The application of TRA in understanding the investors` selection behavior in Malaysian islamic capital markets

Abstract

This paper aims to investigate the determinants of the investors’ participation behavior in Malaysian Islamic capital market. The study employed the online survey method and collected 120 sample comprising different backgrounds in religious, race and roles in the capital market. Using the Theory of Reasoned Action (TRA) as the theoretical basis, Structural Equation Modeling (SEM) has been applied to analyze the outcome of the survey. From the original two basic construct of TRA, namely, Attitude and Subjective Norms, this study set to add another construct which is believed to be affecting the behavioral intention of investors in the Islamic capital market which is Religiosity. In general, this study found out that, both Subjective Norms and Religiosity have been statistically significant in affecting the behavioral intention and Attitude did not.