Effect Of Knowledge Investment, Perception Of Returns And Risks And Technology Advances On Student Investment Interest In The Capital Market (Study Of Students In Medan City)

Feb 27, 2025 by ADMIN 175 views

Effect of Knowledge Investment, Perception of Returns and Risks and Technology Advances on Student Investment Interest in the Capital Market (Study of Students in Medan City)

Introduction

In recent years, the capital market has become an increasingly popular investment option among students in Indonesia. According to various studies, students occupy the second position in the proportion of investors in the capital market, indicating a high interest in investing among this demographic. However, the question remains: what drives this interest in investing among students? Is it the availability of knowledge about investment, the perception of returns and risks, or the technological advances that have facilitated access to information about investment? This study aims to analyze the effect of knowledge investment, return and risk perceptions, as well as technological advances on student investment interests in Medan City.

Background

Investing in the capital market requires a certain level of knowledge and understanding of the various instruments available. When investing, individuals also consider the rate of return and risks that may be received from the instruments they choose. In addition, technological advances have facilitated access to information about investment, making it easier for individuals to make informed decisions. With the digital platform for investment, the investment process is also more accessible.

The high interest of investment among students is supported by adequate knowledge about investment in the capital market. Students who have a better understanding of investment instruments tend to be more daring to take risks and explore investment opportunities. Their perception of the expected return also affects investment decisions. If they feel that the potential return that can be obtained is quite promising, they will be more interested in investing.

Research Methodology

This study uses a quantitative approach with associative methods. The research population consists of students in the city of Medan who invest in the capital market. The research sample was taken using purposive sampling technique by involving 100 respondents. Primary data is obtained through the distribution of questionnaires directly, while secondary data is collected through literature studies. The data analysis methods used include validity tests, reliability tests, classical assumption tests, multiple linear regression analysis, and hypothesis tests.

Research Result

The results showed that Knowledge Investment (X1), Return and Risk (X2) perception, and technological advances (X3) have a significant and simultaneous significant influence on student investment interest in Medan (Y). The coefficient of determination test shows a close relationship between the variable knowledge investment, the perception of return and risk, as well as technological advances with investment interest, with a R value of 0.725. Through the Adjusted R Square value, it is known that the variable knowledge investment, return and risk perceptions, as well as technological advances contribute 51.2% of the variable investment interest, while the remaining 48.8% is influenced by other variables not mentioned in this research model.

Analysis and Discussion

From these results, it can be concluded that knowledge about investment is very instrumental in motivating students to invest. Students who have a better understanding of investment instruments tend to be more daring to take risks and explore investment opportunities. Their perception of the expected return also affects investment decisions. If they feel that the potential return that can be obtained is quite promising, they will be more interested in investing.

Technological advances also cannot be ignored. With the application and digital investment platform, students can easily access information, conduct market analysis, and even transact directly from their smartphones. This makes the investment process more attractive and practical.

In conclusion, a combination of investment knowledge, perception of return and risk, and technological advances has a significant impact on student investment interests. This study provides valuable insights for related parties, especially educational institutions and investment service providers, to develop strategies that support and increase investment interest among students. By increasing information and accessibility of information, it is hoped that more students are involved in the capital market and make intelligent investment decisions.

Implications of the Study

The findings of this study have several implications for educational institutions and investment service providers. Firstly, educational institutions should provide students with adequate knowledge about investment in the capital market. This can be achieved through the inclusion of investment-related courses in the curriculum, as well as workshops and seminars that provide students with hands-on experience in investing.

Secondly, investment service providers should develop strategies that increase the accessibility of information about investment. This can be achieved through the development of digital platforms that provide students with easy access to information about investment instruments, as well as market analysis and other relevant information.

Thirdly, investment service providers should also develop strategies that increase the perceived return and reduce the perceived risk of investment instruments. This can be achieved through the development of investment products that are specifically designed for students, as well as through the provision of education and training programs that help students to understand the risks and rewards of investing.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focuses on students in Medan City, and therefore the findings may not be generalizable to other populations. Secondly, the study only examines the effect of knowledge investment, return and risk perceptions, and technological advances on student investment interests, and therefore does not examine other potential factors that may influence investment decisions.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence student investment interests in the capital market. The findings of this study suggest that a combination of investment knowledge, perception of return and risk, and technological advances has a significant impact on student investment interests. This study provides valuable insights for related parties, especially educational institutions and investment service providers, to develop strategies that support and increase investment interest among students.

References

[1] [Author's Name]. (Year). Title of the Source. Publisher.
[2] [Author's Name]. (Year). Title of the Source. Publisher.
[3] [Author's Name]. (Year). Title of the Source. Publisher.

Appendices

[Appendix 1: Questionnaire]
[Appendix 2: Data Analysis]
[Appendix 3: Results]

Note: The references and appendices are not included in the content of the article, but are included in the final version of the article.
Q&A: Effect of Knowledge Investment, Perception of Returns and Risks and Technology Advances on Student Investment Interest in the Capital Market

Frequently Asked Questions

Q: What is the main objective of this study?

A: The main objective of this study is to analyze the effect of knowledge investment, return and risk perceptions, as well as technological advances on student investment interests in Medan City.

Q: What is the significance of this study?

A: This study provides valuable insights into the factors that influence student investment interests in the capital market. The findings of this study suggest that a combination of investment knowledge, perception of return and risk, and technological advances has a significant impact on student investment interests.

Q: What are the implications of this study for educational institutions and investment service providers?

A: The findings of this study have several implications for educational institutions and investment service providers. Firstly, educational institutions should provide students with adequate knowledge about investment in the capital market. Secondly, investment service providers should develop strategies that increase the accessibility of information about investment. Thirdly, investment service providers should also develop strategies that increase the perceived return and reduce the perceived risk of investment instruments.

Q: What are the limitations of this study?

A: This study has several limitations that should be noted. Firstly, the study only focuses on students in Medan City, and therefore the findings may not be generalizable to other populations. Secondly, the study only examines the effect of knowledge investment, return and risk perceptions, and technological advances on student investment interests, and therefore does not examine other potential factors that may influence investment decisions.

Q: What are the potential applications of this study?

A: The findings of this study can be applied in various ways. Firstly, educational institutions can use the findings of this study to develop more effective investment education programs for students. Secondly, investment service providers can use the findings of this study to develop more effective marketing strategies that target students. Thirdly, policymakers can use the findings of this study to develop more effective policies that promote investment among students.

Q: What are the potential future research directions?

A: There are several potential future research directions that can be explored. Firstly, researchers can investigate the effect of other factors on student investment interests, such as demographic characteristics, financial literacy, and investment experience. Secondly, researchers can investigate the effect of different types of investment instruments on student investment interests. Thirdly, researchers can investigate the effect of different marketing strategies on student investment interests.

Q: What are the potential implications of this study for the capital market?

A: The findings of this study have several implications for the capital market. Firstly, the study suggests that students are a significant segment of the capital market, and therefore investment service providers should develop strategies that target this segment. Secondly, the study suggests that investment knowledge, perception of return and risk, and technological advances are critical factors that influence student investment interests, and therefore investment service providers should focus on developing products and services that meet these needs.

Additional Resources

[1] [Author's Name]. (Year). Title of the Source. Publisher.
[2] [Author's Name]. (Year). Title of the Source. Publisher.
[3] [Author's Name]. (Year). Title of the Source. Publisher.

Glossary

Capital Market: A market where securities are bought and sold.
Investment: The act of putting money into a business or asset in the expectation of earning a profit.
Knowledge Investment: The act of investing in knowledge or education in order to increase one's financial literacy and investment skills.
Perception of Return: The expectation of earning a profit from an investment.
Perception of Risk: The expectation of losing money from an investment.
Technological Advances: The development of new technologies that facilitate access to information and investment opportunities.

Note: The glossary is not included in the content of the article, but is included in the final version of the article.