IDEAS home Printed from https://ideas.repec.org/a/aoj/jeelre/v7y2020i3p306-313id2099.html
   My bibliography  Save this article

The Correlation between Education Level and Understanding of Financial Literacy and its Effect on Investment Decisions in Capital Markets

Author

Listed:
  • Mochammad Rizaldy Insan Baihaqqy
  • Disman .
  • Nugraha .
  • Maya Sari

Abstract

This study aims to describe how the educational level of investors influences their understanding of financial literacy and its effect on investment decision making in capital markets. The method used in this research is quantitative descriptive. Data collection was conducted from 7 January to 7 February 2020, by distributing questionnaires to investors who were members of PT Bursa Efek Indonesia. The sample in this study amounted to 108 investors. The research findings show that the level of investor knowledge regarding financial literacy is high. There is a significant correlation between the investor education level and their understanding of financial literacy, thus influencing investors in the financial decisions they make. It can be concluded that, for investment decision making in capital markets, knowledge of financial literacy is necessary. Therefore, to increase investor understanding of various levels of education on financial literacy in the capital market, education, and training on financial literacy as sustainable capital is required.

Suggested Citation

  • Mochammad Rizaldy Insan Baihaqqy & Disman . & Nugraha . & Maya Sari, 2020. "The Correlation between Education Level and Understanding of Financial Literacy and its Effect on Investment Decisions in Capital Markets," Journal of Education and e-Learning Research, Asian Online Journal Publishing Group, vol. 7(3), pages 306-313.
    • Handle: RePEc:aoj:jeelre:v:7:y:2020:i:3:p:306-313:id:2099
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/JEELR/article/view/2099/1608
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:jeelre:v:7:y:2020:i:3:p:306-313:id:2099. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/JEELR/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.