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Islamic and Conventional Behavioral Finance: A Critical Review of Literature التمويل السلوكي الإسلامي والتقليدي: مراجعة نقدية للأدبيات

Author

Listed:
  • Osman Sayid Hassan Musse

    (PhD Scholar, International Islamic University Malaysia)

  • Abdelghani Echchabi

    (Assistant Professor, Effat University, Jeddah, Saudi Arabia)

  • Hassanuddeen Abdul Aziz

    (Professor, Effat University, Jeddah, Saudi Arabia)

Abstract

The purpose of this study is to critically analyze existing literature on behavioral finance and to draw conclusions and recommendations for future studies in this area. The study is based on a critical review of the literature of Islamic and conventional behavioral finance. The findings reveal that investors are affected by psychological and social factors toward their financial decision-making process with respect to investment and choosing a particular financial product. The paper concludes that Islamic behavioral finance is a relatively new and efforts are needed to advance work in this area compared with the more advanced conventional behavioral finance. Behavioral issues are, however, gaining considerable attention from a broad spectrum of investors, especially those in the Muslim world. تهدف هذه الدراسة إلى تقديم تحليل نقدي للأدبيات الموجودة حول التمويل السلوكي واستخلاص النتائج والتوصيات للدراسات المستقبلية في هذا المجال. تستند الدراسة إلى مراجعة نقدية لأدبيات التمويل السلوكي الإسلامي والتقليدي. وتكشف النتائج أن المستثمرين يتأثرون بعوامل نفسية واجتماعية تجاه عملية اتخاذ القرارات المالية الخاصة بهم فيما يتعلق بالاستثمار واختيار منتج مالي معين. وتخلص الورقة إلى أن التمويل السلوكي الإسلامي جديد نسبيا، وهناك حاجة إلى بذل جهود للنهوض بالعمل في هذا المجال بالمقارنة مع التمويل السلوكي التقليدي الأكثر تقدما. ومع ذلك، فإن القضايا السلوكية بدأت تكتسب اهتماما كبيرا من قبل مجموعة كبيرة من المستثمرين، وخاصة في العالم الإسلامي.

Suggested Citation

  • Osman Sayid Hassan Musse & Abdelghani Echchabi & Hassanuddeen Abdul Aziz, 2015. "Islamic and Conventional Behavioral Finance: A Critical Review of Literature التمويل السلوكي الإسلامي والتقليدي: مراجعة نقدية للأدبيات," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 28(2), pages 237-251, July.
    • Handle: RePEc:abd:kauiea:v:28:y:2015:i:2:no:10:p:237-251
    DOI: 10.4197/Islec.28-2.10
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    References listed on IDEAS

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    Cited by:

    1. Ahmed Hamed Al-Abbadi & Adam Abdullah, 2017. "Modeling Psychology in Islamic Wealth Management," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(10), pages 64-85, October.
    2. Domenico Campisi & Simone Gitto & Donato Morea, 2018. "Shari’ah-Compliant Finance: A Possible Novel Paradigm for Green Economy Investments in Italy," Sustainability, MDPI, vol. 10(11), pages 1-12, October.
    3. Donato Morea & Luigi Antonio Poggi, 2017. "An Innovative Model for the Sustainability of Investments in the Wind Energy Sector: The Use of Green Sukuk in an Italian Case Study," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 53-60.

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