The Role of Ethical and Moral Perception in Linking Shariah-Compliant Investment, Psychosocial Factors, and Behavioral Change toward Online Gambling

Abstract

The rapid expansion of digital technology has created both opportunities and risks for young adults in managing financial behavior, particularly in the context of Shariah-compliant fintech investment and exposure to online gambling. This study aims to develop and empirically test an integrative Shariah-based framework that positions ethical and moral perception (EMP) as a central mediating mechanism linking psychosocial determinants and religious compliance to mental health and behavioral reform following online gambling exposure. A quantitative cross-sectional survey design was employed, involving 562 Muslim youth across six major regions of Indonesia, selected through stratified purposive sampling. Data were collected via an online questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that perceived behavioral control, risk preference, and Shariah compliance significantly and positively influenced EMP, whereas fintech self-efficacy demonstrated a negative effect, and subjective norms were not significant. EMP strongly predicted both improved mental health and positive behavioral changes toward avoiding online gambling. Mediation analysis confirmed that EMP mediated most of the hypothesized relationships, underscoring its pivotal role in aligning financial behavior with moral standards. The study contributes theoretically by integrating Islamic finance, behavioral ethics, and mental health recovery, while offering practical implications for policymakers, educators, and fintech developers to embed ethical literacy into financial education and digital platforms. Limitations include the focus on Indonesian students, suggesting the need for broader cross-cultural studies and the exploration of additional psychological variables such as self-control, emotional intelligence, and social support.