THE ROLE OF AWARENESS AND SHARI’AH-COMPLIANT AS MODERATOR ON THE INTENTION TO INVEST IN ISLAMIC SUKUK – A STUDY OF LIBYAN INVESTORS: THEORY OF REASONED ACTION APPROACH

Abdullah Mohammed Awn, S. M. Ferdous Azam

Abstract


Purpose: The purpose of this paper is to investigate and disclose the role of awareness and shari’ah-compliant as moderator on the intention to invest in Islamic Sukuk. The study also tests theory of reasoned action (TRA) as well as to examine the moderating effect of awareness and shari’ah in the relationship between attitude and intention to invest in Islamic Sukuk. Design / Methodology / Approach: A total of 309 modified questionnaires in this study to answer questions and test research hypotheses. The data collected was analyzed using PLS SEM. Results: Use the theory of reasoned action (TRA) and descriptive statistics, presence and extent of legitimacy disclosure the sukuk were verified in Islamic financial institutions represented by Libyan banks. The research found that there is empirical evidence that explains the effect of the compatibility of Sharia and the attitude towards Investment in Islamic Sukuk and the important role of subjective pressure from ‘Ulamaa’ raising awareness and encouraging investment in Islamic Sukuk products that are characterized by Sharia. Originality / Value: This study makes a significant contribution to the current legitimacy of the Sukuk structure and the importance of investing in it. The study added a new discussion, that is, disclosure of the legitimacy of the sukuk and its compatibility with halal investment. The study aims to increase public awareness of the legitimacy of the sukuk in the importance of compliance with Sharia law not only in form but also in substance. In addition, this study will provide more benefits to Islamic finance institutions and financial banks in the sense that they must amend some of their regulatory frameworks to push the sukuk investors in the market to move towards an asset-backed structure with less risk.

 

JEL: D25; E22; G11

 

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sukuk, intention, Shari’ah-compliant, awareness, subjective pressure from ‘Ulamaa’, attitude, theory of reasoned action (TRA), Libya

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v0i0.813

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