2. Small sample size may only be found among students, thereby reducing the power
of statistical testing. It would be nice if the sample size can be more varied among
millennials, not just students.
To anticipate existing limitations, suggestions are needed that can help further
researchers to conduct research. The suggestions are:
1. It is hoped that further research can consider a large size for the research results, so
that the results can be trusted and accurate.
2. Because of the minimal use of the dependent variable, it is hoped that the next
research will add other variables related to millennial investment interest.

APPRECIATION
Lembaga Penelitian dan Pengabdian kepada Masyarakat (LPPM)
Universitas Internasional Batam

REFERENCE
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FIGURE AND TABLE

Figure 1 IDN Research Institute Survey Results Regarding Monthly Millennial

Expenditures
Source: Bisnis.com (2019)

Perceived Risk

Attitude Toward Intention

Perceived Trust
Brand to Invest

Perceived Return

Brand Familiarity

Picture 1 Predicting Individual Investors' Intentions to Invest: Experimental

Analysis of Attitudes as Mediators
Source: Ali (2011)

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Attitude

Subjective Norms
Investment Actual
Perceived Behavioral Intention Behaviour
Control

Risk Propensity

Picture 2 Theory of Planned Behavior and Risk Tendency to Measure Investment

Intention Among Potential Investors
Source: Alleyne dan Broome (2011)

Product Involvement

Investment Intention
Subjective Norm Preparedness
Company
Identification
Perceived Behavioral Control

Picture 3 Examining the Impact of Product Engagement, Subjective Norms,

and Perceived Behavioral Controls on Investment Intention of
Individual Investors in Pakistan
Source: Ibrahim dan Arshad (2017)

Religiosity

Attitude Intention Behavioral

Subjective Norms

Picture 4 Factors Influences Intention to Ops for Islamic Investment Schemes

among Market Players
Source: Abduh dan Hussin (2018)

Attitude Toward
Behavioral Belief
Behaviour
Investment Investment
Normative Belief Subjective Norm
Intention Behaviour
al
Control Belief Perceived Risk

Picture 5 Can We Predict the Behavior of Individual Investors in the Stock Market?
A Psychological Approach
Source: Ezama et al. (2013)

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Attitude
Entrepreneurial Behaviour
Subjective Norms Intention Intention

Perceived Behavioral
Control

Picture 6 Predicting Entrepreneurial Behavior: A Test Theory of Planned

Behavior
Source: Kautonen et al. (2013)

Attitude Toward
Investment Financing
Family Norms
Intention Decision

Perceived Behavioral
Control

Picture 7 Financial Decision Making in Family Firms: Adaptation of Planned

Theory of Behavior
Source: Koropp et al. (2014)

Attitude

Subjective Norms
Investment Intention
Perceived Behavioral Control

Risk Preference

Picture 8 Determining Factors Influencing Investment Decisions of Prospective

Women Investors in Indonesia
Source: Mahastanti dan Hariady (2014)

Gender
Financial Self Investment
Efficacy Intention

Risk taking

Picture 9 How Gender and Financial Self-Efficacy Affect Investment Risk Taking
Source: Montford dan Goldsmith (2015)

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Neuroticism Short Term Investment

Intention
Extraversion

Openness to Attitude Toward

Experience Financial Risk

Agreeableness

Long Term Investment

Conscientiousnes Intention
s
Picture 10 Five Characteristics of Great Personality, Financial Risk Attitude and
Investment Intention: A Generation Y Study.
Source: Nandan and Saurabh (2016)

Table 1 The Questionnaire Statistics Used

Explanation Total
Distributed Questionnaire 386
Outlier Questionnaire 12
Total Questionnaire Tested 374

Table 2 Respondent Data by Gender

Explanation Total Percentage
Female 228 61%
Male 146 39%
Total 374 100%

Table 3 Respondent Data by Age

Explanation Total Percentage
Year 16 to 20 49 13,1%
Year 21 to 25 312 83,4%
Year 26 to 30 13 3,5%
Total 374 100%

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Table 4 Respondent Data by Occupation

Explanation Total Percentage
Student while working 263 70,3%
Government Employees 3 0,8%
Entreprenuer 11 2,9%
Private Employees 56 15%
College Student 41 11%
Total 374 100%

Table 5 Respondent Data Based On Income Every Month

Explanation Total Percentage

< IDR 2 million 63 16,8%

IDR 2 million to 4 million 144 38,5%
> IDR 4 million to 6 million 157 42%
> IDR 6 million to 8 million 7 1,9%
> IDR 8 million 3 0,8%
Total 374 100%

Table 6 Respondent Data Based On Education Level

Explanation Total Percentage

High School 169 45,3%
Bachelor 198 53,1%
Master Degree 6 1,6%
Total 374 100%

Table 7 Respondent Data Based On Status

Explanation Total Percentage
Single 363 97,1%
Married 11 2,9%
Total 374 100%

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Table 8 Respondent Data Based On Who Have Made An Investment

Explanation Total Percentage
Ever Invested 159 42,5%
Never Invested 215 57,5%
Total 374 100%

Table 9 Common Method Biases

Total % of Variance Cumulative %
6,164 24,657 24,657
2,034 8,136 32,793
1,858 7,433 40,226
1,656 6,625 46,851
1,319 5,276 52,127
1,121 4,486 56,613
1,084 4,336 60,950
0,946 3,785 64,734
0,909 3,637 68,372
0,792 3,167 71,539
0,782 3,127 74,666
0,757 3,027 77,693
0,672 2,690 80,383
0,621 2,485 82,868
0,603 2,411 85,278
0,508 2,031 87,309
0,489 1,954 89,263
0,458 1,834 91,097
0,423 1,691 92,788
0.388 1,552 94,340
0,350 1,398 95,739
0,336 1,346 97,084
0,278 1,113 98,198
0,239 0,954 99,152

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0,212 0,848 100,000

Table 10 Outer Loadings Test Results

Loading
Variabel Explanation
Factor
A 1 <- Attitude Variable 0,864 Valid
A 2 <- Attitude Variable 0,864 Valid
A 3 <- Attitude Variable 0,803 Valid
FK 1 <- Financial Self Efficacy Variable 0,945 Valid
FK 2 <- Financial Self Efficacy Variable 0,509 Valid
FSE 2 <- Financial Self Efficacy Variable 0,853 Valid
FSE 6 <- Financial Self Efficacy Variable 0,637 Valid
II 1 <- Investment Intention Variable 0,889 Valid
II 2 <- Investment Intention Variable 0,826 Valid
II 3 <- Investment Intention Variable 0,861 Valid
RTP 1 <- Investor Personality Traits Variable 0,737 Valid
RTP 2 <- Investor Personality Traits Variable 0,634 Valid
RTP 3 <- Investor Personality Traits Variable 0,810 Valid
SN 1 <- Subjective Norms Variable 0,656 Valid
SN 2 <- Subjective Norms Variable 0,860 Valid
SN 3 <- Subjective Norms Variable 0,878 Valid
Investor Personality Traits -> Financial Self
0,993 Valid
Efficacy-> Investment Intention Variable

Table 11 The Number Of Questionnaire Questions That are Dropped

Total
Remaini
Questions Total Droppe Droppe Sample
ng Item
Item d Item d Item Mean
Attitude Variable 3 0 - 3
Financial Knowledge FK3 -0,197
4 2 2
Variable FK4 -0,250
Financial Self Efficacy 6 4 FSE1 0,127 2

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Variable FSE3 0,469

FSE4 0,269
FSE5 0,122
Investment Intention 3
Variable 3 0 -
PI1 0,401
Investment Personality
6 3 PI2 0,376 3
Traits Variable
PI3 0,461
Subjective Norms 3
Variable 3 0 -

Table 12 Average Variance Extracted (AVE) Test Results

Variable AVE Explanation
Attitude Variable 0,713 Valid
Financial Knowledge Variable 0,582 Valid
Financial Self Efficacy Variable 0,573 Valid
Investment Intention Variable 0,739 Valid
Investment Personality Traits Variable 0,536 Valid
Subjective Norms Variable 0,648 Valid
Investor Personality Traits -> Financial
Self Efficacy-> Investment Intention 1,000 Valid
Variable

Table 13 Composite Reliability

Composite
Question Explanation
Reliability
Attitude Variable 0,882 Reliable
Financial Knowledge Variable 0,715 Reliable
Financial Self Efficacy Variable 0,721 Reliable
Investment Intention Variable 0,894 Reliable
Investment Personality Traits Variable 0,773 Reliable
Subjective Norms Variable 0,844 Reliable

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Investor Personality Traits -> Financial

Self Efficacy-> Investment Intention 1,000 Reliable
Variable

Table 14 Path Coefficient

Sample P
Path (X->Y) T Statistic Hipotesis
Mean Values
Attitude-> Investment
0,455 9,181 0,000 Significant Positive
Intention
Financial Knowledge->
0,487 9,974 0,000 Significant Positive
Attitude
Financial Knowledge -
0,129 2,989 0,003 Significant Positive
> Investment Intention
Financial Self Efficacy-
0,001 0,130 0,896 Not Significant
> Investment Intention
Investor Personality
Traits -> Financial 0,341 6,391 0,000 Significant Positive
Knowledge
Investor Personality
Traits -> Financial Self 0,372 8,137 0,000 Significant Positive
Efficacy
Investor Personality
Traits -> Investment 0,049 1,089 0,277 Not Significant
Intention
Subjective Norms-> Significant
0,309 6,439 0,000
Investment Intention Positive
Investor Personality
Traits -> Financial Self
0,097 2,949 0,003 Significant Positive
Efficacy-> Investment
Intention

Table 15 Indirect Effect

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Sample T- P
Jalur (X->Y) Remark
Mean Statistic Value
Financial Knowledge -> Significant
0,221 6,995 0,000
Investment Intention Positive
Investor Personality Traits -> Significant
0,167 4,559 0,000
Attitude Positive
Investor Personality Traits -> Significant
0,121 4,153 0,000
Investment Intention Positve

Table 16 R Square Adjusted Result

RSquare
Variable Explanation
Adjusted
Attitude Variable 0,237 Large
Financial Knowledge Variable 0,117 Small
Financial Self Efficacy Variable 0,138 Small
Investment Intention Variable 0,593 Large

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