Tazkia Islamic Finance and Business Review
Vol. 18 No. 2 (2024): TIFBR

Factors Influencing Investors to Invest in the Sharia Capital Market

Nur Shabrina, Rina (Unknown)
Ismal, Rifki (Unknown)
Firdaus, Achmad (Unknown)



Article Info

Publish Date
11 Dec 2024

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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Journal Info

Abbrev

tifbr

Publisher

Subject

Economics, Econometrics & Finance

Description

Tazkia Islamic Finance and Business Review (TIFBR) is a peer-reviewed journal published by the Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics in collaboration with Association of Islamic Economics Lecturers (ADESY). The Journal is semi-annual ...