The mediator effect of Shari'ah-compliance on factors affecting the intention to invest in Islamic sukuk: theory of planned behaviour approach

Saleh, Abdulmajid Obaid Hasan and Abojela, Mohamed Salah Ramadan (2024) The mediator effect of Shari'ah-compliance on factors affecting the intention to invest in Islamic sukuk: theory of planned behaviour approach. MEDIU International Journal of Educational and Psychological Sciences (MIJEPS) (14 (2024): February). E-ISSN 2773-451X

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Abstract

As people live in a complex financial environment, Islamic Sukuk product as one of the less risky and most profitable Islamic financial products. Despite its importance, many studies in countries around the world have not been interested in studying investor behavior, including Libya, which is the purpose of this paper is to investigate and disclose effect of Shari’ahcompliance in the Intention to Invest in Islamic Sukuk. The study also tests theory of planned behavior (TPB) as well as to examine the mediator effect of Shari’ah-compliance in the relationship between attitude; subjective pressure from ‘Ulamaa’; perceived control and Intention to Invest in Islamic Sukuk. Design / Methodology / Approach - A total of 408 modified questionnaires in this study to answer questions and test research hypotheses. The data collected was analyzed using SPSS- SEM. Results - The results obtained using the theory of planned behavior (TPB) indicate attitude; subjective pressure from ‘Ulamaa’; perceived control to invest in Islamic Sukuk, and the impact of Sharia compliance have an important positive relationship with the Intention 1Mohamed Salah Ramadan Abojela Email.Mohshapan7@gmail.com PhD Researcher - IIUM Institute of Islamic Banking and Finance (IIiBF) International Islamic University Malaysia 2Abdulmajid Obaid Hasan Saleh Associate Professor - IIUM Institute of Islamic Banking and Finance (IIiBF) International Islamic University Malaysia Email.alamri@iium.edu.my THE MEDIATOR EFFECT OF SHARI’AH-COMPLIANCE………1Mohamed Salah Ramadan Abojela 2Abdulmajid Obaid Hasan Saleh - 2 - to Invest in Islamic Sukuk. Practical implications - This paper expects to adhere to the importance of Sharia in improving the intention to invest in Islamic Sukuk while at the same time motivating parties associated with Islamic banks to enhance the level of compliance with Sharia. Moreover, this study provides new insights into the importance Islamic banks and their performance in relation to customer service. Originality / Value - the current study is the first of its kind to be conducted in Libya. as far as The authors know, there are no studies that focus specifically on socio-economic factors that affect investor intention to trade in Sukuk. The result of the study may be useful in countries with similar banking cultures such as Libya. The other notable contribution of this paper is to address the gap in theory by testing the mediator relations on the TPB model in the context of Sukuk where no published literature was found that tested the mediating effect of compliance with Sharia. Finally, the study aimed to try to understand the determinants of public investment intention in the legitimacy of Sukuk and the importance of compliance with the provisions of Sharia not only in Sukuk product, but along with other Islamic banking products offered by Libyan banks, addition, this study will provide more benefits for banking institutions that offer similar Islamic products. Keywords: Attitude; Subjective Pressure from ‘Ulamaa’; Perceived Control, Shari'ah- compliance, investors, Theory of planned behavior (TPB), Libya. Paper type research paper.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Attitude; Subjective Pressure from ‘Ulamaa’; Perceived Control, Shari'ah- compliance, investors, Theory of planned behavior (TPB), Libya. Paper type research paper.
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH437 Sukuk - Islamic Bond
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Abdulmajid Obaid Hasan Saleh
Date Deposited:	25 Jun 2024 12:37
Last Modified:	26 Jun 2024 11:35
URI:	http://irep.iium.edu.my/id/eprint/112725

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