The Role of Islamic Ethics in Sharia Investment Decision-Making

Siti Afifah salsabila, Tantri Arum, Cut Zahara Salidia Sabrina, Siti Zahra Amelia Putri, Ananda Putri Ariyani, Mutiah Khaira Sihotang

Abstract


This study explores the role of Islamic ethics in the decision-making process of sharia-based investments among Muslim investors and Islamic financial institutions. The objective is to understand how Islamic ethical values—such as the prohibition of riba (usury), the principles of justice, honesty, and transparency—influence the selection of sharia-compliant investment instruments. This research adopts a qualitative method using literature review and analysis of scholarly articles published within the last five years. The findings indicate that Islamic ethics significantly influence investment decisions through mechanisms such as investment screening, risk perception, and levels of Islamic financial literacy. The study concludes that integrating Islamic ethical values into investment practices not only ensures sharia compliance but also promotes sustainable financial systems and enhances investor trust

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References


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DOI: https://doi.org/10.3059/insis.v0i0.27257

DOI (PDF): https://doi.org/10.3059/insis.v0i0.27257.g15054

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