Factor influencing intention to use diminishing partnership home financing / Nurfadhilah Mohd Nor

Diminishing partnership or Musharakah Mutanaqisah is the combination of the concepts of joint ownership and leasing. For example, in the context of home financing; first of all, the customer will enters into a partnership under the concept of joint ownership (Shirkah al-Milk) agreement with the bank. Then, the bank will leases the house to the customer under the concept of leasing (al-Ijarah). Diminishing partnership or Musharakah Mutanaqisah is the new concept introduced by Islamic banking industry for home financing contract as an alternative of the deferred payment sale (Bai' Bithaman Ajil) contract since Bai ' Bithaman Ajil arises many arguments by shariah scholars on how it's contract looks so much like conventional loan and seen as back door riba.This study attempts to examine the acceptance level of a new Islamic home financing concept, diminishing partnership (DP), by consumers in Malaysia using the theory of reasoned action as the guiding principle. Data for this study were collected by means of a self administered survey conducted on 100 post graduate students from Universiti Sains Malaysia (USM). Methodology used for this study is by using cross sectional data that were collected through a survey and analyzed by means of factor analysis, correlation and regression analysis.