Islamic Financial Literacy and Financial Behavior on Investment Intention

Abstract

The low level of financial literacy, especially Islamic financial literacy which can affect individual readiness to plan finances and accept risks in relation to financial investments. This research aims to determine the effect of Islamic financial literacy and financial behavior on investment intentions.. The research used in this research is quantitative research with the questionnaire method on google form to respondents as well as using secondary data derived from literature and the results of previous studies then the survey results were processed using SPSS and analyzed and interpreted to conclude the findings. The result is that Islamic financial literacy, financial risk tolerance and behavioral biases have a positive effect on investment intentions.

Sharia financial literacy: Decoding the nexus of civil Servants' investment choices

“…However, upon further exploration, we identify crucial differences in the direct impact of these two variables on investment decisions. Our findings indicate that Sharia financial literacy has a weaker direct influence on investment decisions compared to previous research, which suggested a stronger direct impact (Roemanasari et al, 2022). This could be attributed to other factors influencing investment decisionmaking, such as investment risk or individual preferences.…”

“…In this research, we successfully identify and analyze the complex relationship among Sharia financial literacy, financial attitudes, financial satisfaction, and investment decisions. Our primary findings align with the theoretical framework, demonstrating that sound knowledge of Islamic finance and a positive attitude towards finance can enhance an individual's satisfaction with their financial situation (Roemanasari et al, 2022). However, upon further exploration, we identify crucial differences in the direct impact of these two variables on investment decisions.…”

“…This knowledge enables them to navigate financial risks wisely and attain higher levels of financial satisfaction by adhering to Islamic principles in financial management. Furthermore, Sharia financial literacy equips civil servants to offer valuable guidance to individuals interested in Sharia-based products and investments, contributing to the rapid growth of the Sharia economy (Roemanasari et al, 2022). It also allows civil servants to optimize the use of government programs and financial incentives, thereby improving their financial planning and resource utilization.…”

The Level Of Islamic Financial Literacy And Islamic Financial Inclusion Of Students In The Islamic Capital Market

“…As research (Roemanasari et al, 2022), (Arifin & Rizaldy, 2022) whose results show that Islamic financial literacy affects investment intention. The intention to invest here can be interpreted as a form of Islamic financial inclusion.…”

“…Financial literacy is the ability of individuals to utilize the knowledge, beliefs, and skills of consumers and the wider community to better manage financial resources for future prosperity. Meanwhile, Islamic financial literacy is the ability to apply financial knowledge, skills, and attitudes to manage financial resources in accordance with sharia principles (Roemanasari et al, 2022).…”