Analysis of factors affecting student's interest in investing in the capital market

Abstract

The purpose of this study was to determine the effect of investment knowledge, perceived return on investment, investment risk, and investment motivation on interest in investing in the capital market. This study uses a quantitative approach and data collected by questionnaire as a research instrument. The population in this study were students at the Muhammadiyah University of Surakarta. The sample in this study was 100 respondents using purposive sampling: (1) University of Muhammadiyah Surakarta students, class of 2018–2022, (2) students who already know about the capital market through seminars, webinars, or social media; and (3) students who already have securities accounts. This study used multiple regression analysis techniques, assisted by the SPSS 21.0 for Windows program. The results of the research provide empirical evidence that investment knowledge, perceived return, risk, and motivation influence interest in investing in the capital market. The implications of this research as a reference for developing strategies involve students, investors, and institutions in the stock exchange.