Financial Literacy and Overconfidence in Investment Decision Making

Abstract. Financial literacy and overconfidence need to be researched in terms of investment decision-making because in the higher the level of individual literacy, the more optimal the investment decision making. The higher the level of individual overconfidence, the easier it will be to make investment decisions. This study was conducted on students who are members of the KSPM (Capital Market Study Group) at several campuses that have the Indonesia Stock Exchange Investment Gallery in the city of Makassar and in the city of Surabaya. The urgency of this study is to empirically see the level of financial literacy and the level of self-confidence of young investors. This type of research is a type of quantitative descriptive research with primary data by distributing questionnaires to students who have met the criteria in this study through directly to respondents to maintain a good level of questionnaire return. Data analysis using SEM-PLS. The results show that financial literacy has no effect on investment decisions, while overconfidence has an effect on investment decisions