Investor perception in the triangle of financial awareness, mass media and Islamic finance

This study examines individuals' levels of financial awareness, the impact of mass communication tools, and the reflections of the Islamic finance system on investment decisions. Financial awareness is defined as a process that enables individuals to gain knowledge about financial products, opportunities, and risks. The study highlights that financial awareness facilitates more informed decision-making and contributes to societal welfare. However, the complexity of financial systems and inequalities in access to information limit individuals' levels of awareness. Mass communication tools provide access to financial information while also introducing issues such as misinformation and perception management. Ensuring the accurate dissemination of information through these tools is crucial for guiding investors effectively. Islamic finance offers an alternative approach for Muslim investors with principles such as the prohibition of interest. Nevertheless, the limited applicability of interest-free financing methods and restrictions in capital markets influence investment decisions, particularly in developing countries. The study aims to promote rational investment decisions by enhancing financial awareness and education, improving the role of mass communication tools in information sharing, and expanding the applicability of the Islamic finance system. Ultimately, the dynamics within this triangle are analyzed to understand their impact on investor perceptions, with recommendations provided to enhance both individual and societal financial well-being.