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Western Financial Agents and Islamic Ethics

Fang, Eddy S.; Foucart, Renaud

Authors

Eddy S. Fang

Renaud Foucart



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.

Journal Article Type Article
Publication Date 2014-09
Journal Journal of Business Ethics
Print ISSN 0167-4544
Electronic ISSN 1573-0697
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Volume 123
Issue 3
Pages 475-491
APA6 Citation Fang, E. S., & Foucart, R. (2014). Western Financial Agents and Islamic Ethics. Journal of Business Ethics, 123(3), 475-491. https://doi.org/10.1007/s10551-013-1850-8
DOI https://doi.org/10.1007/s10551-013-1850-8
Keywords Islamic finance; Business ethics; Global finance; Social psychology; Principal component analysis
Publisher URL https://link.springer.com/article/10.1007/s10551-013-1850-8
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