What Drives Muslim Investors to Be Sri? The Role of Religiosity

Purpose - The primary concern of SRI in Indonesia began in ۲۰۰۹ along with the establishment of the Sri Kehati Index (SKI). Since its launch, historically Sri Kehati index has shown better performance compared to several major indices such as the Composite Stock Price Index (CSPI), LQ۴۵, Jakarta Islamic Index, and so on. However, the number of works of literature revealed that the majority of research focuses on the demographic of investors. While investigating related to the role of their religion still small. Moreover, the product of SRI in Indonesia has been established and the type of investor has been classified. Thus examining the behavior of Muslim investors is a necessity. Methodology - Self-administered questionnaire was used to collect the data. Then, the questionnaire was shared through an online form nationwide. ۲۰۵ respondents were collected. Hence, partial least square structural equation modeling (PLS-SEM) was applied to analyze the data. Findings – The result revealed that socially-oriented investment, environmental-oriented investment, and religiosity have a positive significant influence on the intention to be a socially responsible investment. While financial-oriented investment has an insignificant influence on the intention to be a socially responsible investment. Moreover, religiosity moderates between socially oriented and environmentally oriented investment negatively. Originality – The present paper contributes to the existing literature by giving new evidence of Muslim investor intention in SRI in Indonesia. Research Implications - This research provides some practical contributions for policymakers to enhance the infrastructures of SRI.

Keywords:

socially responsible investment , Muslim Investor , Investor behavior