Analysis of the Influence of Financial Literacy and Financial Behavior Bias on Investment Decision Making with Risk Perception as a Mediating Variable

Abstract

This study analyzes the effect of financial literacy and financial behavioral biases on investment decision making with risk perception as a mediating variable. Data were obtained from 122 respondents, namely employees of the BPSDM unit of the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration. The research method uses a quantitative approach with data collection through questionnaires. The results showed that financial literacy and financial behavior bias have a significant positive influence on investment decision making. In addition, risk perception was found to mediate the relationship between financial literacy and investment decision making, as well as between financial behavioral biases and investment decision making. This study provides theoretical and practical implications in understanding the dynamics of investment decision making, especially in government organizations. However, this study has limitations on the generalizability of the results and the cross-sectional approach, so further research with a broader scope is needed.

Keywords: financial literacy, financial behavior bias, risk perception, investment decision making, government employees.