The Impact of Financial Literacy on the Investment Decision of Non-Donation-Based Crowdfunding in Indonesia

  • Jihan Nadra Arifah Universitas Indonesia
  • Zuliani Dalimunthe Universitas Indonesia
Keywords: Non-Donation Crowdfunding, Financial Literacy, Crowdfunding Backers, Crowdfunding Investment Decision, Indonesia


The present study investigates the heterogeneity of the financial literacy level between backers and  nonbackers of non-donation-based crowdfunding in Indonesia and how the financial literacy relates to the country’s decision to invest through non-donation crowdfunding. We choose Indonesia for a case study because non-donation crowdfunding has become a new investment mode recently in this area. The study extends the analysis to the predictors of financial literacy and its impact on the investment decision of nondonation crowdfunding. The hypotheses are examined through binary logistic regression. The study’s findings are as follows. First, there is heterogeneity in the financial literacy level between backers and nonbackers. Second, the financial literacy level is found to be affected by residence, education, income, and stock market product ownership. Third, investors in crowdfunding have a tendency to be in the younger age group. Fourth, males have a higher tendency to invest in non-donation crowdfunding than females, despite the lack of difference in financial literacy between them. Fifth, individuals in the lowest income group are more likely to invest in non-donation crowdfunding than individuals with larger incomes.


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How to Cite
Jihan Nadra Arifah, & Zuliani Dalimunthe. (2020). The Impact of Financial Literacy on the Investment Decision of Non-Donation-Based Crowdfunding in Indonesia. International Journal of Business and Society, 21(3), 1045-1057.