Factors Influencing Investors to Invest in the Sharia Capital Market

Authors

  • Rina Nur Shabrina IAI Tazkia
  • Rifki Ismal Institut Agama Islam Tazkia
  • Achmad Firdaus Institut Agama Islam Tazkia

DOI:

https://doi.org/10.30993/tifbr.v18i2.380

Abstract

This study aims to analyze the factors influencing individual investors' decision-making in the Indonesian Islamic Stock Exchange (BEI). The observed factors include Islamic financial literacy, Islamic investment literacy, and Islamic behavioral investment. This research employs descriptive analysis and causality testing using Structural Equation Modeling (SEM). A sample of 500 active retail investors in the Indonesian Islamic Capital Market was collected via Google Forms, and the data were analyzed using Confirmatory Factor Analysis (CFA). Hypotheses were tested through composite reliability analysis. The findings reveal that Islamic financial literacy, investment literacy, and behavioral investment have a positive and significant influence on investment decisions, with a determination coefficient of 0.79. However, the study also found that religious factors did not significantly affect investors' decision-making behavior.

 

Keywords: Islamic Financial Literacy, Islamic Investment Literacy, Islamic Behavioral Investment, Investment Decision

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Published

2024-12-11

How to Cite

Nur Shabrina, R., Ismal, R. ., & Firdaus, A. (2024). Factors Influencing Investors to Invest in the Sharia Capital Market . Tazkia Islamic Finance and Business Review, 18(2), 140–157. https://doi.org/10.30993/tifbr.v18i2.380

Issue

Vol. 18 No. 2 (2024): TIFBR

Section

Articles

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Tazkia Islamic Finance and Business Review (TIFBR) is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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