Sharia stock investment decisions: Sharia stock literacy and risk factors and their relations with behavioral bias

Ibna Kamilia Fiel Afroh, Achmad Hasan Hafidzi

Abstract


Research aims: This study aims to analyze the influence of Sharia stock literacy and risk factors on Sharia stock investment decisions with behavioral bias as an intervening variable.
Design/Methodology/Approach: The population was investors in East Java Province who invested in Sharia stock. The sample for this research was 500 respondents. The analysis employed was the Structural Equation Model.
Research findings: The impact of Sharia stock literacy on both Sharia stock literacy and investor behavioral bias was positive. Sharia stock investment decisions were adversely impacted by risk factors. Additionally, risk factors had a detrimental impact on investor behavioral bias. Behavioral bias yielded a favorable impact on the decision-making process for investing in Sharia-compliant stocks. Through behavioral bias, Sharia stock literacy positively affected Sharia stock investment decisions. Meanwhile, risk factors obtained a negative effect on Sharia stock investment decisions through behavioral bias.
Theoretical contribution/Originality: This research contributes to Sharia stock investment decisions and provides empirical evidence of Sharia stock investment decisions concerning Sharia stock literacy, risk factors, and behavioral biases.
Practitioner/Policy implication: This research contributes to investors' ability to determine investment decisions in Sharia stock.
Research limitation/Implication: The limitation of this research is that independent variables only used two components of Sharia stock investment decision, i.e., Sharia stock literacy and risk factors. Hence, the level of influence of the independent variables on the dependent was small.


Keywords


Sharia Stock Literacy; Risk Factors; Behavioral Biases; Sharia Stock Investment Decision

Full Text:

PDF

References


Abdullah, M. F., Hoque, M. N., Rahman, M. H., & Said, J. (2022). Can Islamic Financial Literacy Minimize Bankruptcy Among the Muslims? An Exploratory Study in Malaysia. SAGE Open, 12(4). https://doi.org/10.1177/21582440221134898

Agha, S. E. U., & Sabirzyanov, R. (2015). Risk Management in Islamic Finance: An Analysis from Objectives of Shari’ah Perspective. International Journal of Business, Economics and Law, 7(3), 48–52. Retrieved from https://www.ijbel.com/wp-content/uploads/2015/09/RISK-MANAGEMENT-IN-ISLAMIC-FINANCE-AN-ANALYSIS-FROM-OBJECTIVES-OF-SHARI’AH-PERSPECTIVE.pdf

Albaity, M., & Rahman, M. (2019). The intention to use Islamic banking: an exploratory study to measure Islamic financial literacy. International Journal of Emerging Markets, 14(5), 988–1012. https://doi.org/10.1108/IJOEM-05-2018-0218

Alsayigh, N. A. J., & Al-Hayali, Z. M. A. (2022). Islamic Financial Literacy, Concepts, and Indicators. Asian Journal of Economics, Business and Accounting, 22(21), Article no.AJEBA.88694. https://doi.org/10.9734/ajeba/2022/v22i2130683

Aren, S., & Zengin, A. N. (2016). Influence of Financial Literacy and Risk Perception on Choice of Investment. Procedia - Social and Behavioral Sciences, 235, 656–663. https://doi.org/10.1016/j.sbspro.2016.11.047

Ateş, S., Coşkun, A., Şahin, M. A., & Demircan, M. L. (2016). Impact of Financial Literacy on the Behavioral Biases of Individual Stock Investors: Evidence from Borsa Istanbul. Business and Economics Research Journal, 7(3), 1–19. https://doi.org/10.20409/berj.2016321805

Brigham, E. F., & Houston, J. F. (2014). Fundamentals of Financial Management. Mason: South-Western Cengage Learning.

Budiarto, A., & Susanti. (2017). Pengaruh Financial Literacy, Overconfidence, Regret Aversion Bias, dan Risk Tolerance Terhadap Keputusan Investasi (Studi pada investor PT. Sucorinvest Central Gani Galeri Investasi BEI Universitas Negeri Surabaya). Jurnal Ilmu Manajemen (JIM), 5(2), 1–9. Retrieved from https://ejournal.unesa.ac.id/index.php/jim/article/view/19441

Budiman, R. (2021). Strategi Manajemen Portofolio Investasi Saham. Jakarta: PT. Elex Media Komputindo-Kelompok Gramedia.

Cho, J., & Lee, J. (2006). An integrated model of risk and risk-reducing strategies. Journal of Business Research, 59(1), 112–120. https://doi.org/10.1016/j.jbusres.2005.03.006

Din, S. M. U., Mehmood, S. K., Shahzad, A., Ahmad, I., Davidyants, A., & Abu-Rumman, A. (2021). The Impact of Behavioral Biases on Herding Behavior of Investors in Islamic Financial Products. Frontiers in Psychology, 11(600570). https://doi.org/10.3389/fpsyg.2020.600570

Fatihudin, D. (2017). Panduan Praktis Merencanakan Keuangan untuk Investasi di Pasar Modal, Pasar Uang & Valas. Surabaya: UMSurabaya Publishing.

Fitriyani, S., & Anwar, S. (2022). The Effect of Herding, Experience Regret and Religiosity on Sharia Stock Investment Decisions for Muslim Millennial Investors with Financial Literacy as a Moderating Variable. Jurnal Ekonomi Syariah Teori Dan Terapan, 9(1), 68–77. https://doi.org/10.20473/vol9iss20221pp68-77

Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39. https://doi.org/10.2307/3151312

Ghozali, I. (2014). Structural Equation Modeling Metode Alternatif dengan Partial Least Square (PLS) (4th ed.). Semarang: Semarang: Universitas Diponegoro.

Gunawan, A., Asmuni, A., & Siregar, S. (2021). Islamic Financial Literacy and Financial Behavior: The Case of Muhammadiyah Community in Medan City. Journal of Accounting and Investment (JAI), 22(3), 500–516. https://doi.org/10.18196/jai.v22i3.10043

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hariawan, H. D. A., & Canggih, C. (2022). Analisis Faktor yang Mempengaruhi Keputusan Investasi di Pasar Modal Syariah: Studi Kasus di Kota Surabaya. Jurnal Ekonomi Syariah Teori Dan Terapan, 9(4), 495–511. https://doi.org/10.20473/vol9iss20224pp495-511

Hassan, M. K., Aliyu, S., Saiti, B., & Halim, Z. A. (2021). A review of Islamic stock market, growth, and real-estate finance literature. International Journal of Emerging Markets, 16(7). https://doi.org/10.1108/IJOEM-11-2019-1001

Hassan, N. C., Abdul-Rahman, A., Amin, S. I. M., & Hamid, S. N. A. (2023). Investment Intention and Decision Making: A Systematic Literature Review and Future Research Agenda. Sustainability, 15(5), 3949. https://doi.org/10.3390/su15053949

Hudha, M. W. A. Z. (2021). Pengaruh Literasi Keuangan Syariah dan Motivasi Terhadap Keputusan Investasi Pada Saham Syariah (Studi Kasus Mahasiswa Islam Kota Malang). Jurnal Ilmiah Mahasiswa FEB, 9(2). Retrieved from https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7503

Humaira, Z. A. (2021). Analysis of The Influence of Return on Equity on Sharia Stock Price Moderated by Corporate Social Responsibility. EKONOMIKA SYARIAH : Journal of Economic Studies, 5(1), 72–82. https://doi.org/10.30983/es.v5i1.2578

Indrarini, S. (2019). Nilai Perusahaan Melalui Kualitas Laba: (Good Governance Dan Kebijakan Perusahaan). Surabaya: Scopindo Media Pustaka.

Khairiyati, C., & Krisnawati, A. (2019). Analisis Pengaruh Literasi Keuangan terhadap Keputusan Investasi pada Masyarakat Kota Bandung. Almana : Jurnal Manajemen Dan Bisnis, 3(2), 301–312. https://doi.org/10.36555/almana.v3i2.362

Khoerulloh, A. K., & Janwari, Y. (2021). Analysis of Investment Decisions in Sharia Cooperatives: Does Sharia Accounting Standards Affect? Economica: Jurnal Ekonomi Islam, 12(1), 119–140. https://doi.org/10.21580/economica.2021.12.1.6442

Koesoemasari, D. S. P., Haryono, T., Trinugroho, I., & Setiawan, D. (2022). Investment Strategy Based on Bias Behavior and Investor Sentiment in Emerging Markets. Etikonomi, 21(1), 1–10. https://doi.org/10.15408/etk.v21i1.22290

Koichi, T., Takemura, T., & Kozu, T. (2013). Investment Literacy and Individual Investor Biases: Survey Evidence in the Japanese Stock Market. Rev Socionetwork Strat, 7, 31–42. https://doi.org/10.1007/s12626-012-0031-z

Lobão, J. (2023). Efficiency and price clustering in Islamic stocks: evidence from three Asian countries. Journal of Islamic Accounting and Business Research, ahead-of-p(ahead-of-print). https://doi.org/10.1108/JIABR-05-2022-0140

Maharani, P. D., Rusli, L., Abadi, K. R., & Fadhilah, S. S. (2023). Sharia Investment Decision-Making: Gender Lens Investing, Fear of Missing Out, and Islamic Financial Literation. Islamic Sustainable Finance, Law and Innovation. https://doi.org/10.1007/978-3-031-27860-0_33

Mardhiyaturrositaningsih. (2022). Financing Risk in Islamic Banking Before and During The Covid-19 Pandemic. JESKaPe: Jurnal Ekonomi Syariah, Akuntansi Dan Perbankan, 6(2), 303–316.

Maria, W. (2017). Analisa Kritis Laporan Keuangan. Surabaya: Jakad Media Publishing.

Memon, M., Ting, H., Cheah, J., Ramayah, T., Chuah, F., & Cham, T. (2020). Sample size for survey research: Review and recommendations. Journal of Applied Structural Equation Modelling, 4(2), 1–20. https://doi.org/10.47263/JASEM.4(2)01

Muhammad, R., Rikumahu, B., & Iradianty, A. (2016). Pengaruh Weekday Effect dan Week-Four Effect Terhadap Return Saham Indeks Kompas100 di Bursa Efek Indonesia Periode 2007 – 2015. E-Proceeding of Management, 3(1), 124–134. Retrieved from https://openlibrarypublications.telkomuniversity.ac.id/index.php/management/article/view/2970

Normasyhuri, K., Saputri, Y. D., & Anggraeni, E. (2023). Generation Z Sharia investment decision patterns: Does information media matter? Jurnal Ekonomi & Keuangan Islam, 9(2), 246–262. Retrieved from https://ideas.repec.org/a/uii/jekife/v9y2023i2p246-262id29162.html https://doi.org/10.20885/JEKI.vol9.iss2.art7

Novianggie, V., & Asandimitra, N. (2019). The Influence of Behavioral Bias, Cognitive Bias, and Emotional Bias on Investment Decision for College Students with Financial Literacy as the Moderating Variable (PDF) The Influence of Behavioral Bias, Cognitive Bias, and Emotional Bias on Investment Deci. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9(2), 92–107. https://doi.org/10.6007/IJARAFMS/v9-i2/6044

Otoritas Jasa Keuangan. (2022). Siaran Pers: Survei Nasional Literasi dan Inklusi Keuangan Tahun 2022. Retrieved from ojk.go.id website: https://ojk.go.id/id/berita-dan-kegiatan/siaran-pers/Pages/Survei-Nasional-Literasi-dan-Inklusi-Keuangan-Tahun-2022.aspx

Pompian, M. M. (2006). Behavioural Finance and Wealth Management: Building Optimal Portfolios That Account for Investor Biases. Hoboken, New Jersey, USA: John Wiley & Sons, Inc.

Pradhana, R. W. (2018). Pengaruh Financial Literacy, Cognitive Bias, dan Emotional Bias terhadap Keputusan Investasi (Studi pada Investor Galeri Investasi Universitas Negeri Surabaya). Jurnal Ilmu Manajemen (JIM), 6(3), 108–117. Retrieved from https://ejournal.unesa.ac.id/index.php/jim/article/view/23849

Pradikasari, E., & Isbanah, Y. (2018). Pengaruh Financial Literacy, Illusion of Control, Overconfidence, Risk Tolerance, dan Risk Perception Terhadap Keputusan Investasi Pada Mahasiswa di Kota Sur https://doi.org/10.47202/mak.v33i01.109 abaya. Jurnal Ilmu Manajemen (JIM), 6(5), 424–434. Retrieved from https://ejournal.unesa.ac.id/index.php/jim/article/view/24408

Putri, N. M. D. R., & Rahyuda, H. (2017). Pengaruh Tingkat Financial Literacy dan Faktor Sosiodemografi Terhadap Perilaku Keputusan Investasi Individu. E-Jurnal Ekonomi Dan Bisnis Universitas Udayana, 9, 3407. https://doi.org/10.24843/EEB.2017.v06.i09.p09

Rahayu, S., Widyastuti, I., & Purwantini, V. T. (2021). Pendampingan Transaksi Efek Berdasar Mekanisme Perdagangan Pasar Modal Di Indoensia Dengan Simulasi Interaktif. Media Akuntansi, 33(1), 168–179.

Rahman, R. A., Tafri, F. H., & AlJanad, Y. (2010). Instruments and Risks in Islamic Financial Institutions. Malaysian Accounting Review, 9(2), 11–21. Retrieved from https://core.ac.uk/download/pdf/324171333.pdf

Roemanasari, F., & Sabela, J. (2022). Islamic Financial Literacy and Financial Behavior on Investment Intention. JIET (Jurnal Ilmu Ekonomi Terapan), 7(2), 239–250. https://doi.org/10.20473/jiet.v7i2.40679

Rumain, I. A. S., Mardani, R. M., & Wahono, B. (2021). Pengaruh Literasi Keuangan dan Pengelolaan Keuangan Terhadap Kinerja Keuangan pada UMKM Kota Malang. 10(8), 66–80. Retrieved from https://jim.unisma.ac.id/index.php/jrm/article/view/10534/8340

Salerindra, B. (2020). Determinan Keputusan Investasi Mahasiswa pada Galeri Investasi Perguruan Tinggi di Surabaya dan Malang. Jurnal Ilmu Manajemen, 8(1), 157–173.

Sarstedt, M., Ringle, C. M., Henseler, J., & Hair, J. F. (2014). On the Emancipation of PLS SEM: A Commentary on Rigdon (2012). Long Range Planning, 47(3), 154–160. https://doi.org/10.1016/j.lrp.2014.02.007

Schiffman, L. G., & Wisenblit, J. (2015). Consumer behavior. United Kingdom: Harlow, Essex Pearson Education Limited.

Septyanto, D., Sayidah, N., & Assagaf, A. (2021). The Intention of Investors in Making Investment Decisions in Sharia Stocks: Empirical Study in Indonesian. Academic Journal of Interdisciplinary Studies, 10(4), 141–153. https://doi.org/10.36941/ajis-2021-0105

Septyanto, D., Sudarwan, & Dewanto, I. J. (2017). Model Behavior of Sharia Investment Decision on Muslim Investor in Indonesia Stock Exchange (IDX). International Journal of Economic Research, 14(1). Retrieved from https://www.esaunggul.ac.id/model-behavior-of-sharia-investment-decision-on-muslim-investor-in-indonesia-stock-exchane-idx/

Sofyani, H. (2023). Penentuan Jumlah Sampel pada Penelitian Akuntansi dan Bisnis Berpendekatan Kuantitatif. Reviu Akuntansi Dan Bisnis Indonesia, 7(2), 311–319. https://doi.org/10.18196/rabin.v7i2.19031

Sugiyono. (2016). metode penelitian kuantitatif, kualitatif,dan R&D. In Alfabeta.

Tandelilin, E. (2017). Pasar Modal: Manajemen Portofolio dan Investasi. Yogyakarta: Yogyakarta: Kanisius.

Utsman, M. A. (2021). Analisis Pengaruh Risk Tolerance, Financial Attitude, dan Literasi Keuangan Syariah Terhadap Keputusan Investasi Saham Syariah (Studi Kasus : Investor Millenial). Jurnal Ilmiah Mahasiswa FEB, 9(2). Retrieved from https://jimfeb.ub.ac.id/index.php/jimfeb/article/view/7643/6584

Wira, D. (2016). Psikologi Trading: Aspek Psikologi Dalam Investasi. Bogor: Exceed.

Zulfikar. (2016). Pengantar Pasar Modal dengan Pendekatan Statistika. Yogyakarta: Deepublish, Sleman: Yogyakarta.




DOI: https://doi.org/10.18196/jai.v25i1.20534

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Office:
Ruang Jurnal Fakultas Ekonomi dan Bisnis UMY
Gedung Ki Bagus Hadikusuma (E4) Lantai 2, Kampus Terpadu Universitas Muhammadiyah Yogyakarta,
Jalan Brawijaya (Lingkar Selatan), Tamantirto, Kasihan, Bantul, Daerah Istimewa Yogyakarta, Indonesia, 55183
Website: journal.umy.ac.id/index.php/ai - E-mail: jai@umy.ac.id

Journal of Accounting and Investment is licensed under Creative Commons Attribution Attribution-NonCommercial-NoDerivatives 4.0 International License

View My Stats