The Effects of Return and Risk Perception, Investment Decision, and Intergenerational on Reinvestment Intention to the Islamic Capital Market: Mediation-Moderation Analysis

This study aims at examining the effect of return and risk perceptions, investment decisions, and intergenerational on reinvestment intention to Islamic capital market among investors in Banda Aceh city, Indonesia. Of 20,918 Islamic capital market investors in the city, 125 of them were selected as the research sample using a combination of purposive sampling and proportionate stratified random sampling techniques. The research collected primary data through the distribution of questionnaires and conducted an Analysis Moment of Structural- Structural Equation Modelling (AMOS-SEM). The study found that return perception positively influences investment decision but has no effect on reinvestment intention. Conversely, risk perception has no influence on investment decisions but positively affects reinvestment intention. Unlike investment decisions that fully mediate the return perception-reinvestment intention relationship, while risk perception has no mediating effect. Finally, the study found the intergenerational factors (Baby Boomer, X, Y, and Z) have no moderating role on the relationships between return and risk perceptions on investment decisions. The result indicates that enhancing reinvestment intention in the Islamic capital market requires proper decision making by correctly perceived return and risk regardless intergeneration.