Factors Affecting Investment Decisions in Capital Market Study Community

Abstract

This research investigates risk tolerance, overconfidence, and financial literacy influences on investment decisions within Methodist University Indonesia's capital market study community. Employing quantitative methodology with primary data, the study uses multiple linear regression analysis. Through purposive sampling, 50 respondents were selected and analyzed using SPSS version 26. T-test results reveal risk tolerance exerts negative significant effects, while overconfidence and financial literacy demonstrate positive significant effects on investment decisions. The F-test confirms all variables collectively exhibit significant simultaneous influence. The adjusted R² of 0.529 indicates a 52.9% variance explanation, with the remaining factors unexplored.