Waqf literacy, trust and subjective well-being: evidence of cognitive bias in cash waqf participation
Hendriansyah Hendriansyah et al.
What the paper says
Purpose This research aims to investigate the effects of waqf literacy, encompassing both subjective and objective aspects, on cash waqf behavior and its subsequent impact on subjective well-being in Indonesia. Design/methodology/approach Using a quantitative methodology featuring structural equation modeling-partial least squares and multigroup analysis, data were gathered from 440 Muslim participants categorized by gender and levels of objective knowledge. Findings The results indicate that subjective knowledge is a significant predictor of trust and waqf behavior, especially among males and individuals with lower objective literacy, implying the existence of cognitive bias aligned with the Dunning–Kruger effect. Cash waqf behavior is also shown to improve subjective well-being, which shows the spiritual and emotional benefits of Islamic charitable acts. Practical implications The findings carry practical implications for waqf institutions, emphasizing the need for demographic-sensitive literacy programs and targeted trust-building initiatives. Recognizing that individuals with different levels of knowledge and gender respond differently, institutions can design inclusive approaches that foster participation. Originality/value This study introduces originality by incorporating cognitive bias theory into the waqf behavior framework, a viewpoint that has been predominantly neglected in prior Islamic finance literature.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.