My PhD : IS THE THEORY OF PLANNED BEHAVIOUR VALID FOR ISLAMIC HOME FINANCING?*



Hanudin Amin, 
Ph.D Candidate, IIUM Institute of Islamic Banking and Finance
International Islamic University Malaysia

Abdul Rahim Abdul Rahman
Professor, Kulliyah of Economics and Management Sciences
International Islamic University Malaysia
IIUM Institute of Islamic Banking and Finance

Dzuljastri Abdul Razak
Assoc. Professor, Kulliyah of Economics and Management Sciences
International Islamic University Malaysia

*This topic is part of my PhD study. The idea was generated in 2009 and later in 2011 it was sent for PhD at the IIUM Institute of Islamic Banking and Finance and the work received minor revisions in 2011 to incorporate relevant literature review.

  
Deposited under MPRA

ABSTRACT

This study is aimed at explaining factors influencing the intention amongst bank customers in selecting Islamic home financing that is musharakah mutanaqisah home financing.  Drawing upon the theory of planned behaviour (the TPB), this study proposes a model to examine the effects of three explanatory factors namely attitude, subjective norm and perceived behavioural control on such intention. This study tests the TPB in a context of musharakah mutanaqisah home financing. The model of the study is tested using survey data from 168 bank customers who are respondents of the study. Our results suggest that attitude, subjective norm and perceived behavioural control are significantly influencing the intention to select such facility. The relationship between attitude and subjective norm are also statistically significant. The findings also demonstrate the applicability of the TPB in the musharakah mutanaqisah home financing context.

Keywords: Islamic banking, musharakah mutanaqisah, home financing, survey, mortgage finance, Malaysia