The INFLUENCE OF RISK PERCEPTION, FINANCIAL LITERACY, AND OVERCONFIDENCE ON CAPITAL MARKET INVESTMENT INTEREST: EVIDENCE FROM STUDENTS OF ITEBIS PGRI DEWANTARA JOMBANG

Abstract

This study aims to analyze the influence of risk perception, financial literacy, and overconfidence on investment interest in the capital market. The subjects of this study were students of ITEBIS PGRI Dewantara Jombang, who are prospective young investors. The research method used was quantitative with an associative approach using a sample of 93 respondents. Data were collected by distributing questionnaires to the selected student sample using a purposive sampling technique. The collected data were then analyzed descriptively using multiple linear regression analysis, and classical assumption tests were also conducted consisting of normality tests, multicollinearity tests, heteroscedasticity tests, and autocorrelation tests. In addition, to test partial relationships, hypothesis testing was conducted consisting of partial t-tests and determinant tests (R2). The results showed that partially, financial literacy and overconfidence have a positive and significant influence on students' investment interest. Conversely, risk perception has a positive but significant influence, where excessively high levels of risk perception tend to reduce students' interest in starting to invest. Together, these three independent variables have a significant influence on students' investment interest in the capital market. These findings underscore the importance of enhancing balanced financial education on campuses, not only to increase literacy and confidence, but also to provide a rational understanding of investment risk management. For the capital markets industry, these results can serve as a reference in developing more effective educational strategies for young academics