Western Financial Agents and Islamic Ethics

Eddy Fang and Renaud Foucart

Journal of Business Ethics, 2014, vol. 123, issue 3, 475-491

Abstract: This paper investigates Western professional bankers’ perceptions of Islamic finance. Exploiting data from an original survey, we carry out a principal component analysis (PCA) to characterize the main dimensions on which financial agents diverge. The PCA extracts five dimensions—accounting for 61 % of the variance in the agents’ answers—that we interpret with the help of a pilot field survey. In addition to confirm the increased association of Islamic financial values with ethical practices in the West, our results allow us to understand how the observed growth of the industry has been conceptualized by conventional agents. The five dimensions identified shed light on the multitude of constructs that have informed the diffusion of Islamic financial ideas to international markets. This supports the fact that Islamic finance cannot be seen as a single movement but is characterized by opposing and concurrent logics in global markets. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Islamic finance; Business ethics; Global finance; Social psychology; Principal component analysis (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10551-013-1850-8

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