Javascript/jQuery encoding for special characters when using val()

I have a problem with special characters like &, ä, etc. and their corresponding HTML encoded writing like &, ä etc.

• When they are used in the value tag of input fields, the browser decodes it automatically, no problem at all.

• When using jQuerys val() function, the browser has no chance to evaluate the content correctly

  $("button").click(function(){
      $("#test").val("&");
  });
  

Any idea?