Factors Influencing Investors’ Decision to Invest in Pakistan’s Sukuk Market
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There are several factors which influence investors’ decision to invest in Sukuk market in Pakistan. This study aims to investigate the impact of the most important factors which influence the investors to invest in this market. This study is quantitative in nature. Data was collected from 204 respondents comprising Sukuk investors in Pakistan through a questionnaire. The collected data was analyzed statistically with the help of different tests including correlation and regression. The study found that Sukuk features (SKFR) is the prime factor which influences and encourages the investors to invest. Information about the Sukuk market is generally not available; so, availability of information (AOIN) is insufficient. Religious factor (RLFT) strongly affects investors’ decision because most of the investors prefer to invest in Sharia’h-compliant bonds. Expected returns (EXRT) of Sukuk is also significant because most of the investors are interested to get motivated by good returns. However, reputation of issuers (RPOI) does not strongly affect the investors’ decision to invest in Sukuk market in Pakistan because all issuers presumably have a good reputation. This is a unique study since it discusses the factors which influence the investors’ decision to invest in Sukuk market in Pakistan. The findings of this study indicate that the investors consider the impact of all factors before making their investment decision.
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