FINANCIAL BEHAVIOR AND INCOME AS DETERMINANTS OF INVESTMENT DECISIONS: EVIDENCE FROM GENERATION Z UNIVERSITY STUDENTS IN AN ISLAMIC ECONOMICS PERSPECTIVE

Abstract

This study aims to examine the influence of financial literacy, financial behavior, and income on investment decisions among Generation Z university students from an Islamic economics perspective. The rapid development of digital financial platforms has increased young adults’ participation in investment activities; however, empirical evidence explaining the determinants of their investment decision-making remains limited. This study employs a quantitative approach with a causal research design. Primary data were collected through an online questionnaire distributed to 120 undergraduate students at Management & Science University, Malaysia. The data were analyzed using multiple linear regression analysis to examine the relationships among the research variables. The results reveal that financial behavior and income have a positive and significant effect on students’ investment decisions. In contrast, financial literacy does not show a statistically significant direct effect on investment decisions. However, financial literacy, financial behavior, and income simultaneously influence investment decisions. These findings indicate that students’ investment decisions are shaped not only by financial knowledge but also by financial management behavior and individual economic capacity. This study contributes to the literature by providing empirical evidence on the investment behavior of Generation Z students in Malaysia and highlights the importance of strengthening financial education that emphasizes not only knowledge improvement but also the development of responsible financial behavior in line with Islamic economic principles.