A SEM-PLS INVESTIGATION OF CYBERSECURITY LITERACY AND FINANCIAL PRUDENCE IN GENERATION Z’S DIGITAL INVESTMENT DECISIONS
DOI:
https://doi.org/10.18623/rvd.v23.5378Palabras clave:
Cybersecurity Literacy, Financial Prudence, Investing Decision, Z Generation, Digital Investing, Behavioral FinanceResumen
This study aims to analyze the influence of cybersecurity literacy and financial prudence on investment decision-making among Generation Z in Central Java, Indonesia. Alongside the rapid expansion of digital investment platforms, a comprehensive understanding of cybersecurity and prudent financial management has become an essential determinant in the investment decision-making process, particularly among digital natives. This research adopts a quantitative approach employing a survey design involving 330 Generation Z respondents aged 18–27 years in Central Java who possess experience or interest in digital investment activities. Data were analyzed using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method to examine the relationships among the proposed variables. The findings indicate that cybersecurity literacy exerts a positive and statistically significant effect on investment decisions (β = 0.312; p < 0.001). Financial prudence likewise demonstrates a positive and significant influence on investment decisions (β = 0.287; p < 0.001). Furthermore, risk perception is found to mediate the relationship between cybersecurity literacy and investment decisions (β = 0.156; p < 0.01). These results suggest that Generation Z individuals with higher levels of cybersecurity literacy are more likely to make rational and well-considered investment decisions, taking risk factors into account more carefully. Financial prudence also serves as an important predictor in mitigating speculative investment behavior. The practical implications of this study underscore the necessity of integrating cybersecurity education into financial literacy curricula, developing user-friendly investment platforms equipped with transparent security features, and implementing comprehensive investor education programs tailored specifically to the characteristics of Generation Z.
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