IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/68433.html
   My bibliography  Save this paper

Selection Factors of Customer towards Islamic and Conventional Home Financing: A Case Study in Johor, Malaysia

Author

Listed:
  • Abd Jalil, Mohamad Isa
  • Yusoff, Remali
  • Mahmud, Roslinah

Abstract

Malaysia is one of the world financial centres for Islamic finance outside the Middle East. The purpose of the study was to find out the choice criteria for home financing among Malayan Banking Berhad customers which is the biggest bank in Malaysia. 350 of Malayan Banking Berhad home financing products customer among public servants, private sector workers, and self-employment were chosen as respondent. By using the Principal Component Analysis with Varimax Rotation, fourteen independent variables (selection factors) used had been reduced to only three main factors for both Islamic and conventional financing. The Research had found that the “advantage and goodness of products”, the “income and advice from the third party”, and the “lifestyle” were the factors that motivate customer in choosing Islamic home financing. In contrast, the customers prefer conventional home financing because of “products advantage and lifestyle”, “advice from the third party”, and “market performance” as the factors that motivate them to choose conventional home financing.

Suggested Citation

  • Abd Jalil, Mohamad Isa & Yusoff, Remali & Mahmud, Roslinah, 2010. "Selection Factors of Customer towards Islamic and Conventional Home Financing: A Case Study in Johor, Malaysia," MPRA Paper 68433, University Library of Munich, Germany, revised 09 Nov 2011.
    • Handle: RePEc:pra:mprapa:68433
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/68433/1/MPRA_paper_68433.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodney Wilson, 1997. "Economics, Ethics and Religion," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37472-0.
    2. Wilson, Rodney, 1994. "Development Of Financial Instruments In An Islamic Framework," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 2, pages 103-115.
    3. Rodney Wilson, 1989. "The islamic development bank's role as an aid agency for moslem countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 1(4), pages 444-466, October.
    4. Rodney Wilson, 1997. "Economics and Ethics," Palgrave Macmillan Books, in: Economics, Ethics and Religion, chapter 1, pages 1-21, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albino Barrera, 1999. "Economic life, rights, and obligations: Perspectives from theological teleology," Forum for Social Economics, Springer;The Association for Social Economics, vol. 29(1), pages 63-74, September.
    2. Berggren, Niclas & Bjã˜Rnskov, Christian, 2013. "Does religiosity promote property rights and the rule of law?," Journal of Institutional Economics, Cambridge University Press, vol. 9(2), pages 161-185, June.
    3. Katharina Srnka & A. Gegez & S. Arzova, 2007. "Why Is It (Un-)ethical? Comparing Potential European Partners: A Western Christian and An Eastern Islamic Country – On Arguments Used in Explaining Ethical Judgments," Journal of Business Ethics, Springer, vol. 74(2), pages 101-118, August.
    4. Siddiqi, Mohammad Nejatullah, 2006. "Islamic Banking And Finance In Theory And Practice: A Survey Of State Of The Art," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-48.
    5. Amarjit Gill & Harvinder S. Mand & John D. Obradovich & Neil Mathur, 2017. "Influence of meditation on estate planning decisions: evidence from Indian survey data," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-18, December.
    6. Ibrahim Abraham, 2011. "Tensions in Christian Financial Ethics: An Historical Overview," Chapters, in: Mohamed Ariff & Munawar Iqbal (ed.), The Foundations of Islamic Banking, chapter 13, Edward Elgar Publishing.
    7. Kamla, Rania, 2009. "Critical insights into contemporary Islamic accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(8), pages 921-932.
    8. Riaz, Umair & Burton, Bruce & Monk, Lissa, 2017. "Perceptions on Islamic banking in the UK—Potentialities for empowerment, challenges and the role of scholars," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 47(C), pages 39-60.
    9. Clive Beed & Cara Beed, 2004. "Distributional implications of contemporary Judeo-Christian economics," International Journal of Social Economics, Emerald Group Publishing, vol. 31(10), pages 903-922, Septembe.
    10. ., 2014. "Ethics and economics: the Islamic imperative," Chapters, in: Morality and Justice in Islamic Economics and Finance, chapter 3, pages 67-92, Edward Elgar Publishing.
    11. Francisco Climent & Paula Mollá & Pilar Soriano, 2020. "The Investment Performance of U.S. Islamic Mutual Funds," Sustainability, MDPI, vol. 12(9), pages 1-18, April.
    12. Arif ERSOY & Merve Büşra ALTUNDERE-DOĞAN, 2019. "The Main Functions of the State in Islamic Economics: Human Centred Economic Principles," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(39).
    13. Chapra, M. Umer, 2008. "Ethics And Economics: An Islamic Perspective," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 16, pages 1-24.
    14. Bacha, Obiyathulla I., 1997. "Adapting Mudarabah Financing to Contemporary Realities: A Proposed Financing Structure," MPRA Paper 12732, University Library of Munich, Germany, revised Nov 1996.
    15. Shujaat Saleem & Umair Baig & Ieva Meidute Kavaliauskiene & Mehboob Ul Hassan & Fadillah Mansor, 2022. "Attaining Standardization in Islamic Banking Institutions in Pakistan: Analysis on Ijarah Financing," JRFM, MDPI, vol. 15(10), pages 1-14, September.
    16. Wilson, Rodney, 1994. "Development Of Financial Instruments In An Islamic Framework," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 2, pages 103-115.

    More about this item

    Keywords

    Determinants; Home financing; Islamic financing;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:68433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.