The Effect of Investment Literacy, Risk Tolerance, and Heuristics Bias on Investment Decisions of Generation Z in the Indonesian Capital Market

Authors

  • Miqdamuntaqo Ferdiansa Faculty of Economics and Business, Accounting Study Program, University of 17 Agustus 1945 Surabaya
  • Gita Lidyawati Safitri Faculty of Economics and Business, Accounting Study Program, University of 17 Agustus 1945 Surabaya
  • Januar Fahri Triwibiansyah Faculty of Economics and Business, Accounting Study Program, University of 17 Agustus 1945 Surabaya
  • Moch Zulfikar Ramadhan Faculty of Economics and Business, Accounting Study Program, University of 17 Agustus 1945 Surabaya
  • Maria Yovita R. Pandin Faculty of Economics and Business, Accounting Study Program, University of 17 Agustus 1945 Surabaya

DOI:

https://doi.org/10.55927/ijems.v3i6.32

Keywords:

Investment Literacy, Risk Tolerance, Heuristics Bias, Investment Decisions

Abstract

The purpose of this study is to examine how Generation Z's investing choices in the Indon This study aims to investigate how investment knowledge, risk tolerance, and heuristic bias affect Generation Z's investment decisions in the Indonesian capital market. esian capital market are influenced by investment literacy, risk tolerance, and heuristic bias. Using a quantitative approach and survey method, data was collected from Generation Z students who have experience investing in the capital market. A total of 40 respondents participated. The results show that high investment literacy positively supports more rational investment decisions. Risk tolerance also positively influences an individual's ability to make long-term investment choices. Heuristic bias has a negative impact on the quality of decisions, as decisions tend to be influenced by emotions and social trends. These findings confirm that improving investment literacy and risk management can help Generation Z make smarter and more measured investment decisions in the Indonesian capital market

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Published

2025-12-21

Issue

Vol. 3 No. 6 (2025): December 2025

Section

Articles