How Islamic Moral Values affect Investment Intentions of Sukuk through the Lens of the Theory of Planned Behavior: The Mediatory Role of External and Internal Behavioral Control, and Empathy, Complemented by Pricing, Rating, and Subjective Pressure from Ulama

Urooj Zehra and Danish Ahmed Siddiqui

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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 (search for similar items in EconPapers)
Date: 2026
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