Gender, financial literacy and ethical sensitivity: a behavioural model of Sharia investment decision making

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Authors

  • Karimatur Rofiatus Saadah State Islamic Institute of Ponorogo image/svg+xml
  • Yunaita Rahmawati Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia image/svg+xml

DOI:

https://doi.org/10.69725/jies.v2i2.288

Keywords:

Gender, Financial Literacy, Ethical Sensitivity, Risk Perception, Sharia Investment

Abstract

Objective: This paper examines the effect of gender, financial literacy, ethical sensitivity, and risk perception on ethical investment behavior under a Sharia-compliant setting.
Methods:  A quantitative explanatory design was used, with data collected from surveys and moderation analysis conducted on financial experience with predictor outcome relations.
Results:  The results show that gender, financial literacy, ethical sensitivity, and risk perception have significant positive impacts on the EIB. Financial literacy enhances this influence, allowing investors to incorporate ethical considerations and cognitive knowledge in Shariah investment. The joint predictors give a synergistic effect whereby both attribute and experiential knowledge are each significant in their worked contributions to ethical investment behavior.
Novelty: This paper is the first study that links behavioral finance and Islamic ethical paradigms to show that cognitive, moral, and experiential motivations jointly influence individual ethical investment decisions. The inclusion of financial experience as a moderator may also serve to shed new light on the workings of morally-informed financial decision-making.
Research Implication: The results have practical implications for policy makers and financial institutions to establish gender sensitive experience based training schemes that will improve ethical investment culture. This study contributes to the literature by associating BF with Sharia ethics, and sheds light on experiential learning to promote investor moral awareness and decision quality.

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Author Biographies

  • Karimatur Rofiatus Saadah, State Islamic Institute of Ponorogo

     

    Faculty of Islamic Economics and Business, UIN Kiai Ageng Muhammad Besari Ponorogo, East Java, Indonesia

    karimaturrofiatus@student.uinponorogo.ac.id

    https://orcid.org/0009-0005-3199-0291

    Karimatur Rofiatus Saadah is an emerging scholar and dedicated student at UIN Kiai Ageng Muhammad Besari Ponorogo, specializing in Islamic Economics and Business. Her academic focus encompasses Islamic financial ethics, gender perspectives in Islamic economics, and behavioral aspects of Islamic finance. As a young researcher, she actively contributes to academic discussions through her involvement in research projects exploring the intersection of Islamic values and contemporary economic practices. Her scholarly interests reflect a commitment to developing ethical frameworks for modern financial systems grounded in Islamic principles. Through her academic pursuits, Karimatur demonstrates strong potential to become a future contributor to the advancement of Islamic economic thought and its practical applications in society.

  • Yunaita Rahmawati, Department of Sharia Accounting, Faculty of Islamic Economics and Business, State Islamic Institute of Ponorogo, Ponorogo, Jawa Timur, 63492, Indonesia

     Dr. Yunaita Rahmawati is a renowned academic and researcher at the Institut Agama Islam Negeri Ponorogo, specialising in Sharia Accounting. Many of her scientific works discuss Islamic financial reporting standards, governance of Islamic financial institutions, and Islamic micro-enterprise development. Her research not only contributes significantly to the scientific field, but also offers practical solutions for policymakers and industry players. As an educator, Dr Yunaita is committed to transferring the values of Islamic business ethics and fostering a new generation of Islamic accountants who are competent and have high integrity.

     

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Published

2025-09-10

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Vol. 2 No. 2 (2025): September

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Copyright (c) 2025 Karimatur Rofiatus Saadah, Yunaita Rahmawati (Author)

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How to Cite

Rofiatus Saadah, K., & Rahmawati, Y. . (2025). Gender, financial literacy and ethical sensitivity: a behavioural model of Sharia investment decision making. Journal International Economic Sharia, 2(2), 80-94. https://doi.org/10.69725/jies.v2i2.288
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