THE BEHAVIOR OF BANKERS TOWARDS PROFIT AND LOSS SHARING CONTRACTS: A Modified Theory of Planned Behavior Approach

This paper aims at determining the psychological factors of bankers in implementing Profit and Loss Sharing (PLS) financing contracts Islamic banks. The phenomenon low occurrence PLS motivated researcher to write this paper. theory modified planned behavior is used explain research problem. data were obtained from 139 employees banks Indonesia processed using SEM-PLS. results show that trust has an effect on attitudes; subjective attitudes norms affect intentions; perceived behavioral control no intention behavior; influences perception inefficiency a negative relationship between behavior. contributes elaboration affecting PLS. implications for designing strategies improve bankers' are: management must boost confidence benefits; stakeholder’s social pressure needed; authority needs be increased; access partner’s financial reports expanded; regulators need give appreciation have larger portfolio.