The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance
This study examines a measurement invariance of a second-order factor model of the behavioral biases in Islamic banking and finance activities among Muslims in Malaysia. Data elicited via a survey questionnaire was subjected to structural equation modeling analysis using the Amos 23.0 software. The...
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| Format: | Article |
| Language: | English English English |
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IIUM Press, International Islamic University Malaysia
2016
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| Online Access: | http://irep.iium.edu.my/54446/ http://irep.iium.edu.my/54446/1/05%20Adewale%20%26%20Haron%20R.pdf http://irep.iium.edu.my/54446/7/54446_The%20behavioral%20biases%20of%20Muslims%20in%20Islamic%20banking%20and%20finance_WoS.pdf http://irep.iium.edu.my/54446/13/54446_the%20behavioral%20biases%20of%20Muslim_scopus.pdf |
| _version_ | 1848784414742413312 |
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| author | Adewale, Abideen Adeyemi Haron, Razali |
| author_facet | Adewale, Abideen Adeyemi Haron, Razali |
| author_sort | Adewale, Abideen Adeyemi |
| building | IIUM Repository |
| collection | Online Access |
| description | This study examines a measurement invariance of a second-order factor model of the behavioral biases in Islamic banking and finance activities among Muslims in Malaysia. Data elicited via a survey questionnaire was subjected to structural equation modeling analysis using the Amos 23.0 software. The study revealed that behavioral biases as a second-order factor is indicated by herding, cognitive
dissonance, anchoring, regret aversion and overconfidence of first order factors. Measurement invariance was tested based on self-reported religiosity across a number of hierarchically structured invariance analysis models, including configural at the first-order level, metric, intercepts, and residuals at both the first-order and
second-order levels. A significant variance was observed between the high and low self-reported religiosity groups. However, no difference was observed between the two groups and the ‘moderate’self-reported religiosity groups. Furthermore, based on the critical ratio score of statistical significance at alpha of 0.001, the latent
mean difference tests of the second-order model indicates statistical significance across groups based on a path-by-path analysis. |
| first_indexed | 2025-11-14T16:36:52Z |
| format | Article |
| id | iium-54446 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T16:36:52Z |
| publishDate | 2016 |
| publisher | IIUM Press, International Islamic University Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-544462017-10-20T09:09:14Z http://irep.iium.edu.my/54446/ The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance Adewale, Abideen Adeyemi Haron, Razali H Social Sciences (General) HG4001 Financial management. Business finance. Corporation finance. This study examines a measurement invariance of a second-order factor model of the behavioral biases in Islamic banking and finance activities among Muslims in Malaysia. Data elicited via a survey questionnaire was subjected to structural equation modeling analysis using the Amos 23.0 software. The study revealed that behavioral biases as a second-order factor is indicated by herding, cognitive dissonance, anchoring, regret aversion and overconfidence of first order factors. Measurement invariance was tested based on self-reported religiosity across a number of hierarchically structured invariance analysis models, including configural at the first-order level, metric, intercepts, and residuals at both the first-order and second-order levels. A significant variance was observed between the high and low self-reported religiosity groups. However, no difference was observed between the two groups and the ‘moderate’self-reported religiosity groups. Furthermore, based on the critical ratio score of statistical significance at alpha of 0.001, the latent mean difference tests of the second-order model indicates statistical significance across groups based on a path-by-path analysis. IIUM Press, International Islamic University Malaysia 2016-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/54446/1/05%20Adewale%20%26%20Haron%20R.pdf application/pdf en http://irep.iium.edu.my/54446/7/54446_The%20behavioral%20biases%20of%20Muslims%20in%20Islamic%20banking%20and%20finance_WoS.pdf application/pdf en http://irep.iium.edu.my/54446/13/54446_the%20behavioral%20biases%20of%20Muslim_scopus.pdf Adewale, Abideen Adeyemi and Haron, Razali (2016) The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance. Al-Shajarah, Special Issue (Islamic Banking and Finance). pp. 87-114. ISSN 1394-6870 |
| spellingShingle | H Social Sciences (General) HG4001 Financial management. Business finance. Corporation finance. Adewale, Abideen Adeyemi Haron, Razali The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title | The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title_full | The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title_fullStr | The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title_full_unstemmed | The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title_short | The behavioral biases of Muslims in Islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| title_sort | behavioral biases of muslims in islamic banking and finance: a second-order self-reported religiosity measurement invariance |
| topic | H Social Sciences (General) HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/54446/ http://irep.iium.edu.my/54446/1/05%20Adewale%20%26%20Haron%20R.pdf http://irep.iium.edu.my/54446/7/54446_The%20behavioral%20biases%20of%20Muslims%20in%20Islamic%20banking%20and%20finance_WoS.pdf http://irep.iium.edu.my/54446/13/54446_the%20behavioral%20biases%20of%20Muslim_scopus.pdf |