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Examining the determinants of Islamic stock investment:An empirical study of Indonesian young investors

Author

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  • Anisa

    (Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia)

  • Muamar Nur Kholid

    (Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia)

Abstract

The goal of this study is to determine the factors that influence young Indonesian investors' intentions to invest in Islamic stocks. The Theory of Planned Behavior (TPB) paradigm is used in this study, although financial literacy and trust are also included. This is a quantitative survey-based study. 204 people participated in the research by completing all questionnaires. The data were analyzed using the Partial Least Squares – Structural Equation Modeling (PLS-SEM) technique with the assistance of SmartPLS 3.0. According to the findings of the data analysis, the attitude has a significant positive effect on intention in Islamic stock investments. Subjective norms have no significant positive effect on intention in Islamic stock investments. The perceived behavioral control has a significant positive effect on investor intention in Islamic stocks. Financial literacy and trust significantly increase intention in sharia stock investing. Key Words:Young Investor, Islamic Stock, Theory of Planned Behavior, Financial Literacy, Trust

Suggested Citation

  • Anisa & Muamar Nur Kholid, 2022. "Examining the determinants of Islamic stock investment:An empirical study of Indonesian young investors," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 207-213, March.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:2:p:207-213
    DOI: 10.20525/ijrbs.v11i2.1667
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    References listed on IDEAS

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    1. Angela Hung & Andrew Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers 708, RAND Corporation.
    2. Angela A. Hung & Andrew M. Parker & Joanne K. Yoong, 2009. "Defining and Measuring Financial Literacy," Working Papers WR-708, RAND Corporation.
    3. Nikolaos Satsios & Spyros Hadjidakis, 2018. "Applying the Theory of Planned Behaviour (TPB) in Saving Behaviour of Pomak Households," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(2), pages 122-133, April.
    4. Linda Ariany Mahastanti & Edy Hariady, 2014. "Determining the factors which affect the stock investment decisions of potential female investors in Indonesia," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 4(2), pages 186-197.
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