The rapid development of technology requires many people to have knowledge in order to keep up with the development of civilization, one of which is knowledge about investment. Investment is an activity carried out to invest a sum of money or resources in an instrument that aims to benefit. An investor generally invests with the aim of making a certain amount of money or in a broader goal, namely being able to improve welfare in the future, an increasing standard of living from time to time, being able to reduce the growth rate of inflation and being able to avoid the risk of a decrease in the value of the wealth or rights they have (Palupi et al., 2017).

Generation Z is a generation that grew up in the digital age and rapid technological development. Born between 1997 and 2012, this generation is very familiar with technology, everything can be accessed easily and quickly. Therefore, the characteristics that are formed make them unique in interacting, learning, and making decisions including in terms of investing. Generation Z shows high interest in investing.

The problem that arises is the rise of fraudulent investments in the wider community and the low knowledge of investment often makes people become victims of fraudulent investments by tempting the returns offered. As published on liputan6.com (Ramadhani, 2021), the Financial Services Authority (OJK) has closed 425 illegal or fake entities, including PT Sejahtera Bersama Solusindo (Good Deal Points) and CV Indodata Group. Additionally, the Investment Alert Task Force (SWI) has stoppoed 11 entities in commercial activities that could endanger the public without authorization from the appropriate goverment or on behalf of licensed entities.

Public knowledge about investment or financial literacy is very important, especially about what type of instrument to choose in investing so as not to be easily persuaded or deceived by irrational returns, especially for the younger generation such as students. University students, as successors in the fields of environment, education, society and economy, must also face the increasing complexity of market products, finance and services and the risk of uncertainty in the future.

Financial literacy is one of the factors that can influence investment decisions. Individuals who have low financial literacy will have an impact on their interest in saving low, while individuals with good literacy knowledge will be able to increase the possibility of higher interest in saving (Purnama Sari et al., 2024). Financial literacy includes an understanding of financial concepts, the ability to analyze risks, and the ability to make decisions.

Putra et al., (2022) in his research shows that students as the younger generation have been directly involved in efforts to invest in the capital market, the knowledge gained by students from courses on the capital market plays an important role in investment interest. The findings by (Aisa, 2021; Mohamed Abdeldayem, 2019) shows that financial literacy has a positive effect on investment influence.

Unlike the research conducted by (Khan, 2020; Sun & Lestari, 2022) found that financial literacy has no effect on investment decisions. These results show that financial literacy affects investors to think wisely in making decisions.

On the other hand, investment motivation plays an important role in investment decision-making. Motivation is the desire of an individual's soul caused by actions taken to fulfill desires and achieve certain goals, stimulus usually affects a person's motivation (Sun & Lestari, 2022). Motivation can come from various sources, such as achieving financial freedom in old age. Gaining strong motivation will help increase an individual's interest in participating in investment activities. The research conducted by (Hasanudin et al., 2021, Yuliati et al., 2020)) shows that the motivation variable affects investment decisions, but the research conducted by (Chasanah et al., 2022) motivation variables have no effect on investment decisions.

The other factor that can influence investment decisions is herding, which is an independent behavior that makes a person change their decisions repeatedly due to influence and pressure from peers and people around them. However, the phenomenon of herding effect where the psychological behavior of individual investors who are more confident and believe in the opinions of others to the point of ignoring personal beliefs. This often leads to irrational and risky investment decisions (Alharbi & Abdul Hamid, 2024). In the world of Gen Z, which is closely related to technology and social media, it can strengthen the herding effect, because they tend to follow trends or majority opinions without doing further research. Research (Ngoc, 2013) shows that herding affects investment decisions. While research conducted (Pratidina & Anggaini, 2023) shows that herding has a negative effect on investment decisions.

Amidst the interaction between financial literacy, investment motivation and herding effect, emotional intelligence emerges as a moderating variable that can influence investment decisions. Emotional intelligence includes the ability to manage one's own emotions as well as those of others. Individuals who have high emotional intelligence tend to be able to control their emotions when facing pressures that occur in the capital market or the influence of other investors, so they are able to make more rational decisions.

This study aims to analyze the effect of financial literacy, motivation and herding effect on investment decisions with emotional intelligence as a moderating variable. The existence of different research results on variables that influence investment decisions indicates the need to present other variables that can moderate. As a moderating variable, emotional intelligence is expected to contribute to improving investor decisions, especially students in investing. The research object used is students in the Ciayumajakuning area.

Investment Decision

Tandelilin in (Marsis, 2013) investment decisions are a form of sacrifice of wealth in the present to get future profits with a certain level of risk. Investment decisions are defined as individual decisions in placing the amount of funds in specific investment categories (Ariani et al., 2016). Policies involving two or more alternative investments with the expectation of future gains are known as investment decisions (Budiarto & Susanti, 2017)

Investment decisions according to (Mar’atur Rosyidah & Lestari, 2013) are making choices between two or more of the desired alternative decisions. Investment is the postponement of current consumption to be put into productive assets over a certain period to get future profits by doing a business at this time (Hartono, 2012). Because of that, until an investment decision, assessment and consideration are carried out intensively first. In accordance with the explanation from (Christanti et al., 2012) a person's investment decision is known from two angles, namely the extent to which the decision can optimize one's assets (economic) and investment decisions based on the psychological aspects of investors (Behavioral motivation). Therefore, the author concludes that investment decisions are setting aside part of the income to invest in order to obtain investment returns or profits in the future.

Hypothesis Development

According to (Remund, 2010), financial literacy is a measure of an individual’s comprehension of financial concepts, ability, and confidence in managing their personal finances by making sound short-term decisions and sound long-term financial plans while accounting for environmental events and shifting economic conditions. Hence, the term financial literacy is the ability of an individual to make decisions in terms of their personal financial arrangements. Basically, the knowledge of finance in each investor is different, this allows the selection of different investment instruments as well. Knowledge of finance is very important for individuals so that they do not take the wrong steps in taking finances later on (Margaretha & Pambudhi, 2015)

H1 : Financial literacy affects financial decisions

Motivation to invest encompasses the various drives for individuals to engage in investment activities. These motivations stem from the desire to fulfill long-term goals. The research conducted by (Purba et al., 2023) shows that motivation has a role in increasing individual interest in investing. Strong motivation can provide direction to be more active in seeking valid information, so as to make good decisions.

H2 : Motivation affects investment decisions

Herding effect is a phenomenon where individuals follow the decisions of others without thinking about personal intuition in terms of investment decisions. Research that shows that the herding effect has a positive effect on investment decisions is the findings conducted by (Ahmed & Noreen, 2021) dan (Njeri Wamae, 2013). Nevertheless, it is inversely correlated with the study carried out by (Bakar & Yi, 2016; Khan, 2020) states that the herding effect does not have a significant effect on investment decisions. This shows that someone

who has good financial literacy and emotional intelligence will be more careful in making decisions.

H3 : Herding affects investment decisions

Emotional intelligence plays an important role in moderating the relationship between financial literacy, investment motivation and herding effect. It refers to an individual's ability to manage self-perceived emotions such as fear or desire that influence investment decisions. In this case, individuals in the rational choice process must share energy and time between solving their problems and then making decisions and regulating their emotional activity. Therefore, they must perform a number of activities to understand, assess and control their respective emotions while trying to solve the problem.

Financial literacy and emotional intelligence interact and influence investment decisions. Emotional intelligence can moderate the relationship between financial literacy and financial risk tolerance. Emotional intelligence can moderate the relationship between financial literacy and financial risk tolerance. High financial literacy can improve investment decisions. Emotional intelligence can influence financial behavior. High emotional intelligence can affirm that financial conduct and financial literacy are related.

H4 : Emotional intelligence moderates financial literacy’s impact on

invesment choices

Motivation is a process of stimulus that arises from within individuals or others to prove the seriousness, direction, and perseverance of individuals to achieve their desired targets and has a direct influence on the actions and psychology of individuals (Tohidi & Jabbari, 2010). (Darmawan et al., 2019) conceptualizes investment motivation as a condition arising from within an individual that creates a stimulus to carry out investment-related activities. High emotional intelligence can increase motivation for decision-making in investing.

H5 : Emotional intelligence moderates the influence of motivation on investment decisions

Herding behavior can be bad for investment decisions because if it does not use careful consideration, it could be that investment decisions made by other investors bear a loss that can have an impact in the future. Emotional intelligence plays an important role in an individual's ability to manage self-perceived emotions such as fear or desire that influence investment decisions. Research by (Afriani et al., 2019) shows that herding has a significant influence on investment decision making. This research is supported by (Ariswati & Hidayatullah, 2021) where this study also states that herding has an influence on investment decision making.

H6 : Emotional intelligence moderates the influence of herding on investment decisions.

Based on the theoretical framework and previous research, the framework is described as below:

Picture 1. Conceptual Framework

The research methodology is quantitative, and the data will be gathered through the distribustion of google forms questionnaires. The type of this research is associative research, namely research conducted to determine the effect of two or more variables, namely independent and dependent. Financial literacy, motivation, and herding on invesment decision are the study’s factors, and emotional intelligence serves as a moderating component.

The population used as the sample of this study were all students who live in Ciayumajakuning. The sampling technique is purposive sampling, which is a method that selects data sources based on certain criteria.

The minimum number of samples required for this study refers to a statement derived from (Hair et al., 2014) The number of respondent samples required for this study must be adjusted to the number of indicator statements in the questionnaire, using the assumption formula n x 5 indicators up to n x 10, where n is the number of question items taken from each indicator on the variables in the study. The number of questions is 5 items on variable X1, 5 items on variable X2, 5 items on variable X3, 7 items on variable Y, and 5 items on variable M in this study. Thus, the number of questions in this study were 27 question items, multiplied by 5 equals 135 respondents; [27 x 5 = 135]. Based on this, this study chose 135 respondents as the research sample.

Data collection uses a survey method by distributing questionnaires in the form of google forms to respondents. Before hypothesis testing, the research data was tested for validity to determine the reliability of the questions, whether or not a questionnaire was appropriate and reliability testing of the research variables. The classic assumption test is carried out with the expectation that the research data is normally distributed, there is no multicollinearity or heteroscedastistas. The data analysis technique uses multiple regression analysis, this analysis technique is used to determine the effect of financial literacy variables, motivation and herding on investment decisions with emotional intelligence as a good moderating variable. Using IBM SPSS 23, the data analysis

techniques employed in this study include Moderated Regression Analysis (MRA), descriptive statistical analysis, and classical asumption test. The following equation formula is used in Moderated Regression Analysis (MRA), a specific application of multiple regression, where the regression equation includes an element of interaction regression (multiplacation of two or more independent variables) (Ghozali Imam, 2018).

KI = a + b₁LK + b₂MOT + b₃HER + b₄(LK.KE) + b₅(MOT.KE) + b₆(HER.KE) + e

Descriptive Statistics Analysis

Financial Literacy’s Impact on Financial Choices

Based on the findings of the first hypothesis test (H1) accepted, it shows that the financial literacy variable has a significant effect on investment decisions. Someone who has an understanding of financial concepts will be more confident in making the right decisions in investing because they are able to assess the risks and returns of each decision taken. A good understanding of financial literacy can also reduce hesitation in making investment decisions. Therefore, an understanding of financial literacy is very important for every individual to have. This research is consistent with research conducted by (Aisa, 2021; Mohamed Abdeldayem, 2019) which demonstrates the beneficial and noteworthy impact of financial literacy.

Motivation’s impact on investment choices

Considering the outcomes of the second hypothesis test (H2) rejected, it demonstrates that the investment motivation variable does not have a significant effect on investment decisions. Motivation does not necessarily have a positive influence on investment decisions, but can be the opposite. If the motivation is only to follow other people's decisions or trends without any self-defense, it can lead to losses, due to a lack of understanding of financial literacy. This research is consistent with (Richard & Epin, 2023) and contradicts the research conducted by which shows that investment motivation can influence investment decisions. Herding affects investment decisions

From the results of the third hypothesis test (H3) accepted, it shows that

the herding effect variable has a significant effect on investment decisions. Indicating that active Gen Z students in the Ciayumajakuning area still follow other people's decisions in making investment decisions. This research is consistent with research conducted by (Richard & Epin, 2023) which proves that the herding effect has a positive and significant effect.

The Effect of Financial Literacy, Motivation and Herding Effect on Investment Decisions through Emotional Intelligence

From the test results, the fourth hypothesis (H4), the fifth hypothesis (H5), and the sixth hypothesis (H6) were rejected, indicating that the emotional intelligence variable could not moderate each independent variable on the dependent variable. However, the research conducted by (Claudia dan Nuryasman, 2019; Sefdaenjyo et al., n.d.) emotional intelligence variable has a significant value as an independent variable. In this study, the emotional intelligence variable has a significant value shown in table 6, this value is smaller than the p-value. It can be concluded that the emotional intelligence variable cannot be used as a moderating variable, but can be used as an independent variable.

Based on the results of the research that has been done, conclusions can be drawn: (1) Investment decisions are positively and significantly impacted by financial literacy, (2) Investment decisions are negatively and negligibly impacted

by investment motivation, (3) Investment decisions are significanly and favorably impacted by the herding effect, (4) Emotional intelligence did not succeed in moderating all independent variables on the dependent variable.

Recommendations that can be given are to strengthen the basic understanding of finance that can be obtained through formal and non-formal education. It is very helpful for someone in making investment decisions, especially for Gen Z in Ciayumajakuning who still follow other people's decisions (Herding Effect) in making decisions. In addition, determining a clear motivation for the decision to invest is not a false motivation, such as without making a plan for the right long or short term or just following others without a clear goal. Emotional control can be cultivated in order to position oneself to make rational decisions.

Future research can further explore whether emotional intelligence really cannot moderate each independent variable on the dependent variable.