Determinants of Generation Z’s Investment Decision-Making

Abstract

This study aims to analyze the effects of financial literacy, risk perception, and technological advancement on investment decision-making among Gen Z. This study employed a quantitative approach using primary data collected through an online questionnaire from 80 Generation Z respondents with investment experience. The data were selected using purposive sampling and analyzed using Structural Equation Modeling (SEM) with SmartPLS. The findings show that financial literacy, risk perception, and technological advancement simultaneously influence investment decisions, with an R² value of 0.555. Individually, all three variables have positive and significant effects on investment decision making. Generation Z’s investment decisions are influenced by their financial understanding, risk evaluation, and ability to utilize digital financial technologies. This study enriches the behavioral finance literature by integrating cognitive, psychological, and technological factors to explain investment decisions in the digital era. It also provides practical insights for investors, financial institutions, and policymakers to improve investment education. This study is limited by its sample size, quantitative approach, and respondent scope, which may restrict the generalizability of the findings.