The Intention of Investors in Making Investment Decisions in Sharia Stocks: Empirical Study in Indonesian

Abstract

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 capital market was 14.30%. According to Islamic teachings, this study's contribution is as a consideration for the Indonesia Stock Exchange, Capital Market Supervisory Agency, and other related institutions in terms of socializing investment in the Islamic capital market.

Received: 4 March 2021 / Accepted: 6 May 2021 / Published: 8 July 2021