The Determinants among Muslim Contributors to Adopt Shariah Funds Decision: Evidence of Employees Provident Fund
Keywords:
Investment decision; Theory Planned Behavior; Employees Provident Fund (EPF), Malaysia; Shariah fund; Awareness
Abstract
Malaysia is one of the world's Islamic financial centres and it is working hard to enhance Shariah governance in the Islamic financial sectors. Shariah Savings introduced on 8th August 2016 is an initiative by the Employee Provident Fund (EPF) allowing investors to determine whether or not their funds should be handled and invested according to Shariah principles. Despite the effort by the Employee Provident Fund (EPF) to promote investment in the Sharia Compliant saving, the Muslim of EPF members' is still low. Hence, increasing EPF Muslim members' investment is a major challenge. Thus, this study aimed to fulfil this gap by examining the Planned Behaviour Theory with additional variables (religiosity, investment knowledge, and risk propensity) mediated by awareness towards investment decisions among EPF Muslim contributors in Malaysia. Questionnaire surveys were utilized in a quantitative research strategy to collect data. Using purposive sampling procedures, data was collected from 295 Muslim members who stick with EPF conventional savings and analyze by using the Partial Least Square Structural Equation Modelling (PLS-SEM)
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References
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Junaidi, J. (2021). The awareness and attitude of Muslim consumer preference: the role of religiosity. Journal of Islamic Accounting and Business Research.
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Marek, Z. & Walulik, A. (2021). What Morality and Religion have in Common with Health? Pedagogy of Religion in the Formation of Moral Competence. Journal of Religion and Health, 60(5), 3130-3142.
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Mishra, N. (2019). The Nature of Retirement: Factors Responsible for Affecting Retirement Decision. Indian Journal of Gerontology, 33(2).
Mubaraq, M. R., Anshori, M. & Trihatmoko, H. (2021). The Influence of Financial Knowledge and Risk Tolerance on Investment Decision Making. Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK), 10(2), 140-153.
Mulyono, K. B. (2021). Decision Model for Saving Stocks Based on TPB and Financial Literacy. Dinamika Pendidikan, 16(1), 94-102.
Nobre, L. H. N., Grable, J. E., da Silva, W. V. & Nobre, F. C. (2018). Managerial risk-taking: a conceptual model for business use. Management Decision.
Nguyen, P. H., Tsai, J. F., Kumar G, V. A. & Hu, Y. C. (2020). Stock investment of agriculture companies in the Vietnam stock exchange market: An AHP integrated with GRA-TOPSIS-MOORA approaches. The Journal of Asian Finance, Economics, and Business, 7(7), 113-121.
Nurhayati, T. & Hendar, H. (2019). Personal intrinsic religiosity and product knowledge on halal product purchase intention: Role of halal product awareness. Journal of Islamic Marketing.
Putri, E. O. (2018). Intention Toward Halal and Organic Food: Awareness for Natural Content, Religiosity, and Knowledge Context. KnE Social Sciences.
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of consumer affairs, 44(2), 276-295
Sempe, S. L. & Naong, M. N. (2021). Exploring the impact of customer awareness on customer engagement in E-commerce: Moderating effect of customer age and gender. Journal of Contemporary Management, 18(2), 212-230.
Sitkin, S. B. & Weingart, L. R. (1995). Determinants of risky decision-making behavior: A test of the mediating role of risk perceptions and propensity. Academy of Management Journal, 38(6), 1573-1592.
Sulphey, M. M. (2021). The Position of Risk Propensity and Resilience among Saudi Youth Vis-à-vis Certain Other Nationalities. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(1), 1-11.
Sussman, R. & Gifford, R. (2019). Causality in the theory of planned behavior. Personality and Social Psychology Bulletin, 45(6), 920-933.
Syahputri, Y., Dalimunthe, H., Sabrina, H. & Rahmadhani, S. N. (2019). Factors that Influence the Reality of Performance Accountability in Government Institutions (Empirical Study in Government Deli Serdang District). Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 2(1).
Warburton, J. & Terry, D. J. (2018). Volunteer decision making by older people: A test of a revised theory of planned behavior. In Special Issue: The Social Psychology of Aging (pp. 245-257). Psychology Press.
Xia, W., Guo, X., Luo, J., Ye, H., Chen, Y., Chen, S. & Xia, W. (2021). Religious identity, between-group effects and prosocial behavior: Evidence from a field experiment in China. Journal of Behavioral and Experimental Economics, 91, 101665.
Zeisberger, S. (2021). What is risk? how investors perceive risk in return distributions. How Investors Perceive Risk in Return Distributions (February 18, 2021).
Zhang, D. C., Highhouse, S. & Nye, C. D. (2019). Development and validation of the general risk propensity scale (GRiPS). Journal of Behavioral Decision Making, 32(2), 152-167.
Afendi, A. (2020). The Effect of Halal Certification, Halal Awareness and Product Knowledge on Purchase Decisions for Halal Fashion Products. Journal of Digital Marketing and Halal Industry, 2(2), 145-154.
Ajzen, I. (2015). Consumer attitudes and behavior: the theory of planned behavior applied to food consumption decisions. Italian Review of Agricultural Economics, 70(2), 121-138.
Ajzen, I. (2018). Consumer attitudes and behavior. In Handbook of consumer psychology (pp. 529-552). Routledge.
Ajzen, I. (2006). Constructing a theory of planned behavior questionnaire.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211.
Ajzen, I. (2020). The theory of planned behavior: Frequently asked questions. Human Behavior and Emerging Technologies, 2(4), 314-324.
Alfianto, Achmad Nur, and Anton Priyo Nugroho. (2020). The Impact of Islamic Finance Knowledge and Religiosity on Gold Investment Behavior: An Extended of the Theory of Planned Behavior." ICBAE 2020: Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5-6 August 2020, Purwokerto, Indonesia. European Alliance for Innovation, 2020.
Al Abdulrazak, R. M. & Gbadamosi, A. (2017). Trust, religiosity, and relationship marketing: a conceptual overview of consumer brand loyalty. Society and business review.
Aprayuda, R., Misra, F. & Kartika, R. (2021). Does the order of information affect investors’ investment decisions? Experimental investigation. Journal of Accounting and Investment, 22(1), 150-172.
Awang, W. Q. & Abdullah, A. (2021). Financial literacy, social influence, goal clarity, and retirement experience.
Blake, D. (2006). Pension Finance. West Sussex: Wiley.
Chan, C. & Ananthram, S. (2019). Religion-based decision making in Indian multinationals: A multi-faith study of ethical virtues and mindsets. Journal of Business Ethics, 156(3), 651-677.
Chen, X., Huang, B. & Lin, C. T. (2019). Environmental awareness and environmental Kuznets curve. Economic Modelling, 77, 2-11.
Conner, M. & Armitage, C. J. (1998). Extending the theory of planned behavior: A review and avenues for further research. Journal of applied social psychology, 28(15), 1429-1464.
Denton, F. & Spencer, B. G. (2009). What is Retirement? A Review and Assessment of Alternative Concepts and Measures. Canadian Journal Aging, 28(1), 63-76. http://dx.doi.org/10.1017/S0714980809090047
Eurich, T. (2018). What self-awareness really is (and how to cultivate it). Harvard Business Review, 1-9.
El-Bassiouny, N. (2014). The one–billion–plus marginalization: toward a scholarly understanding of Islamic consumers, Journal of Business Research, 67(2), 42-49.
Fiksenbaum, L., Marjanovic, Z. & Greenglass, E. (2017). Financial threat and individuals’ willingness to change financial behavior. Review of Behavioral Finance.
Goel, S., Dwivedi, S. & Jain, N. (2019). Islamic principles as a predictor of investment behavior of Muslim investors in Delhi/NCR. IITM Journal of Management and IT, 10(2), 21-29.
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
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P. & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook.
Hamza, N. & Arif, I. (2019). Impact of financial literacy on investment decisions: The mediating effect of big-five personality traits model. Market Forces, 14(1).
Hardi, H. & Mildawati, T. (2022, April). THE MEDIATION ROLE OF TRUST AND AWARENESS IN INFLUENCING SUBJECTIVE NORMS ON INTENTION IN USING SHARIA FINANCING. In International Conference of Business and Social Sciences (pp. 1363-1376).
Hasnawati, S. & Ernie, H. (2022). Impact of Behavioral Factors among Indonesian Individual Investor towards Investment Decisions during Covid-19 Pandemic. IOSR Journal of Economics and Finance, 13(1), 43-52.
Hussain, S. (2021). The impact of E-Satisfaction, Personality Traits, Religiosity and Locus of Control on Investor’s Decision Making with mediating role of Financial Behavior and E-loyalty. INFORMATION TECHNOLOGY IN INDUSTRY, 9(3), 384-398.
Hussain, S. (2021). The Sentimental Influence of Investors on Investment Decision Making. Journal of Finance and Accounting Research, 3(1), 85-100. A behavior of a person can be influenced by emotions when making an investment choice.
Hussain, S., Rasheed, A. & Ali, M. A. (2021). Impact of Overconfidence Bias on Investor’s Investment Decisions: the moderating role of Religiosity. NICE Research Journal, 33-42.
Islam, T. & Chandrasekaran, U. (2020). Religiosity and consumer decision-making styles of young Indian Muslim consumers. Journal of Global Scholars of Marketing Science, 30(2), 147-169.
Jamal, A. A. A., Ramlan, W. K., Karim, M. A. & Osman, Z. (2015). The effects of social influence and financial literacy on savings behavior: A study on students of higher learning institutions in Kota Kinabalu, Sabah. International Journal of Business and Social Science, 6(11), 110-119.
Junaidi, J. (2021). The awareness and attitude of Muslim consumer preference: the role of religiosity. Journal of Islamic Accounting and Business Research.
Kaakeh, A., Hassan, M. K. & Almazor, S. F. V. H. (2019). Factors affecting customers’ attitude towards Islamic banking in UAE. International Journal of Emerging Markets.
Kumpulan Wang Simpanan Pekerja. (2020). Annual Report 2020 https://www.kwsp.gov.my/documents/20126/a8fd9fd5-2840-99b6-ed60-23c00c40c739
Kumpulan Wang Simpanan Pekerja. (2019). Annual Report 2019 https://www.kwsp.gov.my/annualreport2019/index-en.html
Lestari, I. P., Ginanjar, W. & Warokka, A. (2021). Multidimensional Risk and Religiosity towards Indonesian Muslims’ 0000sharia Investment Decision. Journal of Islamic Monetary Economics and Finance, 7(2), 369-400.
Marek, Z. & Walulik, A. (2021). What Morality and Religion have in Common with Health? Pedagogy of Religion in the Formation of Moral Competence. Journal of Religion and Health, 60(5), 3130-3142.
Marlin, K. (2020). Pengaruh Pengetahuan Investasi, Persepsi Return, dan Motivasi Investasi Terhadap Minat Investasi Pada Galeri Investasi Syariah Bursa Efek Indonesia IAIN Batusangkar. Syntax Literate; Jurnal Ilmiah Indonesia, 5(6), 120-128.
McCann, E., Donohue, G. & Timmins, F. (2020). An exploration of the relationship between spirituality, religion and mental health among youth who identify as LGBT+: A systematic literature review. Journal of religion and health, 59(2), 828-844
Mishra, N. (2019). The Nature of Retirement: Factors Responsible for Affecting Retirement Decision. Indian Journal of Gerontology, 33(2).
Mubaraq, M. R., Anshori, M. & Trihatmoko, H. (2021). The Influence of Financial Knowledge and Risk Tolerance on Investment Decision Making. Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK), 10(2), 140-153.
Mulyono, K. B. (2021). Decision Model for Saving Stocks Based on TPB and Financial Literacy. Dinamika Pendidikan, 16(1), 94-102.
Nobre, L. H. N., Grable, J. E., da Silva, W. V. & Nobre, F. C. (2018). Managerial risk-taking: a conceptual model for business use. Management Decision.
Nguyen, P. H., Tsai, J. F., Kumar G, V. A. & Hu, Y. C. (2020). Stock investment of agriculture companies in the Vietnam stock exchange market: An AHP integrated with GRA-TOPSIS-MOORA approaches. The Journal of Asian Finance, Economics, and Business, 7(7), 113-121.
Nurhayati, T. & Hendar, H. (2019). Personal intrinsic religiosity and product knowledge on halal product purchase intention: Role of halal product awareness. Journal of Islamic Marketing.
Putri, E. O. (2018). Intention Toward Halal and Organic Food: Awareness for Natural Content, Religiosity, and Knowledge Context. KnE Social Sciences.
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of consumer affairs, 44(2), 276-295
Sempe, S. L. & Naong, M. N. (2021). Exploring the impact of customer awareness on customer engagement in E-commerce: Moderating effect of customer age and gender. Journal of Contemporary Management, 18(2), 212-230.
Sitkin, S. B. & Weingart, L. R. (1995). Determinants of risky decision-making behavior: A test of the mediating role of risk perceptions and propensity. Academy of Management Journal, 38(6), 1573-1592.
Sulphey, M. M. (2021). The Position of Risk Propensity and Resilience among Saudi Youth Vis-à-vis Certain Other Nationalities. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(1), 1-11.
Sussman, R. & Gifford, R. (2019). Causality in the theory of planned behavior. Personality and Social Psychology Bulletin, 45(6), 920-933.
Syahputri, Y., Dalimunthe, H., Sabrina, H. & Rahmadhani, S. N. (2019). Factors that Influence the Reality of Performance Accountability in Government Institutions (Empirical Study in Government Deli Serdang District). Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 2(1).
Warburton, J. & Terry, D. J. (2018). Volunteer decision making by older people: A test of a revised theory of planned behavior. In Special Issue: The Social Psychology of Aging (pp. 245-257). Psychology Press.
Xia, W., Guo, X., Luo, J., Ye, H., Chen, Y., Chen, S. & Xia, W. (2021). Religious identity, between-group effects and prosocial behavior: Evidence from a field experiment in China. Journal of Behavioral and Experimental Economics, 91, 101665.
Zeisberger, S. (2021). What is risk? how investors perceive risk in return distributions. How Investors Perceive Risk in Return Distributions (February 18, 2021).
Zhang, D. C., Highhouse, S. & Nye, C. D. (2019). Development and validation of the general risk propensity scale (GRiPS). Journal of Behavioral Decision Making, 32(2), 152-167.
Published
2023-06-11
How to Cite
Roslee, N. A., Mat Nor, N., & Mohammad Hatta, M. F. (2023). The Determinants among Muslim Contributors to Adopt Shariah Funds Decision: Evidence of Employees Provident Fund. Information Management and Business Review, 15(2(I)SI), 70-80. https://doi.org/10.22610/imbr.v15i2(I)SI.3421
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Copyright (c) 2023 Nurul Afiqah Roslee, Norzanah Mat Nor, Mohammad Firdaus Mohammad Hatta
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