The Influence of Multidimensional Risk and Religiosity onInterest in Sharia Investments among Muslim Investors in Indone‎sia

  • Authors

    • Husnawaty Accounting Department, School of Accounting, Master of Accounting, Bina Nusantara University, Jakarta, Indonesia,11480
    • Triasesiarta Nur Accounting Department, School of Accounting, Master of Accounting, Bina Nusantara University, Jakarta, Indonesia,11480
    https://doi.org/10.14419/yyk2tt97

    Received date: January 17, 2026

    Accepted date: February 20, 2026

    Published date: March 10, 2026

  • Sharia Investment; Multidimensional Risk Tolerance; Risk Capacity; Religiosity; Islamic Capital Market; Indonesia

  • Abstract

    This study investigates the determinants of Sharia investment interest by integrating multidimensional risk tolerance and religiosity within ‎the Indonesian Islamic capital market context. Moving beyond conventional single-dimensional approaches, risk tolerance is decomposed ‎into risk propensity, risk attitude, risk capacity, and risk knowledge to provide a more comprehensive behavioral framework. Data were ‎collected from Muslim investors and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM).‎

    The findings indicate that only risk capacity and religiosity significantly influence Sharia investment interest. Religiosity emerges as the ‎strongest predictor, underscoring the central role of ethical commitment in Islamic financial decision-making. Risk capacity also demon-‎strates a significant positive effect, suggesting that objective financial resilience functions as a structural enabling factor in Sharia investment ‎participation. In contrast, risk propensity, risk attitude, and risk knowledge do not exhibit significant effects, implying that general psycho-‎logical risk preferences and financial literacy alone may be insufficient drivers within Sharia-constrained investment environments.‎

    These results extend prior Islamic finance models by highlighting the differential roles of structural and ethical determinants over psycholog-‎ical risk dimensions. The study contributes theoretically by refining multidimensional risk tolerance theory in an Islamic context and offers ‎practical implications for regulators and Islamic fund managers in investor segmentation and market development strategies‎.

  • References

    1. Alam, S. S., Janor, H., Zanariah, W. N., & Ahsan, M. N. (2019). Is religiosity an important factor in influencing the intention to undertake Islamic home financing in Klang Valley? Journal of Islamic Marketing, 10(3), 874–896.
    2. Barber, B. M., & Odean, T. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Econom-ics, 116(1), 261–292. https://doi.org/10.1162/003355301556400.
    3. Brayman, S. (2012). Managing risk capacity in investment portfolios. Journal of Wealth Management, 15(1), 52–59.
    4. Bursa Efek Indonesia. (2023). Data jumlah investor pasar modal Indonesia.
    5. Byrnes, J. P., Miller, D. C., & Schafer, W. D. (1999). Gender differences in risk-taking: A meta-analysis. Psychological Bulletin, 125(3), 367–383. https://doi.org/10.1037/0033-2909.125.3.367.
    6. Cordell, D. M. (2001). RiskPACK: Risk tolerance assessment and financial planning. Journal of Financial Planning.
    7. Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approach (5th ed.). Sage Publications.
    8. Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448–474. https://doi.org/10.1257/jel.47.2.448.
    9. Dusuki, A. W., & Abozaid, A. (2007). A critical appraisal of the challenges of realizing Maqasid al-Shariah in Islamic banking and finance. Hu-manomics, 23(3), 143–160.
    10. Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11.
    11. Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128.
    12. Hassan, M. K., & Shamsher, M. (2010). Investment decision in Islamic finance: Evidence from Muslim investors. International Journal of Islamic and Middle Eastern Finance and Management, 3(3), 200–215.
    13. Husein, M. (2025). The effect of Islamic financial literacy, return perception, and risk perception on investment decisions in Sharia stocks with ex-perienced regret as a moderation variable. Economics & Islamic Finance Journal, 2(1), 39–57.
    14. Iddagoda, Y. A., & Opatha, H. H. D. N. P. (2017). Religiosity: Towards a conceptual clarification. International Business Research, 10(2), 187–197. https://doi.org/10.5539/ibr.v10n2p63.
    15. Irna Puji Lestari, Ginanjar, W., & Warokka, A. (2021). Multidimensional risk and religiosity towards Indonesian Muslims’ Sharia investment deci-sion. Journal of Islamic Monetary Economics and Finance, 7(2), 369–400. https://doi.org/10.21098/jimf.v7i2.1321.
    16. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–292. https://doi.org/10.2307/1914185.
    17. Karim, S., Shafique, M., & Rehman, M. (2016). Risk tolerance and investment preferences of women investors: Evidence from Pakistan. Journal of Islamic Economics, Banking and Finance, 12(3), 100–115.
    18. León, A. K., & Pfeifer, C. (2017). Religious activity, risk-taking preferences, and financial behaviour: Empirical evidence from German survey data. Journal of Behavioral and Experimental Economics, 69, 99–107. https://doi.org/10.1016/j.socec.2017.05.005.
    19. Mahdzan, N. S., Zainudin, R., Hashim, R. C., & Sulaiman, N. A. (2017). Islamic religiosity and portfolio allocation: The Malaysian context. Journal of Islamic Accounting and Business Research, 8(4), 434–451. https://doi.org/10.1108/IMEFM-11-2016-0162.
    20. Nguyen, L. T. M., Gallery, G., & Newton, C. (2019). The joint influence of financial risk perception and risk tolerance on individual investment deci-sion-making. Accounting & Finance, 59(S1), 747–771. https://doi.org/10.1111/acfi.12295.
    21. Rozak, A., Rozak, A., Nugraha, S., Sari, M., Purnamasari, I., & Zainol, F. A. (2025). Behavioral finance in Sharia investment: An empirical study on Indonesian millennials. Journal of Islamic Economics and Business, 4(2), 294–314. https://doi.org/10.15575/jieb.v4i2.46872.
    22. Shabrina, N., Rahmawati, D., & Putri, A. (2024). Financial literacy and participation in the Sharia capital market: Evidence from Indonesia. Journal of Islamic Finance Research, 3(1), 15–29.
    23. Shah, M. H., Hanafiah, M. H., & Salleh, M. C. M. (2019). Religiosity and Islamic financial products: Evidence among Muslim women in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 12(4), 523–537.
    24. Sherif, M., & Lusyana, D. (2016). Shariah-compliant investments and investor behaviour. Journal of Islamic Finance. https://doi.org/10.1108/JIABR-10-2015-0052.
    25. Soemitra, A. (2016). Bank dan lembaga keuangan syariah. Kencana.
    26. Vania Evanita Puspitasari, Yetty, F., & Nugraheni, S. (2021). Pengaruh literasi keuangan syariah, persepsi imbal hasil, dan motivasi terhadap minat investasi di pasar modal syariah. Jurnal Riset Ekonomi dan Bisnis, 14(3), 210–225. https://doi.org/10.47700/jiefes.v2i2.3292.
    27. Wahl, H., & Kirchler, E. (2020). Risk screening on the financial market (RISC-FM): A tool to assess investors’ financial risk tolerance. Cogent Eco-nomics & Finance, 8(1), 1714108. https://doi.org/10.1080/23311908.2020.1714108.
    28. Walkshäusl, C., & Lobe, S. (2012). Islamic investing. Review of Financial Economics, 21(2), 53–62. https://doi.org/10.1016/j.rfe.2012.03.002.

  • Downloads

  • How to Cite

    Husnawaty, & Nur, T. . (2026). The Influence of Multidimensional Risk and Religiosity onInterest in Sharia Investments among Muslim Investors in Indone‎sia. International Journal of Accounting and Economics Studies, 13(2), 472-480. https://doi.org/10.14419/yyk2tt97