Analysis of Minimum Capital, Risk, and Knowledge in Affecting Students’ Interest in Investing with Moderated Income in Indonesian Capital Market

Abstract

Preferences on capital, risk perception, knowledge, and rate of return are part of the factors that are analyzed for testing in making investments. This study aimed at analyzing the impact of minimum capital, risk perception, and knowledge on student interest in investing moderated by income factors. The design of this study was causally applied quantitative using primary and secondary data through the collection of 117 respondents. The sampling technique applied was the purposive sampling method adjusted by the object and criteria set. Moderated Regression Analysis (MRA) was used in testing the overall sample data and the residual test for moderating variables. The research results indicate that minimum capital factors, risk perception, and knowledge significantly affect student investment interest simultaneously at the Bandung branch. Partially, minimum capital has a significant negative effect on investment interest; meanwhile, Risk perception and knowledge positively affect investment interest. In comparison, the income factor is able to moderate the relationship between minimum capital, risk perception, and knowledge with investment interest.