INVESTMENT BEHAVIOR IN GENERATION Z AND MILLENNIAL GENERATION

DOI: 10.38035/DIJEFA Abstract : The purpose of this study was to determine the effect of the level of financial literacy, herding behavior, risk-averse, risk perception on investment decisions in the Z generation, and the Millennial generation. Respondents are academicians in the Faculty of Economics and Business, Mercu Buana University who already have income, which includes: Lecturers, Staff, and Students aged 15 39 years. Determination of the sample using non-probability sampling with an accidental sampling approach. Data were analyzed using Multiple Linear Regression Analysis. The results showed that financial literacy, herding behavior, risk-averse, risk perception have a positive effect on investment decisions.


INTRODUCTION
Millennials are the first generation to see the internet as a great invention and change everything. This generation was born when the internet and social media became everyday things. The demographic bonus conditions in the productive age which are very high and the characteristics of the millennial generation who are attached to technology are then used by ecommerce companies for promotion. The term millennial was first coined by William Strauss and Neil in their book Millennials Rising: The Next Great Generation (2000). They coined this term in 1987 when children born in 1982 entered pre-school. At that time the media began to call it a group connected to the new millennium upon graduating from high school in 2000.
Besides the generation before the millennial generation, there is a generation after the millennial generation called Generation Z which was born between 2001 and 2010. Generation Z is a transition from Generation Y or the millennial generation at a time when technology is rapidly developing. The Generation Z mindset tends to be instantaneous. Generation Z and the millennial generation are digital generations that easily absorb any discusses a person's income, its sources, and the effective and efficient use of their income, spending income by making confident decisions about savings or savings according to the situation (Hussain & Sajjad, 2016).

Herding Behavior
According to Liem & Sukamulja (2017) herding behavior is a follow-up behavior that one investor follows another investor for various reasons and conditions. This behavior is the most common mistake in which investors tend to follow the majority in making investment decisions. The influence of the people around them is the main reason an investor has herding behavior. A person with herding behavior is easily influenced by other people's decisions and has an impact on changes in investment decisions taken (Gozalie & Anastasia, 2015).

Risk Averse
Risk-Averse is the attitude of an investor who avoids risk or it can be said that the investor is only willing to invest if the expected return will be greater than the risk (Sudana & Sallama, 2015). Investors with the risk averter type have the goal of avoiding losses so as not to make wrong investment decisions (Irjayanti, 2017). According to Farooq & Sajid (2015), risk-averse can be measured by using indicators, namely, individuals are rational, dare to reject risk, and try to maximize wealth under difficult alternatives.

Risk Perception
Risk perception is a process of views, assessments, and interpretations of investors on an investment instrument risk regarding investment decisions (Irjayanti, 2017). Every investor has a different assessment of a risk-based on the person's psychological factors. According to Kharta & Kumar (2014), risk perception is a belief, whether rational or irrational, held by individuals, groups, or society about the likelihood of a risk occurring or about the level, magnitude, and timing of its effects.
Measurement of risk perception is carried out using indicators from Ullah (2015), namely fear of investing in stocks with a definite profit, being careful of sudden stock changes, worrying about investing in stocks with negative performance, and afraid of investing in stocks with a positive performance.

Previous Research
Arif (2015)  financially educated people are more active in the stock market, investing in retirement savings, and having fewer problem loans in banks. Lutfi (2010) conducted a study entitled The Relationship Between Demographic Factors and Investment Decision In Surabaya, the results showed that demographic characteristics of investors have a positive correlation with investor behavior and the type of investment chosen. Furthermore, investor risk behavior has a positive correlation with the type of investment. Investors who are risk seekers prefer to invest in capital market instruments, rather than risk averter investors who prefer to put their money into bank accounts and real assets. By investing their funds in risky assets, risk seeker investors can expect higher returns from these assets. Vijaya (2014) conducted a study entitled "An Empirical Analysis of Influential Factors On Investment Behavior of Retail Investors' in Indian Stock Market: A Behavioral Perspective". The results of the main component analysis revealed that five behavioral factors influence the investment decisions of individual investors in the Indian stock market: Overconfidence, Anchoring, Loss Aversion, Herding, and Market factor. Among the 5 variables overconfidence behavior factors: Knowledge of stocks is important to invest in the stock market has a high impact and variables of other factors have a moderate impact on retail investors' investment decisions in the Indian stock market. The findings suggest that individual investors need to be confident at an acceptable level to utilize their skills and knowledge in certain circumstances to improve investment returns. Vijaya (2016) conducted a study entitled An Empirical Analysis on Behavioral Pattern of Indian Retail Equity Investors. The results of this study were only three factors found to influence investment performance: herding (including buying and selling; trading stock options; trading stock volume; speed. herding), prospects (including loss aversion, regret aversion, and mental accounting), and heuristics (including overconfidence and gamble's fallacy). Heuristic behavior is found to have the highest positive impact on investment performance while herding behavior positively affects investment performance to a lesser extent. Conversely, prospect behavior hurts investment performance.
Gozalie & Anastasia, 2015 conducted a study entitled The Effect of Heuristics and Herding Behavior on Residential Property Investment Decision Making. The results showed that heuristics behavior (representativeness, anchoring, gambler's fallacy, and availability bias) had a significant effect on investment decisions. Meanwhile, heuristics (overconfidence) and herding behavior do not have a significant effect on investment decisions. Ranjbar, M., et al, 2014 entitled Analyzing the Effective Behavioral Factors on the Investors' Performance in Tehran Stock Exchange (Tse). The results show that heuristic and herd behavior methods positively affect investor investment performance. On the other hand, the prospect variable negatively affects the investment performance of investors.
Putri, Ramadhani & Isbanah, Y (2020) conducted a study entitled Factors That Influence Investment Decisions on Stock Investors in Surabaya, Herding influences investment decisions, due to the high level of herding which causes investors to follow the decisions of the majority of other investors by the aim to reduce risk and increase the return in investment decision making. Risk perception does not influence investment decisions, due to a lack of caution towards investors and too bold an investment in uncertain stocks. Riskaverse does not influence investment decisions, because investors enjoy risk and decide to invest with high risk in making their investment decisions. Financial literacy does not influence investment decisions, which is caused by the lack of knowledge that investors have in investing with a high level of risk.

Conceptual Framework
The framework in this study can be described as in the following figure:  Herding (X2) Herding behavior is a follow-up behavior by one investor following another for various reasons and conditions. This behavior is the most common mistake in which investors tend to follow the majority in making investment decisions. (Liem, Sakamulia, 2007) 1.

Population and sample
In this study, the population is the entire academic community and students in the Mercu Buana University Campus environment. The determination of the research location is based on the limitations of the researcher, while to obtain a sample that can describe the population, in determining the sample of this study are the civitas and students at the Faculty of Economics and Business, Mercu Buana University who already have an income, which includes: Lecturers, Staff and students aged 15 -39 years.

Data collection technique
To collect data, data collection techniques were used through a questionnaire or questionnaire, namely data collection through a closed list of questions in the form of a list of questions about the research problem that had to be filled in by respondents without the presence of the researcher. To produce the expected answer, the questionnaire is given a filling guide, simple language, and question items according to the study problem.

Data Analysis Techniques
Data analysis methods that will be used by the author in analyzing data using the SPSS program with the following stages:

a. Descriptive Analysis
Descriptive analysis is a statistic used to analyze data by describing data that has been collected as it is without intending to make conclusions that apply to the public or generalization (Sugiyono, 2013). This test aims to find out how much the ability of the independent variables to explain the dependent variable by looking at the magnitude of the coefficient of total determination (R2). A value close to one means that the independent variables provide almost all the information needed to predict variations in the dependent variable (Ghozali, 2009) Statistical test t is a test to find out how far the influence of one independent variable individually in explaining the variation of the dependent variable. According to Priyatno (2014), the basis for decision making can be done by looking at the probability of its significance, namely: 1) If the probability of significance> 0.05 then Ho is accepted and Ha is rejected.
2) If the significance probability is <0.05 then Ho is rejected and Ha is accepted.

Data Quality Test Results a. Validation Test Results
The following are the results of the instrument validity test: a) Financial Literacy

Discussion
The results of regression calculations in this study show that the financial literacy variable has a significance value of 0.00 where this value is smaller than the error tolerance limit of 0.05, so it can be concluded that H1 is accepted, which means the financial literacy variable has a significant positive effect on investment decisions. Therefore, the investment decision making by Generation Z and Millennial Generation respondents in the academic community of the Faculty of Economics and Business, Mercu Buana University is influenced by the financial literacy they know or understand. The higher a person's literacy level, the better his decision making is. This research is in line with research conducted by Pritazahara & Sriwidodo (2015), Putri & Rahyuda (2017). Dewi, Iga & Purbawangsa, Ida (2018) and Setyanto, Dihin (2019).
In this study, it was able to prove that the respondents were affected by the deviations in the investment behavior of herding behavior. This can be seen in the calculation results shown by the t-test used to measure that the herding behavior variable has an effect on investment decisions and the result is a significance value of 0.01 which is smaller than the error tolerance limit of 0.05. So it can be concluded that the significance value of the herding behavior variable has a significant positive effect on investment decisions.
The results of the calculation of this study show that the variable risk averse has a significance value of 0.007 which means it is smaller than 0.05, so that H3 is accepted. So it can be concluded that Risk Averse has a positive effect on investment decisions. Therefore, the investment decision making by Generation Z and Millennial Generation respondents in the academic community of the Faculty of Economics and Business, University of Mercu Buana has an attitude that tends to avoid risk or it can be said that investors are only willing to invest if the expected return is greater than risk (Sudana & Sallama, 2015). Investors with the risk averter type have the goal of avoiding losses so as not to make wrong investment decisions (Irjayanti, 2017).
The results of the calculation of this study indicate that the risk perception variable has a significance value of 0,000, which means it is smaller than 0.05, so H4 is accepted. So it can be concluded that Risk Perception has a positive effect on investment decisions. Therefore, the investment decision making by Generation Z and Millennial Generation respondents in the academic community of the Faculty of Economics and Business, Mercu Buana University, tends to be careful in dealing with risks. Investors tend to choose to have investments in definite stocks, so it can be seen if investors are very careful when making decisions and take more consideration when making decisions.

CONCLUSION AND SUGESTION Conclusion
Based on the results of data analysis obtained through questionnaires distributed to respondents, the following conclusions were obtained: (1) Financial Literacy, has a positive effect on investment decision making. The better the level of financial literacy the respondent has, the better the investment decision will be.
(2) Herding Behavior has a positive effect on student investment decisions. So it can be concluded that the significance value of the herding behavior variable has a significant positive effect on the respondent's investment decision.
Respondents' investment decisions that are influenced by the herding behavior variable tend to rely more on other people's decisions in making their investment decisions.
(3) Risk Averse has a positive effect on investment decisions. Therefore, the respondent's investment decision making tends to avoid risk or it can be said that the investor is only willing to invest if the expected return is greater than the risk. (4) Risk Perception has a positive effect on investment decisions. Respondents' investment decision making tends to be cautious in dealing with risks. Investors tend to choose to have investments in definite stocks, so it can be seen if investors are very careful when making decisions and take more consideration when making decisions.

Suggestion
1. For further researchers, with this research it is hoped that further research will be able to carry out research related to financial behavior because there are still many other factors that can influence financial behavior, especially investment decisions. Because this topic really needs to be discussed to improve good financial behavior for future generations, especially the millennial generation. 2. For Generation Z and Millennial Investors, it is important to increase confidence and confidence in making investment decisions so that all decisions do not depend on the decisions of others.