The Influence of Social and Personal Factors in Individual Investment Decision Making

Research regarding relationship between social factors and investment decisions is still very rarely done. This study aims to examine the moderating relationship of polygamy risk as a social factor in the relationship between the level of risk tolerance and financial literacy in women on investment decisions in financial products. The data was collected using a survey method with 329 women as participants and married samples was women who worked in private banks and microfinance institutions. The data was classified based on the respondents' risk tolerance, financial literacy, and risk perception of polygamy. MANOVA Techniques were used to test the research model. The test results found that the risk of polygamy moderates the relationship between women in high-risk tolerance conditions. It shows that within the high risk of polygamy conditions, women's preference for short-term financial investment products is higher than in low-level risk polygamy conditions. The group of women with expert financial knowledge and a higher risk tolerance who choose to invest in short-term financial products as The moderating variable of polygamy can be considered as a social risk that cannot be controlled and is affected by the main effects of financial literacy and risk tolerance, where women naturally behave as risk averse in order to maintain a stable life and prosperity. Short-term investments have low returns, but they can be sold at any time and turned into cash, making them the most liquid assets.