This study constructs a measure of socioeconomic development in Muslim countries based on Ibn Khaldun’s model of development. It proposes a composite index of development based on three dimensions, namely human empowerment, government and institution, and economic growth, and terms it as Ibn Khaldun-based socioeconomic development index (I-SDI). A total of 13 indicators are selected to represent each dimension and are employed for construction of the index using an equal weighted method and additive aggregation approach. In generally, we note that many Muslim countries are underperformed., as indicated by the low value of I-SDI. We further find that Muslim countries that perform well in government and institution dimensions tend to experience better socioeconomic development. We believe that the proposed I-SDI is non-redundant and robust and hence can be utilized as an alternative way of measuring the development in Muslim countries. In other words, the Ibn Khaldun’s model of development is exceptionally meaningful in explaining the socio-economic performance of Muslim countries.
{"title":"SOCIOECONOMIC DEVELOPMENT IN MUSLIM COUNTRIES: IBN KHALDUN’S DEVELOPMENT MODEL-BASED APPROACH","authors":"I. Pratiwi","doi":"10.21098/jimf.v9i2.1574","DOIUrl":"https://doi.org/10.21098/jimf.v9i2.1574","url":null,"abstract":"This study constructs a measure of socioeconomic development in Muslim countries based on Ibn Khaldun’s model of development. It proposes a composite index of development based on three dimensions, namely human empowerment, government and institution, and economic growth, and terms it as Ibn Khaldun-based socioeconomic development index (I-SDI). A total of 13 indicators are selected to represent each dimension and are employed for construction of the index using an equal weighted method and additive aggregation approach. In generally, we note that many Muslim countries are underperformed., as indicated by the low value of I-SDI. We further find that Muslim countries that perform well in government and institution dimensions tend to experience better socioeconomic development. We believe that the proposed I-SDI is non-redundant and robust and hence can be utilized as an alternative way of measuring the development in Muslim countries. In other words, the Ibn Khaldun’s model of development is exceptionally meaningful in explaining the socio-economic performance of Muslim countries.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"41 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87871964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, we extend the Unified Theory of Acceptance and Use of Technology (UTAUT) model to examine factors that shape the intention of Muslims in Indonesia to pay zakat online. In the analysis, we include performance expectancy, effort expectancy, social influence, facilitating conditions, trust in zakat institutions, zakat literacy and Islamic religiosity as potential factors in the analysis. The study employs primary data gathered from 734 respondents and uses the Structural Equation Modeling method for data analysis. The main result shows that facilitating conditions, performance expectancy, trust in zakat institutions, social influence, and zakat literacy influence the intention to pay zakat online. However, effort expectancy and Islamic religiosity turn out to be insignificant determinants of the intention to pay online zakat. The findings suggest that zakat stakeholders must enhance trust and intensify education about zakat. Zakat organizations must also improve the quality of the online zakat system, highlight the benefits of zakat online, and optimize the use of social media to increase zakat collection through digital channels.
{"title":"DETERMINANTS OF THE INTENTION TO PAY ZAKAT ONLINE: THE CASE OF INDONESIA","authors":"R. Kasri, Meis Winih Sosianti","doi":"10.21098/jimf.v9i2.1664","DOIUrl":"https://doi.org/10.21098/jimf.v9i2.1664","url":null,"abstract":"In this paper, we extend the Unified Theory of Acceptance and Use of Technology (UTAUT) model to examine factors that shape the intention of Muslims in Indonesia to pay zakat online. In the analysis, we include performance expectancy, effort expectancy, social influence, facilitating conditions, trust in zakat institutions, zakat literacy and Islamic religiosity as potential factors in the analysis. The study employs primary data gathered from 734 respondents and uses the Structural Equation Modeling method for data analysis. The main result shows that facilitating conditions, performance expectancy, trust in zakat institutions, social influence, and zakat literacy influence the intention to pay zakat online. However, effort expectancy and Islamic religiosity turn out to be insignificant determinants of the intention to pay online zakat. The findings suggest that zakat stakeholders must enhance trust and intensify education about zakat. Zakat organizations must also improve the quality of the online zakat system, highlight the benefits of zakat online, and optimize the use of social media to increase zakat collection through digital channels.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"4 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86115105","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the impact of Sustainable Development Goals (SDGs) on behavioural biases, namely herding and risk-averse behaviours, in Sharia-compliant stocks. It also explores the mediating effect of investors' sentiments on the relationship between SDGs and behavioural biases. Adopting panel data and quantile regressions, we find that that SDGs 4, 8, 10, 11, and 13 significantly and positively correlate with stock returns in Indonesia, Kuwait, Oman, and Qatar. However, SDG 7 is the only SDG goal that is significant to Saudi and UAE stock returns. The results imply a complete mediation as the SDGs have caused changes in investors' sentiment and subsequently triggered the investors to herd and become risk-averse. The impact of SDGs is more pronounced in the upper and lower quantiles of Indonesia, Saudi, and UAE stock returns, as well as the median quantile of Bahrain, Kuwait, Oman, and Qatar stock returns. The results of this study can benefit policymakers, regulators, and practitioners in identifying the best SDG practices to assist Sharia-compliant stocks in Indonesia and Gulf Cooperation Council (GCC) countries to attain better stock returns and improve investors' sentiments and behaviours. The results can also assist governments in weighing the impact and benefits of adopting SDGs in different Muslim countries.
{"title":"SUSTAINABLE DEVELOPMENT GOALS, HERDING, AND RISK-AVERSE BEHAVIOUR IN MUSLIM COUNTRIES","authors":"Ooi Kok Loang","doi":"10.21098/jimf.v9i2.1611","DOIUrl":"https://doi.org/10.21098/jimf.v9i2.1611","url":null,"abstract":"This study examines the impact of Sustainable Development Goals (SDGs) on behavioural biases, namely herding and risk-averse behaviours, in Sharia-compliant stocks. It also explores the mediating effect of investors' sentiments on the relationship between SDGs and behavioural biases. Adopting panel data and quantile regressions, we find that that SDGs 4, 8, 10, 11, and 13 significantly and positively correlate with stock returns in Indonesia, Kuwait, Oman, and Qatar. However, SDG 7 is the only SDG goal that is significant to Saudi and UAE stock returns. The results imply a complete mediation as the SDGs have caused changes in investors' sentiment and subsequently triggered the investors to herd and become risk-averse. The impact of SDGs is more pronounced in the upper and lower quantiles of Indonesia, Saudi, and UAE stock returns, as well as the median quantile of Bahrain, Kuwait, Oman, and Qatar stock returns. The results of this study can benefit policymakers, regulators, and practitioners in identifying the best SDG practices to assist Sharia-compliant stocks in Indonesia and Gulf Cooperation Council (GCC) countries to attain better stock returns and improve investors' sentiments and behaviours. The results can also assist governments in weighing the impact and benefits of adopting SDGs in different Muslim countries.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"70 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84114151","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the relation between fintech-based inclusive finance and bank efficiency using annual unbalanced data of 318 banks from 7 dual-banking countries over the period of 2011 to 2020. It measures bank efficiency using the data envelopment analysis (DEA) and then applies the Simar-Wilson bootstrapping regression to measure the influence of fintech-based financial inclusion on bank efficiency. From the efficiency measures, we note that Islamic banks are more efficient than their conventional counterparts. Our regression analysis indicates that fintech-based inclusive finance is positively related to bank efficiency, implying that greater implementation of digitally integrated financial system improves banking efficiency. Our findings are robust in alternative estimation methods. Our study provides some policy implications for policymakers, standard setters, and regulators.
{"title":"BANK EFFICIENCY AND FINTECH-BASED INCLUSIVE FINANCE: EVIDENCE FROM DUAL BANKING SYSTEM","authors":"Hasanul Banna, M. Hassan, Hassan Bataineh","doi":"10.21098/jimf.v9i1.1621","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1621","url":null,"abstract":"This paper examines the relation between fintech-based inclusive finance and bank efficiency using annual unbalanced data of 318 banks from 7 dual-banking countries over the period of 2011 to 2020. It measures bank efficiency using the data envelopment analysis (DEA) and then applies the Simar-Wilson bootstrapping regression to measure the influence of fintech-based financial inclusion on bank efficiency. From the efficiency measures, we note that Islamic banks are more efficient than their conventional counterparts. Our regression analysis indicates that fintech-based inclusive finance is positively related to bank efficiency, implying that greater implementation of digitally integrated financial system improves banking efficiency. Our findings are robust in alternative estimation methods. Our study provides some policy implications for policymakers, standard setters, and regulators.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"2 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88909865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Islamic finance has gained significant attention during the past decades. Many countries are striving to become Islamic financial hubs. The asset-backed nature of Islamic financial instruments and products adds more reliability to financial transactions. Yet, the impact of Islamic finance penetration on economic growth is unclear. While the existing studies have focused mainly on Islamic banking penetration, which is mostly centered around Muslim economies, we study the relationship considering a global sample of 82 countries, including Muslim and non-Muslim countries, from 2012-2020. We employ the System Generalized Method of Moments estimator for potential issues of endogeneity, heterogeneity, and serial correlation. Employing the novel Islamic finance development indicator by Thomson routers, we find that Islamic finance stimulates the overall economy and lessens volatility. Digging deep into the study, we find that this impact is more prominent in Muslim majority countries. These findings are robust to different econometric estimators and sample specifications. Since integrating Islamic financial principles into the country's overall financial system brings extra growth and lower economic volatility, it is recommended that the Islamic banking sector, Islamic insurance sector, Islamic money, and capital market instruments be expanded to boost overall economic growth and control volatility.
{"title":"ISLAMIC FINANCE, GROWTH, AND VOLATILITY: A FRESH EVIDENCE FROM 82 COUNTRIES","authors":"M. A. Khattak, Noureen A. Khan","doi":"10.21098/jimf.v9i1.1625","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1625","url":null,"abstract":"Islamic finance has gained significant attention during the past decades. Many countries are striving to become Islamic financial hubs. The asset-backed nature of Islamic financial instruments and products adds more reliability to financial transactions. Yet, the impact of Islamic finance penetration on economic growth is unclear. While the existing studies have focused mainly on Islamic banking penetration, which is mostly centered around Muslim economies, we study the relationship considering a global sample of 82 countries, including Muslim and non-Muslim countries, from 2012-2020. We employ the System Generalized Method of Moments estimator for potential issues of endogeneity, heterogeneity, and serial correlation. Employing the novel Islamic finance development indicator by Thomson routers, we find that Islamic finance stimulates the overall economy and lessens volatility. Digging deep into the study, we find that this impact is more prominent in Muslim majority countries. These findings are robust to different econometric estimators and sample specifications. Since integrating Islamic financial principles into the country's overall financial system brings extra growth and lower economic volatility, it is recommended that the Islamic banking sector, Islamic insurance sector, Islamic money, and capital market instruments be expanded to boost overall economic growth and control volatility.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"86 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80985437","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
I. Shaikh, Hanudin Amin, K. Noordin, Junaid M. Shaikh
This paper examines the factors that drive non-users of digital banking services rendered by Pakistani Islamic banks to adopt digital banking using the Diffusion theory of Innovation (DOI). We gather data from 208 Islamic bank customers who do not use digital banking services. Findings of the study reveal that adoption of digital services offered by Islamic banks are largely decided by relative advantage, technology self-efficacy and complexity. All the factors above are influential in determining the digital banking adoption by non-users. The finding serves as an essential input to banks and policy makers in expanding the adoption of digital banking services of Islamic banks.
{"title":"ISLAMIC BANK CUSTOMERS’ ADOPTION OF DIGITAL BANKING SERVICES: EXTENDING DIFFUSION THEORY OF INNOVATION","authors":"I. Shaikh, Hanudin Amin, K. Noordin, Junaid M. Shaikh","doi":"10.21098/jimf.v9i1.1545","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1545","url":null,"abstract":"This paper examines the factors that drive non-users of digital banking services rendered by Pakistani Islamic banks to adopt digital banking using the Diffusion theory of Innovation (DOI). We gather data from 208 Islamic bank customers who do not use digital banking services. Findings of the study reveal that adoption of digital services offered by Islamic banks are largely decided by relative advantage, technology self-efficacy and complexity. All the factors above are influential in determining the digital banking adoption by non-users. The finding serves as an essential input to banks and policy makers in expanding the adoption of digital banking services of Islamic banks.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89135933","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Masrizal, N. Huda, Arridha Harahap, Budi Trianto, Tasiu Tijjani Sabi’u
This study looks at the factors that influence the Indonesian Muslim community to perform cash waqf based on a modified Theory of Reasoned Action (TRA) framework. Using primary data from islands in Indonesia, as many as 436 respondents, and the partial least square approach, the paper finds that religiosity contributes positively to waqf literacy. Subject norms and religiosity also affect the attitude of Muslims in waqf. Religiosity is the most potent factor in influencing the attitude of Muslims in waqf. The variable of waqf literacy also affects the attitudes and intentions of Muslims in waqf. Finally, trust also affects the attitudes and intentions of Muslims in waqf.
{"title":"INVESTIGATING THE DETERMINANTS OF CASH WAQF INTENTION: AN INSIGHT FROM MUSLIMS IN INDONESIA","authors":"M. Masrizal, N. Huda, Arridha Harahap, Budi Trianto, Tasiu Tijjani Sabi’u","doi":"10.21098/jimf.v9i1.1607","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1607","url":null,"abstract":"This study looks at the factors that influence the Indonesian Muslim community to perform cash waqf based on a modified Theory of Reasoned Action (TRA) framework. Using primary data from islands in Indonesia, as many as 436 respondents, and the partial least square approach, the paper finds that religiosity contributes positively to waqf literacy. Subject norms and religiosity also affect the attitude of Muslims in waqf. Religiosity is the most potent factor in influencing the attitude of Muslims in waqf. The variable of waqf literacy also affects the attitudes and intentions of Muslims in waqf. Finally, trust also affects the attitudes and intentions of Muslims in waqf.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"26 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73223179","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dinda Thalia Andariesta, Masagus M. Ridhwan, Jahen F. Rezki, Mutiara Helga Indira
We investigate the effects of COVID-19 lockdowns on frequency of online search on mental well-being and religiosity-related terms in Indonesia using high-frequency data from Google Trends and Bank Indonesia Consumer Survey from January 1st, 2018, to February 28th, 2021. Monthly search terms and consumer survey data are merged at the provincial level, which results in a total of 131,300 individual observations. Using event analysis and instrumental variable approaches, our study suggests that lockdown policy is significantly associated with higher search intensity of mental well-being and religiosity-related terms compared to the pre-lockdown period. Our findings suggest that mentally disturbed people tend to lean on religion to cope with stressful events during a crisis. Our study has substantial policy implications on ensuring appropriate government interventions that minimize the detrimental effect of COVID-19 on mental well-being.
{"title":"THE COVID-19 LOCKDOWN EFFECTS ON MENTAL WELL-BEING AND RELIGIOSITY: EVIDENCE FROM INDONESIA","authors":"Dinda Thalia Andariesta, Masagus M. Ridhwan, Jahen F. Rezki, Mutiara Helga Indira","doi":"10.21098/jimf.v9i1.1609","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1609","url":null,"abstract":"We investigate the effects of COVID-19 lockdowns on frequency of online search on mental well-being and religiosity-related terms in Indonesia using high-frequency data from Google Trends and Bank Indonesia Consumer Survey from January 1st, 2018, to February 28th, 2021. Monthly search terms and consumer survey data are merged at the provincial level, which results in a total of 131,300 individual observations. Using event analysis and instrumental variable approaches, our study suggests that lockdown policy is significantly associated with higher search intensity of mental well-being and religiosity-related terms compared to the pre-lockdown period. Our findings suggest that mentally disturbed people tend to lean on religion to cope with stressful events during a crisis. Our study has substantial policy implications on ensuring appropriate government interventions that minimize the detrimental effect of COVID-19 on mental well-being.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"39 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78991404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the impact of Environment, Social, and Governance–ESG investing on corporate performance of non-financial firms in Muslim countries during the pandemic. Employing the random effect panel model with 1,546 firm-year observations, we find that the ESG combined score and its pillars have significant influence on corporate performance during the COVID-19 period. Namely, the performance of firms with higher ESG is relatively less affected as compared to the performance of firms with lower ESG. We also note that firms in Malaysia and the United Arab Emirates with high ESG have better operational (financial) performance. Finally, from the sectorial perspective, health care and energy (consumer staples) firms with higher ESG have higher operational (financial) performance during the pandemic.
{"title":"ENVIRONMENTAL, SOCIAL, GOVERNANCE INVESTING, COVID-19, AND CORPORATE PERFORMANCE IN MUSLIM COUNTRIES","authors":"Hasan Tekin, Fatih Guclu","doi":"10.21098/jimf.v9i1.1592","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1592","url":null,"abstract":"We examine the impact of Environment, Social, and Governance–ESG investing on corporate performance of non-financial firms in Muslim countries during the pandemic. Employing the random effect panel model with 1,546 firm-year observations, we find that the ESG combined score and its pillars have significant influence on corporate performance during the COVID-19 period. Namely, the performance of firms with higher ESG is relatively less affected as compared to the performance of firms with lower ESG. We also note that firms in Malaysia and the United Arab Emirates with high ESG have better operational (financial) performance. Finally, from the sectorial perspective, health care and energy (consumer staples) firms with higher ESG have higher operational (financial) performance during the pandemic.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"272 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83393877","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the intention of Indonesian Middle of Pyramid (MOP) and Botton of Pyramid (BOP) and their intention to participate in microtakaful products. The study develops an extended theory of planned behaviour (TPB) model and uses structural equations modelling (SEM) to analyse data gathered from 428 respondents. Responses are obtained through a combination of online surveys and traditional paper-based distribution of questionnaires. The findings show that there is a high intention to participate in microtakaful among the respondents, with the subjective norm, price, and knowledge having positive influences on the intention to participate in microtakaful products. Meanwhile, compatibility is shown to have a positive influence on the attitude toward microtakaful, and normative belief has a positive influence on the subjective norm. However, the result shows that relative advantage has a negative influence on the attitude toward microtakaful, and attitude and price show a negative influence on the intention to participate in microtakaful products. Generally, there is a positive intention toward microtakaful among the respondents; however, knowledge and pricing are important factors that hinder the development of the microtakaful industry in Indonesia. These findings provide valuable information for the Indonesian microtakaful market and other Islamic micro institutions.
{"title":"PERCEPTION AND INTENTION TO PARTICIPATE IN MICROTAKAFUL SCHEME AMONG INDONESIANS: AN APPLICATION OF AJZEN'S THEORY OF PLANNED BEHAVIOUR","authors":"Muh Zul Hazmi Rapi, Salina Kassim","doi":"10.21098/jimf.v9i1.1615","DOIUrl":"https://doi.org/10.21098/jimf.v9i1.1615","url":null,"abstract":"This study examines the intention of Indonesian Middle of Pyramid (MOP) and Botton of Pyramid (BOP) and their intention to participate in microtakaful products. The study develops an extended theory of planned behaviour (TPB) model and uses structural equations modelling (SEM) to analyse data gathered from 428 respondents. Responses are obtained through a combination of online surveys and traditional paper-based distribution of questionnaires. The findings show that there is a high intention to participate in microtakaful among the respondents, with the subjective norm, price, and knowledge having positive influences on the intention to participate in microtakaful products. Meanwhile, compatibility is shown to have a positive influence on the attitude toward microtakaful, and normative belief has a positive influence on the subjective norm. However, the result shows that relative advantage has a negative influence on the attitude toward microtakaful, and attitude and price show a negative influence on the intention to participate in microtakaful products. Generally, there is a positive intention toward microtakaful among the respondents; however, knowledge and pricing are important factors that hinder the development of the microtakaful industry in Indonesia. These findings provide valuable information for the Indonesian microtakaful market and other Islamic micro institutions.","PeriodicalId":31622,"journal":{"name":"Journal of Islamic Monetary Economics and Finance","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80225687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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