Skip to main content

Research Repository

Advanced Search

Religiosity and Charitable Giving on Investors’ Trading Behaviour in the Indonesian Islamic Stock Market: Islamic vs Market Logic

Asutay, Mehmet; Aziz, Primandanu Febriyan; Indrastromo, Banjaran S.; Karbhari, Yusuf

Religiosity and Charitable Giving on Investors’ Trading Behaviour in the Indonesian Islamic Stock Market: Islamic vs Market Logic Thumbnail


Primandanu Febriyan Aziz

Banjaran S. Indrastromo

Yusuf Karbhari


This study examines retail investors’ trading behaviour and its determinants in the Indonesian Shari’ah stock market by mainly focusing on the religious practice-related factors in the form of sadaqah or charitable giving on individual investors’ trading behaviour. Contextually, the Islamic moral economy (IME) assumes a direct relationship between religiosity and sadaqah giving due to the falah (salvation) oriented individual objective function, which can be reached through doing ihsan (beneficence for equilibrium). The findings based on a questionnaire survey distributed to individual investors on Shari’ah Online Trading System (SOTS) delineate that religiosity, accounting information, neutral information, personal financial needs, and the sadaqah feature have significantly affected investors’ trading behaviour in which the sadaqah feature is positively correlated, while religiosity factors are negatively correlated. Thus, despite the theoretical expectation through IME, this study evidences that Islamic logic is not the main determining factor, as market logic related factors seem to be more dominant in the behaviour of investors in the Indonesian capital market.

Journal Article Type Article
Acceptance Date Jan 3, 2023
Online Publication Date Jan 25, 2023
Publication Date Nov 1, 2023
Deposit Date Jan 5, 2023
Publicly Available Date Feb 8, 2023
Journal Journal of Business Ethics
Print ISSN 0167-4544
Electronic ISSN 1573-0697
Publisher Springer
Peer Reviewed Peer Reviewed
Volume 188
Issue 2
Pages 327-348
Keywords Islamic religiosity, Investors’ trading behaviour, Financial behaviour, Sadaqah feature, Indonesia
Public URL


Published Journal Article (1.9 Mb)

Publisher Licence URL

Copyright Statement
This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit

You might also like

Downloadable Citations