Financial Literacy, Financial Efficacy, Locus of Control, And Financial Behavior as Determinants of Students Investment Decisions in Yogyakarta

Objective: This study examines the influence of financial literacy, financial self-efficacy, locus of control, and financial behavior on investment decisions among university students in Yogyakarta.
Research Design & Methods: A quantitative research design was employed, involving 100 university students in Yogyakarta. Data were collected using a structured questionnaire that had undergone validity and reliability testing. Multiple linear regression was used to examine the partial effects of the independent variables on investment decisions.
Findings: Empirical findings indicate that financial literacy, financial efficacy, locus of control, and financial behavior all have a positive and significant influence on investment decisions among university students. Among these factors, financial behavior exerts the strongest influence, highlighting the crucial role of responsible financial practices in shaping students' investment decisions.
Implications: These findings indicate that universities, policymakers, and financial institutions must develop integrated financial education programs that strengthen not only financial knowledge but also financial confidence, personal control, and responsible financial behavior. Students need to enhance their investment knowledge and develop disciplined financial practices to support sound investment decisions.
Contribution & Value Added: This study contributes to the investment decision-making literature by integrating cognitive, psychological, and behavioral determinants into a single framework. The findings specifically highlight the crucial role of financial behavior in shaping students' investment decisions and offer practical insights for designing more comprehensive financial education programs for young investors.