The Investment Interest Driver: Does Risk Perception & Locus Of Control Explain College Students’ Investment Interest?

Abstract

This study examines the influence of risk perception and locus of control on college students’ investment interest within the behavioral finance framework. Although the number of investors in Indonesia has increased significantly, investment participation among young individuals remains relatively low. Therefore, understanding psychological factors influencing students’ investment interest becomes important. This research uses a quantitative explanatory approach with primary data collected through questionnaires distributed to 385 accounting students from the Faculty of Economics and Business, Brawijaya University. The sampling technique used purposive sampling, and the data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results indicate that risk perception and locus of control have a positive and significant effect on investment interest. Locus of control shows a stronger influence compared to risk perception. These findings highlight the importance of psychological factors in encouraging students’ participation in investment activities