Muslim Investor Behavior in Indonesian Capital Markets: an Extention of Theory of Planned Behavior

Abstract

This study aims to measure the intentions of Muslim investors in investing in Islamic stocks using the Theory of Planned Behavior and including religiosity. Religiosity was added in the study to answer the weakness of TPB to add new external variables to it. The sample of this research is Muslim investors who invest in shariah stocks with 200 investors. The analytical tool used in this study is Partial Least Square (PLS) using SmartPLS 3.0 software. This study indicates that the variables of attitude, subjective norm, and perceived behavioral control have a significant positive effect on the intention of Muslim investors to invest in Islamic stocks. Religiosity is also proven to have a significant positive effect on the intentions of Muslim investors to invest in Islamic stocks. Religiosity is proven to be a new external variable in the TPB that can measure Muslim intentions to invest in Islamic stocks.