Millennial Humanist Investment Decisions: Exploring Financial Literacy Through Sharia Financial Behavior

Abstract

The study assumes investment decisions as a completely rational and secular process, with an important role of Islamic spiritual and ethical values by the millennial generation. Sharia financial behavior, such as halal considerations, sustainability, and social impact, has the potential to be a significant intervening variable in influencing how literacy, attitudes, and knowledge become humanist investment decisions. Therefore, this study aims to: 1) Analyze the influence of financial literacy on sharia financial behavior; 2) Analyze the influence of sharia financial behavior on humanist investment decisions; 3) Analyze the influence of financial literacy on humanist investment decisions; 4) Analyze the influence of financial literacy on humanist investment decisions through sharia financial behavior. The research method is This study uses a quantitative approach with an associative research type. The method is carried out through numerical measurements using statistical methods. The approach used is the Structural Equation Modeling (SEM) method. Data collection methods are interviews, documentation, and questionnaires. The population is the millennial generation at the Makassar Branch of the Indonesia Stock Exchange, a sample of 120 respondents. The results show that 1) financial literacy has a significant positive effect on sharia financial behavior; 2) financial literacy has a significant positive effect on humanist investment decisions; 3) sharia financial behavior has a significant positive effect on humanist investment decisions; 4) financial literacy has a significant positive effect on humanist investment decisions through sharia financial behavior. The implications of this research are increasing awareness of strong sharia financial literacy in accordance with sharia principles, enabling individuals to make humanist investment decisions through the application of ethical, moral, and ethical values.