Financial Literacy, Minimum Capital, Investment Risk, and Technology Advancement Influence Investors' Intention Medan City

Abstract

The development of investment among young generations has increased along with the ease of access to information and technology-based investment services. However, investment participation levels are still influenced by various factors, such as financial understanding, limited capital, risk perception, and the advancement of investment technology. This study aims to analyze the influence of financial literacy, minimum capital, investment risk, and technological advancement on the investment intention of young generations in Medan City. This research uses a quantitative approach with a causal associative research design. The data were collected through questionnaires distributed to young generations aged 18–35 years in Medan City. Data analysis was conducted using multiple linear regression, including classical assumption tests, partial hypothesis testing (t-test), simultaneous hypothesis testing (F-test), and coefficient of determination testing (R²). The results show that financial literacy has a significant influence on young generations' investment intention in Medan City. Minimum capital also has a significant influence on investment intention, while investment risk does not significantly affect young generations' investment intention. Furthermore, technological advancement has been proven to significantly influence investment intention. This study implies that improving financial education, providing affordable investment instruments, and developing user-friendly investment technology can encourage investment participation among young generations. Future research is suggested to include other variables such as investment trust, social environment, and financial lifestyle.

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