Investment Decisions Among Young Investors: Mediating Role of Risk Perception and Risk Tolerance in Relationship Emotional Intelligence and Financial Literacy

Siti Aisjah; Atim  Djazuli; Cicik Retno  Wati; Muhammad Fajrul Islam F; Wildan  Fadhila; Nuraini Desty  Nurmasari

doi:10.30737/ekonika.v11i1.7031

Authors

Siti Aisjah Universitas Brawijaya
Atim Djazuli Universitas Brawijaya
Cicik Retno Wati Politeknik Negeri Jember
Muhammad Fajrul Islam F Universitas Pendidikan Ganesha
Wildan Fadhila University of Milan
Nuraini Desty Nurmasari Universitas Brawijaya

DOI:

https://doi.org/10.30737/ekonika.v11i1.7031

Keywords:

Financial Literacy, Emotional Intelligence, Risk Perception, Risk Tolerance, Investment Decision

Abstract

This study investigates the influence of financial literacy and emotional intelligence on investment decisions among Generation Z in East Java, considering the mediating roles of risk perception and risk tolerance. Employing a quantitative approach, data were collected from 500 respondents aged 18–24 with valid single investor identification (SID) and prior capital market investment experience. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that financial literacy significantly affects investment decisions, risk perception, and risk tolerance; however, its indirect influence through risk perception and tolerance is not significant. Conversely, emotional intelligence has a direct and significant effect on investment decisions and also indirectly influences them through both mediating variables. These results underscore the importance of integrating emotional intelligence and risk management training into financial education programs targeting young investors. This research highlights the psychological dimensions of financial decision-making and provides practical insights for policymakers, educators, and financial institutions seeking to promote more informed and sustainable investment behavior.

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Author Biographies

Atim Djazuli, Universitas Brawijaya

Department Management, Faculty of Economics and Business, Universitas Brawijaya, Indonesia
Cicik Retno Wati, Politeknik Negeri Jember

Department Agribusiness Management, Politeknik Negeri Jember, Indonesia
Muhammad Fajrul Islam F, Universitas Pendidikan Ganesha

Department Management, Faculty of Economics, Universitas Pendidikan Ganesha, Indonesia
Wildan Fadhila, University of Milan

Program in Management of Innovation and Entrepreneurship, University of Milan, Italy
Nuraini Desty Nurmasari, Universitas Brawijaya

Department Management, Faculty of Economics and Business, Universitas Brawijaya, Indonesia

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