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Journal of Business Ethics

, Volume 123, Issue 3, pp 475–491 | Cite as

Western Financial Agents and Islamic Ethics

  • Eddy S. Fang
  • Renaud FoucartEmail author
Article

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.

Keywords

Islamic finance Business ethics Global finance Social psychology Principal component analysis 

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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  1. 1.International Business School SuzhouXi’an Jiaotong Liverpool UniversitySuzhouChina
  2. 2.Department of Economics, Nuffield CollegeUniversity of OxfordOxfordUK

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