THE INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL BEHAVIOR ON INVESTMENT DECISIONS IN THE BIBIT.ID USERS

Abstract

This study investigates the effects of financial literacy and financial behavior on investment decisions among Bibit users. Using SEM-PLS with SmartPLS version 4.1.1.2, data were collected from 129 investors who actively invest through the Bibit platform. The findings reveal that financial literacy positively and significantly influences investment decisions, while it negatively and significantly affects financial behavior, including overconfidence, herding behavior, and risk perception. Moreover, financial behavior negatively and significantly impacts investment decisions and partially mediates the relationship between financial literacy and investment decisions. These results highlight the importance of enhancing financial literacy and reducing negative financial behaviors to improve investment decision quality. This implies that financial education programs and behavioral interventions should be prioritized to support optimal investment choices among retail investors.