The Effect of Financial Literacy on Investment Decisions and Financial Behavior among Accounting Students

Abstract

This study aims to examine the effect of financial literacy on financial behavior and investment decisions among university students, as well as to investigate the role of financial behavior as a mediating variable. The novelty of this study lies in its focus on Accounting students who are employed in Batam City, as they are considered to possess adequate financial literacy through both academic learning and practical experience in managing their personal finances. A total of 96 respondents participated in this quantitative study, with the sample size determined using the Lemeshow formula. Data were analyzed using SmartPLS 3.29. The findings indicate that financial literacy has a positive and significant effect on both financial behavior and investment decisions. However, financial behavior does not mediate the relationship between financial literacy and investment decisions.