The Influence of Financial Literacy and Investment Risk Tolerance on Investment Decisions with Confirmation Bias as an Intervening Variable

Titania Aisyah Karuniawati; Dina Yeni Martia; Ramiro Akhtar Raseen; Amelia Putri Permatasari

doi:10.14710/jab.v15i2.75970

DOI: https://doi.org/10.14710/jab.v15i2.75970

The Influence of Financial Literacy and Investment Risk Tolerance on Investment Decisions with Confirmation Bias as an Intervening Variable

Titania Aisyah Karuniawati - Department of Accounting, Semarang State Polytechnic, Jl. Prof Soedarto, SH, Tembalang, Semarang, Indoneisa 50275, Indonesia

*Dina Yeni Martia - Department of Accounting, Semarang State Polytechnic, Jl. Prof Soedarto, SH, Tembalang, Semarang, Indoneisa 50275, Indonesia

Ramiro Akhtar Raseen - Department of Accounting, Semarang State Polytechnic, Jl. Prof Soedarto, SH, Tembalang, Semarang, Indoneisa 50275, Indonesia

Amelia Putri Permatasari - Department of Accounting, Semarang State Polytechnic, Jl. Prof Soedarto, SH, Tembalang, Semarang, Indoneisa 50275, Indonesia

Received: 14 Jul 2025; Revised: 11 Apr 2026; Accepted: 13 Apr 2026; Available online: 15 Apr 2026; Published: 1 Oct 2026.

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Abstract

This research analyzes the correlation of financial literacy and investment risk tolerance on investment decisions through confirmation bias as an intervening variable. This research obtained a sample of 100 students from Politeknik Negeri Semarang using purposive sampling, while data collection was performed by a judgmental sampling technique. This research utilized SmartPLS software to conduct data analysis using the Partial Least Squares (PLS) methodology. The findings indicated that financial literacy had a positive impact significantly on investment decision behavior, alongside with a positive association with cognitive bias. Similarly, investment risk tolerance was found to significantly and positively affect both investment choices and cognitive bias. In addition, confirmation bias was shown to mediate the correlation between financial knowledge and stock investment decisions, together with between the investment risk tolerance and investment decision.

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Keywords: confirmation bias; financial literacy; investment risk tolerance; investment decision

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Language : EN

In Vol 15, No 2 (2026): In Progress

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