FINANCIAL LITERACY AND INVESTMENT DECISIONS: THE DUAL MEDIATION EFFECT OF RISK PERCEPTION AND FINANCIAL TECHNOLOGY ADOPTION AMONG YOUNG PROFESSIONALS IN SAMARINDA CITY
DOI:
10.5281/zenodo.20361459Published:
2026-05-24Downloads
Abstract
This study aims to analyze the effect of financial literacy on investment decisions among young professionals in Samarinda City, as well as to examine the mediating roles of risk perception and financial technology in that relationship. The research design employs an explanatory research method with a quantitative approach. Data were collected from respondents who are young professionals aged twenty to thirty-four years, have a stable income, and have previously or are currently engaged in active investment activities, using a purposive sampling technique based on strictly established criteria. Hypothesis testing was conducted using Partial Least Squares Structural Equation Modeling through the SmartPLS application. The findings reveal that financial literacy has a positive and significant effect on investment decisions, meaning that the higher the level of financial literacy of a young professional, the better the quality of investment decisions made. Financial literacy also proved to have a positive and significant effect on risk perception, indicating that individuals with adequate financial understanding are able to assess investment risks more accurately and objectively. Furthermore, financial literacy has a positive and significant effect on the adoption and utilization of financial technology. Risk perception and financial technology were each proven to have a positive and significant effect on investment decisions. Moreover, the mediation test results show that risk perception is able to mediate the effect of financial literacy on investment decisions positively and significantly. Likewise, financial technology proved to serve as a significant mediator in the relationship between financial literacy and investment decisions. This research model demonstrates a very strong predictive capability toward variation in investment decisions. These findings imply the importance of improving financial literacy as a foundation for rational investment decision-making, particularly among young professionals in developing regions of Indonesia.
Keywords:
Financial Literacy Investment Decision Risk Perception Financial Technology Young ProfessionalReferences
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