Investment Behaviour of Individual Investors Regarding Sharia Stock Investment: A Systematic Review

Abstract

The main purpose of this paper is to review existing relevant pieces of literature on the behavior of investors toward investment in sharia stocks and bring into focus the factors that affect investors' behavior in investment decision-making regarding sharia stocks. The paper is descriptive and exploratory and based on secondary data sourced from trusted e-journals, research databases, and e-magazines. The factors that influence investment decisions can be complex and may vary from one individual to another. Some studies have found that religiosity, and specifically adherence to religious values and principles, can influence investment decisions. However, not all studies have found a significant relationship between investment behavior regarding sharia stocks and the concept of religiosity. Other factors may also play a dominant role in determining decisions for prudent investments, such as financial literacy along with sharia literacy, financial behavior, and financial habits among others. Investors who are more financially literate may be better equipped to make informed investment decisions. Overall, the theory of planned financial behavior provides a resourceful framework for understanding investment behavior in many studies.

Marketing halal investment in Jordan: an investigation of Muslims’ behavioral intention to invest in Hajj fund sukuk

“…Correspondingly, H2 was supported. In this respect, Hussain et al (2023) reported that an individual's knowledge of Islamic Sukuk positively influenced their intention to invest in such an investment. In addition, according to Duqi and Al-Tamimi (2019), the most critical issues for investors are connected to the availability of information and a broad understanding of Sukuk issuances in terms of credit, market and liquidity risk.…”

“…Similarly, Faisal et al (2023) argued that the decision to invest in Sukuk is heavily impacted by social factors. In the same way, Hussain et al (2023), who investigated the factors that influence individuals' decisions to invest in Islamic sukuk, revealed that social factors played a vital role in motivating people to invest their money in Islamic Sukuk. Besides, by understanding and leveraging the power of social influence, organizations and institutions can effectively encourage and promote investments in Hajj funds, facilitating the fulfillment of religious obligations and fostering a sense of communal support within the Muslim community.…”

Global Board Market Index Shariah: A Comprehensive Analysis of the 2020-2023 Trends

“…Valencia et al, (2022), evaluating the regulatory frameworks implemented by various jurisdictions during 2020-2023 will contribute to understanding the index's conditions; (3) Islamic Finance Governance, the governance of Islamic finance institutions and regulatory bodies impacts investor confidence and the overall growth of Shariah-compliant investments (Hasan et al, 2020). Examining the initiatives taken in this regard will provide a holistic view of the index's development; (4) Industry Growth and Investment Trends, tracking the growth of the Islamic finance industry and the corresponding investment trends will shed light on the market sentiment surrounding Shariah-compliant assets (S. Aziz et al, 2022;Touti & Taïb, 2023); (5) Investor Sentiment and Risk Appetite, analyzing investor sentiment and risk appetite towards Shariah-compliant assets during the specified period will provide insights into the index's performance (Anwer, 2021;Hussain et al, 2023). Factors such as geopolitical events, market volatilities, and investor preferences influence the overall sentiment (Hachicha, 2023;He, 2023).…”