Financial and digital literacy effects on digital investment decision mediated by perceived socio-economic status

Abstract

This research aimed to examine the effects of financial and digital literacy as a fundamental aspect that influence the decision in making digital investment which is mediated by perceived socio- economic status. Prior research of how socio-economic affects digital and financial literacy which influence investment decision making process has widely been discussed over the time. However, most studies were focused on ‘objective’ socio-economic status as a part of a measurable factor which affects literacy level. On the other hand, there is another key element that needs to be deepened further, that is ‘perceived’ socio- economic status. In addition, specific discussion on ‘digital’ investment decisions and how it is influenced by the perception of digital investors which correlated with digital and financial literacy factors are also still limited. The trend of digital investors has risen along with the growing financial technology market, especially for millennials. This study’s results will contribute to policy makers, digital investors, and especially for digital investment companies to formulate go-to-market strategy. This research used a convenient sampling and gathered data through an online questionnaire survey from 116 individual investors. Multiple regression using SmartPLS version 4.0 was applied to analyze the data and test the research model. The results show that financial literacy and digital literacy positively affects digital investment decision throughout perceived socio-economic status as a mediator that also has a positive impact to digital investment decision.