The Effect of Income, Financial Literacy, and Social Media on Investment Intention among Generation Z in Lamongan Regency

Abstrak

Generation Z has become the largest group of investors in Indonesia’s capital market, highlighting the importance of understanding the factors influencing their investment intention. This study examines the effects of income, financial literacy, and social media on Generation Z’s investment intention in Lamongan Regency, Indonesia. A quantitative research approach with a survey method was employed. Data were collected through an online questionnaire distributed to 101 Generation Z respondents selected using purposive sampling. The data were analyzed using multiple linear regression after passing validity, reliability, and classical assumption tests. The results show that income, financial literacy, and social media simultaneously have a significant effect on investment intention (F = 33.134, p < 0.001). However, partial analysis indicates that only social media has a significant positive effect on investment intention (β = 0.477, p < 0.001), whereas income (β = 0.130, p = 0.208) and financial literacy (β = 0.206, p = 0.056) do not have significant effects. The regression model explains 50.6% of the variance in investment intention (R² = 0.506), while the remaining variance is explained by other factors. These findings suggest that social media plays a dominant role in encouraging investment intention by improving access to investment information and digital financial education. The study contributes to the application of the Theory of Planned Behavior in explaining Generation Z’s investment intention and offers practical insights for policymakers, educational institutions, and financial service providers to develop effective digital financial education programs through social media, thereby encouraging investment participation among Generation Z.