The Quality and Relevance of Securities Application News to Young Investors' Investment Decisions through Financial Literacy
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Abstract
The development of digital-based securities applications has increased the ease of accessing investment information for young investors, making the quality and relevance of news important factors in the investment decision-making process. This study aims to analyze the effect of news quality and relevance of securities application news on investment decisions for young investors, with financial literacy as a mediating variable. The study used a quantitative approach with a survey method of 94 young investors aged 18–30 who actively use securities applications. The sample was determined using a purposive sampling technique, while data analysis was conducted using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results showed that the quality of news on securities applications had no significant effect on financial literacy, while news relevance had a positive and significant effect on financial literacy. Financial literacy also had no significant effect on investment decisions. Conversely, news quality and relevance of news on securities applications had a positive and significant effect on investment decisions for young investors. Furthermore, financial literacy was unable to mediate the relationship between news quality and relevance of securities application news on investment decisions. These findings indicate that investment decisions for young investors are more directly influenced by the quality, and especially the relevance, of information presented through securities applications rather than by increased financial literacy. This research emphasizes the importance of securities application providers presenting accurate, relevant information, supported by more interactive financial education features, to improve the quality of investment decision-making for young investors.
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