Islamic Economic Values and Self-Reported Prudential Transaction Behaviour: Risk Appraisal in Student Communities

Abstract

This study examines how Islamic Economic Values (IEV) are associated with Risk Assessment (RA) and self-reported Prudential Transaction Behaviour (PTB) among students participating in Islamic economics learning communities. A cross-sectional survey covered 146 purposively selected respondents from a reported FoSEI-affiliated student frame of 226 in 2025. Reflective indicator loadings, latent correlations and PLS-SEM path summaries are assessed for numerical and conceptual coherence. The reported path coefficients are positive for IEV–RA (β = 0.581), IEV–PTB (β = 0.271) and RA–PTB (β = 0.512), with a product term of 0.298. Recalculation from displayed outer loadings gives AVE values of 0.691, 0.654 and 0.686 for IEV, RA and PTB. The published IEV–RA correlation (0.602) differs from its single-predictor path coefficient, restricting joint inference without the underlying model outputs. The study distinguishes Shariah-compliance screening, monetary risk appraisal and self-reported caution, while specifying the inferential limits of a single-wave value–risk-orientation model. The findings inform differentiated financial education within comparable Islamic economics communities.