Analysis of Financial Literacy, Experience Regret, and Risk Tolerance in Investment Decisions of Farming Communities (Study on the Farming Community of Sukonatar Village, Banyu-wangi)

Abstract

This study aims to test and analyze the Level of Financial Literacy, Experience Regret, Risk Tolerance towards Investment Decisions of Farming Communities (Study on Farming Communities in Sukonatar Village, Srono District). This sampling technique uses the Clustering and Purposive Sampling  methods with 63 samples. This study uses a quantitative method by distributing questionnaires with age criteria of 20-30 years, 30-40 years. In this study, SPSS 25 was used. The data analysis methods used were instrument test, multiple linear regression analysis, hypothesis test, classical assumption test, determination coefficient (R²). Based on the results of the analysis, it was obtained that the result of t calculation was greater than t table (5.101>2.00100), meaning that there was a partial influence between the variable of Financial Literacy (X1) on Investment Decision (Y) in the Farming Community. Meanwhile, the results of the t-test on the Experience Regret variable (X2) t calculated were smaller than the t table (-1,826<2.00100), meaning that there was no partial influence between  the Experience Regret (X2) variable on Investment Decisions (Y) in the Farming Community. For the Risk Tolerance variable (X3), the calculation is smaller than the t table (2.439>2.00100), so the statistical decision is that there is a partial influence between  the Risk Tolerance variable (X3) on the Investment Decision (Y) in the Peasant Community