| dc.description.abstract | Medan citizens are the fourth most populous in Indonesia with a fairly good
and stable growth in the number of investors, which indicates that people have a
high interest in investing. The high interest in investing is supported by the level of
financial literacy owned. In investing, an investor also needs self-awareness in
problem solving and determining investment decisions to be made. In addition, the
influence of other investors can encourage other investors to actively invest, so that
the number of investment decisions also increases.
This research aims to analyze the effect of financial literacy, locus of
control, and herding behavior on stock investment decisions of investors in Medan.
The effect between financial literacy, locus of control, and herding behavior will be
analyzed partially and simultaneously.
This research used a quantitative associative approach. Investors in Medan
in stock were the population in this research. The sample were 96 respondents by
using purposive sampling technique. The data sources used are primary data which
was obtained through distributing a questionnaire directly and secondary data was
obtained through literature studies. The methods of data analysis that were used
are validity test, reliability test, classic assumptions test, multiple linear regression
analysis, as well as hypothesis test.
The result of this research shows that financial literacy (X1), locus of control
(X2), and herding behavior (X3) have a significant both partially and simultaneously
effect on investment decisions of the Medan’s investors (Y). The test of coefficient
of determination shows that there is a close relationship between financial literacy,
locus of control, and herding behavior on investment decisions with R value is
0,419. Through the adjusted R square value, it is also known that the variables of
financial literacy, locus of control, and herding behavior contributes 14,8% on the
investment decisions variable while the remaining 85,2% are influenced by other
variables not mentioned in this research model. | en_US |
