Article Sidebar

Download
Download Article

Main Article Content

Abstract

The objective of this research is to elucidate and analyze the extent to which foundational knowledge of investment products and financial analysis influences investment decisions in Medan, incorporating community income enhancement in Medan as a mediating variable. The subjects of this study are entities that utilize green energy, where the independent variables are the basic understanding of investment products and financial analysis, the dependent variable is the investment decision-making in Medan, and the intervening variable is the enhancement of community income in Medan. Data analysis employed the Structural Equation Modeling (SEM) technique utilizing SMART PLS 4.0 software. Data collection methods included questionnaires and observation. The research methodology applied was quantitative descriptive analysis utilizing the SEM method, where data processing with SEM was performed using PLS 4.0 application. The findings indicate that, partially, the variables of basic understanding of investment products and financial analysis significantly affect investment decisions and impact the enhancement of community income. Simultaneously, these variables influence investment decisions through the mediating variable of community income enhancement. A deeper understanding of investment products and financial analysis enables investors to assess whether such conditions can enhance community income, thereby aiding in the decision-making process regarding the allocation of capital for the economic upliftment of the community.

Keywords

Financial Literacy Investment Products Investment Decisions Community Income

Article Details

Creative Commons License

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

How to Cite
Hastalona, D. (2024). Enhancing Investment Decisions Through Financial Literacy: The Mediating Role of Income in Medan’s Community Using SEM-PLS Modeling. Golden Ratio of Data in Summary, 4(1), 90–101. https://doi.org/10.52970/grdis.v4i1.559
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abbott, Pamela, et al. (2020). Failing adult learners: Why Rwanda’s adult literacy education is not delivering. International Journal of Educational Development, 79, 102288. https://doi.org/10.1016/j.ijedudev.2020.102288
  2. Andarsari, Pipit Rosita and Ningtyas, M. N. (2022). The Role of Financial Literacy on Financial Behavior. Journal of Accounting and Business Education, 6, 41–53.
  3. Ardila, Isna, Febriaty, H., & and Astuti, R. (2021). Factors that Influence the Financial Literacy on Micro Small and Medium Entreprise. Journal of International Conference Proceedings, 4(2), 144–149. https://doi.org/10.32535/jicp.v4i2.1234
  4. Baptista, Stella Maris Juhar and Dewi, A. S. (2021). The Influence of Financial Attitude, Financial Literacy and Locus of Control on Financial Management Behaviour. International Journal of Social Science and Business, 5(1), 93–98.
  5. Bose, Udichibarna, Arun, Thankom and Arun, S. (2021). Do information networks benefit households with female heads? Journal Economic Modelling, 103, 105613. https://doi.org/10.1016/j.econmod.2021.105613
  6. Buchdadi, Agung Dharmawan, et al. (2020). the Influence of Financial Literacy on Smes Performance Through Access To Finance and Financial Risk Attitude As Mediation Variables. Academy of Accounting and Financial Studies Journal, 24(5), 1–16.
  7. Callis, Zoe, et al. (2024). The association between intelligence and financial literacy: A conceptual and meta-analytic review. Journal Intelligence, 100, 101781. https://doi.org/10.1016/j.intell.2024.101781
  8. Compen, Boukje, De Witte, Kristof and Schelfhout, W. (2019). The role of teacher professional development in financial literacy education: literature review. Journal Educational Research Review, 26, 1–35. https://doi.org/10.1016/j.edurev.2018.12.001
  9. Cossa, Atanásio, Madaleno, M., & and Mota, J. (2022). Financial literacy environment scan in Mozambique. Journal Asia Pacific Management Review, 27, 229–244. https://doi.org/10.1016/j.apmrv.2021.09.004
  10. Cotton, D.R.E., et al. (2021). Reducing energy demand in China and the United Kingdom: The importance of energy literacy. Journal of Cleaner Production, 278, 123876. https://doi.org/10.1016/j.jclepro.2020.123876
  11. Damra, Yousef, Yasin, S., & and Albaity, M. (2024). “Trust but verify” financial inclusion in the MENA region. Journal Borsa Istanbul Review, 23(6), 1430–1447. https://doi.org/10.1016/j.bir.2024.09.008
  12. Davoli, Maddalena and Rodríguez-Planas, N. (2020). Culture and adult financial literacy: Evidence from the United States. Journal Economics of Education Review, 78, 102013. https://doi.org/10.1016/j.econedurev.2020.102013
  13. Essel-Gaisey, Felix, et al. (2024). The road to recovery: Financial resilience and mental health in post-apartheid South Africa. Journal SSM - Population Health, 23, 101455. https://doi.org/10.1016/j.ssmph.2024.101455
  14. Farida, Mamik Nur, Soesatyo, Yoyok and Aji, T. S. (2021). Influence of Financial Literacy and Use of Financial Technology on Financial Satisfaction through Financial Behavior. International Journal of Education and Literacy Studies, 86–95. https://doi.org/10.7575/aiac.ijels.v.9n.1p.86
  15. Garg, Aashish, et al. (2022). As you sow, so shall you reap: Assessing drivers of socially responsible investment attitude and intention. Technological Forecasting and Social Change, 184, 122030. https://doi.org/10.1016/j.techfore.2022.122030
  16. Gilenko, Evgenii and Chernova, A. (2021). Saving behavior and financial literacy of Russian high school students: An application of a copula-based bivariate probit-regression approach. Journal Children and Youth Services Review, 127, 106122. https://doi.org/10.1016/j.childyouth.2021.106122
  17. Im, Eunok, Kim, J. K., & and Woo, S. M. (2022). Study on the policy literacy of the Republic of Korea regarding nuclear and new-renewable energy. Journal Nuclear Engineering and Technology, 54, 741–748. https://doi.org/10.1016/j.net.2021.08.018
  18. Imai, Susumu, Katayama, H., & and Krishna, K. (2021). Digital financial capability and entrepreneurial performance. Journal International Review of Economics and Finance, 76, 55–74.
  19. Jutte, Douglas P., Badruzzaman, Renae A. and Thomas-Squance, R. (2021). Neighborhood Poverty and Child Health: Investing in Communities to Improve Childhood Opportunity and Well-Being. Journal Academic Pediatrics, 21(8S), S184–S193. https://doi.org/10.1016/j.acap.2021.04.027
  20. Khalisharani, Hanin, Johan, Irni Rahmayani and Sabri, M. F. (2022). The Influence of Financial Literacy and Attitude towards Financial Behaviour Amongst Undergraduate Students: A Cross-Country Evidence. Pertanika Journal of Social Sciences and Humanities, 30(2), 449–474. https://doi.org/10.47836/pjssh.30.2.03
  21. Krijnen, Hidde K., et al. (2022). Socioeconomic differences in metabolic syndrome development among males and females, and the mediating role of health literacy and self-management skills. Journal Preventive Medicine, 161, 107140. https://doi.org/10.1016/j.ypmed.2022.107140
  22. Kumar, Parul, et al. (2024). Analysing the behavioural, psychological, and demographic determinants of financial decision making of household investors. Journal Heliyon, 9, e13085. https://doi.org/10.1016/j.heliyon.2024.e13085
  23. Lin, Chien An and Bates, T. C. (2022). Smart people know how the economy works: Cognitive ability, economic knowledge and financial literacy. Journal Intelligence, 93, 101667. https://doi.org/10.1016/j.intell.2022.101667
  24. Liu, Liu and Zhang, H. (2021). Financial literacy, self-efficacy and risky credit behavior among college students: Evidence from online consumer credit. Journal of Behavioral and Experimental Finance, 32, 100569. https://doi.org/10.1016/j.jbef.2021.100569
  25. Molina-garcía, Antonio and Jos, A. (2024). The International Journal of Management Education How does financial literacy influence undergraduates ’ risk-taking propensity ? The International Journal of Management Education, 21, 100840.
  26. Owusu, Godfred Matthew Yaw, et al. (2024). Financial risk tolerance and its determinants: The perspective of personnel from security services in Ghana. Borsa Istanbul Review, 23(4), 852–864. https://doi.org/10.1016/j.bir.2024.02.005
  27. Persaud, Ajax and Thaffe, W. (2024). The state of financial inclusion research on developing countries. Journal Transnational Corporations Review, 15, 22–34. https://doi.org/10.1016/j.tncr.2024.08.002
  28. Putri, Linzzy Pratami, et al. (2021). The Influence of Financial Literacy on Green Investment Decisions During The Pandemic. Journal of International Proceedings (JICP), 4(2), 301–308. https://doi.org/10.47467/alkharaj.v6i6.1340
  29. Rahmawati, Alni, Wahyuningsih, Sri Handari and Garad, A. (2024). The effect of financial literacy, training and locus of control on creative economic business performance. Journal Social Sciences and Humanities Open, 8, 100721. https://doi.org/10.1016/j.ssaho.2024.100721
  30. Suratno, Narmaditya, Bagus Shandy and Wibowo, A. (2021). Family economic education, peer groups and students’ entrepreneurial intention: the mediating role of economic literacy. Journal Heliyon, 7, e06692. https://doi.org/10.1016/j.heliyon.2021.e06692
  31. Tan, G. K. S. (2020). Robo-advisors and the financialization of lay investors. Journal Geoforum, 117, 46–60. https://doi.org/10.1016/j.geoforum.2020.09.004
  32. Thomas, Binoy and Subhashree, P. (2020). Factors that influence the financial literacy among engineering students. Journal Procedia Computer Science, 172, 480–487. https://doi.org/10.1016/j.procs.2020.05.161
  33. ul Abdin, Syed Zain, et al. (2022). Overconfidence bias and investment performance: A mediating effect of risk propensity. Journal Borsa Istanbul Review, 22(4), 780–793. https://doi.org/10.1016/j.bir.2022.03.001
  34. Widyakto, Adhi, Liyana, Ziyana Wahyu and Rinawati, T. (2022). The influence of financial literacy, financial attitudes, and lifestyle on financial behavior. Diponegoro International Journal of Business, 5(1), 33–46. https://doi.org/10.14710/dijb.5.1.2022.33-46
  35. Yang, Junhong, Wu, Y., & and Huang, B. (2024). Digital finance and financial literacy: Evidence from Chinese households. Journal of Banking and Finance, 156, 107005. https://doi.org/10.1016/j.jbankfin.2024.107005

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.