A Method Paper: The Effect of Attitudes toward Investing Intentions on Potential Investors to Sharia Shares in Indonesia: used Theory of Planned Behavior
Purpose: This research paper aims to study the intentions of investors in investing in the Syariah stock market on the Indonesia Stock Exchange.
Background: Share ownership of companies listed on the Indonesian stock exchange is dominated by foreign investors compared by Indonesians themselves. Therefore, the selling shares activity by foreign investors will cause a significant decline in share prices in Indonesia. In addition, distribution of dividends more focused on foreign investors because they own majority Indonesian stock market. Unfortunately, the rupiah value weakens because foreign investors convert dividends that they gotten into their country currency. This situation affects to country's economy. Indonesia's population almost 260 million, the majority Indonesians people are Muslim. About 87.2% Indonesia’s population is Muslim. To increase shareholder ownership in Indonesia and to completely needs of investor’s intention to invest in accordance with Sharia principles.
Design/Methodology/Approach: This study used planned behavior theory with attitude, subjective norms and behavior control as independent variables. The research questionnaire was distributed to prospective investors attending on Islamic capital market schools in 5 cities
Results/Findings: From this research, Indonesians can learn and invest in Sharia-compliant stock market listed on Indonesia Stock Exchange so that the Indonesian stock market is not dominated by foreigners.
Conclusion and Implications: research also contributes to the development of knowledge in finance that focuses on investor behavior.