The Willingness to Invest Under The New Compensation Limit of Investor Protection Fund in Capital Market: Evidence from Indonesia

This paper aims to see the willingness of people, both existing investor and non-investor, to invest their money in capital market after the new regulation about new compensation limit of investor protection fund. Moderated regression analysis is used to analyze the willingness to invest in existing investors and non-investors. The data are from a field survey of 110 respondents. The regression result shows that the expenditure and education level of existing investor is negatively and significantly associated with the willingness to invest under the new compensa-tion limit of investor protection fund in capital market, contrary to our initial hypothesis. As well as existing investor side, the expenditure variable of non-investor has statistically significant negative effect on the non-investor willing-ness to invest. Confirming this study initial hypothesis, education level of non-investor has positive effect on the non-investor willingness to invest but the effect is not statistically significant.