Analysis of Factors that Influence Undergraduate

Student’s Stock Investment Decision in Jakarta

Muhammad Rheza Ramadhana Putra Alfarizy1, Rindah Febriana

Suryawati1*
Abstract: Stock investment is one of popular type of investment in Indonesia. Undergraduate
student, as one of OJK’s target for financial education, is about to enter the industry and will be
responsible for their own financial decision. The subject of this research is undergraduate student of
the capital market community in Jakarta. This research aims to analyze the characteristics of student
investors in Jakarta, and to analyze the factors that influence student’s investment decision in
Jakarta. Factors analyzed in this research are neutral information, accounting information, firm
image coincidence, classics, social relevance, advocate recommendation and personal financial
needs

Keywords: investment decision, investor, logistic regression, stock investment, undergraduate

students.

INTRODUCTION

Three world-rating agencies, namely Fitch Ratings, ancial products and services including investment. In
Moody's Investor Service, and Standard & Poor's (S& creased public awareness that saving does not bring
P), place Indonesia as a country worthy of investment more value than the money has triggered a shift in the
(investment grade). This indicates an increase in the f lifestyle of financial management in Indonesia from
inancial services sector in Indonesia. Regarding the i "saving society" to "investment society" (IndoPremie
mprovement of the financial sector, it is important to i r 2018). However, the increase in public interest in in
ncrease financial literacy among the public regarding vesting is not balanced with knowledge about the inv
financial institutions, products and services, and finan estment world.
cial management and planning.
Investments have various types and characteristics. S
Financial literacy according to OJK in SNLKI (Revisi everal types of investments that are popular among In
t 2017) is knowledge, skills and beliefs that influence donesians include investment in shares, property, mut
attitudes and behaviors to improve the quality of deci ual funds, foreign exchange and bonds. Investment in
sion-making and financial management in order to ac property and stocks is the most popular type of invest
hieve prosperity. Today, the level of financial literacy ment in Indonesia (Schroders 2017). Stock investmen
in Indonesia is still considered low compared to count t can be regarded as the most popular type of investm
ries in the Asia Pacific. ent. Transactions that occur on stock investments are
carried out on the Indonesia Stock Exchange and are
Based on the Survey of Mastercard’s Financial Index supervised directly by the Financial Services Authorit
(2016) Indonesia ranks 10th out of 17 countries in ter y (OJK). According to Faries et al. (2014), investors
ms of financial literacy scores. Indonesia's financial li must consider some information that is accounting inf
teracy score is also below the countries in Southeast ormation, firm image and financial advisory recomme
Asia (Singapore, Malaysia and Thailand). In addition, ndations that have a significant influence both partiall
the average financial literacy score of 17 countries in y and simultaneously before investing so that they are
the Asia Pacific region is 64.5. This proves that Indon not wrong in making investment decisions.
esia is a country that has financial literacy that tends t
o be low, with a score below the average of 62. The l Students must be the agents of change that can chang
ow literacy level means that people have minimum kn e the surrounding community from a consumptive soc
owledge about finance, the financial industry, and fin iety to a community that can invest (Irmawati 2016).

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 ASEAN Youth Conference October 2019, Kuala Lumpur, Malaysia

According to Misbakhun (2018) students must unders ty of Jakarta and what factors influence stock investm
tand about healthy investment. In addition, over time, ent decisions by students in the city of Jakarta and sur
students will be faced with the process of entering the rounding areas.
industry and financial services for saving or investing
activities (Muliaman 2016). Students are of important RESEARCH METHOD
assets for Indonesia's investment growth in the future
(Warsito 2013). After graduating from college, studen The research was conducted at 27 Investment Galleri
ts will enter the workforce and will have an income. I es in Jakarta City in April - July 2019, focusing on su
n the process of preparing students to have an underst bjects namely students enrolled at 27 Investment Gall
anding in the world of adequate investment, it is very eries in Jakarta City and the factors influencing stude
important to know factors that may influence students nt investment decisions. The questions in this researc
in making decision to invest. Therefore, students mus h questionnaire were adapted from an independent va
t also take the responsibility to financial decision take riable mentioned in an international journal entitled
n and avoid consumtive behavior. Students should als "Factors Influencing Individual Investor Behavior" b
o contribute to make a change in the community into y Nagy and Obenberger in 1994. Secondary data wer
one that can invest. Investment literacy is a condition e obtained through literature studies.. Descriptive anal
where prospective investors already have enough kno ysis was conducted to analyze the characteristics of st
wledge in the world of investment and understand wh udent investors in the city of Jakarta, logistic regressi
at needs to be considered in analyzing prior to decidin on analysis to analyze the factors that influence stude
g to invest. Students must pay attention to informatio nt investment decisions. The population of this resear
n that may influence them to make decision to invest ch is students registered in 27 Investment Galleries in
Jakarta City totaling 6010 people. The number of sam
BEI has a work program, one of which is the Investm ples was determined using the Slovin formula with an
ent Gallery (GI). The Investment Gallery is a means t error rate of 10%. Based on the Slovin formula a sam
o introduce the capital market early on to the academi ple of 98 respondents was obtained, but the researche
c world. Investment Gallery is a collaboration betwee r added 16 samples to be more representative thus the
n BEI, Higher Education and Securities Companies th number of respondents was 114 people. Then a cluste
at are expected to introduce the capital market in term r sampling was conducted from 27 Investment Galleri
s of theory and practice. The existence of the BEI Inv es in Jakarta.
estment Gallery is expected to provide benefits for stu
dents so that the distribution of capital market inform Descriptive analysis is a data analysis method used t
ation is right on target and can provide optimal benefi o obtain the characteristics of variables in a study (M
ts. Based on BEI data, the Investment Gallery in the uljono 2012). Descriptive analysis in this study was c
City of Jakarta is the most compared to other Cities in onducted to analyze and obtain a comprehensive pict
Indonesia, namely 27 Investment Galleries. ure of the characteristics of the research respondents a
nd the factors that influence investment decisions.
Investors before making investment decisions must c
onsider the factors that influence it. Students will ente Logistic regression analysis is used to know the factor
r the industrial process and will be responsible for fin s that influence student investment decisions in Jakart
ancial decisions that will be taken. Financial decision- a. Binary logistic regression is a statistical analysis te
making for investment activities, will be greatly influ chnique used to analyze the relationship between one
enced by information obtained and investor knowledg or more independent variables with the dependent var
e about investment. According to Nagy and Obenberg iable, which is binary. The purpose of the regression
er (1994), investment decisions are seen from 2 sides, model with qualitative responses to the dependent var
namely (1) Economic (maximizing wealth) (2) Behav iable is to determine individual probabilities in qualit
ioral motivation (psychological aspects of investors). ative decisions (Sudardjono 2015). The independent v
Therefore, the writer is interested in conducting resea ariables in logistic regression can be either categorica
rch to find out the characteristics of investors in the ci l or continuous variables while the dependent variable

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s are categorical, nominal, or ratio. H13: There is an influence of firm image on individu
al investment decisions.
The results of this study can be a source of informatio
n and input in conducting capital market education an 4. Effect of classic variables on investment decisions.
d socialization for the Investment Gallery and BEI. C
an be information, references, and input for the devel Based on research carried out by Nagy and Obenberg
opment of further research on investment decisions. I er (1994) showed that the classic variables included i
n addition, it can be information and input for go-publ n the wealth maximization criteria (maximizing wealt
ic companies, securities companies, and students abo h) that affect investors. The hypothesis used in this st
ut the factors that influence student investment decisi udy is:
ons.
H14: There is a classic variable effect on individual i
Hypothesis nvestment decisions.

The formulation of the hypothesis in this study are: 5. Effect of social relevance on investment decisions

1. The influence of neutral information on investme Based on the research carried out by Nagy and Obenb
nt decisions erger (1994) showed that the social relevance variable
influences investment decisions, although not signific
Based on research by Al-Tamimi (2006) showed that antly. This may be because there are indicators about
the neutral information variable has a positive effect o CSR (Corporate Social Responsibility) that are not co
n investment decisions. This is because investors in d nsidered in investment decision making. However, on
etermining their investment decisions require a neutra e of the other indicators, namely the position of share
l source of information from the media and macroeco s in the stock exchange can affect investment decision
nomic conditions. The hypothesis used in this study is: s. That is because investors tend to want to choose sto
cks that have a good position in the list of exchanges
H11: There is a neutral information effect on individu (blue chip) The hypothesis used in this study is:
al investment decisions.
H15: There is an influence of social relevance on indi
2. Effect of accounting information on investment d vidual investment decisions.
ecisions
6. Effect of financial advisor recommendations on i
Based on the research of Baker and Haslem (1973) sh nvestment decisions.
owed that accounting information variables have a po
sitive effect on investment decisions. This can be cau Based on the research carried out by Nagy and Obenb
sed by accounting information that is a fundamental a erger (1994) showed that financial advisory recomme
nalysis in determining investment decisions. The hyp ndation variables influence investment decisions. The
othesis used in this study is: se variables are influential because in determining inv
estment decisions investors need opinions and opinio
H12: There is an influence of accounting information ns of others or a professional to be more confident an
on individual investment decisions. d wise. The hypothesis used in this study is:

3. Effect of firm image on investment decisions. H16: There is an effect of financial advisor recomme
ndations on individual investment decisions.
Based on research by Al-Tamimi (2006) showed that
firm image has a positive effect on investment decisio 7. Effect of personal financial needs on investment
ns. That is because the company's image can be used decisions
as a fundamental guide in investing. The hypothesis u
sed in this study is: Based on research carried out by Nagy and Obenberg

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er (1994) showed that personal financial needs variab to 6 people. Then the Faculty of Social and Political
le affects investment decisions although not too signif Sciences as many as 2 people. Followed by 1 Faculty
icant. In that study the frequency on the distribution o of Law and Faculty of Public Health. Then the
f indicators of personal financial needs through descri respondents were dominated by final year or 3rd level
ptive analysis was ranked 15th out of 34 variables. Th students (6th semester) as many as 46 people,
is is because in investing an investor in general has pl followed by 25 students of 4th level (8th semester),
anned his personal financial needs and also has mana 25 students of 2nd level (4th semester) and 18
ged his investment fund allocation properly. The hyp students of 1st level (2nd semester)).
othesis used in this study is:
Characteristics of regional origin, respondents were
H17: There is an effect of personal financial needs on dominated by students with regional origins from
individual investment decisions. outside Jakarta, totaling 62 students and followed by
originating from Jakarta, namely 52 students. There
RESULT AND DISCUSSION are 61 universities in Jakarta ranked as the best
tertiary institutions in Indonesia. The number of
Respondents’ Characteristics
quality universities in the city of Jakarta has caused
As seen on Table 1, it can be seen the characteristics the city of Jakarta to be the choice in continuing
of 114 respondents obtained through filling out the qu education in universities in Jakarta.
estionnaire.
Characteristics of frequency in investing, the highest
Based on Table 1, it can be seen the characteristics of number of students in the city of Jakarta is less than 2
114 respondents obtained through filling out the times per month with a total of 58 students, then with
questionnaire. The majority of respondents were a frequency in investing monthly as much as 5-10
investors who were female students as many as 62 times per month as many as 41 students, followed by
people, while male students were 52 people. That is 2-5 times per month with the number 10 students,
because according to KSEI (2018), the growth of while the frequency of more than 10 times per month
female investors in the capital market sector in a number of 5 students. This is in line with the
Indonesia grew to 965% in the last four years while Indonesia Investment Plan Survey Report (JAKPAT)
male investors only grew by 71%. Survey that the majority of investors in Indonesia
invest less than 2 times per month.
The age range of 17-23 years is the age range with
the most respondents being 103 student investors, Based on the amount of money that had been spent
followed by students with an age range of 24-30 in while investing in shares of less than Rp7,500,000 a
total of 3 students then the age range of more than 31 total of 102 people, followed by Rp7,500,000 to
was 1 student investor. That is because the object of Rp15,000,000 of 6 students, and Rp15,000,000 to
this research was students, which are generally in the Rp30,000,000 of 6 students. While the income of the
age range of 17-23 years. In addition, according to majority of students is less than Rp. 3 900 000 which
KSEI in [Link] young investors dominate the is below Jakarta Regional Minimum Wage (UMR) in
capital market. 2019 and supported by the Indonesian Community
Investment Plan Survey Report (JAKPAT), the
All Investment Galleries in Jakarta, management investment allocation for monthly income is only 10-
members or investors registered in the Investment 20% Because the amount of student income is
Gallery make up the majority of the Faculty of relatively low, the number of issuers in the student
Economics. Thus the most respondents came from the stock portfolio is only 1 to 4 issuers, namely 97
Faculty of Economics as many as 104 people. students. Then followed by 5 to 8 issuers with a total
Followed by the Faculty of Engineering, amounting of 15 students, and more than 8 issuers in total of 2
students.

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Table 1 Respondents’ Characteristics

Characteristics Note Total (person)

Age (year+) 17-23 109

24-30 4
>31 1
Sex Male 52
Female 62

Faculty Economics 104

Engineering 6
Social and Political Science 2
Public Health 1
Law 1

Semester Level 1 (Semester 2) 18

Level 2 (Semester 4) 25
Level 3 (Semester 6) 46
Level 4 (Semester 8) 25

Origin Jakarta 52
Outside Jakarta 62

Purpose to For short-term trading 41

Invest For long-term 70
Others 3

Reasons to Just trial and error 8

Invest Get a return dividend 29
Get return on capital gains 68
Others 9

Length of <1 56
Investment 1-3 52
(years)) 3-5 5
>5 1
Frequency in <2 58
Investing 2-5 41
(times / month) 5 - 10 10
> 10 5

Monthly income < 1 500 000 70

(IDR / month) 1 500 001 – 3 000 000 28
3 000 001 – 4 500 000 12
>4 500 000 4

Amount of < 7 500 000 102

Money Issued in 7 500 001 - 15 000 000 6
Shares 15 000 001 - 22 500 000 3
Investment 22 500 001 - 30 000 000 3
(IDR)

The purpose of students in investing is to trade in a who answered "other" as many as 3 students. In
short term (trading) with a total of 41 people and for a addition, students choose to invest long-term trading
long term trading a total of 70 people and respondents because they have risks that tend to be smaller than

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short term. Long-term investment for students is price has the potential to grow, then capital gains also
important to meet long-term financial needs for have greater potential to be realized. Therefore the
example marriage, property, pension funds and other majority of students are more interested in investing
financial needs in the future. This proves that the to get a return on capital gains than return dividends
majority of students in the city of Jakarta have and consider return dividends as mere bonuses.
realized the importance of starting long-term
investment early. Factors That Influence Student Investment
Decisions in the City of Jakarta
Furthermore, respondents who invested because they
wanted to get a capital gain return were 68 students, Logistic Regression Analysis Results
and followed by respondents who wanted to invest to
get a return dividend of 29 students. While The following stages serve to evaluate how well the
respondents who answered others and only for trial results of the logistic regression analysis in this study.
and error were 9 and 8 students. The majority of
Results of Omnibus test
students invest to get return on capital gains. Then the
distribution of dividends to shareholders is not an
This Omnibus test proves that there is at least 1
obligation of all listed companies and generally only
independent variable that affects the dependent
distributed at the end of each year. Meanwhile, if a
variable. The output results are significance values
that can be said to be feasible if the value is less than
0.05. Omnibus test results in this study can be seen in
student buys shares by choosing an issuer whose
Table 2.

Table 2 Omnibus Tests of Model Coefficients

Chi-square df Sig.
Step 38.305 7 .000
Step 1 Block 38.305 7 .000
Model 38.305 7 .000

Based on Table 2 it can be seen that the significance Results of Model Summary
value is 0,000 and the chi-square is 38,305 thus the
model can be categorized as feasible for use with a The results of the values on the Nagelkerke R-square
confidence level of 95%. Therefore there is at least 1 showed the diversity of variables (Y) which can be
independent variable that affects the dependent explained by the model. The Summary Model results
variable. So it can be concluded that this research can be seen in the following Table 3.
model can be further analyzed.

Table 3 Model Summary

Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square

1 54.172a .285 .514

Table 3 shows that the Nagelkerke R-Square model is

51.4 percent, meaning that the diversity of variables
(Y) that can be explained by the model is 51.4%,

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 ASEAN Youth Conference October 2019, Kuala Lumpur, Malaysia

while the remaining 48.6% is explained by other Hosmer and Lemeshow test functions to measure the
factors outside the model. predicted probability whether it is in accordance with
the observed probability. The results of the Hosmer
and Lemeshow test can be seen in Table 4.

Results of Hosmer and Lemeshow Test

Table 4 Hosmer and Lemeshow Test

Step Chi-square Df Sig.

1 5.801 8 .669

Table 4 shows the results of Hosmer and Lemeshow Classification Model Accuracy Test Results
that the significance value or Pvalue is worth 0.669.
These results have a value greater than the real level The accuracy of the model classification above
used 0.05 (𝛼 = 5%), meaning that the model has explains how well the model groups cases into two
sufficiently explained the data and predicted groups namely those who invest and not invest. The
probabilities according to the observed probabilities. results of the model classification accuracy test are in
Table 5.

Table 5 Model Classification Accuracy

Predicted
Observation investing Decision Percentage
0 1 Correct
Investating decision Not to invest 7 9 43.8
Step 1 To Invest 2 96 98.0
Overall Percentage 90.4

The results of the Wald test explained the comparison

of investment opportunities and not investing in
The overall accuracy result is 90.4%, from 114 shares or also called odd ratios. In nominal (binary)
respondents, there are 103 respondents classified data 1 and 0, what can be explained by logistic
correctly with the logistic regression model. The regression is only the data labeled 1 or that is the
classification results also showed that of the 16 decision to invest. The Wald Test results can be seen
respondents not investing there were 9 respondents in Table 6.
classified as classified (misclassified), this showed a
sensitivity of 43.8%, while of the 98 respondents who
invested there were 2 respondents classified as
classified, which showed a sensitivity level of 98%.
The next stage in logistic regression is the Wald test.
The results of the Wald test explained the comparison
of investment opportunities with not investing or
known as the odd ratio.

Results of Wald Test

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 ASEAN Youth Conference October 2019, Kuala Lumpur, Malaysia

Table 6 Variables in the equation

B S.E. Wald Df Sig. Exp(B)
Neutral information -1.187 .672 3.117 1 .077 .305
Accounting information 1.482 .740 4.008 1 .045 4.400
Firm image -.563 .786 .514 1 .474 .570
Classic -1.214 .816 2.213 1 .137 .297
Step 1
Social relevnce .231 .439 .277 1 .599 1.260
Financial advisory recommendations -.007 .433 .000 1 .987 .993
Personal financial needs 3.560 1.069 11.093 1 .001 35.180
Constant -5.394 2.261 5.690 1 .017 .005

Based on Table 6 it can be seen that the independent The significance value of the 5 independent variables
variables that significantly influence the dependent va was concluded that the five variables can be conclude
riable included accounting information and personal f d had no significant effect on the dependent variable.
inancial needs. The significance values of accounting Based on Table 6, it is known that Wald's test results
information and personal financial needs was 0.045 a showed that there were 2 significant independent vari
nd 0.001, respectively. The independent variable can ables and 5 independent variables that had no signific
be categorized as significant against the dependent va ant effect on investment decisions. The constants in t
riable if the significance value was less than the real l he model in this study were 5,394, thus the logistic re
evel of 0.05. While the significance value of the neutr gression equation can be formed as follows:
al information variable, corporate image, classic, soci
al relevance, and financial advisory recommendations
was greater than the real level of 0.05.

−5.39 +1.482 x 2+3.560 x 7

e
π= ……………………………………....………………..(2)
1+e−5.39+1.482 x 2+3.560 x7
analysts in the media, and economic indicators do not
provide opportunities for students to make investment
Note: decisions. This can be due to the respondents in this
π : Investment decision (dependent variable) study are students in the city of Jakarta where
X2 : Accounting information students have a critical attitude towards information
X7 : Personal financial needs

Neutral Information circulating in the media. Based on the research results

of Ardiarsi et al. (2015) suggested that students are
The results of processing on the neutral information more critical when receiving information in the media
variable using logistic regression analysis produced and do not immediately believe what is conveyed by
insignificant influence on investment decisions with the media.
each value of 0.77. The significance value is more
than the real level of 0.05. Thus, neutral information In addition, based on the results of the Edelman Trust
which includes information about reviews in the Barometer survey (2018), it shows that the level of
financial media about current investment conditions, public trust in the media in Indonesia shows a
changes in stock prices, reviews from financial declining trend. One factor influencing the level of

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 ASEAN Youth Conference October 2019, Kuala Lumpur, Malaysia

public trust in the media is the rise of hoax news. that there is no influence between the independent
According Siswandi (2018), due to the spread of hoax variable and the dependent variable because the
not only confuses the public, but influences the significance value is more than the real level of 0.05.
expectations and behavior of investments that can Therefore the classic variable does not provide
disrupt national economic stability and interest in opportunities for students to make investment
investing. decisions. This can be due to the fact that there are
still many students who are more concerned with
Accounting information getting capital gains rather than dividends. In
addition, student investors in the city of Jakarta do
Variable of accounting information is information not invest to reduce risk by diversifying their personal
related to the company's financial statements. The portfolios. However, there are still many students
information includes data on reports and who do not understand about the optimal way to
prospectuses, valuation of shares with NPV diversify because if the diversification is not fixed it
indicators, IRR, etc., expected company earnings or will make the performance of the student investment
profits, company history, and current stock market portfolio decline.
performance. The analysis showed that the
accounting information variable is below the real Social Relevance
level of 0.05 with an odds ratio of 4.4. So it can be
concluded that the accounting information variable The variables analyzed in the subsequent logistic
provides an opportunity to invest stock in students. regression analysis was social relevance variables.
The findings in this study can be due to the Based on the research of Nagy and Obenberger
characteristics of student investors in the majority of (1994) showed that the variable of social relevance
Jakarta City invest for the long term. Therefore it influences investment decisions, although not
takes an analysis other than technical analysis in significantly. Whereas in this study social relevance
investment decision making that is the fundamental variable which includes information on the existence
analysis of companies based on their financial of company shares on the stock exchange and
statements. corporate social responsibility results of the
significance are above the real level of 0.05 which is
Firm Image equal to 0.599. Therefore it can be said that the social
relevance variable that has been analyzed in this
The corporate image variable includes information study is not in line with previous research because in
about the company's reputation, the company's this study the social relevance variable does not
position in the industry (market leaders, market provide opportunities in student investment decision
followers or new comers), estimates of the company's making in the city of Jakarta. This is because
products and services, company ethics and the value according to student investors in the city of Jakarta an
of company shares in the past. In this study, corporate indicator of the form of corporate concern for the
image variable analyzed using logistic regression environment does not illustrate that the company is
analysis produced a significance value of above the eligible to enter the student investment portfolio.
0.05 real level. So it can be concluded that the
variable of corporate image does not provide Financial Adviser Recommendations
opportunities for students to make investment
decisions. In this study the financial advisory recommendation
variable has no effect on student investment decisions
Classic in the city of Jakarta. This is because the significance
value generated from the logistic regression analysis
Classic variable includes information about expected on this variable is 0.987 which is more than the 0.05
dividends, stock prices at the opening, the tax level. Variables that include information that includes
consequences that must be borne and the ability to recommendations from brokers, friends or opinions
reduce risk. The results of classic data processing is

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 ASEAN Youth Conference October 2019, Kuala Lumpur, Malaysia

from family can be interpreted as not providing

opportunities for students to make investment
decisions. The findings in this study can be caused by
students in the city of Jakarta after getting a
recommendation from a friend or relatives does not
necessarily immediately trust and believe in the
recommendation. So we need another variable to be
used as an analysis before determining an investment
decision.

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Personal Financial Needs which companies will be submitted to investors as

investment options. Thus, securities companies are
The results of data processing on personal financial expected to be able to choose which companies have
needs variables using logistic regression analysis accounting information that will be reconsidered
produce a significant effect on investment decisions according to investor preferences. Securities
with a value of 0.001 which is below the real level of companies can reduce then eliminate companies that
0.05. In the variable of personal financial needs have poor financial performance so that investors
provide opportunities in stock investment decisions more easily determine investment decisions. This is
because one indicator is the evaluation of the also in line with the BEI's strategic objectives in
performance of the portfolio of shares owned in the developing and optimizing the infrastructure of the
past can be used as a basis for students to invest in the economy, one of which is securities (BEI 2019).
future. Students also determine investment decisions
based on estimated funds for investment. It is Personal financial needs variable provide
considered important to prioritize these indicators opportunities for students in Jakarta to make stock
given that students need to do financial planning and investment decisions. The income of respondents in
management according to their individual needs and this study is quite low, namely less than Rp. 1 500
the majority of respondents' income is less than 000. In addition, the majority of respondents who are
Rp.1,500,000 which is quite low. Furthermore, the students in 27 universities in the city of Jakarta come
indicator of the desire for diversification is very from outside Jakarta where students must be
important for students to be able to minimize risk. independent in managing finances every month. So
Students also strongly consider the investment return students in making investment decisions are more
target to meet their personal financial needs because concerned with indicators of personal financial needs
it becomes the basis in investment planning thus variables such as estimated funds to invest, target
students can avoid a deficit condition. In addition, investment returns and others. Therefore, for the
students invest based on looking at other investment Investment Gallery in the city of Jakarta, it can create
alternatives besides stocks such as bonds, gold and education and outreach to students on how to manage
deposits that will relate to the overall performance of personal finances in order to be more precise in
student investment portfolios. allocating funds used for investment. Increase or add
education and socialization about other investment
Managerial Implications instruments such as bonds. This is because investors
consider the comparison of other alternatives in
The results of this study found 2 variables that making stock investment decisions. Students are
significantly influence investment decisions, namely expected to reduce and eliminate consumer behavior
accounting information and personal financial needs. and accounts payable. Therefore, students can more
In the accounting information variable, this variable easily and precisely manage their financial condition,
provides opportunities for students in the city of especially in determining the estimated funds for
Jakarta to make stock investment decisions. In this investment.
case the company should be able to create more
financial reports that are easy to read by investors and Characteristics of respondents in this study include
improve the financial performance of the go-public age, gender, faculty, semester level, regional origin,
company in order to facilitate student investors in the investment objectives, reasons for investing,
city of Jakarta in determining investment decisions. investment duration, frequency of investment, income
This is also in accordance with the BEI's strategic per month, the amount of money that has been
objectives until 2020, namely to improve the quality invested in shares and the number of issuers
and quantity of listed companies (BEI 2019). contained in the portfolio student stock. The results of
the descriptive analysis on the characteristics of the
The results of this study are also useful for securities respondents can be used as a source of information
companies where securities companies can choose

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and input in conducting education and capital market in student investors in the city of Jakarta are mostly
socialization and also as a reference in developing aimed at long-term trading and the reason for
strategies for developing investment galleries in investing is to get a return on capital gains. Then the
tertiary institutions in the city of Jakarta about how majority of students in the city of Jakarta only invest
the characteristics of student investors in the city of for less than 1 year and the frequency in investing
Jakarta. monthly is less than 2 times. Besides that, the
monthly income of student investors in the city of
Creating socialization can be more focused for Jakarta is dominated by students whose income is less
faculty students other than the Faculty of Economics than Rp. 500,000 with 70 students. Finally, the
who do not have an economic background and also amount of money that has been invested in shares and
level 1 students. Respondents from outside the the number of issuers contained in student stock
Faculty of Economics are only 10 people and portfolios. In these 2 categories it is dominated by
respondents who are still at level 1 (semester 2) only students who spend less than Rp. 7 500 000 and 1-4
as many as 18 people . It aims to increase the interest companies with a total of 102 people and 97 people.
of non-economic students in investing in stocks and
so that student investing activities can be started Based on the results of logistic regression analysis, it
early. The implementation of capital market is found that accounting information and personal
education and socialization is also in accordance with financial needs have a significant positive effect on
one of the strategic plans of BEI, namely in student decisions in the city of Jakarta.
increasing the number and participation of investors.
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