The Effect of Religion on Financial and Investing Decisions

Mansour, Walid; Jlassi, Mouna

doi:10.1002/9781118813454.ch8

Cited by 31 publications

(23 citation statements)

References 62 publications

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“…It shows that majority of respondents consider sharia aspects of establishing an investment portfolio. This result follows previous studies (Tahir & Brimble, 2011;Muhamad et al, 2006;Al-afifi 2013;Mansour & Jlassi, 2014;and Septyanto et al, 2017). The number of Islamic stocks included in a portfolio shows evidence that the compliance level among Muslim investors in Indonesia varies.…”

supporting

confidence: 93%

“…When investing in foreign markets, Palestinian investors prefer sharia-compliant ones, such as financial assets in Arab countries. Mansour & Jlassi (2014) added that religion influences risk perception, behavior, and investment management by using a qualitative approach. Religious investors do not show the same behavior as non-religious ones.…”

Section: Introductionmentioning

confidence: 99%

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Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors

Firmansyah

Andanawari

2020

Etikonomi

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It has been nine years since the Indonesia Stock Exchange established a system called Syariah Online Trading System (SOTS), but the number of investors using this system is still relatively small compared to the regular investor. Moreover, the number is much smaller if it is compared to the potential number of sharia financial markets. This study aims to describe the behavior of Muslim investors in Indonesia who use the regular stock account instead of the sharia account. We surveyed by using both offline and online questionnaires, whereby the investors were asked to compose the imaginary stock portfolios consisting of stocks and their weights. Using a convenience sampling method, we succeeded in interviewing 85 respondents spread across Indonesia. The results of this study show that the risk appetite of Indonesian Muslim investors is risk-averse, and they consider sharia aspects in their investment decision. Nonetheless, the compliance to sharia varies among them. Hence, Indonesian Muslim investors cannot be seen and be treated as a homogenous group.

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supporting

confidence: 93%

Section: Introductionmentioning

confidence: 99%

Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors

Firmansyah

Andanawari

2020

Etikonomi

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“…Religiosity shapes individuals' values and norms, affects their risk tolerance and influences their actions relating to personal finance decisions such as investments (Hess, 2012;Mahdzan, Zainudin, Hashim, & Sulaiman, 2017). Religion therefore influences not only the level of risk that investors are willing to assume but also the nature of the investment that they choose (Mansour & Jlassi, 2014). Some investors avoid non-sharia instruments because they are afraid of committing sinful acts (Firmansyah & Andanawari, 2020).…”

Section: Introduction 11 Backgroundmentioning

confidence: 99%

Multidimensional Risk and Religiosity Towards Indonesian Muslims’ Sharia Investment Decision

Lestari

Ginanjar²,

Warokka

2021

JIMF

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The decision-making process for Sharia investment needs to consider the individual’s risk tolerance since every type of investment is closely attached to the risk-return trade-off. This study examines whether multidimensional risk tolerance and religiosity influence Sharia investment decisions. The study used 300 potential Muslim investors in Indonesia as the primary data source through an online survey with a convenience sampling method and analysed the data using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that three multidimensional risks (risk propensity, risk attitude and risk capacity) have a significant effect on the Sharia investment decision. The research also tested the moderating effect of religiosity levels by performing Multi-Group Analysis (MGA) and found significant differences between risk propensity and sharia investment decisions among moderate and devout religious individuals.

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“…(1) See Masood, Chichti, Mansour, and Amin (2009), Mansour, Ben Abdelhamid, Masood, & Niazi (2010), Bedoui and Mansour (2015), and Mansour, Ben Jedidia, and Majdoub (2015) for a review of theoretical and empirical works in this regard. (2) See Mansour and Jlassi (2014) and Mansour (2014) for an explanation of faith-based investments and coverage of the interplay between religions and finance. (3) The set of prohibitions includes also some financial techniques such as short selling (because it can lead to an unlimited loss) and trading practices such as speculation.…”

Section: Specificities Of Islamic Indicesmentioning

confidence: 99%

Volatility Spillover among Equity Indices and Crude Oil Prices: Evidence from Islamic Markets

Majdoub¹

2018

JKAU isl Eco

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This paper studies the volatility spillover between Islamic equity markets and oil prices. We use a sample of five countries from the Gulf region. The results show that there is a reduction in the volatility spillover, particularly for the Saudi market. This can be interpreted, in our opinion, in terms of the distinguishing features of the Islamic financial intermediation mode, which is more able to alleviate the transmission of shocks to domestic markets and ensure a better stability to financial markets. The new structure of volatility spillover has important implications for international investors with respect to portfolio diversification benefits and for financial policymakers regarding contagion risks and portfolio allocative policies. Keywords: Volatility spillover, GCC, Oil price, Islamic finance.

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The Effect of Religion on Financial and Investing Decisions

Cited by 31 publications

References 62 publications

Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors

Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors

Multidimensional Risk and Religiosity Towards Indonesian Muslims’ Sharia Investment Decision

Volatility Spillover among Equity Indices and Crude Oil Prices: Evidence from Islamic Markets

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