Multidimensional Risk and Religiosity Towards Indonesian Muslims’ Sharia Investment Decision (original) (raw)
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Academic Journal of Interdisciplinary Studies
This paper aims to examine the variables influencing the intention of Muslim investors in Indonesia in making sharia-stocks investment decisions. These variables are attitude, perceived behavioral control, religiosity, religious events, and profit maximization. Questionnaires are distributed to 150 respondents to collect data. This study selected respondents using the purposive sampling method. The criteria are (1) Active Muslim investors investing in sharia stocks (2) investors are not brokers or capital market employees Multiple linear regression as a technique of analysis is used to test hypotheses. The result indicates that all independent variables positively affect investor intention. The coefficient of determination (R-Square) shows that all independent variable in explaining investors’ intentions to invest in the sharia capital market is 0.857 or 85.70%, meaning that the opportunity for other variables to explain the investor intention variable to invest in the shariah capit...
In the study of stock investment in the capital market by investors in Pandemic Covid-19, it is always carried out rationally. In fact it is not always rational in making stock investment decisions. For a Muslim investor, his behavior should be based on adherence to sharia principles, but in reality a Muslim's religiousness affects adherence to sharia principles. This study aims to examine the effect of accounting information, subjective norms, sharia principles, risk, and perceptions of individual behavior control in making decisions to invest in stocks on the Indonesia Stock Exchange. The research method used is path analysis with accounting information, subjective norms, sharia principles, and risk as independent variables and stock investment decision making as the dependent variable with the perception of individual behavior control as an intervening variable. The research findings show that only the sharia principle affects stock investment decision making through perception of individual behavior control.
This study aims to analyze the influence of attitude factor, subjective norm, behavior control, religiosity, religious events and influence of profit maximization factor to behavior through intention of Muslim investor to invest sharia product in capital market. The benefits of this research will be a basic model for issuers in developing syariah financial instruments as well as for regulators as a basis for developing or improving sharia products in the capital market significantly
Islamic religiosity and portfolio allocation: the Malaysian context
International Journal of Islamic and Middle Eastern Finance and Management, 2017
Purpose This study aims to investigate the association between Muslim individuals’ portfolio allocation choice and Islamic religiosity (levels and dimensions), controlling for risk tolerance and sociodemographic factors. Design/methodology/approach The study uses primary data collected via survey questionnaires from a sample of 751 Muslim working individuals in Kuala Lumpur, Malaysia. Owing to the ordinal nature of the dependent variable, which reflects the levels of proportions of risky assets in portfolios, the data were analyzed using an ordered probit regression model. Findings The findings reveal that Islamic religiosity levels in general were insignificantly related to portfolio allocation, but that two dimensions of religiosity (virtue and obligation) significantly impact the allocations of risky assets in the portfolio. The higher the level of virtue, the lower the propensity to allocate risky assets into the portfolio. On the contrary, the higher the level of obligation, th...
Russian Journal of Agricultural and Socio-Economic Sciences, 2019
This research aims to examine the effect of religiosity on purchase intention to long-term investment in sharia insurance which is moderated by prevention focus, future orientation, and financial knowledge. This research applies a non-hierarchical analysis method or cell mean method using between subject 2×2 and the procedure of Univariate General Linear (GLM) Model. The first research finding found that religiosity has significantly affected purchase intention to long-term investment in sharia insurance; thus, H1 has supported the hypothesis. The second finding showed that high religiosity which is moderated by low prevention focus increases purchase intention to long-term investment in sharia insurance; thus, H2a has supported the hypothesis. However, religiosity which is moderated by high prevention focus does not support the hypothesis, thus, H2b and H2c are not proven. The third finding found that religiosity which is moderated by future orientation has shown very significant result, thus, the H3a, H3b, and H3c hypotheses have been proven to support the hypothesis. The fourth findings showed that high religiosity which is moderated by low financial knowledge has been proven to affect purchase intention to long-term investment in sharia insurance; so, H4a has supported the hypothesis. However, religiosity which is moderated by high financial knowledge has not supported the hypothesis; thus, H4b and H4c is not proven.
Sharia Stocks and Muslim Millennials Investors in Indonesia: Between Religious and Economic Motives
International Journal of Professional Business Review
Purpose: The objective of this study was to explore why Muslim millennials in Indonesia prefer to invest in Islamic stocks on the Indonesia Stock Exchange (IDX). Theoretical framework: Muslim millennials prefer stock investments that align with religion and align with the consistency and moral integrity upheld by the Muslim community, including investing. Design/methodology/approach: This study was a qualitative research method with a case study approach. Data were collected through in-depth interviews with ten millennial Muslim investors who invest in Islamic stocks in the IDX. Data analysis was carried out using thematic descriptive analysis. Findings: The findings of this study suggest that millennial Muslim investors in Indonesia prefer to invest in Islamic stocks for the following reasons: adherence to Islamic values and beliefs, ethical investment, risk management, diversification, and the potential for better returns. Research, Practical & Social implications: We su...
The Impact of Religiousity to Preferences of Muslim ‘s Investor in Capital Market
JURNAL HUKUM ISLAM, 2017
The journal focuses its scope on the issues of islamic law. We invite scientist, scholars, researches, as well as profesionals in the field of Islamic law to publish their researches in our journal. This journal is published every June and December annually. No part of this publication may be reproduced in any form without prior written permission from Jurnal Hukum Islam (JHI), to whom all request to reproduce copyright material should be derected. Jurnal Hukum Islam (JHI) grants authorisation for individuals to photocopy copyright material for private research use. This authorisation does not extend to any other kind of copying by any means, any form, and for any purpose other than private research use.
Risk perception of socially responsible investors in Muslim countries
From the evidence that socially responsible investment is an emerging concept in Muslim countries, we have developed a socio-demographic behavior based model. We have shown the direct effect of social factors (religion and family influence) and indirect effect of demographic factors (age, education and income) on investment choices through risk perception. Investors may be experienced in investment market but particularly in SRI investments of Muslim countries they will be new entrants. We have developed hypotheses from literature in our study regarding this concept of new entrants. In Pakistan, SRI investment is not prevailing but opportunities do exist. Pakistani firms can take the initiative by attracting SRI investments if firms develop more sophisticated CSR.
Religiosity, Neglected Risk and Asset Returns: Theory and Evidence from Islamic Finance Industry
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This paper studies the sociological influence of religion on the risk and return in the financial markets with particular context of Islamic finance, a rapidly emerging and expanding financial industry. The paper builds a theoretical model to show how intermediaries serve their customers' religious needs by creating innovative Islamic financial instruments. The customer's emphasis on religiosity exposes the industry to a theological risk, which can increase the financial fragility of the system. In our model, the theological risk emerges as a neglected component, which can be realized in the event of a bad news challenging the religious legitimacy of (Islamic) finance structures. To corroborate our theoretical findings, we present two sets of results. First, using stock prices data for 104 Islamic bond (Sukuk) issuers, we show that Sukuk issuers experienced a significant decline in their stock prices, following multiple formal and informal announcements in 2008, which challenged the religious legitimacy of Islamic bond structures. Second, using data from 1360 newly issued Malaysian Sukuk from 2006 to 2016, we find that following the regulatory changes the Sukuk margins have increased significantly. This suggests that there may be a significant difference between what Islamic and conventional customers may be willing to pay for Sukuk, exposing the industry to a unique form of religious risk.
Factors Influence Intention to Opt for Islamic Investment Schemes among Market Players
Global Review of Islamic Economics and Business, 2017
Employing theory of reasoned action with religiosity as its additional construct in the model, this paper is aimed at examining factors influence the intention of investors to opt Islamic investment schemes in Malaysia Islamic capital markets. As many as 120 questionnaires were collected from market players in Bursa Malaysia using online survey. Afterwards, the data collected were analyzed using structural equation model to reveal the relationship of variables tested in the proposed model. The result shows that religiosity and subjective norms appeared to be the significant factors affecting intention to choose Islamic investment schemes in Malaysia Islamic capital markets. Interestingly, despite its significant role shown in previous studies, this study has shown insignificant level of the attitude in predicting the intention behavior. The managerial implications are discussed in this paper.