The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate?
This research is intended to determine the risk of investment-decisions moderated by investors’ knowledge and experience on the Indonesian Stock Exchange (IDX). The object of this research is investors who invest on the IDX with an unknown population, and the number of samples in this research is 21...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-12-01
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| Series: | Studies in Business and Economics |
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| Online Access: | https://doi.org/10.2478/sbe-2024-0048 |
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| _version_ | 1832570304840335360 |
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| author | Hirdinis M. |
| author_facet | Hirdinis M. |
| author_sort | Hirdinis M. |
| collection | DOAJ |
| description | This research is intended to determine the risk of investment-decisions moderated by investors’ knowledge and experience on the Indonesian Stock Exchange (IDX). The object of this research is investors who invest on the IDX with an unknown population, and the number of samples in this research is 210 investors. Data analysis in this research uses an alternative method of structural equation modeling (SEM), namely Smart-PLS 3. The results of the research show that risk aversion and risk perception have a significant positive effect on investment decisions. Financial knowledge cannot moderate the influence of risk aversion on investment decisions. Investment experience can moderate the influence of risk perception on investment decisions. So investment experience can strengthen the significant influence of risk perception on investment decisions. Investors of productive age who are educated with good investment experience are able to show a careful attitude in managing risk perceptions regarding investment decisions. |
| format | Article |
| id | doaj-art-6bc99a067355461abbaee6c01df2a379 |
| institution | Kabale University |
| issn | 2344-5416 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj-art-6bc99a067355461abbaee6c01df2a3792025-02-02T15:49:06ZengSciendoStudies in Business and Economics2344-54162024-12-0119313715510.2478/sbe-2024-0048The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate?Hirdinis M.01Universitas Mercu Buana Jakarta, IndonesiaThis research is intended to determine the risk of investment-decisions moderated by investors’ knowledge and experience on the Indonesian Stock Exchange (IDX). The object of this research is investors who invest on the IDX with an unknown population, and the number of samples in this research is 210 investors. Data analysis in this research uses an alternative method of structural equation modeling (SEM), namely Smart-PLS 3. The results of the research show that risk aversion and risk perception have a significant positive effect on investment decisions. Financial knowledge cannot moderate the influence of risk aversion on investment decisions. Investment experience can moderate the influence of risk perception on investment decisions. So investment experience can strengthen the significant influence of risk perception on investment decisions. Investors of productive age who are educated with good investment experience are able to show a careful attitude in managing risk perceptions regarding investment decisions.https://doi.org/10.2478/sbe-2024-0048investment decisionsrisk aversionperceived riskfinancial knowledgeinvestment experience |
| spellingShingle | Hirdinis M. The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? Studies in Business and Economics investment decisions risk aversion perceived risk financial knowledge investment experience |
| title | The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? |
| title_full | The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? |
| title_fullStr | The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? |
| title_full_unstemmed | The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? |
| title_short | The Risks to Investment Decisions: Can Financial Knowledge and Investor’s Experience be Moderate? |
| title_sort | risks to investment decisions can financial knowledge and investor s experience be moderate |
| topic | investment decisions risk aversion perceived risk financial knowledge investment experience |
| url | https://doi.org/10.2478/sbe-2024-0048 |
| work_keys_str_mv | AT hirdinism theriskstoinvestmentdecisionscanfinancialknowledgeandinvestorsexperiencebemoderate AT hirdinism riskstoinvestmentdecisionscanfinancialknowledgeandinvestorsexperiencebemoderate |