The Influence of Financial Literacy on Investment Decision Making with Herding Behavior and Loss Aversion as Moderating Variables
This study aims to analyze the influence of financial literacy on investment decision-making among Generation Z in Bengkulu Province, with herding behavior and loss aversion as moderating variables. This research employs a quantitative approach with an associative design. Data were collected through questionnaires from 133 Generation Z respondents who have experience investing in the capital market. After outlier detection and data cleaning, 124 valid samples were analyzed using multiple linear regression and Moderated Regression Analysis (MRA) with SPSS version 27. The results show that financial literacy has a positive and significant effect on investment decision-making. Herding behaviour and loss aversion were found to moderate this relationship in a negative direction, meaning that the higher the levels of herding behaviour and loss aversion, the weaker the influence of financial literacy on the quality of investment decision-making. This study contributes to the development of behavioral finance theory by demonstrating that behavioral biases can reduce the effectiveness of financial knowledge in forming rational investment decisions among young investors. The findings are expected to serve as a reference for developing more effective financial literacy programs for Generation Z, particularly in regional areas.