ANALYSIS OF DECISION-MAKING FACTORS EQUITY INVESTMENT IN INDONESIA

Abstract

Invetment decision for an investor is influenced by various factors. Ideally, investors need to have various considerations before they finally make an investment. The importance of knowing the factors that shape the decision to choose stocks for investors in Indonesia is the purpose of this research. There were 185 respondents who fulfilled the purposive sampling technique as a sample collection technique. The research instrument was a questionnaire as primary data. The data analysis technique was carried out by factor analysis with the principle component analysis approach and SPSS as a research tool. The stages of factor analysis are carried out by compiling a correlation matrix, extraction factors, rotation factors, and naming factors. The result is that there are two factors that are generated as forming factors for investing in stocks in Indonesia, namely investment management experience; investment management knowledge.