Article Sidebar

Factors Influencing Muslim Investors to Invest in Sharia Stocks during the Covid-19 Pandemic
Submitted
November 20, 2022
Accepted
December 30, 2022
Published
December 31, 2022
Download
PDF
Statistic
Read Counter : 490 Download : 273

Main Article Content

Abstract

There had been a notable increase in the number of capital market investors in 2020 and 2021 as compared to previous years. In 2020, the number of investors increased by 56.21% from that of the previous year in 2019, and in 2021 it increased to 92.99% as compared to the number in 2020. Such considerable increase was surprising despite the outbreak of Covid pandemic throughout those years, which had an impact on the downturn of community's economy, as seen from an increase in the amount of unemployment by 7.07%, and a poverty rate of 9.8%. Likewise, Indonesia experienced negative economic growth in the quarter II and III of 2020. This study aims to find the factors that influence investors in making investment decisions amidst pandemic conditions that took place in 2020 and 2021 with the variables of Financial Literacy, Influencer’s Influence, Social Media Influence, social environment, and religiosity. It was obvious that these 5 factors had an influence on investment decisions, with the Financial Literacy factor as the factor that had the greatest influence and significance with a regression coefficient of 0.721.

Keywords

Investment Decision Muslim Investor Pandemic Sharia Stock

Article Details

License

Copyright (c) 2022 Aqida Shohiha, Martini Dwi Pusparini, Ulfi Sheila Pinasti

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Shohiha, A., Pusparini, M. D. ., & Pinasti, U. S. (2022). Factors Influencing Muslim Investors to Invest in Sharia Stocks during the Covid-19 Pandemic. Journal of Islamic Economics Lariba, 8(2), 313–330. https://doi.org/10.20885/jielariba.vol8.iss2.art11
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Adil, M., Singh, Y., & Ansari, Mohd. S. (2021). How financial literacy moderate the association between behaviour biases and investment decision? Asian Journal of Accounting Research, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ajar-09-2020-0086

  2. Agarwal, S., Kumar, S., & Goel, U. (2019). Stock market response to information diffusion through internet sources: A literature review. International Journal of Information Management, 45(November 2018), 118–131. https://doi.org/10.1016/j.ijinfomgt.2018.11.002

  3. Ahmad, M., & Shah, S. Z. A. (2020). Overconfidence heuristic-driven bias in investment decision-making and performance: mediating effects of risk perception and moderating effects of financial literacy. Journal of Economic and Administrative Sciences, ahead-of-p(ahead-of-print). https://doi.org/10.1108/jeas-07-2020-0116

  4. Akhtar, F., Thyagaraj, K. S., & Das, N. (2018). The impact of social influence on the relationship between personality traits and perceived investment performance of individual investors: Evidence from Indian stock market. International Journal of Managerial Finance, 14(1), 130–148. https://doi.org/10.1108/IJMF-05-2016-0102

  5. Alam, M. M., Akbar, C. S., Shahriar, S. M., & Elahi, M. M. (2017). The Islamic Shariah principles for investment in stock market. Qualitative Research in Financial Markets, 9(2), 132–146. https://doi.org/10.1108/QRFM-09-2016-0029

  6. Alexander, R. M., & Gentry, J. K. (2014). Using social media to report financial results. Business Horizons, 57(2), 161–167. https://doi.org/10.1016/j.bushor.2013.10.009

  7. Al-Tamimi, H. A. H., & bin Kalli, A. A. (2009). Financial literacy and investment decisions of UAE investors. Journal of Risk Finance, 10(5), 500–516. https://doi.org/10.1108/15265940911001402

  8. Baker, H. K., Kumar, S., Goyal, N., & Gaur, V. (2019). How financial literacy and demographic variables relate to behavioral biases. Managerial Finance, 45(1), 124–146. https://doi.org/10.1108/MF-01-2018-0003

  9. Barber, B. M., & Odean, T. (2000). on-Odean, Respectively. Journal of Economic Perspectives, 15(1), 41–54. http://www.ameritrade.comhttp//www.gsm.ucdavis.edu/bmbarber,[email protected]://www.gsm.ucdavis.edu/

  10. Bizzi, L., & Labban, A. (2019). The double-edged impact of social media on online trading: Opportunities, threats, and recommendations for organizations. Business Horizons, 62(4), 509–519. https://doi.org/10.1016/j.bushor.2019.03.003

  11. Bizzi, L., & Labban, A. (2019). The double-edged impact of social media on online trading: Opportunities, threats, and recommendations for organizations. Business Horizons, 62(4), 509–519. https://doi.org/10.1016/j.bushor.2019.03.003

  12. Bollen, J., Mao, H., & Zeng, X. (2011). Twitter mood predicts the stock market. Journal of Computational Science, 2(1), 1–8. https://doi.org/10.1016/j.jocs.2010.12.007

  13. Dr. Taqadus Bashir, D. T. B. (2013). An Assessment Study on the Factors Influencing the Individual Investor Decision Making Behavior”. IOSR Journal of Business and Management, 9(5), 37–44. https://doi.org/10.9790/487x-0953744

  14. Junaedi, D., & Salistia, F. (2020). Dampak Pandemi Covid-19 Terhadap Pasar Modal Di Indonesia: Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 2(2), 109–138. https://doi.org/10.47467/alkharaj.v2i4.112

  15. Karanam, M., & Shenbagavalli, R. (2019). Investment pattern of millennials: A path ahead. Research Journal of Social …, November. https://www.researchgate.net/profile/Madhavi-Karanam/publication/337050258_Investment_pattern_of_Millennials_A_Path_Ahead/links/5dc28c07299bf1a47b1921a9/Investment-pattern-of-Millennials-A-Path-Ahead.pdf

  16. Khawaja, M. J., & Alharbi, Z. N. (2021). Factors influencing investor behavior: an empirical study of Saudi Stock Market. International Journal of Social Economics, 48(4), 587–601. https://doi.org/10.1108/IJSE-07-2020-0496

  17. Kietzmann, J. H., Hermkens, K., McCarthy, I. P., & Silvestre, B. S. (2011). Social media? Get serious! Understanding the functional building blocks of social media. Business Horizons, 54(3), 241–251. https://doi.org/10.1016/j.bushor.2011.01.005

  18. Kupfer, A. K., Vor Der Holte, N. P., Kübler, R. V., & Hennig-Thurau, T. (2018). The role of the partner brand’s social media power in brand alliances. Journal of Marketing, 82(3), 25–44. https://doi.org/10.1509/jm.15.0536

  19. Lei, S., & Ramos Salazar, L. (2021). Use of social networks in stock investment. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-04-2021-0158

  20. Liang, P., & Guo, S. (2015). Social interaction, Internet access and stock market participation-An empirical study in China. Journal of Comparative Economics, 43(4), 883–901. https://doi.org/10.1016/j.jce.2015.02.003

  21. Literate, S., & Indonesia, J. I. (2020). View metadata, citation and similar papers at core.ac.uk. December, 274–282.

  22. Liu, L., Wu, J., Li, P., & Li, Q. (2015). A social-media-based approach to predicting stock comovement. Expert Systems with Applications, 42(8), 3893–3901. https://doi.org/10.1016/j.eswa.2014.12.049

  23. Mahdzan, N. S., Zainudin, R., Che Hashim, R., & Sulaiman, N. A. (2017). Islamic religiosity and portfolio allocation: the Malaysian context. International Journal of Islamic and Middle Eastern Finance and Management, 10(3), 434–452. https://doi.org/10.1108/IMEFM-11-2016-0162

  24. Marwoto, P. A. N. B. (2017). ANALISIS PENGARUH MEDIA SOSIAL , PROGRAM BEI DAN KETERAMPILAN FUNDAMENTAL TERHADAP KEPUTUSAN CALON INVESTOR DALAM PEMBELIAN SAHAM DI PT BURSA EFEK INDONESIA KP PANGKALPINANG. 20(November), 40–52.

  25. Mazboudi, M., & Khalil, S. (2017). The attenuation effect of social media: Evidence from acquisitions by large firms. Journal of Financial Stability, 28, 115–124. https://doi.org/10.1016/j.jfs.2016.11.010

  26. Mehta, P., Singh, M., Mittal, M., & Singla, H. (2021). Is knowledge alone enough for socially responsible investing? A moderation of religiosity and serial mediation analysis. Qualitative Research in Financial Markets. https://doi.org/10.1108/QRFM-11-2020-0218

  27. Misra, R., Goel, P., & Srivastava, S. (2021). Examining drivers and deterrents of individuals’ investment intentions: a qualitative multistage analysis. Qualitative Research in Financial Markets, 1–24. https://doi.org/10.1108/qrfm-07-2020-0135

  28. P.H, H., & Uchil, R. (2020). Influence of investor sentiment and its antecedent on investment decision-making using partial least square technique. Management Research Review, 43(11), 1441–1459. https://doi.org/10.1108/MRR-06-2019-0254

  29. Pradeep, S., & Nair, C. (2018). Impact of social media on consumer buying decision towards financial assets among it professionals at kerala. International Journal of Mechanical Engineering and Technology, 9(6), 916–921.

  30. PT. Kustodian Sentral Efek Indonesia. (2020). Kaleidoskop 2020. Ksei, 12190. https://www.ksei.co.id/files/KALEIDOSKOP_2020-FINALE.pdf

  31. Purbowisanti, R. (2021). Muslim Investor Behavior in Indonesian Capital Markets: an Extention of Theory of Planned Behavior. Journal of Economics, Finance And Management Studies, 04(08), 1225–1234. https://doi.org/10.47191/jefms/v4-i8-01

  32. Rasool, N., & Ullah, S. (2020). Financial literacy and behavioural biases of individual investors: empirical evidence of Pakistan stock exchange. Journal of Economics, Finance and Administrative Science, 25(50), 261–278. https://doi.org/10.1108/JEFAS-03-2019-0031

  33. Sabir, S. A., Javed, T., Khan, S. A. L. I., & Javed, M. Z. (2021). Investment Behaviour of Individual Investors of Pakistan Stock Market with Moderating Role of Financial Literacy. Journal of Contemporary Issues in Business and Government, 27(02). https://doi.org/10.47750/cibg.2021.27.02.134

  34. Sadalia, I., Rahamani, N. A. B., & Muda, I. (2017). The significance of internet based financial information disclosure on corporates’ shares in Indonesia. International Journal of Economic Research, 14(12), 337–346.

  35. Shiva, A., & Singh, M. (2020). Stock hunting or blue chip investments?: Investors’ preferences for stocks in virtual geographies of social networks. Qualitative Research in Financial Markets, 12(1), 1–23. https://doi.org/10.1108/QRFM-11-2018-0120

  36. Sivaramakrishnan, S., Srivastava, M., & Rastogi, A. (2017). Attitudinal factors, financial literacy, and stock market participation. International Journal of Bank Marketing, 35(5), 818–841. https://doi.org/10.1108/IJBM-01-2016-0012

  37. Sofyan, R., Putra, D. G., & Aprayuda, R. (2020). Does the Information onSofyan, R., Putra, D. G., & Aprayuda, R. (2020). Does the Information on the Internet Media Respond to the Stock Market? Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Manageme. Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020), 152, 510–520. https://www.atlantis-press.com/article/125946690

  38. Sreekumar Nair, A., & Ladha, R. (2014). Determinants of non-economic investment goals among Indian investors. Corporate Governance (Bingley), 14(5), 714–727. https://doi.org/10.1108/CG-09-2014-0102

  39. Tahir, I., & Brimble, M. (2011). Islamic investment behaviour. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 116–130. https://doi.org/10.1108/17538391111144515

  40. Tambunan, D. (2020). Investasi Saham di Masa Pandemi COVID-19. Widya Cipta: Jurnal Sekretari Dan Manajemen, 4(2), 117–123. https://doi.org/10.31294/widyacipta.v4i2.8564

  41. Tantaopas, P., Padungsaksawasdi, C., & Treepongkaruna, S. (2016). Attention effect via internet search intensity in Asia-Pacific stock markets. Pacific Basin Finance Journal, 38, 107–124. https://doi.org/10.1016/j.pacfin.2016.03.008

  42. Vodák, J., Novysedlák, M., Čakanová, L., & Pekár, M. (2019). Phenomenon in Reputation Management. Managing Global Transitions, 17(3), 211–220. https://econpapers.repec.org/article/mgtyoumgt/v_3a17_3ay_3a2019_3ai_3a3_3ap_3a211-220.htm

  43. Whitworth, A. L., Mann, N. H., & Larkum, A. W. D. (2006). This article is protected by copyright. All rights 1 reserved. Ultrasound Obstet Gynecol., 50(6), 776–780. https://doi.org/10.1002/mdc3.13341

  44. Widoatmodjo, S., & Siswanto, H. P. (2017). Eksistensi gosip di media sosial dalam menentukan return saham di bursa efek indonesia dan persistensi pengaruhnya bersama hari bursa. Jurnal Ekonomi, 22(2), 232–246. https://doi.org/10.24912/je.v22i2.223 

  45. Zacek, N. E. (2020). FireScholars SOCIAL MEDIA INFLUENCER MARKETING AND IMPLEMENTING THE RETURN ON INVESTMENT.

  46. Zainudin, R., Mahdzan, N. S., Che Hashim, R., & Sulaiman, N. A. (2019). Islamic religiosity and Islamic financial asset holdings (IFAH). Journal of Islamic Accounting and Business Research, 10(4), 591–606. https://doi.org/10.1108/JIABR-04-2016-0052 

  47. Zhao, H., & Zhang, L. (2021). Financial literacy or investment experience: which is more influential in cryptocurrency investment? International Journal of Bank Marketing, 21. https://doi.org/10.1108/IJBM-11-2020-0552

Most read articles by the same author(s)