Meningkatkan Financial Management Behavior dan Investment Decision Making melalui Financial Knowledge, Attitude, dan Emotional Intelligence dengan Risk Perception

  • Dharma Satriadi Institut Pertanian Bogor
  • Adler Haymans Manurung Universitas Bhayangkara Jakarta Raya
  • Roy Sembel IPMI International Business School
  • Ahmad Hidayat Sutawidjaya Universitas Esa Unggul
DOI: https://doi.org/10.35838/jrap.2023.010.02.14
Abstract views: 473 | PDF downloads: 502
Keywords: Decision Making, Emotional Intelligence, Financial Attitude, Financial Knowledge, Financial Management

Abstract

The objective of this study is to analyze the determinants of financial management behavior, specifically financial knowledge, financial attitude, and emotional intelligence on investment decision making with Risk Perception as a moderator. Using the Structural Equation Modeling – Partial Least Square analysis method, this study was conducted on a sample of 105 managers from Karawang International Industrial City. Financial Knowledge does not support Financial Management Behavior, Financial Attitude has a positive effect on Financial Management Behavior, Emotional Intelligence has a positive effect on Financial Management Behavior, Financial Knowledge does not support Investment Decision Making, Financial Attitude does not support Investment Decision Making, Emotional Intelligence has a positive effect on Investment Decision Making, Financial Management Behavior does not support Investment Decision Making, and Financial Attitude does not support Investment Decision Making. This research indicates the need to develop a financial education program that focuses on increasing financial knowledge and attitudes for managers, as well as paying attention to the development of emotional intelligence in order to improve the quality of their investment decision making.

References

Abidin, Z., Maupa, H., Alam, S., & Sobarsyah, M. (2020). Determinants of Financial Behavior in Young Investors’ Islamic Stock Investment Decisions in Indonesia. American International Journal of Business Management (AIJBM), 3(11), 1-8.

Abul, S. J. (2019). Factors influencing Individual Investor Behaviour: Evidence from the Kuwait Stock Exchange. Asian Social Science, 15(3), 27. https://doi.org/10.5539/ass.v15n3p27

Adiputra, I. G., & Patricia, E. (2021). The Effect of Financial Attitude, Financial Knowledge, and Income on Financial Management Behavior. Advances in Social Science, Education and Humanities Research, 1(1), 15–26. https://doi.org/10.52970/grfm.v1i1.59

Ahmed, Z., Rasool, S., Saleem, Q., Khan, M. A., & Kanwal, S. (2022). Mediating Role of Risk Perception Between Behavioral Biases and Investor’s Investment Decisions. SAGE Open, 12(2). https://doi.org/10.1177/21582440221097394

Ajzen, I. (2022). the Theory of Planned Behaviour. Organizational Behavior and Human Decision Processes, 33(1), 52–68. https://doi.org/10.47985/dcidj.475

Alzahrani, L., Al-Karaghouli, W., & Weerakkody, V. (2018). Investigating the impact of citizens’ trust toward the successful adoption of e-government: A multigroup analysis of gender, age, and internet experience. Information Systems Management, 35(2), 124–146. https://doi.org/10.1080/10580530.2018.1440730

Anthony, R., Ezat, W. S., Junid, S. Al, & Moshiri, H. (2011). Financial Management Attitude and Practice among the Medical Practitioners in Public and Private Medical Service in Malaysia. International Journal of Business and Management, 6(8), 105–113. https://doi.org/10.5539/ijbm.v6n8p105

Aren, S., & Zengin, A. N. (2016). Influence of Financial Literacy and Risk Perception on Choice of Investment. Procedia - Social and Behavioral Sciences, 235(November 2016), 656–663. https://doi.org/10.1016/j.sbspro.2016.11.047

Arifin, A. Z. (2018). Influence factors toward financial satisfaction with financial behavior as intervening variable on Jakarta area workforce. European Research Studies Journal, 21(1), 90–103.

Asaff, R., Suryati, & Rahmayani, R. (2019). Pengaruh Financial Attitude Dan Financial Knowledge Terhadap Financial Management Behaviro (Studi Kasus pada Mahasiswa Fakultas Ekonomi Konsentrasi Keuangan Universitas Andi Djemma Palopo). Jemma Jurnal of Economic, Management and Accounting, 2(2), 09–22.

Asandimitra, N., & Kautsar, A. (2019). The influence of financial information, financial self efficacy, and emotional intelligence to financial management behavior of female lecturer. Humanities and Social Sciences Reviews, 7(6), 1112–1124. https://doi.org/10.18510/hssr.2019.76160

Awais, M., Laber, M. F., Rasheed, N., & Khursheed, A. (2016). Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions : Empirical Evidence from. International Journal of Economics and Financial Issues, 6(1), 73–79.

Bhatia, A., Chandani, A., & Chhateja, J. (2020). Robo advisory and its potential in addressing the behavioral biases of investors — A qualitative study in Indian context. Journal of Behavioral and Experimental Finance, 25, 100281. https://doi.org/10.1016/j.jbef.2020.100281

Çal, B., & Lambkin, M. (2017). Stock exchange brands as an influence on investor behavior. International Journal of Bank Marketing, 35(3), 391–410. https://doi.org/10.1108/IJBM-05-2016-0072

Chiu, S., & Newberger, R. (2006). Islamic finance: meeting financial needs with faith based products. Profit Wise News and Views, February, 8–14. http://www.nzibo.com/IB2/FNeeds.pdf

DM, R. (2021). Financial Literacy, Financial Behavior and Financial Attitudes Towards Investment Decisions and Firm Bankruptcy. Atestasi : Jurnal Ilmiah Akuntansi, 4(1), 79–87. https://doi.org/10.57178/atestasi.v4i1.167

Duy Bui, L., Chi Le, T., Ngoc Quang, A. H., & Wong, W. K. (2021). Determinants of the possibilities by investors’ risk-taking: empirical evidence from Vietnam. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.1917106

Falahati, L., Sabri, M. F., & Paim, L. H. J. (2012). Assessment a model of financial satisfaction predictors: Examining the mediate effect of financial behaviour and financial strain. World Applied Sciences Journal, 20(2), 190–197. https://doi.org/10.5829/idosi.wasj.2012.20.02.1832

Fünfgeld, B., & Wang, M. (2009). Attitudes and behaviour in everyday finance: Evidence from Switzerland. International Journal of Bank Marketing, 27(2), 108–128. https://doi.org/10.1108/02652320910935607

Ganzach, Y. (2000). Judging Risk and Return of Financial Assets. Organizational Behavior and Human Decision Processes, 83(2), 353–370. https://doi.org/10.1006/obhd.2000.2914

Grable, J. E., Park, J. Y., & Joo, S. H. (2009). Explaining financial management behavior for koreans living in the united states. Journal of Consumer Affairs, 43(1), 80–107. https://doi.org/10.1111/j.1745-6606.2008.01128.x

Gudmunson, C. G., & Danes, S. M. (2011). Family Financial Socialization: Theory and Critical Review. Journal of Family and Economic Issues, 32(4), 644–667. https://doi.org/10.1007/s10834-011-9275-y

Ha, S., Youn, S. J., & Moon, J. (2020). Emotional Leadership, Leader Legitimacy, and Work Engagement in Retail Distribution Industry. Journal of Distribution Science, 18(7), 27–36. https://doi.org/10.15722/jds.18.7.202007.27

Halim, M. A., & Setyawan, I. R. (2021). Determinant Factors of Financial Management Behavior Among People in Jakarta During COVID-19 Pandemic. Proceedings of the International Conference on Economics, Business, Social, and Humanities (ICEBSH 2021), 570(Icebsh), 131–136. https://doi.org/10.2991/assehr.k.210805.021

Hallahan, T., Faff, R., & McKenzie, M. (2003). An exploratory investigation of the relation between risk tolerance scores and demographic characteristics. Journal of Multinational Financial Management, 13(4–5), 483–502. https://doi.org/10.1016/S1042-444X(03)00022-7

Hamid, F. S., Rangel, G. J., Taib, F. M., & Thurasamy, R. (2013). The relationship between risk propensity , risk perception and risk-taking behaviour in an emerging market. The International Journal of Banking and Finance, 10(1).

Hendarto, K., Anastasia, N., & Basana, S. R. (2021). The Effect of Financial Literacy, Financial Risk Tolerance, and Financial Socialization Agents on Stock Investment Decision in The Millennial Generation. Petra International Journal of Business Studies, 4(1), 11–22. https://doi.org/10.9744/ijbs.4.1.11-22

Herdjiono, I., & Damanik, L. A. (2016). Pengaruh Financial Attitude,Financial Knowledge, Parental Income Terhadap Financial Management Behavior. Manajemen Teori Dan Terapan, 1(3), 226–241.

Ho, C. S. M., & Lee, H. L. D. (2021). Integrating positive financial attitudes to nurture students’ identity as informed financial decision-makers in high power distance Chinese contexts. Journal of Educational Change, 22(2), 247–270. https://doi.org/10.1007/s10833-020-09396-x

Holzmeister, F., Huber, J., Kirchler, M., Lindner, F., Weitzel, U., & Zeisberger, S. (2020). What drives risk perception? a global survey with financial professionals and laypeople. In Management Science (Vol. 66, Issue 9, pp. 3977–4002). https://doi.org/10.1287/mnsc.2019.3526

Humaira, I., & Sagoro, E. M. (2018). Pengaruh Pengetahuan Keuangan, Sikap Keuangan, Dan Kepribadian Terhadap Perilaku Manajemen Keuangan Pada Pelaku Umkm Sentra Kerajinan Batik Kabupaten Bantul. Nominal, Barometer Riset Akuntansi Dan Manajemen, 7(1). https://doi.org/10.21831/nominal.v7i1.19363

Ishfaq, M., Maqbool, Z., Akram, S., Tariq, S., & Khurshid, M. . (2010). Mediating Role of Risk Perception between Cognitive Biases and Risky Investment Decision : Empirical Evidence from Pakistan ’ s Equity Market. Journal of Managerial Sciences, 11(03), 266–278.

Jordan, P. J. (2013). Emotional Intelligence in Organizational Behavior and Industrial-Organizational Psychology. The Science of Emotional Intelligence, 15(1), 583–605. https://doi.org/10.1093/acprof

Jorgensen, B. L., Rappleyea, D. L., Schweichler, J. T., Fang, X., & Moran, M. E. (2017). The Financial Behavior of Emerging Adults: A Family Financial Socialization Approach. Journal of Family and Economic Issues, 38(1), 57–69. https://doi.org/10.1007/s10834-015-9481-0

Kerr, R., Garvin, J., Heaton, N., & Boyle, E. (2006). Emotional intelligence and leadership effectiveness. Leadership and Organization Development Journal, 27(4), 265–279. https://doi.org/10.1108/01437730610666028

Kuhnen, C. M., & Chiao, J. Y. (2009). Genetic determinants of financial risk taking. PLoS ONE, 4(2), 3–6. https://doi.org/10.1371/journal.pone.0004362

Lampenius, N., & Zickar, M. J. (2005). Development and Validation of a Model and Measure of Financial Risk-Taking. Journal of Behavioral Finance, 6(3), 129–143. https://doi.org/10.1207/s15427579jpfm0603_3

Lim, T. S., Mail, R., Abd Karim, M. R., Ahmad Baharul Ulum, Z. K., Jaidi, J., & Noordin, R. (2018). A serial mediation model of financial knowledge on the intention to invest: The central role of risk perception and attitude. Journal of Behavioral and Experimental Finance, 20, 74–79. https://doi.org/10.1016/j.jbef.2018.08.001

Loix, E., Pepermans, R., Mentens, C., Goedee, M., & Jegers, M. (2005). Orientation Toward Finances: Development of a Measurement Scale. Journal of Behavioral Finance, 6(4), 192–201. https://doi.org/10.1207/s15427579jpfm0604_3

Loris, R. P., & Jayanto, P. Y. (2021). the Effect of Representativeness, Availability, Anchoring, Risk Perception, and Herding on Investment Decisions Syariah Investors. Jurnal Akuntansi, 11(1), 81–92. https://doi.org/10.33369/j.akuntansi.11.1.81-92

Lusardi, A., & Mitchell, O. S. (2011). Financial Literacy: Implication for Retirement Wellbeing. National Bureau of Economic Research, 17–39.

Mallik, K. A., Munir, M. A., & Sarwar, S. A. L. M. A. N. (2017). Impact of overconfidence and loss aversion biases on investor decision making behavior: Mediating role of risk perception. International Journal of Public Finance, Law & Taxation, 1(1), 13-24.

Mccarthy, B. (2000). The cult of risk taking and social learning: a study of Irish entrepreneurs. Management Decision, 38(8), 563–575. https://doi.org/10.1108/00251740010378291

Nobriyani, A. P., & Haryono, N. A. (2019). Faktor-Faktor Yang memengaruhi Financial Management Behavior Pada Keluarga TKI Di Kabupaten Ponorogo. Jurnal Ilmu Manajemen, 7(3), 841–856.

Noussair, C., & Trautmann, S. (2011). Higher Order Risk Attitudes , Demographics , and Financial Decisions.

Perry, V. G., & Morris, M. D. (2005). Who is in control? the role of self-perception, knowledge, and income in explaining consumer financial behavior. Journal of Consumer Affairs, 39(2), 299–313. https://doi.org/10.1111/j.1745-6606.2005.00016.x

Pramedi, A. D., & Haryono, N. A. (2021). Pengaruh Financial Literacy, Financial Knowledge, Financial Attitude, Income dan Financial Self Efficacy terhadap Financial Management Behavior Entrepreneur Lulusan Perguruan Tinggi di Surabaya. Jurnal Ilmu Manajemen, 9(2), 572-586. https://doi.org/10.26740/jim.v9n2.p572-586

Prati, M., Douglas, C., Ferris, G. R., Ammeter, A. P., & Buckley, M. R. (2003). Emotional Intelligence, Leadership Effectiveness, and Team Outcomes. The International Journal of Organizational Analysis, 11(1), 21-40. https://doi.org/10.1108/eb028961

Pulungan, D. R., Koto, M., & Syahfitri, L. (2018). Pengaruh Gaya Hidup Hedonis Dan Kecerdasan Emosional Terhadap Perilaku Keuangan Mahasiswa. Seminar Nasional Royal (SENAR), 9986(September), 401–406.

Putri, R. A., & Isbanah, Y. (2020). Faktor - Faktor Yang memengaruhi Keputusan Investasi Pada Investor Saham Di Surabaya. Jurnal Ilmu Manajemen, 8(1), 197–209. https://jurnalmahasiswa.unesa.ac.id/index.php/jim/article/view/30746/27991

Qureshi, S. A., Hunjra, A. I., & Riaz, L. (2017). Psychological Factors and Investment Decision Making: A Confirmatory Factor Analysis Working on the financial reform and different industries analysis of Paksitan View project. Journal of Contemporary Management Sciences, 2(March). https://www.researchgate.net/publication/314284307

Riaz, L., Hunjra, A. I., & Rauf-i-Azam. (2012). Impact of Psychological Factors on Investment Decision Making Mediating by Risk Perception: A Conceptual Study. Middle-East Journal of Scientific Research, 12(6), 789–795. https://doi.org/10.5829/idosi.mejsr.2012.12.6.1777

Rieger, M. O. (2020). How to Measure Financial Literacy? Journal of Risk and Financial Management, 13(12), 324. https://doi.org/10.3390/jrfm13120324

Rizkiawati, N. L., & Asandimitra, N. (2018). The Influence of Demography, Financial Knowledge, Financial Attitude, Locus of Control and Financial Self-Efficacy on the Financial Management Behavior of the Surabaya Community. Jurnal Ilmu Manajemen (JIM), 6(3), 2. https://jurnalmahasiswa.unesa.ac.id/index.php/jim/article/view/23846/21793

Roszkowski, M. J., Delaney, M. M., & Cordell, D. M. (2009). Intraperson consistency in financial risk tolerance assessment: Temporal stability, relationship to total score, and effect on criterion-related validity. Journal of Business and Psychology, 24(4), 455–467. https://doi.org/10.1007/s10869-009-9115-3

Sarkar, A. K., & Sahu, T. N. (2018). Analysis of Investment Behaviour of Individual Investors of Stock Market: A Study in Selected Districts of West Bengal. Pacific Business Review International, 10(7), 7–17. www.pbr.co.in

Seong, H.-E., & Kim, B.-Y. (2021). Critical Factors Affecting Venture Capital Investment Decision on Innovative Startups: A Case of South Korea. International Journal of Management, 12(3), 768–781. https://doi.org/10.34218/IJM.12.3.2021.075

Sevdalis, N., & Harvey, N. (2007). “Investing” versus “Investing for a Reason”: Context Effects in Investment Decisions. Journal of Behavioral Finance, 8(3), 172–176. https://doi.org/10.1080/15427560701547487

Shih, T. Y., & Ke, S. C. (2014). Determinates of financial behavior: Insights into consumer money attitudes and financial literacy. Service Business, 8(2), 217–238. https://doi.org/10.1007/s11628-013-0194-x

Silvy, M., & Yulianti, N. (2013). Sikap Pengelola Keuangan Dan Perilaku Perencanaan Investasi Keluarga Di Surabaya. Journal of Business and Banking, 3(1), 57. https://doi.org/10.14414/jbb.v3i1.254

Siraji, M., Nazar, M. C. A., & Ali, M. S. I. (2021). Irrational Behaviour and Stock Investment Decision . Does Gender Matter ? Evidence from Sri Lanka . Journal of Management, Innovation and Technologies, 11(2), 2185–2204.

Sojka, J. Z., & Deeter‐Schmelz, D. R. (2002). Enhancing the Emotional Intelligence of Salespeople. American Journal of Business, 17(1), 43–50. https://doi.org/10.1108/19355181200200004

Sorongan, F. A. (2022). The Influence of Behavior Financial and Financial Attitude on Investment Decisions With Financial Literature as Moderating Variable. European Journal of Business and Management Research, 7(1), 265–268. https://doi.org/10.24018/ejbmr.2022.7.1.1291

Thi, N., Mien, N., & Thao, T. P. (2015). Factors Affecting Personal Financial Management Behaviors: Evidence from Vietnam. Economics, Finance and Social Sciences, 978–1.

Upadana, I. W. Y. A., & Herawati, N. T. (2020). Pengaruh Literasi Keuangan dan Perilaku Keuangan terhadap Keputusan Investasi Mahasiswa. Jurnal Ilmiah Akuntansi Dan Humanika, 10(2), 126. https://doi.org/10.23887/jiah.v10i2.25574

Wang, Z. (2019). The Determinants of Venture Capital Funding: Evidence across Countries. CFA Digest, 31(2), 27–29. https://doi.org/10.2469/dig.v31.n2.862

Wati, T., Elfita, R. A., & Laily, N. (2021). Emotional Intelligence , Financial Literacy , and Investor Intention : Empirical Study on University Students During the Covid-19 Pandemic.

Winarta, S., & Pamungkas, A. S. (2021). The Role of Financial Behavior, Financial Attitude, Financial Strain, and Risk Tolerance in Explaining Financial Satisfaction. Proceedings of the Ninth International Conference on Entrepreneurship and Business Management (ICEBM 2020), 174(Icebm 2020), 520–524. https://doi.org/10.2991/aebmr.k.210507.077

Yitzhaki, S., & Lambert, P. J. (2013). Is higher variance necessarily bad for investment ? Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-013-0395-3

Published
2023-10-11
How to Cite
Satriadi, D., Manurung, A. H., Sembel, R., & Sutawidjaya, A. H. (2023). Meningkatkan Financial Management Behavior dan Investment Decision Making melalui Financial Knowledge, Attitude, dan Emotional Intelligence dengan Risk Perception. JRAP (Jurnal Riset Akuntansi Dan Perpajakan), 10(2), 161-179. https://doi.org/10.35838/jrap.2023.010.02.14