Exploration of Psychological Theory of Prospect on Investment Decisions among Islamic Investors

Abstract

The purpose conceptual paper researcher wants to explore the psychological theory of prospect (Kahneman & Tversky, 1979), on a new field related to the right investment decisions in Islamic investors. Islam views all human actions in daily life, as an investment that will get a return. The investment results obtained in Islam are in accordance with the amount of resources sacrificed The behavior of a Muslim investor should not be the same as conventional investor behavior, as Muslim investors when investing in saving are not only profit oriented to be gained in the future but also pay attention to the element of ignorance. The Islamic principle of investment activity encompasses at least five aspects, namely: not seeking sustenance on the things that are haram, not tyranny and not destined, justice in the distribution of income, and no element of usury, maysir (gambling, speculation), and gharar (uncertainty) The problem to be studied by the researcher is a social and dynamic problem because it uses) with sequential explanatory design strategy.