Logistic regression analysis to know the factors affecting the financial knowledge in decision of investment non riil assets at university investment gallery

The large population of Indonesia is not an indication of the increasing number of investors in Indonesia, especially investors in non-real assets. This study aims to investigate the variable causes of non-real asset investment decisions.

International Journal of Management (IJM) Volume 11, Issue 2, February 2020, pp 147–162, Article ID: IJM_11_02_016 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=2 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication Scopus Indexed LOGISTIC REGRESSION ANALYSIS TO KNOW THE FACTORS AFFECTING THE FINANCIAL KNOWLEDGE IN DECISION OF INVESTMENT NON RIIL ASSETS AT UNIVERSITY INVESTMENT GALLERY Isfenti Sadalia Dr., Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia Fahmi Natigor Nasution Dr., Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia Iskandar Muda Dr., Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia ABSTRACT The large population of Indonesia is not an indication of the increasing number of investors in Indonesia, especially investors in non-real assets This study aims to investigate the variable causes of non-real asset investment decisions The population used in this research is university students who have an investment gallery and registered as an investor at university investment gallery in Aceh, North Sumatera, West Sumatera and Pekan Baru, Riau using Lemeshow formulation for the sample size Dependent variable in this research is non asset investment decision, while independent variable are gender, education level, and availability of financial advisory This research uses binary logistic regression approach The samples used in this study were 384 samples selected by the Lemeshow formulation method The test results with binary logistic regression on the designed model, ie there is one predictor variable that significantly affects the non-real asset investment decision is the variable availability of financial advisors Keywords: Financial Knowledge, Investment Knowledge, Educational Level, Nonreal asset investment decision, binary logistic regression Cite this Article: Isfenti Sadalia, Fahmi Natigor Nasution, Iskandar Muda, Logistic Regression Analysis to Know the Factors Affecting the Financial Knowledge in Decision of Investment Non Riil Assets at University Investment Gallery, International Journal of Management (IJM), 11 (2), 2020, pp 147–162 http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=2 http://www.iaeme.com/IJM/index.asp 147 editor@iaeme.com Logistic Regression Analysis to Know the Factors Affecting the Financial Knowledge in Decision of Investment Non Riil Assets at University Investment Gallery INTRODUCTION The large population of Indonesia is not an indication of the increasing number of investors in Indonesia, especially investors in non-real assets Investment is sacrificing something in the present to get something in the future with hope of course better (Abdul, 2005) Investment is essentially a placement of funds in the hope of making a profit in the future Investment plays an important role in driving economic growth and employment in Indonesia On capital market has a strategic position in national economic development Growth in the non-real sector plays an important role in the process of economic growth Therefore, the growth of the non-real sector requires investment to maintain the sustainability of economic growth itself The purpose of this study is aimed to investigate the variable causes of investment decisions on non-real assets seen from several variables namely, gender, education level, and availability of financial advisors Through this research is expected to yield the best investment decisions Financial knowledge is now an integrated part of financial literacy (Forster et al., 2019 and Saurabh and Nandan, 2019) Current financial knowledge needs to be known by students since my lecture This is because financial knowledge will have a personal impact on students in the form of individuals' ability to utilize financial knowledge to make decisions Financial knowledge occurs when individuals have a set of skills and abilities that make these individuals able to utilize existing resources to achieve expected goals Financial knowledge involves not only knowledge and ability to deal with financial problems but also other attributes Financial knowledge will improve financial skills and mastery of financial tools Financial skills as a technique for making decisions in financial management behavior, such as preparing a budget, choosing investment, choosing an insurance plan, and using credit are examples of financial skills in students so that the entrepreneurial spirit of students is getting stronger College graduates are also expected to be experts or professionals to plan finances with markets in Indonesia that are still extensive as population growth develops Financial education programs must be carried out to the community and students This program is in line to educate the public about the benefits of financial planning This activity also helps students understand and begin planning and managing finances Financial Management is all activities or company activities related to how to obtain, use and manage company finances Financial management is a management activity that aims to manage funds and assets owned by the company to be used on things or activities that help achieve the company's main goal, namely profit In a company or business, financial management has main activities carried out by financial managers, namely the acquisition of funds, activities for using funds and managing assets These three things are related to internal and external funding sources that students need to know Working capital and share ownership also include tasks in financial management Research by Xiao el.al, (2008); Mandell, (2007) and Klein, (2009), Nababan and Sadalia (2013) concluded that the best way to improve behavior in adulthood is to teach good behavior from childhood, including financial behavior While in Indonesia alone personal finance education is still rarely found either in elementary schools to universities Developed countries such as the United States, Canada, Japan and Australia are incessantly providing financial education to their communities, especially students with hopes of literacy Financial behavior of the community is increasing Several institutions were formed, as well as various researches and programs conducted to measure and improve the financial literacy of their people Research by Nababan and Sadalia (2013) concluded that the average respondent was only able to answer half of the 27 questions correctly, which amounted to 56.11%, this means that the level of personal financial literacy of the student strata one overall was included in the http://www.iaeme.com/IJM/index.asp 148 editor@iaeme.com Isfenti Sadalia, Fahmi Natigor Nasution, Iskandar Muda low category (