Islamic Investment Behaviour

International Journal of Islamic and Middle Eastern Finance

5 Pages Posted: 12 Jul 2011

See all articles by Mark Brimble

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses; Centre for Financial Independence and Education

Imran Tahir

Griffith University - Griffith Business School

Date Written: July, 12 2011

Abstract

In the past decade there has been strong growth in Islamic finance and banking across the globe. This has also been coupled with a movement towards the implementation of Islamic law amongst it adherents. This paper uses an experimental design to investigate the investment behaviours of a group of Muslims. Using Islamic law as guidance we argue that investment in shares is permissible in Islam pursuant to five conditions. Furthermore, we find that the Islam does influence investment behaviour, however the degree to which it does this is influenced by the degree of religiosity of the individual. In addition, we find evidence of ‘western style’ wealth maximisation amongst Muslim investors as well as a desire to consider sustainable investment principles in asset allocations. These findings have implications for investors, financial advisors, and policy makers.

Keywords: Islamic Law, Islamic Investment, Muslim Investors

Suggested Citation

Brimble, Mark and Tahir, Imran, Islamic Investment Behaviour (July, 12 2011). International Journal of Islamic and Middle Eastern Finance, Available at SSRN: https://ssrn.com/abstract=1884000

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses ( email )

University Drive
Logan, Queensland 4131
Australia
(07) 373 55311 (Phone)

Centre for Financial Independence and Education ( email )

Brisbane, Queensland 4111
Australia

Imran Tahir (Contact Author)

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

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