Purpose This study aims to investigate the influence of environmental ethical awareness and risk aversion on perceived ethical investment value and consumer behavior in Shariah-compliant gold investment (SGI) while examining the mediating role of perceived ethical investment value and the subsequent impact on religious satisfaction. Design/methodology/approach A quantitative research design was used, using data collected from 347 Indonesian Muslim investors actively engaged in SGI. A structured questionnaire measured environmental ethical awareness, risk aversion, perceived ethical investment value, consumer behavior in SGI and religious satisfaction. Data were analyzed using partial least squares structural equation modeling to assess both measurement and structural models, including path coefficients, model fit and explanatory power. Findings The results indicate that both environmental ethical awareness and risk aversion significantly influence perceived ethical investment value, which, in turn, strongly predicts consumer behavior in SGI. However, neither environmental ethical awareness nor risk aversion directly impacts consumer behavior without the mediating effect of perceived ethical investment value. Furthermore, consumer behavior in SGI positively predicts religious satisfaction, highlighting the spiritual significance of ethically aligned investment decisions among Muslim investors. Practical implications The findings suggest that Islamic financial institutions should emphasize the ethical and environmental value of SGI products to enhance investor engagement. Marketing strategies and educational initiatives should target risk-averse and ethically conscious consumers by highlighting both Shariah compliance and environmental responsibility. Policymakers should consider frameworks that integrate ESG standards with Islamic investment principles. Originality/value This study contributes to the limited literature on behavioral drivers of SGI by integrating environmental ethics, risk psychology and perceived investment value into a unified model. It extends understanding of how ethical and religious motivations converge in shaping consumer behavior in Islamic finance, offering novel insights into the multidimensional nature of ethical investment decisions.
Anwar et al. (2025) studied this question.