Gen Z’s preference for Sharia fraudulent investments: A moral hazard view

This research explores and assesses the impact of regret aversion, gender, and Sharia financial literacy on Sharia financing behavior and explores the impact of education and social environment on Sharia financial literacy. The participants are 400 with prior experience in utilizing Sharia financing, selected using the snowball sampling technique. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that Sharia financial literacy, gender, and regret aversion significantly influence Sharia financing behavior. Education does not have a direct impact while the social environment positively affects Sharia financial literacy. Sharia financial literacy, regret aversion, and gender are essential determinants of appropriate Sharia financing behavior. Psychological biases stemming from past experiences also influence Sharia financing decisions. A strong understanding of Sharia finance is crucial for financial institutions and policymakers. Adequate financial literacy empowers individuals to make well-informed choices and avoid misjudgments when selecting financing options that best suit their needs. The financial service providers must consider Sharia financial literacy, gender, and regret aversion. These factors significantly influence individuals' choices in Sharia financing. By considering these elements, it is likely to increase public interest in using Sharia financing and help improve their welfare.

This study examines and analyzes the influence of Sharia financial literacy, religiosity, and service quality on saving decisions in Islamic Banks with trust as an intervening variable in Jambi Province. This study has a sample size of 115 respondents representing each district/city in Jambi Province with a proportional nonrandom sampling technique. The data used were primary data obtained from distributing questionnaires. The research analysis method used Structural Equation Modeling Partial Least Squares (SEM-PLS) and data processing techniques using descriptive statistical analysis techniques and Partial Least Square (PLS) analysis with the help of SmartPLS 4.1.0.2 software. The results of this study indicate that Sharia financial literacy, religiosity, and service quality have a positive and significant effect on customer trust in Islamic banks in Jambi Province. Sharia financial literacy and service quality positively and significantly affect customer decisions to save at Islamic banks in Jambi Province. However, religiosity does not affect saving decisions at Islamic banks in Jambi province. Trust positively and significantly affects saving decisions at Islamic banks in Jambi Province. Trust can mediate the influence of Sharia financial literacy, religiosity, and service quality variables on saving decisions in Islamic Banks in Jambi province.

SMEs (Small and Medium Enterprises) serve as the backbone of the Indonesian economy, in a country with the world's largest Muslim population. Therefore, further analysis is needed regarding the factors influencing the performance of SMEs in an effort to maximize the country's revenue. This research aims to examine the relationship between religiosity, financial literacy, and Islamic financial planning on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the Greater Jakarta area (Jabodetabek). This study employs a quantitative approach using the Structural Equation Model Partial Least Square (SEM-PLS) with primary data collected through an online purposive sampling technique from 113 MSMEs in Jabodetabek. The performance of MSMEs is significantly influenced by religiosity, Sharia financial literacy, and Islamic financial planning. Religiosity has a significant impact on Sharia financial literacy and Islamic financial planning. Sharia financial literacy affects Islamic financial planning significantly.

This study examines the role of e-payment usage in mediating the relationship between Sharia financial literacy and financial behavior on the financial well-being of Micro, Small, and Medium Enterprises (MSMEs) in West Sulawesi, Indonesia. Using a quantitative causal research design, data were collected from 115 MSME owners and managers engaged in trade, culinary, and service sectors through a structured questionnaire employing a five-point Likert scale. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that Sharia financial literacy and financial behavior have a significant positive effect on e-payment usage, with financial behavior exerting a stronger influence. However, neither Sharia financial literacy nor financial behavior directly affects MSME financial well-being. Conversely, e-payment usage has a strong and significant positive effect on financial well-being and fully mediates the relationship between Sharia financial literacy and financial behavior with financial well-being. These results underscore the strategic role of Sharia-compliant e-payment adoption in enhancing MSME welfare by improving transaction efficiency, expanding market reach, and reducing operational costs. The study contributes to the literature by integrating Sharia financial literacy, financial behavior, and e-payment into a mediation model within the specific context of MSMEs in West Sulawesi. Practical implications are offered for policymakers, financial institutions, and MSME practitioners to strengthen Sharia financial literacy and encourage e-payment adoption as a pathway to sustainable economic growth.

This study aims to analyze the determinants of public interest in the use of QRIS in Sharia Banks with a focus on Langsa City - one of the cities in Aceh which is a province that implements the Islamic financial system. The independent variables tested included promotion, religiosity, education, and financial ability. Shariah financial literacy is considered as an intermediary variable that plays a role in connecting independent variables with dependent variables, namely interest in using QRIS. Considering that literacy and interest in using digital finance in Aceh, especially Langsa City, are still low, this research is important in understanding the factors that affect public interest.This study involved 100 respondents from Langsa City who were randomly taken with a quantity determined through the method of determining the number of Slovin. The analysis method used in this study is the Structural Equation Modeling - Partial Least Squares (SEM-PLS) Method which serves to identify whether the effect of independent variables on dependent variables occurs directly, or through intermediate variables (intermediation). The results of the study show that promotion, religiosity, education, and financial ability significantly affect financial literacy, which then has a positive impact on interest in using QRIS.These findings are expected to help Islamic banking and the government in designing strategies to increase the adoption of digital financial services in Aceh, especially Langsa City.

Many MSMEs still face fundamental challenges such as limited access to formal financing, low financial literacy, and slow adoption of digital technology, including fintech. Sustainable business performance requires business actors not only to survive economically but also to manage their businesses efficiently, have a long-term orientation, and adapt to market and technological dynamics. The purpose of this study is to analyze the role of financial literacy on the sustainable performance of MSMEs by examining the mediating role of financial access and fintech adoption. The method in this study uses the Structural Equation Modeling – Partial Least Squares (SEM-PLS) approach with the assistance of SmartPLS software. This research is a quantitative explanatory study, with the population consisting of MSMEs in Kediri City. The results show that financial literacy does not directly affect MSME performance, but it plays an important role in expanding financial access. This financial access then becomes a significant mediating pathway that connects financial literacy with business performance. Thus, financial literacy will only contribute effectively to MSME performance if it is accompanied by the ability to access and utilize financial services productively. Meanwhile, fintech adoption has been shown to play no significant role, either directly on performance or as a mediator between financial literacy and business performance. This indicates that the use of financial technology remains limited to basic transaction functions and has not been fully integrated into MSME business strategies.

Sharia financial literacy is one of the important programs carried out by the government in order to improve the Indonesian economy in the future. This research aims to determine the level of sharia financial inclusion literacy among teachers at the Bukittinggi City Islamic Boarding School, with a sample size of 73 respondents, by conducting qualitative descriptive analysis. The author's background in discussing this title is because he sees that Islamic boarding schools as institutions or sharia-based institutions have sharia-based teachers who still lack sharia-based financial literacy and inclusion, so there are still many teachers who use conventional-based financial products rather than sharia-based ones.This research uses a qualitative approach using the Nvivo application using primary and secondary data. The analytical method used is a descriptive approach, namely identifying problems related to Islamic boarding schools currently facing using Nvivo analysis.The results of the research found that the results of the research that had been carried out on the teacher council at the Bukittinggi City Islamic Boarding School through interviews at the time of the research stated that the majority had understood sharia financial literacy because financial literacy had now been widely socialized and even some teachers already knew about sharia financial literacy. , it's just that knowledge about financial inclusion is still low

Financial literacy is one of the key abilities and skills MSME business actors require to manage their finances and achieve successful business performance. This study's purpose was to analyze the impact of financial and technological literacy on improving MSME performance in Medan City and the mediation of this relationship by financial inclusion. The research had a quantitative descriptive methodology with an explanatory research approach. Data were collected from a sample of 100 business actors in Medan City. The data analysis technique used was Structural Equation Modelling - Partial Least Squares (SEM-PLS). The results showed that financial literacy, financial technology, and financial inclusion affected the performance of MSMEs in Medan City, and financial inclusion did not mediate the effects of financial literacy and financial technology on the performance of MSMEs in Medan City. The novelty of this research is its capacity to inform stakeholders of the importance of the financial literacy of MSME business actors; therefore, stakeholders must strive to educate MSME business actors on the importance of financial literacy.

This study aims to analyze the influence of financial literacy, financial technology literacy, risk perception, and self-efficacy on investment decisions among capital market investors in Maluku. Additionally, it examines gender differences in these relationships through a multi-group analysis approach. In regions with relatively low financial literacy levels like Maluku, understanding factors that influence investment behavior is crucial for strengthening financial inclusion strategies. This research employed a descriptive-verificative approach using survey methodology through questionnaires. The sample was determined using Cochran's formula at a 5% significance level and adjusted based on gender distribution of capital market investors in Maluku, resulting in 228 male and 172 female respondents. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), supplemented by Partial Least Squares Multi-Group Analysis (PLS-MGA) to evaluate differences across gender groups. Results indicate that simultaneously, financial literacy, financial technology literacy, risk perception, and self-efficacy significantly influence investment decisions in both gender groups. Partially, all four variables significantly influence investment decisions among male investors. However, among female investors, self-efficacy does not show significant effect. Furthermore, PLS-MGA results reveal significant differences between male and female investors only in risk perception influence, while other variables do not exhibit statistically significant differences. These findings contribute to deeper understanding of gender roles in investment behavior and provide practical implications for regulators and financial institutions in designing more inclusive financial literacy strategies.

The growth of sharia fintech is not proportional to the majority of the Muslim population. There are only a few studies that discuss the behavioral intentions of consumers who use sharia fintech. This study aims to identify the factors influencing Muslim's behavioral intentions in using sharia fintech. This study conducted 400 respondents in four types of sharia fintech (digital payment, lending, crowdfunding, and risk and management). This study uses a structural Equation Modeling - Partial Least Square (SEM-PLS) approach. Variable Planned behavior (PB), Acceptance Model (AM), Use of Technology (UT), Digital Literacy (DL), and Sharia Financial Literacy (SFL) have significant positive effects on Behavior Intention (BI). This study provides recommendations to improve the distribution of internet access infrastructure and the right curriculum in increasing digital literacy, Islamic finance literacy, and also more accessible fintech services.JEL Classification: D83, D91, G2, Z1How to Cite:Setiawan, D., Darwanto., & Gunanto, E. Y. A. (2021). Determinants of Behavioral Intentions to Use Sharia Financial Technology. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 325-342. https://doi.org/10.15408/sjie.v10i2.21451.

This research investigates the relationship between Sharia financial literacy, access to Islamic financing, and the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in East Kalimantan, Indonesia—a strategically important region experiencing accelerated development as the site of the country’s new capital. Adopting a mixed-methods design, the study integrates quantitative data from a survey of 300 MSMEs analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with qualitative evidence obtained through in-depth interviews with MSME actors, Islamic bankers, and regulators. The quantitative results indicate that the constructs of Access to Capital and MSME Resilience exhibit strong reliability and validity, while the Financial Literacy construct requires further refinement, highlighting that general financial knowledge does not necessarily translate into competence in Sharia-compliant financial products. Qualitative findings further identify a communication gap between MSME owners’ demand for accessible and practical financial guidance and the complexity of offerings provided by financial institutions. The study concludes that strengthening MSME sustainability necessitates policy interventions that address these gaps through targeted Sharia financial education and inclusive Islamic financing schemes. This research contributes a validated holistic framework and provides practical policy recommendations for the development of contextualized Islamic financial literacy programs and digital inclusion strategies to reinforce Indonesia’s Sharia-based MSME ecosystem.

Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM)In view of its essential role in knowledge creation, multivariate data analysis prevails in the social sciences literature. The field of tourism is not an exception, specifically in the widely adoption of structural equation modeling (SEM), a multivariate technique, by tourism researchers over the past decade. While there are two major types of SEM including covariance-based SEM (CB-SEM) and variance-based SEM (PLS-SEM), the former dominated previous tourism research. However, increasing use of PLS-SEM in tourism research has been witnessed in recent years. This upward trend is likely to persist in the near future given the growing popularity of PLS-SEM in other social sciences domains like marketing, strategic management, and management information system, as specified in the preface of the book. Indeed, PLS-SEM, in relative to CB- SEM, provides more flexibility in handling of data. For instance, PLS-SEM is well-suited for accommodating small sample sizes and complex model, fortesting a model containing both formative and reflective constructs, and for handling single-item measures. To this end, the timely introduction of the book A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) helps tourism researchers stand at the front edge of the SEM technique and make effective use of the PLS-SEM in data analysis. Additionally, the book illustrates the application of PLS-SEM with a free downloadable software namely SmartPLS which is essential to extend the application of PLS-SEM in tourism research.Authored by Hair, Hult, Ringo, and Sarstedt, the book consists of eight chapters. To equip the readers with the basic knowledge of PLS- SEM, Chapter 1 delineates the meaning of SEM and its relationship with multivariate data analysis, followed by a description of the major elements in multivariate data analysis. Then the basic elements of PLS-SEM are explained. Finally, PLS-SEM is distinguished from its counterpart namely CB-SEM while the major characteristics of PLS-SEM and the conditions where the PLS-SEM are more adequate than CB-SEM and vice versa are discussed. To step in the application of PLS- SEM, Chapter 2 firstly explicates the concepts in structural model specification including mediation, moderation, and higher-order models. Then specification of measurement model is explained with a special focus on the differences between reflective and formative measures. After that, the issues that need to be addressed after data collection are discussed. The chapter ends by creating the model in the SmartPLS is illustrated. With an established model, Chapter 3 focuses on model estimation. The chapter explains the algorithm underpinning the estimation and the statistical properties of the PLS-SEM method, as well as the options and parameter settings for running the algorithm. Following that, the issues about interpretation of results are explained. The final section illustrates the execution of model estimation in the SmartPLS.Based on the model estimation, empirical measures of the measurement and structural models are derived, where evaluation of the models takes place. Chapter 4 exhibits the major steps in model evaluation in the beginning. Thereafter, the chapter explains the evaluation of reflective measurement models according to three major criteria including internal consistency reliability, convergent validity, and discriminant validity, followed by an illustration with the SmartPLS. Chapter 5 explains the assessment of formative measurement models with respect to the criteria of convergent validity, collinearity, and significance and relevance of the formative indicators. The chapter also elucidates the basic concepts of bootstrapping which is used to examine the statistical significance of estimates in PLS- SEM. An illustration of the assessment of formative measurement model in the SmartPLS follows. Chapter 6 continues the topic on model evaluation by focusing on the assessment of structural model. …

This study aimed to examine the relationship between a consumptive lifestyle and financial self-efficacy on the level of financial well-being of students in Semarang City, placing financial literacy as an intermediary variable. The approach used was quantitative with a survey design, involving 210 active students who were selectively determined through a purposive sampling technique. The data obtained were then analyzed using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with the help of the SmartPLS 3 application. The research findings indicate that financial self-efficacy plays an important role because it is proven to have a positive and significant influence on both financial well-being and financial literacy of students. On the other hand, a consumptive lifestyle also shows a positive and significant influence on financial well-being, but does not have a significant relationship with the level of financial literacy. Furthermore, financial literacy is not proven to have a significant effect on financial well-being and therefore is unable to mediate the relationship between a consumptive lifestyle and financial self-efficacy with financial well-being. From a theoretical perspective, these results confirm that psychological aspects reflected in an individual's self-confidence regarding financial management have a more dominant role than mere knowledge. Therefore, in practice, universities and related parties are advised to not only focus efforts on improving financial literacy, but also develop programs aimed at strengthening students' self-confidence in managing finances wisely and sustainably.

In Depok City, the MSME (Micro, Small and Medium Enterprises) business sector plays an important role in the local economy. However, most MSMEs in the city still face various challenges, including financial access issues and low financial literacy levels. Therefore, financial inclusion and financial literacy have the potential to have a positive impact on the business performance of MSMEs in Depok City. This study aims to test and analyze the effect of financial inclusion and financial literacy with business sustainability as an intervening variable in the MSME business sector in Depok City. This study involved MSME players in Depok City using the Non Probability sampling method with a population of 7911 which was processed using the Slovin formula into 100 research samples. The data were processed using the Partial Least Square- Structural Equation Modeling (PLS-SEM) method. This type of research is quantitative research, using primary data, the findings report that Financial Inclusion affects the Performance and Sustainability of MSME Businesses, Financial Literacy affects the Performance and Sustainability of MSME Businesses, as evidenced by Business Sustainability being able to mediate Financial Inclusion on MSME Performance and Business Sustainability being able to mediate Financial Literacy on MSME Performance. This can be a reference for MSME players to realize the importance of access to banking services to get the best results. finance so that it can improve the performance of MSMEs and their Business Sustainability. Based on the results of this study, many MSMEs continue to survive in their business activities, it is proven that they are able to survive for more than 5 years in Depok City.

This research aims to examine the influence of religiosity, risk tolerance, financial behavior, and locus of control on Sharia investment decisions with financial literacy as a moderating variable. The sample consisted of 200 Islamic capital market investors in Indonesia, selected using convenience sampling. Data analysis used Partial Least Squares Structural Equation Modeling (PLS-SEM). The results of this study state that religiosity, risk tolerance, financial behavior, locus of control, and financial literacy have positive and significant effects on the Sharia investment decision. Financial literacy can moderate the influence of religiosity, risk tolerance, and locus of control on investment decisions. Financial literacy is proven to moderate the relationship between independent variables and Sharia investment decisions, increasing the positive influence of religiosity and financial behavior on investment decisions. This finding indicates that increasing financial literacy can strengthen Sharia investment decisions that are more rational and in accordance with religious principles. The practical implications of this study are important for policymakers to design financial literacy education programs that can improve public understanding of Sharia investment. Financial practitioners can consider religiosity and financial literacy factors in designing investment products that follow Sharia values ​​and can attract more diverse investors.