Millennials Investment Intention on Sukuk

This chapter focuses on analyzing the investment intention of millennials on Sukuk using Theory of Planned Behavior (TPB) that presents attitude toward behavior, subjective norm, and perceived behavior control. The other variables used are religiosity, knowledge, and risk perception. The respondents of this study were millennial generation from age 27 to 35 years. The analysis used was Structural Equation Modeling-Partial Least Square (SEM-PLS). The results disclosed that religiosity influenced millennial behavior toward Sukuk investment. Meanwhile, knowledge had no significant effect. The variables affecting the intensity of Sukuk investment were behavior and subjective norm. While religiosity, knowledge, behavior control, and risk perception had no significant effect. This study shows that the relation between religiosity to attitude toward behavior involves a positive and significant response, meaning that religiosity has an important role in a person’s attitude to invest in Sukuk. Sukuk, as an Islamic financial instrument, has an appeal to investors who hold to Shari’ah principles through the aqad (terms) they offer. The relation between attitudes toward behavior involves a positive and significant effect on intention, meaning that attitudes toward behavior have an important role in a person investing in Sukuk, especially among the millennial generation. The relation between subjective norms has a positive and significant outcome on intention. It means that subjective norms have perception which has an important role in a person investing in Sukuk, especially for the millennial generation. Millennial generation intends to follow the point of view of others they think are important. This research is first of a kind attempt to analyze the investment intention of millennials on Sukuk using TPB.