THE INFLUENCE OF FINANCIAL LITERACY AND DIGITAL LITERACY ON RETAIL INVESTORS' INVESTMENT DECISIONS IN THE INDONESIAN CAPITAL MARKET

Abstract

The development of digital-based investment services has expanded retail investors' access to the capital market, but ease of access does not necessarily translate into the ability to make informed investment decisions. This study aims to analyze the influence of financial literacy and digital literacy on retail investors' investment decisions in the Indonesian capital market, both partially and simultaneously. Financial literacy is understood as knowledge and understanding of financial concepts that help individuals assess risk, return, diversification, and investment costs. Digital literacy refers to the ability to access, evaluate, and use digital information and services safely and critically. The study was designed using a quantitative explanatory approach through a survey of retail investors actively investing in the Indonesian capital market and using digital platforms. Data will be collected using a structured Likert-scale questionnaire and objective knowledge questions to measure financial literacy. Analysis can be performed using multiple linear regression or SEM-PLS depending on the characteristics of the instrument and measurement model. Because empirical data has not yet been included, this manuscript is a preliminary draft and does not present empirical test results or conclusions. The research is expected to contribute to the development of investor education that integrates financial literacy with digital skills.