Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors

Egi Arvian Firmansyah, Nirmala Andanawari


It has been nine years since the Indonesia Stock Exchange established a Syariah Online Trading System (SOTS), but the number of investors using this system is still relatively small compared to the regular investor. Moreover, the number is much smaller than the potential number of sharia financial markets. This study aims to describe Muslim investors' behavior in Indonesia who use the regular stock account instead of the sharia account. We surveyed by using both offline and online questionnaires, whereby the investors ask to compose the imaginary stock portfolios consisting of stocks and their weights. Using a convenience sampling method, we succeeded in interviewing 85 respondents spread across Indonesia. This study shows that the risk appetite of Indonesian Muslim investors is risk-averse, and they consider sharia aspects in their investment decision. Nonetheless, the compliance to sharia varies among them. Hence, Indonesian Muslim investors cannot be seen and treat as a homogenous group.        

JEL Classification: G12, G15, G33

How to Cite:

Firmansyah, E. A., & Andanawari, N. (2020). Risk Appetite and Investment Behavior: A Study on Indonesia Muslim Investors. Etikonomi: Jurnal Ekonomi, 19(2), xx – xx. https://doi.org/10.15408/etk.v19i2.16062.


investor behavior, Muslim investors, risk appetite, sharia compliance, stock market

Full Text:



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DOI: https://doi.org/10.15408/etk.v19i2.16062 Abstract - 0 PDF - 0


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