Analysis Impact of Financial Literacy, Self-Efficacy, And Risk Attitude on the Investment Performance of Generation Z on the Stock Market Investment App in Indonesia

Abstract

This study aims to explores the influence of financial literacy, self‐efficacy, and risk attitude on the investment behavior of Generation Z investors in Indonesia's stock market. Using a quantitative survey approach, data were collected through questionnaires distributed to 119 active investment app users. The analysis, performed with Partial Least Squares Structural Equation Modeling (PLS-SEM) and Importance-Performance Matrix Analysis (IPMA), reveals that financial literacy positively impacts self‐efficacy, enhancing investment behavior. Moreover, financial literacy directly influences investment behavior, while risk attitude plays a key role in shaping practices. Financial self‐efficacy mediates the link between financial literacy and investment behavior but negatively affects investment behavior when moderated by risk attitude. These findings suggest that strengthening both knowledge and psychological confidence is essential in encouraging more rational investment decisions among young investors. This study provides practical implications for policymakers, educators, and financial service providers to design more targeted financial literacy initiatives that foster both competence and balanced risk perception.