The Effect of Financial Literacy, Risk Aversion, Risk Tolerance, and Investment Knowledge on Investment Decisions with Locus of Control as a Moderating Variable (Case Study: Accounting Students in Jakarta)

Student investment decisions are influenced by a complexity of cognitive and psychological factors that require in-depth understanding to optimize financial decision making. This study aims to examine the effect of financial literacy, risk aversion, risk tolerance, and investment knowledge on accounting students' investment decisions moderated by locus of control. The research sample consisted of 150 respondents, with data collected through questionnaires and analyzed using Structural Equation Modeling (SEM) based on SmartPLS version 4.0. The results show that the four independent variables have a significant effect on investment decisions. Locus of control is able to moderate the relationship between financial literacy and investment knowledge on investment decisions, but does not moderate the relationship between risk aversion and risk tolerance. The R-square value of 0.944 indicates a very high model strength in explaining the dependent variable. Practical implications include strengthening students' financial literacy and developing investment training based on self-confidence and internal control.