The Role of Islamic Business Ethics and Financial Literacy in Investment Decision Making: A Mediation and Moderation Approach
Abstract
Abstract: This study uses a qualitative approach with the Library Research method and Integrative Review technique to analyze the relationship between Islamic business ethics, financial literacy, attitudes towards risk, and investment decisions. Articles used as secondary data were obtained from reputable databases such as Google Scholar, Scispace, DOAJ, and Scopus, with publication criteria between 2015–2024, in English or Indonesian, and relevant to the research topic. The literature selection process includes abstract screening, keywords, and full-text review. Thematic analysis was conducted deductively to identify patterns of relationships between variables. The results of the study indicate that the integration of Islamic business ethics and financial literacy plays an important role in supporting wise investment decisions. Islamic business ethics provides a moral framework that ensures investment decisions are in accordance with sharia principles, while financial literacy improves investors' ability to evaluate risks and optimize asset allocation. The combination of these two aspects creates a balance between economic growth and social sustainability, making it relevant to both sharia and conventional markets. This study emphasizes the importance of strengthening financial literacy and implementing moral values as a fundamental strategy in building sustainable investment decisions. Further research to improve sustainable investment decision making.
Keywords
Full Text:
PDFReferences
Abdi, A. (2024). Influence of financial literacy on investment decisions of managers of small and medium enterprises in mogadishu, somalia. International Journal of Advanced.
Agustian, F. A., Poernomo, D., & Puspitaningtyas, Z. (2018). Pengaruh kompetensi dan komitmen organisasi terhadap kinerja pegawai. Majalah Ilmiah Dian Ilmu, 17(2).
Ahmad, M. and Shah, S. (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, 38(1), 60-90. https://doi.org/10.1108/jeas-07-2020-0116
Applied Sciences, 11(4), 30-34. https://doi.org/10.21833/ijaas.2024.04.004
Dalimunthe, N., Ambarwati, D., & Mardiana, N. (2023). Do demographic and financial literacy affect investment decision?.. https://doi.org/10.4108/eai.13-9-2023.2341228
Dharma, Y., Puteh, A., Widodo, R., Alfaqih, L., & Yahya, A. (2024). The Influence of Financial Literacy and Islamic Business Ethics on Investment in Islamic Financial Instruments: The Mediating Role of Risk Attitude and the Moderating Role of Religious Knowledge. Journal of Ecohumanism, 3(8), 264–282. https://doi.org/10.62754/joe.v3i8.4729
Elmalki, A. and Mounira, B. (2009). Ethical investment and the social responsibilities of the Islamic banks. International Business Research, 2(2). https://doi.org/10.5539/ibr.v2n2p123
Fauzi, A., & Rafik, A. (2024). The Impact of Sharia Financial Literacy, Religiosity, and Perceived Quality on Investment Decisions on Sharia-Compliant Products. International Journal of Economics and Management Sciences, 1(2), 56–70. https://doi.org/10.61132/ijems.v1i2.56
Fitriaty, F. (2023). Exploring the factors shaping investment decisions. Dinasti International Journal of Economics Finance & Accounting, 4(3), 465-474. https://doi.org/10.38035/dijefa.v4i3.1958
Ghafoor, Z. (2023). Editorial: bridging the gap between islamic finance and sustainable, responsible, and impact investing. Journal of Islamic Business and Management (Jibm), 13(02), 156-158. https://doi.org/10.26501/jibm/2023.1302-001
Hamizar, A. (2023). Pengaruh faktor sosial dan etika dalam perilaku pengambilan keputusan investasi: studi kasus pada investasi keuangan syariah. EKSY, 5(01). https://doi.org/10.33477/eksy.v5i01.5478
Hariawan, H. and Canggih, C. (2022). Analisis faktor yang mempengaruhi keputusan investasi di pasar modal syariah: studi kasus di kota surabaya. Jurnal Ekonomi Syariah Teori Dan Terapan, 9(4), 495-511. https://doi.org/10.20473/vol9iss20224pp495-511
Harti, S. (2024). Catalyzing ethical business practices: exploring the role of islamic finance in contemporary markets. International Journal of Business Law and Education, 5(2). https://doi.org/10.56442/ijble.v5i2.663
Hidayat, M., Supriyanto, S., & Mazidah, N. (2023). Ethnomethodology approach in investment decision making in islamic capital market: an interaction and social practice of market participants. MJIFM, 3(2), 127-147. https://doi.org/10.31538/mjifm.v3i2.42
Iqbal, M. A., Saeed, A., & Rehman, S. U. (2023). Impact of Financial Literacy on Financial Satisfaction: Mediating Roles of Investment Decisions & Moderating Role of Risk Attitude. Journal of Finance and Economics, 11(2).
Iqbal, M., Ahmad, S., & Rehman, S. (2023). Impact of financial literacy on financial satisfaction: mediating roles of investment decisions & moderating role of risk attitude. Journal ofSocial Research Development, 4(2), 274-283. https://doi.org/10.53664/jsrd/04-02-2023-04-274-283
Kazmi, A. (2020). Islamic business ethics., 1-5. https://doi.org/10.1007/978-3-030-02006-4_86-1
Lestari, W., Salim, U., Sudarma, M., & AL-HABSYI, T. (2014). Determinants of investment decision among moslem entrepreneurs. Iamure International Journal of Business and Management, 8(1). https://doi.org/10.7718/iamure.ijbm.v8i1.733
Martaningrat, N. and Kurniawan, Y. (2024). The impact of financial influencers, social influencers, and fomo economy on the decision-making of investment on millennial generation and gen z of indonesia. Journal of Ecohumanism, 3(3), 1319-1335. https://doi.org/10.62754/joe.v3i3.3604
Mushafiq, M., Khalid, S., Sohail, M., & Sehar, T. (2021). Exploring the relationship between investment choices, cognitive abilities risk attitudes and financial literacy. Journal of Economic and Administrative Sciences, 39(4), 1122-1136. https://doi.org/10.1108/jeas-07-2021-0130
Nursyamsiah, I., & Nopianti, N. (2021). Pengaruh Etika Bisnis Islam dan Kualitas Produk Terhadap Kepuasan Konsumen Pada Usaha Rofi Collection Ciamis. Jurnal Ekonomi Rabbani, 1(1).
Pertiwi, D., Kusumawardhani, A., Pratama, J., & Paul, T. (2024). Investigating the impact: financial literacy, socio-economic status, and awareness on investment decisions with moderation factors. Petra International Journal of Business Studies, 7(1), 19-27. https://doi.org/10.9744/petraijbs.7.1.19-27
Rahmawan, F., Rahmani, N., & Silalahi, P. (2024). Pengaruh pemahaman muamalah dan sikap heuristik terhadap pengambilan keputusan investasi syariah pada mahasiswa universitas islam negeri sumatera utara (uinsu). El-Mal Jurnal Kajian Ekonomi & Bisnis Islam, 5(10). https://doi.org/10.47467/elmal.v5i10.5494
Roemanasari, F., Sabela, J., & Rusgianto, S. (2022). Islamic Financial Literacy and Financial Behavior on Investment Intention. Jurnal Ilmu Ekonomi Terapan, 7(2), 150–165. https://doi.org/10.20473/jiet.v7i2.40679
Seraj, A., Alzain, E., & Alshebami, A. (2022). The roles of financial literacy and overconfidence in investment decisions in saudi arabia. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1005075
Shaheen, F., Tariq, M., Zahoor, Q., & Mehmood, A. (2022). Role of financial literacy in investment decisions: exploring the individual investors’ perspective through a qualitative approach. Journal of Business and Social Review in Emerging Economies, 8(4). https://doi.org/10.26710/jbsee.v8i4.2521
Wahyudi, M. (2024). The concept of business ethics in islamic perspective. Jurnal Pendidikan Ips, 14(2), 478-484. https://doi.org/10.37630/jpi.v14i2.2166
Fausett, L. (1994). Fundamentals of Neural Network. New York: Prentice Hall.
Refbacks
- There are currently no refbacks.