Predictors of Muslim Investors' Intentions to Sharia Stocks Investment: Extending Theory of Planned Behavior

Abdulloh Mubarok; Agnes Dwita Susilawati; Yuni Utami; Mei Rani Amalia

doi:10.70716/ecoma.v4i3.566

Authors

Abdulloh Mubarok Accounting Study Program, Universitas Pancasakti Tegal, Indonesia
Agnes Dwita Susilawati Digital Business Study Program, Universitas Pancasakti Tegal, Indonesia
Yuni Utami Management Study Program, Universitas Pancasakti Tegal, Indonesia
Mei Rani Amalia Tax Management Study Program, Universitas Pancasakti Tegal, Indonesia

DOI:

https://doi.org/10.70716/ecoma.v4i3.566

Keywords:

Stocks Market Knowledge, Sharia Stocks Literacy, Intention towards Sharia Stocks Investment, TPB theory

Abstract

By adding two context-specific knowledge variables to the Theory of Planned Behaviour (TPB), namely Sharia equities Market Knowledge (SMK) and Sharia Stocks Literacy (SSL), this study investigates the factors that influence Muslim investors' desire to invest in sharia equities. Since the original TPB framework did not specifically address the function of information about the sharia capital market and Islamic investment principles, an extension is suggested. Using data from 143 individual Muslim investors who purchase sharia equities on the Indonesian capital market, the study used a quantitative methodology based on Partial Least Squares Structural Equation Modelling (PLS-SEM). The majority of the respondents were female (70%), between the ages of 20 and 25 (85%), and had a variety of educational backgrounds; 41% had a bachelor's degree, 9% had a diploma, and 50% fell into other educational categories. The findings demonstrate that SSL, attitude, perceived behavioural control (PBC), and intention to invest in sharia stocks are all positively impacted by SMK. Additionally, SMK indirectly affects investment intention through PBC and attitude. SSL has a good impact on attitude and PBC, but it has no direct impact on investment intention; instead, it has an indirect effect through attitude and PBC. Additionally, investment intention is favourably influenced by attitude, subjective norms, and PBC, with PBC emerging as a significant predictor. By showing that adding sharia-specific market knowledge and literacy offers a more context-sensitive explanation of Muslim investors' propensity to invest in sharia stocks, the findings add to the TPB literature. Additionally, the paper offers useful recommendations for capital markets and regulators in.

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