The Role of Motivation, Locus of Control and Financial Literacy on Women Investment Decisions Across Generations
This research gave attention to three factors that influence individuals in making investment decisions, motivation, locus of control, and financial literacy. This study generally aims to compare and analyze the effect of motivation, locus of control, and financial literacy on investment decisions on the families of the baby boomers generation, generation X, and generation Y. This study applied a direct interview method and uses a questionnaire as a data collection tool. Thirty housewives from each generation were interviewed. The results showed a significant difference in motivation and financia literacy between the three generations. The results also showed that all variables had a significant effect on investment decisions in each generation. Otherwise, overall, only the locus of control variable that has no significant effect on investment decisions. Based on this, the government together with investment service providers need to formulate an appropriate program. Apart from the education provided through educators, the program can also be provided with socialization and consultation services, either directly or indirectly. Development of supporting infrastructure and public access to financial institutions, products or services according to their needs and capacities also need attention.
Aini, N., Syafitri, L., & Wijaya, T. (2013). Effect of Financial Literacy and Demographic Factors on Investment Decisions in the Capital Market (Case Study of Employees of PT. Semen Baturaja Tbk). Journal of STIE Multi Data Palembang. URL: http://eprints.mdp.ac.id/id/eprint/2098
Al-Tamimi, H. H. (2009). Financial Literacy and Investment Decisions of UAE Investors. The Journal of Risk Finance, 10(5), 500-516. DOI: 10.1108/15265940911001402
Anastasia, S., Mendari., & Kewal, S.S. (2014). Financial Literacy Levels Among Students. MUSI STIE
Ariani, S. (2015). Effects of Financial Literacy, Locus of Control, and Ethnicity on Investment Decision Making. Surabaya (ID): Perbanas School of Economics.
Atkinson, A., & Messy, A. (2010). Assessing Financial Literacy in Countries and OECD Pilot Exercise. Center for Research on Pensions Welfare Policies.
Bahrudin, S., & Anissa, N. (2011). Testing of the Effects of Framing and Locus of Control as Determinants of Commitment Escalation in Investment Decisions (Case Study in Manufacturing Companies in Semarang City). STIE BAK BPD Central Java.
Ball, K., & Gotsill, G. (2011). Surviving the Baby Boomers Exodus: Capturing Knowledge for Gen X and Gen Y Employees. Boston: Course Technology, a part of Cengage Learning.
Bateman, T. S., & Zeithaml, C. P. (1989). The Psychological Context of Strategic Decisions: A Model and Convergent Experimental Findings. Strategic Management Journal, 10, 59-74. DOI: https://doi.org/10.1002/smj.4250100106
Bayu, R. (2013). Analysis of Influence of Consumer Motivation, Quality Perception, and Consumer Attitudes Towards Purchasing Decisions of Honda Motorbikes in Malang City. Malang (ID): Brawijaya University.
Bencsik, A., & Machova, R. (2016). Knowledge Sharing Problems from the Viewpoint of Intergeneration Management. In ICMLG2016 - 4th International Conference on Management, Leadership, and Governance: ICMLG2016 (p.42). Academic Conferences and Publishing Limited. DOI: 10.7441/joc.2016.03.06
Candra. (2019). Analysis of Factors That Influence Stock Investment Decision Making in Investors in Batam City, which is moderated by the Locus of Control. (Masters Thesis).. Batam (ID). Batam International University. URL: http://repository.uib.ac.id/id/eprint/1231
Cliff, R. (2011). Financial Knowledge and Credit Card Behavior of College Students. Journal of Family and Economic Issues, 32(34), 690-698. DOI 10.1007/s10834-011-9259-y
Criticism. (2013). Effect of Motivation and Socio-Economic Conditions on Investment Decisions Through Education. Economic Education Analysis Journal. Semarang State University Economic Education Study Program.
Dewi, I. M., & Pourbawangsa, I. B. A. (2018). The Influence of Financial Literacy, Income and Working Period Against Investment Decision Behavior. E-Journal of Economics and Business, Udayana University. 7 (7), 1867-1894. DOI: https://doi.org/10.24843/EEB.2018.v07.i07.p04
Dewi, I. S. (2016). Analysis of Factors Affecting Fishermen in Household Food Consumption Patterns. Agribusiness Journal. Medan (ID): University of North Sumatra. URL: https://jurnal.usu.ac.id/index.php/ceress/article/view/17457/7409
Engel, J., Blackwell, R., Miniard, P. (2001). Consumer Behavior. Ohio: South West.
Ganiah, R.R., & Simanjuntak, M. (2019). Lifestyle, Self-Esteem, Money Attitude and Compulsive Buying between Generations. Proceeding of The 2nd International Seminar on Family and Consumer Issues in Asia Pacific: “Challenging Family in Digital Era” Business School, IPB University, Bogor, Indonesia. August 5 – 6, 2019. Department of Family and Consumer Sciences, Faculty of Human Ecology, IPB University. Bogor
Gilarso, T. (2003). Introduction to Microeconomics (Revised Edition). Yogyakarta: Canisius
Halim, A. (2005). Investment Analysis. Jakarta: Salemba Empat.
Hanum, N. (2017). Analysis of the Effect of Income on the Consumption Behavior of Samudra University Students in Langsa City. Journal of Ocean Economics, 1 (2). DOI: https://doi.org/10.1234/jse.v1i2.325
Hartatin, D., & Simanjuntak, M. (2016). The Effect of Value and Reference Group on Young Consumer’s Hedonic Buying. Journal of Consumer Sciences, 1(1), 33-46. https://doi.org/10.29244/jcs.1.1.33-46
Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer Behavior 11th Edition. Boston, MS: Mc Graw-Hill.
Hilgert, M., & Hogart, J. (2003). Household Financial Management: The Connection between Knowledge and Behavior. Federal Reserve Bulletin, (89), 309-322. URL: https://ideas.repec.org/a/fip/fedgrb/y2003ijulp309-322nv.89no.7.html
Ikram, Z. (2016). An Empirical Investigation on Behavioral Determinants, Impact on Investment Decision Making, Moderating Role of Locus of Control. Journal of Poverty, Investment, and Development, 26. https://iiste.org/Journals/index.php/JPID/article/view/31771/32643
Indonesian Central Securities Depository. (2017). KSEI Continues to Strive for the Ease of Opening an Investment Account. Jakarta: KSEI
Iramani, R., & Wulandari, D. (2014). Experienced Regret, Risk Tolerance, Overconfidence, and Risk Perception Study on Economic Lecturer Investment Decision Making. Journal of Business and Banking, 4 (1), 55-66.
Irjayanti, D. (2017). The Effect of Financial Literacy, Representativeness, Familiarity, and Risk Perception on Investment Decision Making in Surabaya and Sidoarjo Investors. Perbanas School of Economics Surabaya. URL: http://eprints.perbanas.ac.id/id/eprint/2929
Karima, L. (2018). Analysis of Factors Affecting Student Interest in Investing in the Sharia Capital Market. (Master’s thesis). Yogyakarta (ID). Indonesian Islamic University.
Khomsan, A. (2000). Nutrition Knowledge Measurement Techniques [diktat]. Bogor (ID): Faculty of Human Ecology. Bogor Agricultural Institute.
Kinicki., & Kreitner. (2005). Organisational behaviour. Jakarta: Salemba Empat
Kiyosaki, R. (2008). Increase Your IQ in Finance. Jakarta: PT Gramedia Pustaka Utama.
Kusmawati. (2011). Effect of Motivation on Interest in Investing in the Capital Market with Understanding of Investment and Age as Moderate Variables. STIE MUSI Palembang. URL:https://jom.unri.ac.id/index.php/JOMFEKON/article/view/4675
Lancaster, L., & Stillman, D. (2002). When Generations Collide. Who They Are. Why They Clash. How to Solve the Generational Puzzle at Work. New York: Collins Business.
Linawati. (2014). Effect of Intrinsic Work Motivation and Extrinsic Work Motivation on Employee Performance (Study at PT. Angkasa Pura I Ahmad Yani International Airport, Semarang). Yogyakarta (ID). College of Aerospace Technology (STTKD). 18 (1): 81-89.
Luntung, I., Hubeis, A., & Maulana, A. (2014). Generation Y Management Strategies in the Banking Industry. Journal of Technology Management, 13 (2), 219-240. DOI: http://dx.doi.org/10.12695/jmt.2014.13.2.7
Lusardi, A., & Mitchell, O. (2007). Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth. Journal of Monetary Economics, 54, 205-224. URL: http://www.nber.org/papers/w12585
Ma'arif, M. (2013). The Effect of Rational Motivation, Emotional Motivation, and Promotion on the Investment Decision of Musyarakah Participation (Case Study of BMT Bina Ihsanul Fikri Yogyakarta). (Master’s thesis).Yogyakarta.
Manurung, A.H. (2012). Theory of Financial Behavior (Behavior Finance) http://www.finansialbisnis.com/.
Masaverage, A. (2002). Motivation and Personality. Jakarta: Harper and Raw Publisher.
Musdalifa. (2016). The Influence of Locus of Control, Financial Knowledge, and Income on the Investment Decision of Makassar City Communities. (Master’s thesis). Management major. Islamic Economics and Business Faculty Uin Alauddin Makassar.
Nababan, D., & Sadalia, I. (2012). Analysis of Personal Financial Literacy and Financial Behavior for Undergraduate Students of the Faculty of Economics, Sumatera Utara University. North Sumatra (ID): University of North Sumatra.
Pajar, R. (2017). The Effect of Investment Motivation and Investment Knowledge on Investment Interest in the Capital Market on FE UNY Students. (Master’s thesis). Accounting Study Program, Faculty of Economics, Yogyakarta State University.
Perry, G.V., & Morris, M.D. (2005). Who Is In Control? The Role of Self-Perception, Knowledge, and Income in Explaining Consumer Financial Behavior. The Journal of Consumer Affairs, 299-313. DOI: 10.1111/j.1745-6606.2005.00016.x
Pramesty, D. W., & Simanjuntak, M. (2020). Konsep Diri, Gaya Hidup, Strategi Pemasaran, Dan Pembelian Impulsif Antargenerasi. Jurnal Ilmu Keluarga & Konsumen, 13(1): 87-98. https://doi.org/10.24156/jikk.2020.13.1.87
Putri, D. R., & Rahyuda, H. (2017). Effect of Financial Literacy Level and Sociodemographic Factors on Individual Investment Decision Behavior. E-Journal of Economics and Business, 6(9), 3407-3434. DOI: https://doi.org/10.24843/EEB.2017.v06.i09.p09
Putri, W. W., & Hamidi, M. (2019). The Effect of Financial Literacy, Financial Efficacy, and Demographic Factors on Investment Decision Making (Case Study in Management Masters Students of the Faculty of Economics Andalas University, Padang). Scientific Journal of Management Economics Students, 4 (1), 398-412. DOI: https://doi.org/10.24815/jimen.v4i1.10703
Rahmat, I., & Jaya, E. (2005). Burnout Viewed from the Internal and External Locus of Control. Nusantara Medical Magazine, 38(3). URL: http://repository.usu.ac.id/handle/123456789/15578
Ramadhan, A. F., & Simanjuntak, M. (2018). Perilaku Pembelian Hedonis Generasi Z: Promosi Pemasaran, Kelompok Acuan, dan Konsep Diri. Jurnal Ilmu Keluarga & Konsumen.11(3): 243-254. https://doi.org/10.24156/jikk.2018.11.3.243
Rotter, J. (1966). Generalised Expectations for Internal Versus External Control of Reinforcement. Psychological Monographs, 80(1), 1-28. DOI: https://doi/10.1037/h0092976
Salim, HS. (2010). Divestment Law in Indonesia. Jakarta: Erlangga.
Schiffman, L., & Kanuk, L. (2010). Consumer Behavior. New Jersey: Pearson Prentice.
Setiadi, N. (2003). Consumer behavior. Jakarta: Kencana.
Simanjuntak, M. (2019). Generation Y’s Complaint Behavior toward Online Shopping. Independent Journal of Management & Production. 10 (1) : 101-116. http://dx.doi.org/10.14807/ijmp.v10i1.839
Simanjuntak, M., & Musyifah, I. (2016). Online Shopping Behavior on Generation Y in Indonesia. Global Business Finance Review. 21 (1): 33-45. http://www.gbfrjournal.org/html/?pmode=journalview&by=2016&bm=6&vol=21&no=1&subno=&page1=33&page2=45
Simanjuntak, M., Nur, H.R., Sartono, B., & Sabri, M.F. (2020). A general structural equation model of the emotions and repurchase intention in modern retail. Management Science Letters, 10 (4) : 801-814. DOI: 10.5267/j.msl.2019.10.017
Sprague, C. (2008). The silent generation meets generation Y: how to manage a four-generation workforce with panache. Human Capital Institute White Paper.
Strauss, W., & Howe, N. (1991). Generations: The History of America's Future, 1584 to 2069. New York (US): William Morrow & Company.
Sulistyowati, N. W. (2015). The Effect of Extrinsic Motivation and Accounting Learning Achievement on Investment Interests and Investment Decisions of Fe Students in the Unesa Accounting Study Program. Journal of Educational Economics and Entrepreneurship, 3(1), 76-90. DOI: http://dx.doi.org/10.26740/jepk.v3n1.p76-90
Sumarwan, U. (2011). Consumer Behavior: Theory and Its Application in Marketing. Second edition. Bogor (ID): Ghalia, Indonesia.
Susanto, B. (2011). Effect of Responsibility, Intrinsic Motivation, and Framing of Budget Information in Making Investment Decisions with Group-Shifts as Moderating Variables (Experimental Study). The Muhammadiyah University of Magelang. URL: http://pdeb.fe.ui.ac.id/?p=5917
Susdiani, L. (2017). The Influence of Financial Literacy and Financial Experience on the Behavior of PNS Investment Planning in the City of Padang. Nagari Development Journal, 2(1), 61 - 74.
Tandelilin, E. (2010). Portfolios and Investments, Theory, and Applications. First edition. Yogyakarta, Canisius Publisher.
Triana, M. (2002). Effect of Budget Participation, Budget Emphasis, and Locus of Control on Budget Slack (Survey of Starred Hotels in Jambi City). Accounting Department, Faculty of Economics, University of Jambi.
Uno, H. (2009). Motivation Theory and Measurement: Analysis in the field of education. Jakarta: Earth Literacy.
Wardani, E. K. & Sukirno. (2014). Effect of Framing Effect on Investment Decision Making with Locus of Control as Moderating Variables. Nominal Journal. 3 (1). DOI: https://doi.org/10.21831/nominal.v3i1.2153
Welly., Cardinal., & Juwita, R. (2016). Analysis of the Effect of Financial Literacy on Investment Decisions in STIE Multi Data Palembang. Palembang (ID): STIE Palembang Multi Data.
Wibowo, MWP. (2018). Effects of Financial Literacy and Access to Investment Decisions in the Islamic Capital Market (Case Study: Investors in the Gallery Indonesia Stock Exchange Investment. (Master’s thesis). Surakarta (ID): Surakarta State Islamic Institute.
Williams, K., Page, R., Petrosky, A., Hernandez, E. (2011). Multi-generational marketing: descriptions, characteristics, lifestyles, and attitudes. Journal of Applied Business and Economics, 11(2).
Wrihatnolo, RR., Dwidjowijoto., & Nugroho R. (2007). Empowerment Management: An Introduction and Guide to Community Empowerment. PT. Alex Media Komputindo.
Wulandari, D., & Iramani, R. (2014). Experienced Regret, Risk Tolerance, Overconfidence, and Risk Perception Study on Economic Lecturer Investment Decision Making. Journal of Business and Banking, 4(1), 55-66. DOI: http://dx.doi.org/10.14414/jbb.v4i1.293
Yuliati, L. N., Dradjat, H. A., & Simanjuntak, M. (2020). Online bike: Role of perceived technology, perceived risk, and institution-based trust on service usage via online trust. Cogent Business & Management, 7(1), 1798067. https://doi.org/10.1080/23311975.2020.1798067
Yuwono, S. (2011). The Influence of Investor Characteristics on the Amount of Interest in Stock Investment in the Capital Market. (Master’s thesis). Depok (ID): University of Indonesia.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a
This work is licensed under a Creative Commons Attribution 4.0 International License. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).