What Drives Students to Invest?: Empirical Insight from the Capital Market Landscape
Desi Kuat Prichatin
Faculty of Economics and Bussines, Universitas Muhammadiyah Purwokerto, Indonesia.
Naelati Tubastuvi *
Faculty of Economics and Bussines, Universitas Muhammadiyah Purwokerto, Indonesia.
Wida Purwidianti
Faculty of Economics and Bussines, Universitas Muhammadiyah Purwokerto, Indonesia.
Arini Hidayah
Faculty of Economics and Bussines, Universitas Muhammadiyah Purwokerto, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: This study aims to determine the factors that influence the interest in investing in the capital market for students.
Study Design: This study is quantitative research investigating the influence of motivation, capital market knowledge, risk preference, and minimum capital on interest in investing.
Place and Duration of Study: His study was conducted in 3 most prominent universities in Purwokerto, Central Java, Indonesia, namely Muhammadiyah Purwokerto University, Jendral Soedirman University, and KH Syaifudin Zuhri State Islamic University Purwokerto between November and December 2024.
Metodhology: This research method uses an explanatory approach with descriptive statistical analysis, validity testing, reliability testing, classical assumption data analysis, multiple linear regression analysis, and hypothesis testing using SPSS 26 software. Purposive sampling, with data collected through questionnaires from 132 respondents.
Results: Motivation, Capital Market Knowledge, and Risk Preference positively and significantly affect Investment Interest in the capital market. Meanwhile, Minimum Capital is not significant variable for Investment Interest in the capital market.
Conclusion: Research shows that motivation, knowledge of the capital market, willingness to take risks, and affordable initial capital have a significant influence on students' intention to invest. In addition, the IDX Investment Gallery and capital market education programs that including practical implications for education and policy making also help increase students' confidence and understanding to become young investors in Indonesia.
Keywords: Capital market knowledge, investment interest, minimum capital, motivation, risk preferenece