The Influence of Financial Literacy, Financial Inclusion, Herding, Risk Perception and Overconvidence on MSME Investment Decision Making in Mataram City

Authors

  • Burhanudin FEB University of Mataram, West Nusa Tenggara, Indonesia
  • Sarifudin Serip FEB University of Mataram, West Nusa Tenggara, Indonesia
  • Muttaqillah FEB University of Mataram, West Nusa Tenggara, Indonesia
  • Iwan Kusuma Negara FEB University of Mataram, West Nusa Tenggara, Indonesia

DOI:

https://doi.org/10.38035/dijms.v8i1.7458

Keywords:

Financial Literacy, Financial Inclusion, Herding, Risk Perception, Overconvidence

Abstract

Investment plays an important role in financial management and contributes to economic growth and public welfare. However, investment decision-making among business actors in Mataram City remains a concern despite improvements in financial literacy and financial inclusion. Previous studies have reported inconsistent findings regarding the effects of financial literacy, financial inclusion, herding, risk perception, and overconfidence on investment decisions, indicating a research gap that requires further investigation. This study aims to examine the effects of these five factors on investment decisions among micro, small, and medium-sized enterprise actors in Mataram City. A quantitative approach was employed, and the data were analyzed using Partial Least Squares Structural Equation Modeling. The results show that financial literacy, financial inclusion, herding, and overconfidence have positive and significant effects on investment decisions, whereas risk perception has no significant effect. The model explains 54.2% of the variance in investment decisions. The novelty of this study lies in integrating financial and behavioral factors within a single framework to explain investment decision-making among micro, small, and medium-sized enterprise actors in Mataram City, providing empirical evidence from a specific local business context

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Published

2026-10-14

How to Cite

Burhanudin, B., Serip, S., Muttaqillah, M., & Negara, I. K. (2026). The Influence of Financial Literacy, Financial Inclusion, Herding, Risk Perception and Overconvidence on MSME Investment Decision Making in Mataram City. Dinasti International Journal of Management Science, 8(1), 78–89. https://doi.org/10.38035/dijms.v8i1.7458

Issue

Vol. 8 No. 1 (2026): Dinasti International Journal of Management Science (September - October 2026)

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Copyright (c) 2026 Burhanudin, Sarifudin Serip, Muttaqillah, Iwan Kusuma Negara

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