Risk Tolerance as a Mediation in SME Investment Decisions in Jepara

Authors

  • Diaz Zahra Septina Pratiwi Management Study Program, Nahdlatul Ulama Islamic University Jepara, Jawa Tengah, Indonesia
  • Mohammad Yunies Edward Management Study Program, Nahdlatul Ulama Islamic University Jepara, Jawa Tengah, Indonesia

DOI:

https://doi.org/10.22225/wmbj.6.1.2026.66-77

Keywords:

Experienced Regret, Financial Literacy, Financial Socialization, Investment Decision, Risk Tolerance

Abstract

This study aims to analyze the role of risk tolerance as a mediating variable in the relationship between financial literacy, experienced regret, financial socialization, and investment decisions among SMEs in Jepara. The study involved 300 SMEs selected using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that financial literacy, experienced regret, and risk tolerance have a positive effect on investment decisions, while financial socialization has no significant effect. Risk tolerance is proven to mediate the effect of financial literacy and experienced regret on investment decisions, but it does not mediate the relationship between financial socialization and investment decisions. These findings highlight the dominant role of internal individual factors in shaping investment decision-making among SMEs.

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Published

2026-03-03

How to Cite

Pratiwi, D. Z. S., & Edward, M. Y. (2026). Risk Tolerance as a Mediation in SME Investment Decisions in Jepara. Warmadewa Management and Business Journal (WMBJ), 8(1), 66–77. https://doi.org/10.22225/wmbj.6.1.2026.66-77

Issue

Vol. 8 No. 1 (2026)

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Copyright (c) 2026 Diaz Zahra Septina Pratiwi, Mohammad Yunies Edward

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