Speaker
Description
This study investigates the determinants influencing Malaysian retail investors' behavior toward Islamic stock investments. The research aims to explore the role of six key variables—Attitude, Subjective Norms, Self-Efficacy, Perceived Financial Literacy, Perceived Sharia Compliance, and Perceived Passive Income Generation—in shaping investors' decisions to participate in the Islamic stock market. These variables introduce a novel perspective to the study of retail investor behavior.
Data were collected from a sample of 500 respondents across four states—Selangor/Kuala Lumpur, Malacca, Pulau Pinang, and Sabah—selected based on economic indicators such as the GINI Coefficient, GDP per capita, urbanization rate, and mean household income. The study is grounded in the Attitude-Social Norms-Self-Efficacy (A-S-E) theory, an extension of the Theory of Planned Behavior (TPB) popularized by Albert Bandura.
Using judgmental sampling, the study examines how Attitude mediates the relationship between the identified variables and retail investor behavior, while Self-Efficacy moderates this relationship. The results are expected to provide insights into the extent to which Malaysian retail investors are willing to engage in Shariah-compliant stock investments, particularly in light of Malaysia's traditional preference for safer, low-risk asset classes.
The findings will contribute to a deeper understanding of retail investor behavior in the Islamic stock market, offering valuable implications for future research and policy development in Islamic finance.
