The Influence of Financial Literacy and Income on the Decision to Invest in Islamic Stocks

The capital market plays a significant role in a country's economy as a meeting place between those in need of capital and those who have capital for investment. However, good financial literacy and income factors influence investment decisions. Data shows an increase in the number of investors in the capital market, but low levels of financial literacy, particularly among young investors, remain a challenge. This research utilizes the Planned Behavior Theory (PBT) to understand the factors that influence investment decisions, while also highlighting the growing interest in Shariah-based investments. For students, financial literacy and income have a significant impact on their investment decisions. The research findings indicate that improving financial literacy and income management can assist individuals in making better investment decisions and enhancing their financial well-being.


INTRODUCTION
The capital market has an important role in a country's economy.According to the Capital Market Law (UUPM) number 8 of 1995 article 1 number 13 states that the capital market is all kinds of activities related to securities trading and public offerings of companies that have gone public as well as institutions and professions related to securities.
According to the Indonesian capital market statistics report issued by KSEI (Indonesian Central Securities Depository) in October 2022, there was a significant increase in the number of SID (Single Investor Identification) in the capital market.This increase can be seen from the number of investors in the capital which reached 9,975,261 as of October 2022.this number has increased 33.01%from 2021 which amounted to 7,489,337 SID.SID (Single Investor Identification) is a single identity code that must be owned by investors to conduct securities transactions (Sinaga et al, 2018).
The increase in the number of investors as of October 2022 is dominated by investors less than 30 years old as much as 59.01%.The highest average related to the level of education owned by investors is high school as much as 62.58%.With the average age and education according to the report, it raises questions related to the level of understanding of financial literacy owned by investors.investors who are dominated by those under 30 years of age in making investment decisions.
According to the results of the National Survey on Financial Literacy and Inclusion (SNLIK) in 2019 conducted by OJK (Financial Services Authority), the financial literacy index of Indonesian society is only 38.03% and the financial inclusion index is 76.19%.This figure is still classified as a low number.This shows that in general, Indonesian people still do not understand well and correctly the characteristics of various financial services and products offered by formal financial services institutions.Whereas financial literacy is an important basic skill that every investor must have.
Then another factor that can influence investment decisions is the income factor.This is because everyone who invests must know in advance the source of funds they have, either from personal sources or loans.In Dewi & Purbawangsa's research (2018) found that income has a significant effect on investment decisions.This is also the same as research conducted by Safryani, Aziz, & Triwahyuningtyas (2020) which states that income has a significant effect on investment decisions.However, it is different from the research conducted by Putri & Rahyuda (2017) which states that there is no influence between income and individual investment decision behavior.
In line with the increase in the number of SIDs, the Islamic stock index also experienced a significant development.The Islamic stock index has increased from 2021 from the previous 3,983,652.80to 4,409,187.05 in October 2022.This was also followed by the increasing number of Islamic stocks listed on the IDX (Indonesia Stock Exchange).In the last period in 2021, the number of Islamic stocks listed on the Islamic securities list was 484.Currently, the number of Islamic stocks has grown to 532 in the first period of 2022.This is related to the increase in the number of SIDs registered with KSEI.Do these investors invest their funds in Islamic stocks.
Based on the background of the problems described above, this research has the title  (Somer, 2011).

Financial Literacy
Financial literacy is an understanding of the financial knowledge and skills possessed by an individual in managing their personal finances in order to improve the welfare or standard of living of that individual.Financial literacy is held with the aim of increasing the level of public understanding of long-term financial management (Margaretha & Pambudhi, 2015).Adhering to research conducted by Chen and Volpe (1998), the measurement of financial literacy can use four kinds of indicators, including: 1. Basic knowledge of financial management.

Income
Income is a certain amount of money given to someone in return for that person's work.The higher someone earns income, the more likely it is that someone will try to get an understanding of how to better utilize finances through increased financial knowledge (Amran, 2018).According to Satrio & Siswantoro (2016) there are four kinds of indicators related to income, including: 1. Bonuses and incentives.

Investment Decision
Just like other economic activities, in investing, of course, every investor must make considerations before deciding to invest.This is important to note so that the investment chosen is in accordance with the expectations of the investor.Decisions in investing can be divided into two sides, namely the first from the economic side by measuring the extent to which the results of the investment maximize investor wealth, then the second is based on the psychological aspects owned by investors (Hartono & Wahyuni, 2017).According to Tandelilin (2010), there are three indicators in investment decisions, namely: 1.Return (Rate of Return).2. Risk.
3. The Time Factor.

Hypothesis 1. The effect of financial literacy on investment decisions
Based on previous research conducted by Upadana & Herawati (2020), it was found that financial literacy affects investment decisions.Then in another study conducted by Saftriyani, Aziz, & Triwahyuningtyas (2020) it was also found that financial literacy affects investment decisions.So the hypothesis of the financial literacy variable is: H1: Financial literacy affects the investment decisions of students of the Faculty of Economics and Business, University of Jember in Islamic stocks.

The effect of income on investment decisions
The income variable is stated to have an effect on investment decisions in research conducted by Dewi & Purbawangsa (2018).This is also the same as Financial Literacy Income Investment Decisions in Islamic Shares 19 research conducted by Saftriyani, Aziz, & Triwahyuningtyas (2020) that income affects investment decisions.So the hypothesis of income is: H2: Income affects the investment decisions of students of the Faculty of Economics and Business, University of Jember in Islamic stocks.

RESEARCH METHODS Research Design
The approach used in this research is a quantitative approach.Then for the classification of this research, it is included in the classification of explanatory research or research that examines the position and influence between the variables being studied.

Population and Sample
The population in this study were all FEB UNEJ students who already had SID and were under 25 years old.Then for the minimum sample calculation using the Cochran formula where this formula was chosen because the population in this study was unknown (Sugiyono, 2017: 149).Based on the formula above, the calculation of the number of samples obtained is as follows.

Data Collection Technique
Researchers used an online method to distribute questionnaires with google form using the link https://unej.id/LKPInvestasi.The results of filling out the questionnaire that has been filled in by the respondent will be measured using a ratio scale on the financial literacy variable and a Likert scale on the income and investment decision variables.

Instrument Test
Instrument testing in research includes validity test and reliability test by relying on SPSS software.validity test if r count> r table and reliability test if Cronbach's alpha value> 0.60.

Multiple Linear Regression Analysis Method
The use of multiple linear analysis methods in this study is to determine the direction of the relationship between the independent variable and the dependent variable.
The regression equation model used in this study is as follows.

Classical Assumption Test
The classic assumption test in this study uses a normality test (Kolmogorov-Smirnov with a confidence value of 95%), multicollinearity test (VIF ≤ 10), and heteroscedasticity test.

Hypothesis Test
Hypothesis testing in this study uses a partial test (t test) with a significance value <0.05 and t count> t table.Then proceed to the multiple coefficient of determination (R2).

General Description of Respondents
The majority of respondents in this study were female at 55.1%, the remaining male at 44.9%.Most respondents live in Jember with a percentage of 21.7%.Respondents in this study were dominated by Sharia Economics majors by 39.1%.The respondents' source of income is dominated by parents by 44.9% with monthly income dominated at Rp.500,000-Rp.1,500,000with a percentage of 43.4%.
Respondents mostly invested 1-5 times through the broker Mirae Indonesian Securities Assets.From table 2, it can be seen that all variables have a value of more than 0.60, so it can be said that all variables in this study are reliable.

Variable Coefficient
Sig. Constant 8,428 0,000 Financial Literacy (X1) 0,378 0,000 Income (X2) 0,049 0,000 Source: Data Processed, 2023 Based on table 3, the regression equation is obtained as follows.Y = 8.428 + 0.378 X1 + 0.049 X2 From the above equation, the constant number value of 8.428 is positive.This shows that if there is no increase in the financial literacy variable (X1) and income (X2), the value of investment decisions (Y) is 8.428.Adjusted R Square is equal to 0.823, which means that the magnitude of the influence caused by the independent variable on the dependent variable, in this case the investment decision on Islamic stocks, is 82.3%.

The Effect of Financial Literacy on Investment Decisions in Sharia Shares
Based on the results of the analysis on the financial literacy variable, it is known that the first hypothesis (H1) is accepted.The t test results in a significance value <0.05, namely 0.000 and the value of t count> t table (14.192> 0.236), then H0 is rejected or Ha is accepted.The regression coefficient result is positive, it means that financial literacy has a significant positive effect on the investment decisions of FEB UNEJ investors in Islamic stocks.This contradicts the results of research conducted by Yundari & Artati (2021) which shows that financial literacy has no significant effect on investment decisions.However, the results of this study are in line with previous research conducted by Rasuma Putri & Henny Rahyuda (2017), Upadana & Herawati (2020), Saftriyani, Aziz, & Triwahyuningtyas (2020) which show that financial literacy has a significant positive effect on investment decisions.then it can be concluded, the higher the level of financial literacy of FEB UNEJ student investors, the better the investment decisions that are decided later.A high level of financial literacy can make it easier to minimize risks associated with investment (Mufidah et.al., 2022).

The Effect of Income on Investment Decisions in Sharia Stocks
Based on the research results, it is proven that the second hypothesis (H2) is accepted.The t test results show that the income variable gets a significance value of 0.000 and t count of 5.864.Where the significance value is <0.05 and t count> t table (5.864> 0.236), then H0 is rejected or Ha is accepted.The value of the regression coefficient is positive, which indicates that the effect of the independent and dependent variables is also positive.Based on the results of the research analysis, it can be concluded that income has a significant positive effect on the investment decisions of FEB UNEJ student investors in Islamic stocks.This can be interpreted that the higher the income of FEB UNEJ student investors, the higher the consideration in making their investment decisions.Someone who has a high income will tend to control their finances well, so they really consider their decisions.This is in accordance with research conducted by Dewi & Purbawangsa (2018), Saftriyani, Aziz, & triwahyuningtyas (2020), Yundari & Artati (2021) which state that income has a significant effect on investment decisions.However, the results of this study contradict the results of research conducted by Rasuma Putri & Henny Rahyuda (2017), Olubanjo Michael Adetunji & Olayinka David (2019) which state that income has no significant effect on investment decisions.

CONCLUSION
This study aims to test and discuss the effect of Financial Literacy and Income on Investing Decisions in Sharia Shares (Study on Students of the Faculty of Economics and Business, University of Jember.Based on the results of the research that has been done, the following conclusions can be drawn.▪ The first hypothesis statement is accepted.The financial literacy variable has a significant positive effect on the investment decisions of FEB UNEJ student investors in Islamic stocks.▪ The second hypothesis statement is accepted.The income variable has a significant positive effect on the investment decisions of FEB UNEJ investors in Islamic stocks.
of samples ▪ Z = Confidence level in the sample ▪ p = Chance of being right ▪ q = Chance of being wrong ▪ e = Desired tolerance of error

Table 1 ,
every question and statement contained in the questionnaire with all variables can be proven valid because it has r count> r table with a significance value <0.05.

Table 2 .
Reliability Test

Table 1 .
Test Data Normality Test

Table 2 .
Multicollinearity TestSource: Data Processed, 2023Based on table 5, it can be seen that the tolerance value is> 0.1 and VIF < 10.So it can be said that there is no multicollinearity.Based on table 6, it can be seen that the significance value of each .0,05.So it can be said that there are no symptoms of heteroscedasticity.

Table 7 .
Partial Test Results (t Test) Based on the t test results, the income variable gets a significance value of 0.000 and a tcount of 5.864.Where the significance value <0.05 and tcount> table (5,864> 0.236), then H0 is rejected.

Table 8 .
Results of the Coefficient of Multiple Determination (R 2 )