THE EFFECT OF INVESTMENT UNDERSTANDING, MINIMUM INVESTMENT CAPITAL, MOTIVATION AND RISK PERCEPTION ON INVESTMENT INTEREST

Abstract

This study aims to analyze the influence of

investment understanding, minimum investment

capital, motivation, and risk perception on the

investment interest of the millennial generation in

the capital market. This study uses a quantitative

approach with a cross-sectional design. The

research sample was 97 respondents from the

millennial generation in Palopo City, who were

selected using a purposive sampling technique.

Data collection was carried out by distributing

questionnaires with a Likert scale, while data

analysis used multiple linear regression with the

help of SPSS software. The results of the study

showed that partially, investment understanding,

minimum investment capital, motivation, and risk

perception had a positive and significant effect on

investment interest. Simultaneously, the four

independent variables contributed significantly to

investment interest with an influence level of

66%. This shows that the millennial generation

tends to be interested in investing if they have a

good understanding of investment, affordable

initial capital, high motivation, and well-managed

risk perception.