THE EFFECT OF FINANCIAL ATTITUDE, INVESTMENT KNOWLEDGE, AND PSYCHOLOGICAL FACTOR ON GENERATION Z INVESTMENT DECISIONS

Abstract

Investment has emerged as a strategic financial choice for individuals seeking effective returns, particularly among younger generations who are increasingly aware of its importance. With the rise of fraudulent investment schemes, informed decision-making is essential to mitigate risks. This study aims to examine the level of investment decisions among Generation Z, influenced by financial attitude, investment knowledge, and psychological factors, specifically overconfidence and herding behavior. A quantitative research method was employed, utilizing primary data collected from 420 Gen Z respondents through purposive sampling. Data analysis was conducted using SPSS version 26, incorporating validity and reliability tests, classical assumption tests, multiple linear regression, t-tests, F-tests, and the coefficient of determination. The findings indicate that financial attitude, investment knowledge, and overconfidence have a significant positive effect on Gen Z's investment decisions. In contrast, herding behavior does not significantly influence their investment decisions. These results provide insights for future financial education strategies and suggest the need to explore broader variables for a more comprehensive understanding of Gen Z investor behavior.