The Influence of Financial Literacy on Investment Decisions Through Locus of Control Based on Gender (Case Study on Young Gen-Z Entrepreneurs)

Abstract

The dominance of Gen-Z as entrepreneurs and investment actors shows positive results, due to the growth and dominance of this generation bringing new innovations, rapid technological adaptation, and a more dynamic approach in the business world, which has the potential to strengthen the economy as a whole, with a high level of financial literacy, they are able to make smarter and more informed investment decisions, while the locus of control factor provides insight additionally regarding how individuals control and respond to their financial situations. This research aims to determine the influence of financial literacy on investment decisions, with the moderation of the locus of control variable based on gender in young Gen-Z entrepreneurial students. and identify what factors influence these three financial components. We created an online questionnaire and distributed it to 131 students who are part of the Gen-Z young entrepreneur students. The data analysis method uses a simple linear regression model and Sobel test analysis using the SPSS software program. These results show that financial literacy has a positive effect on investment decisions and shows that investment decisions have a positive effect on locus of control.