DOI: https://doi.org/10.14710/jbs.34.1.63-78

The Impact of Financial Literacy and Financial Behavior on Investment Decision among Private Sector Employees in Tasikmalaya City

*Widi Prayoga  -  Department of Management, Universitas Pendidikan Indonesia, Indonesia
Budi Supriatono Purnomo  -  Department of Management, Universitas Pendidikan Indonesia, Indonesia
Imas Purnamasari  -  Department of Management, Universitas Pendidikan Indonesia, Indonesia
Open Access Copyright 2025 JURNAL BISNIS STRATEGI

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

Citation Format:
Abstract
This study aims to determine the extent of the influence of financial literacy and financial behavior on investment decisions among private sector employees in the city of Tasikmalaya. The population in this study is 39,775, with a sample size of 400 determined using the Slovin formula. The research method used is descriptive and verificative, with purposive sampling as the technique. This study employs multiple linear regression, F-test, and t-test. The results show that both financial literacy and financial behavior have a positive and significant impact on investment decisions, both partially and simultaneously. The added value of this research lies in its ability to provide insights into how financial literacy and financial behavior influence investment decisions, particularly among private sector employees in an emerging region like Tasikmalaya. The findings emphasize the importance of financial education in shaping investment behavior, offering valuable data to improve financial literacy programs and interventions. These insights can guide efforts to enhance financial behaviors and promote more informed investment decisions, supporting better financial decision-making among employees.
Fulltext View|Download
Keywords: Financial Literacy; Financial Behavior; Invesment Decision

Article Metrics:

Article Info
Section: Articles
Language : EN
Recent articles
The Impact of Financial Literacy and Financial Behavior on Investment Decision among Private Sector Employees in Tasikmalaya City Financial Literacy and Behavior of Indonesian Diaspora Women: A Study of Muslimah Humairah Community in South Korea The Impact of AI Based Decision Making, Market Intelligence, and Chatbot Integration on Business Performance in Indonesian Start-ups More recent articles
Most cited articles
PERHITUNGAN NILAI BUDAYA DENGAN MENGGUNAKAN VALUE SURVEY MODULE 2008: SEBUAH TELAAH KRITIS THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE STRUCTURE AND THE LEVEL OF VOLUNTARY DISCLOSURE EXPORTING PROBLEMS OF MALAYSIAN SMES : A RECENT SURVEY ANALISIS PENGARUH TARIF PENERBANGAN, JUMLAH PENERBANGAN DAN PENDAPATAN PERKAPITA DALAM MENINGKATKAN JUMLAH PENUMPANG ANALISIS FAKTOR - FAKTOR YANG MEMPENGARUHI KEBIJAKAN PENYALURAN KREDIT PERBANKAN (Studi pada Bank Umum di Indonesia Periode Tahun 2005 - 2009) More cited articles
  1. Abubakar, A., et al. (2021). The impact of financial literacy on investment decisions among workers in Nigeria. Journal of Finance and Investment Analysis, 10(2), 45–59
  2. Alam, N., & Rahman, R. (2023). Financial behavior and investment decision-making: Evidence from Malaysia. Journal of Financial Behavior Studies, 12(2), 78–94
  3. Alamsyah, M., & Pratama, A. (2020). Hubungan antara literasi keuangan dan keputusan investasi. Jurnal Akuntansi dan Keuangan, 10(3), 23-37
  4. Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15
  5. Atkinson, A., & Messy, F.-A. (2019). Measuring Financial Literacy: Results of the OECD / International Network on Financial Education (INFE) Pilot Study. OECD Working Papers on Finance, Insurance and Private Pensions. https://doi.org/10.1787/5k9csfs90fr4-en
  6. Badan Pusat Statistik. (2023). Statistik Kota Tasikmalaya 2023. Jakarta: BPS
  7. Baker, H. K., & Ricciardi, V. (2014). Understanding behavioral aspects of financial planning and investing. Journal of Financial Planning, 27(9), 22-26
  8. Belsky, G., & Gilovich, T. (1999). Why smart people make big money mistakes and how to correct them. Simon and Schuster
  9. Danes, S. M., & Hira, T. K. (1987). Money management knowledge of college students. Journal of Student Financial Aid, 17(1), 4-16
  10. Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3-56
  11. Harpe, W. F., Alexander, G. J., & Bailey, J. V. (1999). Investments. Prentice Hall
  12. Hassan, M. A., et al. (2022). The role of financial behavior in shaping investment decisions: A study of employees in Pakistan. International Journal of Economic Perspectives, 16(3), 115–130
  13. Herdjiono, I., & Damanik, L. A. (2019). Pengaruh Financial Literacy terhadap Keputusan Investasi di Kalangan Masyarakat Urban. Jurnal Keuangan dan Perbankan, 23(2), 132-148
  14. Hermawan, E., & Triyono, M. (2022). Perilaku keuangan sebagai determinan keputusan investasi. Jurnal Ekonomi dan Keuangan Islam, 14(2), 97-105
  15. Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 89, 309-322
  16. Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296-316
  17. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291
  18. Kusuma, A., & Suryani, T. (2021). Financial behavior and its impact on investment decision-making in Indonesia. Indonesian Journal of Economic Studies, 20(1), 43–60
  19. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44
  20. Lusardi, A., & Mitchell, O. S. (2017). The Economic Importance of Financial Literacy: Theory and Evidence. Journal of Economic Literature, 52(1), 5-44
  21. Lusardi, A., & Mitchell, O. S. (2020). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 58(4), 1–40
  22. Lusardi, A., & Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics & Finance, 14(4), 332-368
  23. Lusardi, A., & Tufano, P. (2020). Debt Literacy, Financial Experiences, and Overindebtedness. Journal of Pension Economics & Finance, 19(1), 1-15
  24. Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77-91
  25. Marlina, T., & Haryanto, T. (2021). Faktor-faktor yang memengaruhi keputusan investasi di kalangan mahasiswa. Jurnal Ekonomi dan Manajemen, 27(2), 15-29
  26. Nugroho, W. P., & Susanti, R. (2020). Literasi keuangan dan keputusan investasi: Studi pada mahasiswa universitas negeri. Jurnal Manajemen Keuangan, 18(4), 34-48
  27. Nyhus, E. K., & Webley, P. (2001). The role of personality in household saving and borrowing behavior. European Journal of Personality, 15(S1), S85-S103
  28. Otoritas Jasa Keuangan (OJK). (2022). Laporan Survei Nasional Literasi dan Inklusi Keuangan. Jakarta: OJK
  29. Perry, V. G., & Morris, M. D. (2005). Who is in control? The role of self‐perception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299-313
  30. Putri, A. D., & Santoso, D. (2023). Pengaruh Perilaku Keuangan terhadap Keputusan Investasi di Era Digital. Jurnal Akuntansi dan Manajemen, 28(3), 199-210
  31. Rahmawati, S., Andini, R., & Pratama, R. (2020). Literasi Keuangan dan Keputusan Investasi: Studi Empiris di Indonesia. Jurnal Ekonomi dan Keuangan, 24(1), 45-60
  32. Ricciardi, V., & Prast, H. (2020). Behavioral finance and investment decisions: The role of financial behavior in rational choices. Journal of Behavioral Finance, 21(4), 25–40
  33. Setiyani, R., & Wulandari, A. (2021). Financial Literacy among University Students: Evidence from Indonesia. Jurnal Pendidikan dan Keuangan, 12(4), 123-135
  34. Setyowati, D., & Kusuma, A. (2021). Financial literacy and investment decision-making in Indonesia: Evidence from employees. Indonesian Journal of Financial Studies, 15(1), 65–79
  35. Setyowati, F., Sari, D. W., & Wulandari, S. (2021). Analisis literasi keuangan dan pengaruhnya terhadap keputusan investasi mahasiswa. Jurnal Keuangan dan Perbankan, 25(3), 45-56
  36. Suryani, T., & Putri, R. A. (2021). Literasi keuangan mahasiswa dan implikasinya terhadap keputusan investasi. Jurnal Ilmu Ekonomi, 19(3), 80-94
  37. Sutrisno, T., Pramesti, A., & Nugroho, P. (2022). Inklusi Keuangan dan Pengaruhnya terhadap Literasi Keuangan di Indonesia. Jurnal Manajemen Keuangan, 30(2), 99-112
  38. Tufano, P. (2020). Consumer Finance. Annual Review of Economics, 12, 227-249. https://doi.org/10.1146/annurev-economics-011619-090355
  39. van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449-472
  40. Widiastuti, R., Prasetyo, B., & Arifin, Z. (2022). Pengaruh perilaku keuangan terhadap keputusan investasi generasi milenial. Jurnal Ekonomi dan Bisnis, 30(2), 120-133
  41. Xiao, J. J. (2008). Applying behavior theories to financial behavior. Handbook of Consumer Finance Research, 69-81
  42. Yoong, K., et al. (2022). Financial literacy and investment behavior in Malaysia: Exploring the moderating role of risk perception. Asian Journal of Economics and Banking, 8(3), 101–117
  43. Yulianto, H., & Dewi, L. (2022). Peran perilaku keuangan dalam keputusan investasi mahasiswa. Jurnal Ekonomi Bisnis dan Kewirausahaan, 6(1), 55-66
  44. Zhang, L., & Posso, A. (2021). Financial Literacy, Digital Financial Services, and Investment Decisions. Economic Modelling, 98, 10-19. https://doi.org/10.1016/j.econmod.2021.06.019

Last update:

No citation recorded.

Last update: 2025-10-12 23:56:58

No citation recorded.