Abdullah Mohammed Awn, S. M. Ferdous Azam


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


Article visualizations:

Hit counter



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

Full Text:



Abd Rahman, A., Asrarhaghighi, E., & Ab Rahman, S. (2015). Consumers and Halal cosmetic products: knowledge, religiosity, attitude and intention. Journal of Islamic Marketing, 6(1), 148-163.

Abd Majid, N., Ariff, A. M., & Mohamad, N. R. (2020). The role of related party transactions on sukuk financing. Journal of Islamic Accounting and Business Research. ‏

Abdul Halim, Z., How, J. and Verhoeven, P. (2017). Agency costs and corporate sukuk issuance, Pacific-Basin Finance Journal, Vol. 42, pp. 83-95.

Abu-Youssef, M., M., H., Kortam, W., Abou-Aish, E., El-Bassiouny, N. (2015). Effects of religiosity on consumer attitudes toward Islamic banking in Egypt, International Journal of Bank Marketing, 33 (6), 786 – 807.

Ahmad, W. M. W., Rahman, A. A., Seman, A. C. and Ali, N. A. (2008). Religiosity and banking selection criteria among Malays in Lembah Klang, Shari’ah Journal, Vol. 16 No. 2, pp. 99-130.

Ahmed, E. R., Amran, A., & Islam, M. A. (2018). Sukuk Documentation and Legitimacy: The Role of Shari’ah Supervisory Board as a Moderator. Management, 5(3), 22-40.

Ahmed, E. R., Islam, A., & Amran, A. B. (2019). Examining the legitimacy of Sukuk structure via Shari’ah pronouncements. Journal of Islamic Marketing. ‏

Ahmed, E. R., Islam, M. A., Al Abdullah, T. T. Y., & Amran, A. B. (2019). A qualitative analysis on the determinants of legitimacy of sukuk. Journal of Islamic Accounting and Business Research. ‏

Ahmed, E. R., Islam, A. and Ku Ariffin, K. H. (2015). An empirical analysis on legitimacy of sukuk: an insight of Malaysian sukuk, Asian Social Science, Vol. 11 No. 13, pp. 84-97.

Ajzen, I. (1985), From Intentions to Actions: A Theory of Planned Behavior, in J. Kuhl and J. Beckmann (eds), Action Control: From Cognition to Behavior, Springer, Berlin, Heidelberg, pp. 11-39. 3_2.

Al Jafri Sad, R., & Haniffa, R. (2014). Determinants of zakat (Islamic tax) compliance behavior. Journal of Islamic Accounting and Business Research,5(2), 182-193.

Albashir, W. A., Zainuddin, Y., & Panigrahi, S. (2017). Conceptual Framework on Usage of Islamic Banking amongst Banking Customers in Libya. ‏

Ali, A., Ali, A. and Sherwani, M. (2017). Shaping halal into a brand? Factors affecting consumers’ halal brand purchase intention, Journal of International Food and Agribusiness Marketing, Vol. 29 No. 3, pp. 234-259.

Ali, M., Raza, S.A., Puah, C. H. and Karim, M. Z. A. (2017a). Islamic home financing in Pakistan: a SEM based approach using modified TPB model, Housing Studies, Vol. 32 No. 8, pp. 1156-1177.

Alma’Amun, S. (2010). Islamic Estate Planning: Analyzing the Malaysian Perceptions on Wasiyyah (Will) and Bequest Practices (Doctoral dissertation, Durham University).

Al-Salem, F., & Mostafa, M. M. (2019). Clustering Kuwaiti consumer attitudes towards Sharia-compliant financial products. International Journal of Bank Marketing. ‏

Amin, H., Abdul-Rahman, A.R. and Abdul Razak, D. (2014). Theory of Islamic consumer behaviour: an empirical study of consumer behaviour of Islamic mortgage in Malaysia, Journal of Islamic Marketing, Vol. 5 No. 2, pp. 273-301.

Anderson, James C., & David W. Gerbing (1988). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin 103 (3): 411- 423.

Ashraf, D. (2013). Performance evaluation of Islamic mutual funds relative to conventional funds: empirical evidence from Saudi Arabia, International Journal of Islamic and Middle Eastern Finance and Management, Vol. 6 No. 2, pp. 105-121.

Awn, A. M., & Azam, S. F. (2020). Libyan Investors ‘intention to Invest in Islamic Sukuk: Theory of Planned Behaviour Approach. European Journal of Economic and Financial Research. ‏

Azam, M., Akhtar, J., Ali, S. A., & Mohy-Ud-Din, K. (2019). The moderating role of Shari’ah compliance on the relationship between firm profitability and CSR activities. International Journal of Ethics and Systems.

Azmat, S., Skully, M. and Brown, K. (2014). The shari’ah compliance challenge in Islamic bond markets, Pacific-Basin Finance Journal, Vol. 28, pp. 47-57.

Bakar, S. A. (2018, May 8). Malaysia continues to lead global sukuk issuance. New Straits Times. Retrieved from global-sukuk-issuance

Bashir, A. M., Bayt, A., Olutuase, S. O., & Abdul Latiff, Z. A. (2019). Factors affecting consumers’ intention towards purchasing halal food in South Africa: a structural equation modelling. Journal of Food Products Marketing, 25(1), 26-48.

Brown, K. C., Harlow, W. V., & Zhang, H. (2015). Investment style volatility and mutual fund performance (University of Texas at Austin Working Paper). Retrieved from

Chin, W. W., & Newsted, P. R. (1999). Structural Equation Modeling analysis with Small Samples Using Partial Least Squares, in R. Hoyle (ed.), Statistical Strategies for Small Sample Research, Thousand Oaks, CA: Sage Publications, 307-341.

De Costa, M. F. S., & Aziz, N. A. (2019). Does Brand Attitude Affect the Financial Decision-Making Behaviour of Malaysian Millennials in Purchasing Shariah- Compliant Stocks? International Journal of Accounting, 4(19), 98-107. ‏

Dinc M. S., Budic S. (2016). The impact of personal attitude, subjective norm and perceived behavioral control on entrepreneurial intentions of women. 9(17): 23–35.

Duqi, A., & Al-Tamimi, H. (2019). Factors affecting investors’ decision regarding investment in Islamic Sukuk. Qualitative Research in Financial Markets. ‏

Fields, A. (2009). Discovering Statistics using SPSS. SAGE Publications Ltd.

Gangi, F. and Trotta, C. (2015). The ethical finance as a response to the financial crises: an empirical survey of European SRFs performance, Journal of Management and Governance, Vol. 19 No. 2, pp. 371-394.

Gopi, M. and Ramayah, T. (2007). Applicability of theory of planned behavior in predicting intention to trade online: some evidence from a developing country, International Journal of Emerging Markets, Vol. 2 No. 4, pp. 348-360.

Hair, J. F., G. T. M. Hult, C. M. Ringle & M. Sarstedt. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). 2nd edition. Thousand Oaks: Sage.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). The Use of Partial Least Squares (PLS) to Address Marketing Management Topics: From the Special Issue Guest Editors. Journal of Marketing Theory and Practice, 18(2), 135–138.

Hansen, T., Jensen, J. M. and Solgaard, H. S. (2004). Predicting online grocery buying intention: a comparison of the theory of reasoned action and the theory of planned behavior, International Journal of Information Management, Vol. 24 No. 6, pp. 539-550.

Hidayat, S. E., Rafiki, A., & Svyatoslav, S. (2020). Awareness of financial institutions’ employees towards Islamic finance principles in Russia. PSU Research Review.

Hoque, M. E., Hashim, N. M. H. N., & Azmi, M. H. B. (2018). Moderating effects of marketing communication and financial consideration on customer attitude and intention to purchase Islamic banking products. Journal of Islamic Marketing. ‏

Jadoon, A. U., Guang, Y., & Ali, S. (2019). The Profitability Analysis of Islamic (Sukuk) vs. Conventional Financing: An Empirical Analysis. Economic Research, 3(2), 26-41. ‏

Johan, Z. J., Dali, N. R. S. M., Suki, A. A., & Hafit, N. I. A. (2017). Customers’ intention towards Shariah compliant credit cards: A pilot study. International Journal of Academic Research in Business and Social Sciences, 7(4), 772-779. ‏

Kamarudin, M. F., Kamaluddin, N., Manan, S. K. A., & Ghani, G. M. (2014). Defaulters profile in Malaysia sukuk market. Procedia-Social and Behavioral Sciences, 145, 277-285.

Khalek, A. A., Ismail S. H., and Ibrahim, H. M. (2015). A study on the Factors Influencing Young Individual’s Muslim Behavioral Intention in Consuming Halal Food in Malaysia. Journal Sariah, 23(1), 79-102.

Kim, M., Shulka, R., & Tomas, M. (2000). Mutual fund objective misclassification. Journal of Economics and Business, 52(4), 309-323.

Krithika J, Venkatachalam B. (2014). A Study on impact of subjective norms on entrepreneurial intention among the business students in Bangalore. IOSR J Bus Manag. 16(5): 48–50.

Liu, A., Ho, F. K., Chan, L. K., Ng, J. Y., Li, S. L., Chan, G. C., ... & Ip, P. (2018). Chinese medical students’ knowledge, attitude and practice towards human papillomavirus vaccination and their intention to recommend the vaccine. Journal of paediatrics and child health,54(3), 302-310.

Lobb, A. E., Mazzocchi, M. and Trail, W. B. (2007). Modelling risk perception and trust in food safety information within the theory of planned behaviour, Food Quality and Preference, Vol. 18 No. 2, pp. 384-395.

Mahmoud M. A. (2014). Attitudes, subjective norm and perceived behavioral control of entrepreneurial intention of Nigerian postgraduates in UUM. University Utara Malaysia.

Mahmoud M. A. (2014). Attitudes, subjective norm and perceived behavioral control of entrepreneurial intention

Mofleh, S., Wanous, M., & Strachan, P. (2008). The gap between citizens and e- government projects: the case for Jordan. Electronic Government, an International Journal,5(3), 275-287.

Mohsin, M. I. A., Khattab, I., & Alchaar, M. O. (2020). Economic and Social Impacts of Sovereign Sukuk. In Handbook of Research on Theory and Practice of Global Islamic Finance (pp. 732-751). IGI Global. ‏

Montano, D. E. and Kasprzyk, D. (2015), Theory of reasoned action, theory of planned behaviour and the integrated behavioral model, in Glanz, K., Rimer, B. K. and Visvanathan, K. (Eds), Health Behaviour: Theory, Research and Practice, Jossey- Bass, San Francisco, pp. 95-124.

Mutahar, A. M., Daud, N. M., Ramayah, T., Isaac, O., & Aldholay, A. H. (2018). The effect of awareness and perceived risk on the technology acceptance model (TAM): mobile banking in Yemen. International Journal of Services and Standards,12(2), 180-204. of Nigerian postgraduates in UUM. University Utara Malaysia

Opera, R. (2016). The place of Shari’ah in the global financial architecture Islamic finance in the UAE, Revisit Economical, Vol. 68, pp. 56-68.

Osman, A. F., Mohammed, M. O., & Amin, H. (2014). An analysis of cash waqif participation among young intellectuals.

Osman, A. F., Mohammed, M. O., & Fadzil, A. (2016). Factor influencing cash Waqif giving behavior: A revised theory of planned behavior. Journal of Global Business and Social Entrepreneurship,1(2), 12-25.

Ringle, C. M., Wende, S., & Becker, J.-M. (2015). Smart PLS 3.

Sabirzyanov, R. (2016). Islamic financial products and services patronizing behavior in Tatarstan: the role of perceived values and awareness, Journal of King Abdul- Aziz University, Islamic Economics, Vol. 29 No. 1, pp. 111-125.

Saraih U. N., Amlus H., Abu Samah I. H., Zin Aris A. Z., Abdul Mutalib S., Abdullah S. (2018). Relationships between attitude towards behaviour, subjective norm, self- efficacy and entrepreneurial intention among the technical secondary students in Malaysia. Int J Eng Technol. 7(3):431–6.

Shahimi, W. R. B. M. A., & Hanafi, A. H. A. B. (2019). Analysis of Style Drift: Evidence from Malaysian Sukuk Fund. International Journal of Accounting, 4(18), 09-20. ‏

Shyue,C., S. C., Alma’amun, S., & Sia, B. K. (2015). Bequest motives among older Malays in Selangor. Jurnal Ekonomi Malaysia,49(2), 17-26.

Siregar, S. M., Nadiroh, N., & Samadi, S. (2019). The Relationship Between Subjective Norms with Housewife’s Intention to Act on of Waste Issues in Cidepit River, Sub-District of Semplak, City of Bogor. Jurnal Ilmiah Pendidikan Lingkungan dan Pembangunan, 20(01), 28-41. ‏

Utami C. W. (2017). Attitude, subjective norms, perceived behavior, entrepreneurship education and self-efficacy toward entrepreneurial intention university student in Indonesia. Eur Res Stud J. XX (2):475–95.

Wong, K. K. (2010). Handling small survey sample size and skewed dataset with partial least square path modelling. Vue: the magazine of the Marketing Research and Intelligence Association. 20–23.

Yener, D. (2015), Factors that affect the attitudes of consumers toward halal-certified products in Turkey, Journal of Food Products Marketing, Vol. 21 No. 2, pp. 160- 178.

Zakiah, S., Mohammad, M. K., Mohd Ashraf, Z. Y., Hanifah, M. F. H., & Nadia, A. H. (2016). Towards Managing the Beneficiaries Rights Via Writing a Will. Global Journal of Management and Business Research: G Interdisciplinary, 16(3), 1–9.



  • There are currently no refbacks.

Copyright (c) 2020 Abdullah Mohammed Awn, S. M. Ferdous Azam

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

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2015 - 2018. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.