Financial literacy, environmental awareness, and Maqasid al-Shari’ah on individual well-being: The mediating role of gold investment decisions among Indonesia’s investors
DOI:
https://doi.org/10.61511/ghde.v2i2.2025.3343Keywords:
financial behavior, individual well-being, Maqasid al-Shari’ah, SGI, sustainable investmentAbstract
Background: The expansion of Islamic finance necessitates aligning financial behavior with religious beliefs and environmental concerns, yet Islamic financial literacy remains insufficient in many Muslim-majority societies. While prior literature suggests that environmental awareness and Maqasid al-Shari’ah principles shape ethical investment preferences, their combined impact on well-being remains underexplored. This study aims to analyze how Islamic financial literacy, environmental awareness, and Maqasid al-Shari’ah influence individual well-being through the mediating role of Shari’ah-compliant gold investment decisions. Methods: This quantitative study employed purposive sampling to recruit 100 Indonesian Muslim investors with investment experience. Data were collected via an online survey using a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the measurement and structural models. Findings: The analysis reveals that financial literacy, environmental awareness, and Maqasid al-Shari’ah significantly influence gold investment decisions (R² = 52.4%) and individual well-being (R² = 42.7%). Maqasid al-Shari’ah emerged as the strongest direct predictor of well-being (t = 5.562). Crucially, gold investment decisions significantly mediate the relationship between all three independent variables and well-being, confirming the theoretical premise that behavioral action translates cognitive and ethical values into welfare outcomes. Conclusion: The study concludes that integrating religious financial capability with environmental ethics significantly enhances both investment uptake and holistic well-being. Novelty/Originality of this article: This research uniquely integrates financial literacy, environmental awareness, and Maqasid al-Shari’ah into a single framework, establishing the novel mediating role of gold investment decisions in enhancing individual well-being, a mechanism previously examined merely in isolation.
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