Sharia Capital Market Participation: Factors Influence on Indonesian Students
Abstract
The purpose of this study was to determine the effect of Islamic financial literacy and student sociodemography on Islamic capital market participation. The sample in this study were 482 student investors who were taken using a purposive sampling technique from the student population in Indonesia who filled out a data waqf survey conducted by KA-FoSSEI and FoSSEI. The analytical tool used in this study is logistic regression analysis. The results of the study found that the variables of Islamic financial literacy, gender, age, and study program had a positive and significant effect on Islamic capital market participation. Meanwhile, the university area has a negative and significant effect on Islamic capital market participation. In addition, study program variables have a dominant influence on Islamic capital market participation. Therefore, it is hoped that state and private universities will be able to open more Islamic economics study programs, so that they can contribute to increasing participation in the Islamic capital market among students.
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Almenberg, J., & Dreber, A. (2015). Gender, Stock Market Participation and Financial Literacy. Economics Letters, 137, 140–142. https://doi.org/10.1016/j.econlet.2015.10.009
Anbar, A., & Eker, M. (2010). An Empirical Investigation for Determining of the Relation Between Personal Financial Risk Tolerance and Demographic Characteristics. Ege Academic Review, 10 (2), 503–522.
Barber, BM, & Odean, T. (2001). Boys will be boys Gender, overconfidence, and common stock investment. Quarterly Journal of Economics, 116 (1), 261–292. https://doi.org/10.1162/003355301556400
Basalamah, S., & Haming, M. (2010). Project and Business Investment Feasibility Study. Jakarta Earth Script.
Cheung, WM, Chung, R., & Fung, S. (2015). The effects of stock liquidity on firm value and corporate governance Endogeneity and the REIT experiment. Journal of Corporate Finance, 35, 211–231. https://doi.org/10.1016/j.jcorpfin.2015.09.001
Faidah, F. (2019). The Effect of Financial Literacy and Demographic Factors on Student Investment Interests. Journal of Applied Business and Economics, 5 (3), 251–263. https://doi.org/10.30998/jabe.v5i3.3484
Faisol, & Sujianto, AE (2020). Islamic Financial and Economic Research Application with STATA. Tulungagung Eternal Light Publisher.
Herdjiono, I., & Damanik, LA (2016). Effect of Financial Attitude, Financial Knowledge, Parental Income on Financial Management Behavior. Journal of Theory and Applied Management, 9 (3), 226–241. https://doi.org/10.20473/jmtt.v9i3.3077
Humairo, N., & Sartika, F. (2021). Financial Literacy and Sociodemographic Factors on Investment Decisions through Behavioral Bias. Scientific Journal of Management and Business, 22 (2), 164–177. https://doi.org/10.30596/jimb.v22i2.7766
Ikeobi, NR, & Arinze, PE (2016). The Influence of Demographic Factors on the Investment Objectives of Retail Investors in the Nigerian Capital Market. European Journal of Business and Management, 8 (11), 147–155.
Jamil, SA, & Khan, K. (2016). Does Gender Difference Impact Investment Decisions Evidence from Oman. International Journal of Economics and Financial Issues, 6 (2), 456–460.
Kadoya, Y., Khan, MSR, & Rabbani, N. (2017). Does Financial Literacy Affect Stock Market Participation SSRN Electronic Journal, 1–42. https://doi.org/10.2139/ssrn.3056562
Khan, MSR, Rabbani, N., & Kadoya, Y. (2020). Is financial literacy associated with investing in financial markets in the United States Sustainability, 12 (18), 1–14. https://doi.org/10.3390/SU12187370
Lewellen, WG, Lease, RC, & Schlarbaum, GG (1977). Patterns of Investment Strategy and Behavior among Individual Investors. The Journal of Business, 50 (3), 296–333.
Margaretha, F., & Pambudhi, RA (2015). Level of Financial Literacy in Undergraduate Students of the Faculty of Economics. Journal of Management and Entrepreneurship, 17 (1), 76–85. https://doi.org/10.9744/jmk.17.1.76-85
Nurafiati, N. (2019). The Development of the Islamic Capital Market and Its Contribution to Economic Growth in Indonesia. Inclusive Journal of Islamic Economics and Law Research Studies, 4 (1), 65–75. https://doi.org/10.24235/inclusive.v4i1.4167
Financial Services Authority. (2017). Indonesia's National Strategy for Financial Literacy.
Financial Services Authority. (2021). Indonesian National Strategy for Financial Literacy (SNLKI) 2021-2025.
Putri, NMDR, & Rahyuda, H. (2017). The Effect of Financial Literacy Level and Sociodemographic Factors on Individual Investment Decision Behavior. E-Journal of Economics and Business, Udayana University, 6 (9), 3407–3434. https://doi.org/10.24843/eeb.2017.v06.i09.p09
Remund, DL (2010). Financial literacy explicated The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44 (2), 276–295. https://doi.org/10.1111/j.1745-6606.2010.01169.x
Salem, R. (2019). Examining the Investment Behavior of Arab Women in the Stock Market. Journal of Behavioral and Experimental Finance, 22, 151–160. https://doi.org/10.1016/j.jbef.2019.03.001
Singh, R., & Bhattacharjee, D. (2010). Equity Investment Decisions Are Demographic Variables Really Significant Paradigm, 14 (1), 7–11. https://doi.org/10.1177/0971890720100103
Swiecka, B., Yeşildağ, E., Özen, E., & Grima, S. (2020). Financial Literacy The Case of Poland. Sustainability, 12 (2), 1–17. https://doi.org/10.3390/su12020700
Thomas, A., & Spataro, L. (2018). Financial Literacy, Human Capital and Stock Market Participation in Europe. Journal of Family and Economic Issues, 39 (4), 532–550. https://doi.org/10.1007/s10834-018-9576-5
Triana, OF, & Yudiantoro, D. (2022). The Influence of Financial Literacy, Investment Knowledge, and Motivation on Student Investment Decisions in the Islamic Capital Market. SERAMBI Journal of Islamic Economics and Business Management, 4 (1), 21–32.
Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101 (2), 449–472. https://doi.org/10.1016/j.jfineco.2011.03.006
Widyawati, I. (2012). Factors Affecting Financial Literacy of Students of the Faculty of Economics and Business, Universitas Brawijaya. Assets Journal of Accounting and Education, 1 (1), 89–99. https://doi.org/10.25273/jap.v1i1.527
Published
2023-08-07
How to Cite
Sifaudin, M., Hidayati, F., Anam, M., Rahmawati, P., & Annisa, A. A. (2023). Sharia Capital Market Participation: Factors Influence on Indonesian Students. Annual International Conference on Islamic Economics and Business (AICIEB), 3, 65-74. https://doi.org/https://doi.org/10.18326/aicieb.v3i0.464
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