The Influence of Financial Literacy and Investment Risk on Investment Interests in the Capital Market (Case Study of MSMEs Assisted by Bank Indonesia of North Sumatra Province in Medan City)

Abstract

The aim of this research is to find out how financial literacy and investment risk influence investment interest in the capital market of MSMEs assisted by Bank Indonesia of North Sumatra Province, located in Medan City. The type of research used is associative research with a quantitative approach. The sampling technique in this research is non-probability sampling with a saturated sampling technique. The data used in this research is primary data in the form of a questionnaire, and the data analysis used is the multiple linear regression analysis method using SPSS Statistics 25 software. The results of this research show that partially financial literacy (X1) and investment risk (X2) have a positive and significant effect on investment interest. The t-calculated value of the financial literacy variable is 3.901 > t-table 1.665 with a significant value of 0.000 < 0.05 and the t-calculated value of the investment risk variable is 2.755 > t-table 1.665 with a significant value equal to 0.007 < 0.05. Based on the results of the F test, the F-count > F-table value is 106.467 > 3.12 with a significant level of F of 0.000 < 0.05. This shows that the variables of financial literacy and investment risk simultaneously have a positive and significant effect on investment interest.