The Influence of Financial Knowledge, Financial Behavior Financial Attitude and Risk Tolerance on Investment Decisions of People in Padang

Hanisah Hanisah () and Dina Patrisia
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Hanisah Hanisah: Universitas Negeri Padang
Dina Patrisia: Universitas Negeri Padang

A chapter in Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), 2025, pp 1129-1145 from Springer

Abstract: Abstract This study aims to examine the impact of Padang residents’ risk tolerance, financial behavior, financial attitude, and financial knowledge on their investment decisions. All of the people of Padang are the population and subject of this study. Non-probability sampling combined with a purposive sampling strategy was the sample method employed in this investigation. A total of 376 samples were collected. In this study, SEM-PLS is used. The findings demonstrated that financial knowledge had a favorable and significant impact on Padang residents’ financial conduct and attitude. People in Padang who have a favorable and substantial financial attitude also have positive and significant financial conduct, which influences investment decisions. Financial knowledge, financial behavior, and risk tolerance have no effect on investment decisions of people Padang, risk tolerance cannot moderate the relationship between financial knowledge and financial attitude of people in Padang, risk tolerance can moderate the relationship between financial knowledge and financial behavior of people in Padang. The general public can get insight from the research’s conclusions, which can also benefit investors by increasing their knowledge and taking decision-making tactics into consideration. As well as being able to avoid financial risks such as fraud. With individual financial knowledge it will be easier to manage the finances they have. Financial knowledge regarding interest rates, deposits, investments, savings, insurance will make it easier for individuals to carry out these various financial activities. For financial institutions, with this research, financial institutions can target the public to sell appropriate financial products and can see the problems that cause people to be reluctant to invest.

Keywords: Financial Knowledge; Financial Behavior; Financial Attitude; Risk Tolerance; Investment Decisions (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-839-4_93

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DOI: 10.2991/978-94-6463-839-4_93

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