TY - JOUR
T1 - The impact of financial literacy on the investment decision of non-donation-based crowdfunding in Indonesia
AU - Arifah, Jihan Nadra
AU - Dalimunthe, Zuliani
N1 - Funding Information:
We want to thank Universitas Indonesia, through the PITTA 2018 Program, which financed the project.
Publisher Copyright:
© 2020, Universiti Malaysia Sarawak. All rights reserved.
PY - 2020
Y1 - 2020
N2 - The present study investigates the heterogeneity of the financial literacy level between backers and nonbackers of non-donation-based crowdfunding in Indonesia and how the financial literacy relates to the country’s decision to invest through non-donation crowdfunding. We choose Indonesia for a case study because non-donation crowdfunding has become a new investment mode recently in this area. The study extends the analysis to the predictors of financial literacy and its impact on the investment decision of nondonation crowdfunding. The hypotheses are examined through binary logistic regression. The study’s findings are as follows. First, there is heterogeneity in the financial literacy level between backers and nonbackers. Second, the financial literacy level is found to be affected by residence, education, income, and stock market product ownership. Third, investors in crowdfunding have a tendency to be in the younger age group. Fourth, males have a higher tendency to invest in non-donation crowdfunding than females, despite the lack of difference in financial literacy between them. Fifth, individuals in the lowest income group are more likely to invest in non-donation crowdfunding than individuals with larger incomes.
AB - The present study investigates the heterogeneity of the financial literacy level between backers and nonbackers of non-donation-based crowdfunding in Indonesia and how the financial literacy relates to the country’s decision to invest through non-donation crowdfunding. We choose Indonesia for a case study because non-donation crowdfunding has become a new investment mode recently in this area. The study extends the analysis to the predictors of financial literacy and its impact on the investment decision of nondonation crowdfunding. The hypotheses are examined through binary logistic regression. The study’s findings are as follows. First, there is heterogeneity in the financial literacy level between backers and nonbackers. Second, the financial literacy level is found to be affected by residence, education, income, and stock market product ownership. Third, investors in crowdfunding have a tendency to be in the younger age group. Fourth, males have a higher tendency to invest in non-donation crowdfunding than females, despite the lack of difference in financial literacy between them. Fifth, individuals in the lowest income group are more likely to invest in non-donation crowdfunding than individuals with larger incomes.
KW - Crowdfunding backers
KW - Crowdfunding investment decision
KW - Financial literacy
KW - Indonesia
KW - Non-donation crowdfunding
UR - http://www.scopus.com/inward/record.url?scp=85097922418&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85097922418
SN - 1511-6670
VL - 21
SP - 1045
EP - 1057
JO - International Journal of Business and Society
JF - International Journal of Business and Society
IS - 3
ER -