Islamic Principles as a Predictor of Investment Behaviour of Muslim Investors in Delhi/NCR

Shweta Goel; Dr. Suchita Dwivedi; Dr. Neha Jain

doi:10.65301/iitm.2019.10.2.528

Articles Volume 10 Issue 2 July-December 2019

DOI 10.65301/iitm.2019.10.2.528

Islamic Principles as a Predictor of Investment Behaviour of Muslim Investors in Delhi/NCR

Authors

Associate Professor, New Delhi Institute of Management, New Delhi Assistant Professor, New Delhi Institute of Management, New Delhi. Assistant Professor, IITM, New Delhi

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Published 2019-07-30

Pages 21-29

Abstract

Investment by Muslim investors should be based upon ‘shariah’ (Islamic Principles). Religious beliefs and practices have an impact on the personal lives of Muslims around the world. This is a little researched area in behavioural finance particularly in India. A research gap was found that whether religious beliefs drive investment decisions of Muslims and to know the extent to which Indian Muslims stick to the Islamic laws of investment. Results of this study state that there is impact of Islamic religious principles on investment behaviour of Indian Muslims but strength of this relationship depends on level of religiosity of individual Muslim investor and influence of other Indian religion prevalent in society on lifestyle of Muslims.

Keywords

Investment Behaviour Religiosity Shariah Islamic laws Muslim investors interest income risk

References

• Anuj, K., & Anuradha, P. (September’ 2015). Determinants of investor’s behaviour- An analytical review. Retrieved from https:// www.researchgate.net/publication/281857609
• Bryman, A. & Bell, E. (2007). Business Research methods, 3e. USA: Oxford University Press.
• Choi, J. S. (2001). Financial crisis and accounting reform: A cultural perspective. Third Asian Pacific Interdisciplinary Research in Accounting Conference. Adelaide, Australia.
• Choi, Y. (2010). Religion, Religiosity and South Korean Consumer Switching Behaviors. Journal of Consumer Behavior, 9, (pp. 157-171).
• Delener, N. (1994). Religious contrasts in consumer decision behaviour patterns: their dimensions and marketing implications European Journal of Marketing, 28(5), (pp. 36- 53).
• Eum, W. (2011). Religion and economic development- A study on religious variables influencing GDP growth over countries. Berkeley, University of California.
• Farhana, T. N., Kim-shyan Fam, & Revti, R. S. (2016). Muslim religiosity and purchase intention of different categories of islamic financial products. Journal of Financial Services Marketing, 21(2), 141-152. doi:http:// dx.doi.org/10.1057/fsm.2016.7
• Goel, S. & Srivastava, R.K. (August, 2016): “Religion as a Determinant of Individual’ Investment Behavior: A Review of Research” Journal of Advanced Management Research, 4(2), 15-32. ISSN 2393-9664.
• Goel, S. & Srivastava, R.K. (March, 2016): “Reliability Analysis of Investment Behavior of Individual Investors among different Religious Groups in NCR” International Journal of Research in Computer Application & Management, 6(3), 69-73. ISSN 2231-1009.
• Goel, S. & Srivastava, R.K. (December, 2016): “Religious Grouping as predictor of Individual Investment Behavior” Review of Management, 6(3). ISSN: 2231-0487.
• Hess, D. W. (2012). The impact of religiosity on personal financial decisions. Journal of Religion & Society, 14.
• Hood, M., Nofsinger, R. J., & Varma, A. (2011). Conservation, discrimination and salvation: Investor’s social concerns in the stock market. ssrn. Retrieved from http://ssrn.com/ abstract=1954895
• Jacob, J., & Haq, Z. Sharia fund put on hold at the eleventh hour. (2014, December 03). Hindustan Times.
• Kaur, M., & Vohra, T. (December 2012). Understanding individual investor’s behaviour: A review of empirical evidences. Pacific Business Review International, 5(6), (pp. 10-18).
• Lakshmeshwar, D. (2010). Truth about Islam: A historical study. New Delhi: Anamika Publishers.
• Evelyn L. Lehrer. (November, 2004). Religion as a Determinant of Economic and Demographic Behavior in the United States. Discussion paper no. 1390.
• NCAER. (2000). Survey of Indian investor households, National Council of Applied Economic Research.
• Nye, M. (2003). Religion: The basics. London: Routledge.
• Radcliffe, R. C. (1997). Investment: Concepts, analysis, strategy. Addison-Wesley.
• Rosen, L. (2002). The culture of Islam: Changing aspects of contemporary Muslim life. Chicago: University of Chicago Press.
• Muhamad, R. & Devi, S.S. (2005). Religiosity and the Malay Muslim investors in Malaysia: an analysis on some aspects of ethical investment decision. Advances in Global Business Research, 3(1), (pp. 197-206).
• Sadler, W. (1970). Personality and religion: The role of religion in personality development. SCM Press Ltd. London.
• Shakeel, M. (2015 , May). Reliogisity effects: Predictors of savings and investment among Muslims in India. International Journal of Research in Commerce & Management, 6(5), (pp. 6-12).
• Tahir Imran, B. M. (2011). Islamic investment behaviour. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), (pp. 116 – 130).
• Tao, S. P., Eric, Y., & Johan, S. (2009). Having faith in your trade: Mutual Fund risk taking and local religious beliefs. U.S.A.
• Wani, M. M. (2006). Contemporary Moral Issues and Islam. (Doctoral thesis). Department of Islamic Studies, Jamia Milia Islamia University, New Delhi.

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How to Cite

Shweta Goel, Dr. Suchita Dwivedi, Dr. Neha Jain . (2019). Islamic Principles as a Predictor of Investment Behaviour of Muslim Investors in Delhi/NCR. IITM Journal of Management and IT, 10(2), 21-29.

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[1] • Anuj, K., & Anuradha, P. (September’ 2015). Determinants of investor’s behaviour- An analytical review. Retrieved from https:// www.researchgate.net/publication/281857609

[2] • Bryman, A. & Bell, E. (2007). Business Research methods, 3e. USA: Oxford University Press.

[3] • Choi, J. S. (2001). Financial crisis and accounting reform: A cultural perspective. Third Asian Pacific Interdisciplinary Research in Accounting Conference. Adelaide, Australia.

[4] • Choi, Y. (2010). Religion, Religiosity and South Korean Consumer Switching Behaviors. Journal of Consumer Behavior, 9, (pp. 157-171).

[5] • Delener, N. (1994). Religious contrasts in consumer decision behaviour patterns: their dimensions and marketing implications European Journal of Marketing, 28(5), (pp. 36- 53).

[6] • Eum, W. (2011). Religion and economic development- A study on religious variables influencing GDP growth over countries. Berkeley, University of California.

[7] • Farhana, T. N., Kim-shyan Fam, & Revti, R. S. (2016). Muslim religiosity and purchase intention of different categories of islamic financial products. Journal of Financial Services Marketing, 21(2), 141-152. doi:http:// dx.doi.org/10.1057/fsm.2016.7

[8] • Goel, S. & Srivastava, R.K. (August, 2016): “Religion as a Determinant of Individual’ Investment Behavior: A Review of Research” Journal of Advanced Management Research, 4(2), 15-32. ISSN 2393-9664.

[9] • Goel, S. & Srivastava, R.K. (March, 2016): “Reliability Analysis of Investment Behavior of Individual Investors among different Religious Groups in NCR” International Journal of Research in Computer Application & Management, 6(3), 69-73. ISSN 2231-1009.

[10] • Goel, S. & Srivastava, R.K. (December, 2016): “Religious Grouping as predictor of Individual Investment Behavior” Review of Management, 6(3). ISSN: 2231-0487.

[11] • Hess, D. W. (2012). The impact of religiosity on personal financial decisions. Journal of Religion & Society, 14.

[12] • Hood, M., Nofsinger, R. J., & Varma, A. (2011). Conservation, discrimination and salvation: Investor’s social concerns in the stock market. ssrn. Retrieved from http://ssrn.com/ abstract=1954895

[13] • Jacob, J., & Haq, Z. Sharia fund put on hold at the eleventh hour. (2014, December 03). Hindustan Times.

[14] • Kaur, M., & Vohra, T. (December 2012). Understanding individual investor’s behaviour: A review of empirical evidences. Pacific Business Review International, 5(6), (pp. 10-18).

[15] • Lakshmeshwar, D. (2010). Truth about Islam: A historical study. New Delhi: Anamika Publishers.

[16] • Evelyn L. Lehrer. (November, 2004). Religion as a Determinant of Economic and Demographic Behavior in the United States. Discussion paper no. 1390.

[17] • NCAER. (2000). Survey of Indian investor households, National Council of Applied Economic Research.

[18] • Nye, M. (2003). Religion: The basics. London: Routledge.

[19] • Radcliffe, R. C. (1997). Investment: Concepts, analysis, strategy. Addison-Wesley.

[20] • Rosen, L. (2002). The culture of Islam: Changing aspects of contemporary Muslim life. Chicago: University of Chicago Press.

[21] • Muhamad, R. & Devi, S.S. (2005). Religiosity and the Malay Muslim investors in Malaysia: an analysis on some aspects of ethical investment decision. Advances in Global Business Research, 3(1), (pp. 197-206).

[22] • Sadler, W. (1970). Personality and religion: The role of religion in personality development. SCM Press Ltd. London.

[23] • Shakeel, M. (2015 , May). Reliogisity effects: Predictors of savings and investment among Muslims in India. International Journal of Research in Commerce & Management, 6(5), (pp. 6-12).

[24] • Tahir Imran, B. M. (2011). Islamic investment behaviour. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), (pp. 116 – 130).

[25] • Tao, S. P., Eric, Y., & Johan, S. (2009). Having faith in your trade: Mutual Fund risk taking and local religious beliefs. U.S.A.

[26] • Wani, M. M. (2006). Contemporary Moral Issues and Islam. (Doctoral thesis). Department of Islamic Studies, Jamia Milia Islamia University, New Delhi.