The purpose of this study is to investigate whether religious prohibitions have a significant impact on the propensity to invest in foreign securities. We do this by exploring the effect of the Islamic prohibition of interest, which as we hypothesize, should impact the level of investment in...

The concept of "employee happiness" has received much research attention within the framework of Western values, but the equivalent concept has not been explored in the context of other cultures and religions, such as the Islamic context of Pakistan’s banking sector. This study examines the...

This study examines the effect of formal institutions, specifically constitutional provisions, on minority discrimination in Muslim societies. We hypothesize that those Muslim countries in which (political) Islam constitutes an important constraint in the legislative process experience more...

Faith-based mutual funds have recently become a growing corner of the mutual fund industry, where morality and ethics is thought to exert an influence on investors’ decisions. While Islamic funds have grown, it is not entirely clear whether investors are drawn to these funds due to their own...

Internet resources, extended media coverage and international organizations' reports recently witness the increasing interest of western banks in new models of finance, particularly Islamic finance and microfinance. This new trend is not only channeled through the frame of corporate social...

This paper explores the significance of Islamic banking in Malaysia for stability in the country's economy as a whole. Neither conventional theory nor Islamic economics puts forward a systematic explanation of financial intermediation; consequently, neither is capable of identifying...

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside of distress situations. We test and confirm this...

In Against the gods: the remarkable story of risk (1996), Peter L. Bernstein illustrates how the mastery of risk has driven modern Western society into converting 'the future from an enemy into an opportunity'. Far from being an antagonist, as the unpredictable whim of gods or mysterious fate,...