Li Falah: Jurnal Studi Ekonomi dan Bisnis Islam
Vol. 8 No. 1 (2023): June 2023

Public Interest in Islamic Equity Crowdfunding

Trifiyanto, Kabul (Unknown)



Article Info

Publish Date
15 Jun 2023

Abstract

Equity Crowdfunding is an alternative investment instrument. Indonesia, with the largest Muslim population, is a potential market for Islamic Equity Crowdfunding. The purpose of this study is to identify the motivation of investorsĀ to investĀ in this instrument. There are three subject sizes, namely, related to project funding (network externality and perceived informativeness), related to a platform (perceived accreditation, structural assurance, and third-party seal) related to fundraising (Islamic value congruence, social interaction ties). Belief perspective is divided into cognitive and affective. The sample used is 101 investors spread across Indonesia in a national equity crowdfunding company with Islamic-based management. The data was processed using the structural equation modeling technique using the WarpPLS 7.0 tool. The results of this study prove that cognitive and affective beliefs and network externalities directly influence investor interest. Trust is proven to be able to mediate perceived informativeness on interest. The form of investor cognitive trust is perceived accreditation and third-party seal. The shapers of an investor's affective trust are perceived informativeness, structural assurance, and Islamic value congruence. This finding can be used as the basis for how startup companies in Sharia-based equity crowdfunding instruments build trust and interest.

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Journal Info

Abbrev

lifalah

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Social Sciences

Description

Li Falah, Journal of Islamic Economics and Business Studies is a scientific journal concerning on the latest research results and becomes a scientific communication media for lecturers, researchers, and or observers in the Islamic economics and business ...