Table 4

Factor loading and goodness-of-fit test

Panel A: Factor loading from extraction
ItemsFactor loadingCommunalities
12345
SHCONIB
I am willing to accept some loss if the investment opportunity is Sharīʿah-compliant0.721    0.558
I have previously invested in Sharīʿah-compliant products that gave me less return than that of their conventional counterparts0.721    0.550
I have previously tried very hard to find Sharīʿah-compliant investment opportunities0.799    0.676
I have previously refused to invest in conventional investment products that offered me more return than that of their Sharīʿah-compliant counterparts0.738    0.574
I have prohibited my family members and friends from investing in financial instruments which are not Sharīʿah-compliant0.738    0.573
My investment habits are affected by my concern for Sharīʿah- compliance0.585    0.480
AWARE
I know about Ṣukūk 0.793   0.678
I know the term “Sharīʿah-compliant investment” 0.847   0.733
I know the term “Riba” 0.638   0.516
SNL
Government and third-party guarantees are important for making investments in Ṣukūk  0.586  0.472
Tenor of Ṣukūk is important  0.877  0.793
Tradability of Ṣukūk is important  0.854  0.767
SRIB
When there is an alternative available, I always choose the investment opportunity that contributes to economic development   0.872 0.829
When there is an alternative available, I always choose the investment opportunity that plays role in achieving social equity   0.878 0.859
RAT
I am concerned about the rating of the asset of Ṣukūk    0.9220.892
I am concerned about the rating of the Issuer of Ṣukūk    0.9150.883
Eigenvalues4.2752.5651.4641.3241.203 
% of variance26.72116.0309.1538.2727.520
Cumulative %26.72142.75151.90460.17667.696
Panel B: Goodness-of-fit test
SHCONIBAWARESNLSRIBRAT
Collinearity statistics (VIF)1.1261.2571.2141.2801.164 
Durbin–Watson statistics     2.008
R     0.599
R2     0.358
Adjusted R2     0.345
F statistics     26.707*

Note(s):

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

Loadings <0.40 are omitted for clarity

*indicates significance at 99% level of confidence

Source(s): Authors' findings

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