FACTOR ANALYSIS OF MILLENNIAL’S STOCK INVESTMENT INTENTION IN SURABAYA; IS ACCOUNTING STUDIES USED AS A FUNDAMENTAL ANALYSIS?

Abstract

Based on previous study, there were too many variables affecting investment intention, and sometimes it there were many similarities or overlaps between one variable and another. This study aimed to determine the factors affecting investment intention, then identify the most dominant factor and the least dominant factor affecting investment intention in Stock of Millennial Generation in Surabaya. This research was quantitative study, with total samples of 186 millennial generation according to the established criteria. Data analysis using Exploratory Factors Analysis. The sampling technique used in this study was purposive sampling. The result of this study showed : 1) There are 6 factors formed from the results of exploratory factor analysis that affect investment intention in the millennial generation, including Subjective Norms on Return and Technology, Financial Knowledge and Government’s support, Perceived Behavioural Control on Financial Risk Management, Demographic Profile and Locus of Control on investment Decision, Credit and Capital Market Literacy, and Consumption and Financial Attitude, 2) The most dominant factor affecting investment intention was the Subjective Norms on Return and Technology factor with Eigenvalue 1.752, 3) The least dominant factor affecting investment intention was Consumption and Financial Attitude with Eigenvalue 1.087. Further research can be performed by enriching supporting data such as the socio-economic demographic profile and culture.