|
on Islamic Finance |
| By: | Zehra, Urooj; Siddiqui, Danish Ahmed |
| Abstract: | This study investigates sukuk investment behavior through the lens of the Theory of Planned Behavior (TPB), integrating Islamic ethical principles to understand the factors influencing individuals' intentions to invest in sukuk. The research first examines the impact of Islamic moral values on Empathy, while assessing the mediating roles of internal behavioral control (IBC), and external behavioral control (EBC), At the same time the onwards effect of empathy on investment intentions (niyyah) was established. Employing an Islamic behavioral framework, the study delves into how these psychological constructs shape ethical investment behavior. Subsequently, it explores the moderating effects of market-related factors-sukuk pricing, rating, and ulama influence-on the relationship between these behavioral variables and investment intentions. Data were collected from 700 clients across Meezan Bank and other institutions in the Islamic banking sector. Using Partial Least Squares Structural Equation Modeling (SmartPLS), the findings reveal that Islamic moral values, empathy, IBC, and EBC significantly drive sukuk investment intentions. Empathy and behavioral control serve as key mediators in the relationship between Islamic values and investment behavior. Among the moderating factors, ulama pressure and sukuk pricing notably strengthen the ethical and financial appeal of sukuk investments, whereas sukuk ratings demonstrate a relatively weak influence, possibly due to limited awareness or skepticism regarding rating credibility. The study contributes to the understanding of ethical investment behavior in Islamic finance and offers strategic implications for promoting sukuk through moral, behavioral, and market-based interventions. |
| Keywords: | Sukuk, Theory of Planned Behavior, Islamic Moral Values, Niyyah, Empathy, Internal Behavioral Control, External Behavioral Control, Ulama Influence, Sukuk Pricing, Sukuk Rating, Ethical Investment, Islamic Finance |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341022 |
| By: | Ahmed, Syed Azfar; Siddiqui, Danish Ahmed |
| Abstract: | The research analyzes factors that drive Pakistani Islamic banking customers to adopt Sharia compliant credit cards. The research analyzes how Islamic financial knowledge and perceived usefulness interact with loyalty, religiosity, and management knowledge through the Theory of Planned Behavior and the Technology Acceptance Model to affect consumer attitudes and behavioral intentions. A structured questionnaire yielded data from 267 participants through convenience sampling. Analysis of collected data used Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS. Knowledge of Islamic financial principles alongside effective knowledge management positively influences customer attitudes as well as their intentions to use Islamic credit cards. The statistical analysis confirmed perceived usefulness together with customer loyalty status as essential factors leading to positive attitudes. Religious preferences showed the opposite influence because they strengthened both customer loyalty and useful perception but reduced adoption intent. Perception of Islamic financial practices showed no direct relationship to adoption intention even though researchers expected it would have an influence. This indicates customers have been prioritizing functionality and trust-based factors above religious aspects. The research findings deliver concrete recommendations for Islamic financial institutions to improve product adoption by educating consumers along with clear product disclosure and individualized support. The study advances theoretical elements through a combination of behavioral and ethical finance approaches that question religious sentiment as the sole factor driving Islamic finance product acceptance. The study supports extensive goals that promote financial inclusion and ethical banking practices for Muslim-majority societies by encouraging institutions to meet changing consumer demands. |
| Keywords: | Intention to Adopt Islamic Finance, Attitude Towards Islamic Finance, Knowledge Management, Loyalty, Loyalty, Perceived Usefulness, Religious Preferences, Knowledge Of Islamic Financial System, Perception of Shariah Compliance |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341010 |
| By: | Rasheed, Umer; Siddiqui, Danish Ahmed |
| Abstract: | This research study examines profitability factors in Pakistani Islamic banks by assessing how different financing approaches affect bank financial outcomes. We contend that financing models affect performance directly, as well through credit risks, capital levels, and cost efficiency. This research seeks to address existing gaps in the literature regarding how these factors work together within Pakistan's Islamic banking sector. Research data about seven major Islamic banks between 2013-2023 was obtained through quantitative analysis of annual financial reports. The banking performance is measured through Return on Assets (ROA) and Return on Equity (ROE). The research investigates three main financing approaches including Profit-Sharing Financing (PSF) which includes Mudharbah, and Musharkaha, Profit-Margin Financing (PMF) which includes Murabaha, and Ijarah, and Istisna (IST). The direct effect of these three approaches on ROA and ROE, as well as on Credit Risk (CR), Capital Adequacy Ratio (CAR), and Cost Efficiency (CE) was measured. Furthermore, the onward effect of CR, CAR, and CE is assessed on both ROA and ROE. The results showed that Profit-Sharing Financing negatively affects both ROA and ROE. However, Profit-Margin Financing generates a positive effect for both metrics. Istasna seems to positively affect ROE, but its impact on ROA remained inconclusive. Similarly, PSF positively affects CR, and CE, whereas PMF seems to have a negative effect on both. IST doesn't seem to have any significant effect on both CR and CE. Moreover, the effect of all three financing on CAR and its onward effect on ROA and ROE remained inconclusive. CR doesn't seem to have any significant effect on both ROA and ROE. However, CE seems to positively affect ROE, but not ROA. The research implies that Pakistani Islamic banks should achieve optimal financial strategy balance through enhanced PMF usage and better cost control systems. The authors suggest implementing better risk management systems alongside stronger capital reserves to enhance profitability as well as financial stability. The results of this study advance the understanding of profitability in Islamic banks operating in emerging markets while providing useful knowledge for Islamic finance policymakers and executives as well as researchers in this field. Future academic studies should analyze the extended effects of these financing structures along with the way fintech contributes to profit growth. |
| Keywords: | Islamic banks, profitability, financing modes, credit risk, cost efficiency, capital adequacy ratio |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341021 |
| By: | Khan, Hamza M Abdul Mateen; Siddiqui, Danish Ahmed |
| Abstract: | The unceasing rate of technical advancement that defines the digital era has made a major impact on the direction of the financial industry. One of the fastest-evolving technologies in the world is artificial intelligence. This study examined the relationship between TAM constructs and through an extension of the Technology Acceptance Model (TAM) with perceived risk, perceived trust, and perception of Shariah compliance as moderators, examined the adoption of artificial intelligence (AI) in Islamic banking. We proposed users' Perceived ease of use (PEOU), Awareness towards AI (AWS), and subjective norms (SN) affect perceived usefulness (PU), which in turn affect attitude towards AI (ATT). A positive attitude leads toward behavior intentions (BI) and ultimately continued intention (CI). We also contend that perceived risk of AI (PR), perceived trust in AI (PT), and perception of Shariah compliance (SCP) moderate the effect of PEOU, AWS, SN and PU on ATT, the effect of ATT on BI, and the effect of BI on CI respectively, in a way that higher level of PR, PT, and SCP will make these relationships stronger. This study is carried out as a quantitative, explanatory research technique, statistical data was collected from banking service users through a standardized questionnaire using an online platform in a cross-sectional temporal horizon. The literature is supported by online publications. A total of 350 respondents made up the study's sample size. SmartPLS was used for statistical analysis. The study's empirical findings clarify that all 9 direct hypotheses; perceived ease of use, awareness of AI, subjective norm, and perceived usefulness; all positively impact attitudes, behaviors, and continuance intentions to use AI in the banking industry. The analysis also revealed that all of the 18 moderators' hypotheses from the extension of constructs from the TAM framework, including perceived risk, perceived trust, and Shariah compliance perception, were disproved suggesting that users do not give religious judgment, risk perception, or degree of trust much thought while deciding whether to keep utilizing AI technology in the Islamic banking sector. The conclusions point to the importance of raising acceptability and adoption in Islamic banking by utilizing social influence, raising awareness, and easy-to-use AI solutions. The report provides valuable recommendations to policymakers and practitioners who wish to implement AI technology in a customer-oriented manner, alongside contributing to the growing literature on AI in banking. |
| Keywords: | Perceived Ease of Use (PEOU), Awareness of AI (AW), Subjective Norm (SN), Perceived Usefulness (PU), Attitudes towards AI (ATT), Behaviors Intension (BI), Continuance Intentions (CI), Shariah compliance perception (SCP), Perceived Risk (PR), Perceived Trust(PT), Partial Least Squares Structural Equation Modelling (PLS-SEM) |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341085 |
| By: | Jawad, Syed Muhammad; Siddiqui, Danish Ahmed |
| Abstract: | This study explored how religiosity affects the purchase behavior of Pakistan's takaful industry. We contend that Religiosity (RG) increases the knowledge of Riba (KR) this will in turn highlight the risk of Riba (PR). This will build trust (TT) and attitude towards takaful (ATT). TT and ATT along with Subjective Norms (SNM) and Behavioral control (BC) increase the purchase intention towards Takaful (PI), which ultimately leads to Purchase Behavior (PB). The target population for this study includes consumers who are either takaful customers or those who have some level of awareness of those products in Karachi, Pakistan. The study collected 296 responses through purposive sampling and analyzed data using PLS-SEM. The results show that religiosity positively influences knowledge about Riba, trust in takaful, attitude towards takaful, subjective norms, behavioral control, purchase intention, and purchase behavior towards takaful. Knowledge about Riba affects the perceived risk of Riba and attitude towards takaful. Perceived risk of Riba negatively impacts trust in takaful, attitude, intention, and behavior. Trust in takaful positively influences attitude, subjective norms, behavioral control, intention, and behavior. Attitude towards takaful affects subjective norms, behavioral control, intention, and behavior. Subjective norms influence behavioral control, intention, and behavior, while behavioral control positively impacts purchase intention, which in turn influences purchase behavior. Purchase intention mediates the relationship between all factors and purchase behavior. The study has recommended that managers should focus on enhancing trust, knowledge, and positive attitudes towards takaful to strengthen consumer intention and behavior while addressing perceived risks to improve overall engagement. |
| Keywords: | Family Takaful, Theory of Planned Behavior, Trust-Commitment Theory, Pakistan, PLS-SEM |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341020 |
| By: | Soomro, Zainab; Siddiqui, Danish Ahmed |
| Abstract: | The study explored how customers' inclination toward different religious intentions affects their intention to adopt Green Banking. We proposed the sources of intentions behind religious commitment namely 1. Ideological, 2. Ritualistic, 3. Intellectual, 4. Consequential, and 5. Experimental affect consumer intention through increasing consumer eco-consciousness. We also contend that Security and Privacy augment these effects in a way that a higher level of security would make the effect of these sources on consumer eco-consciousness more pronounced. Moreover, the effect of eco-consciousness on green banking is augmented by Customer Awareness and System Quality. The target population for this research was green banking consumers in Karachi, Pakistan, with 311 responses collected using a non-probability purposive sampling technique. Data analysis was conducted using PLS-SEM. The results have shown that consumer eco-consciousness significantly affects consumer intention to adopt green banking, whereas the intellectual dimension has a positive and significant effect on eco consciousness. Hence Consumer eco-consciousness mediates the relationship between the intellectual dimension and consumer intention to adopt green banking. The moderation effect showed a significant positive complementarity of systems quality in the effect of eco consciousness on green banking. Managers should focus on enhancing consumer eco consciousness and system quality, as these significantly influence the intention to adopt green banking while ensuring security, privacy, and customer awareness are prioritized in a way that supports green banking adoption. |
| Keywords: | Religious Commitment, Eco-Consciousness, Technology Acceptance Model, Theory of Planned Behavior, Green Banking. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:341023 |