2009-10: Libyan Business Firm Attitudes towards Islamic Methods in Finance (Working paper)

Loading...
Thumbnail Image
File version
Author(s)
Worthington, Andrew C.
Gait, Alsadek H.
Griffith University Author(s)
Primary Supervisor
Other Supervisors
Editor(s)
Akimov, Alexandr
Date
2009
Size
16 pages
File type(s)
Location
License
Abstract

This paper investigates the attitudes of Libyan business firms towards Islamic methods of finance. A sample of 296 firms is surveyed using phone interviews during December 2007 and January 2008 to gather information on their awareness and perceptions of Islamic finance. The results indicate that most firms have knowledge about the existence of Islamic banking and finance, while more than two-thirds of respondents know the specific products of Musharakah (full-equity partnerships) and Quard Hassan (interest-free benevolent loans), often through personal informal lending. However, many respondents are uninformed regarding most other Islamic financing methods. Factor analysis is used to reduce the large number of explanatory variables used to determine business firm attitudes to just four determinants: namely, religion, profitability, business support, and unique services. Discriminant analysis shows that religion remains the primary motivation for the potential use of Islamic finance among business firms in Libya.

Journal Title
Conference Title
Book Title
Edition
Volume
Issue
Thesis Type
Degree Program
School
Publisher link
DOI
Patent number
Funder(s)
Grant identifier(s)
Rights Statement
Rights Statement
Copyright © 2010 by author(s). No part of this paper may be reproduced in any form, or stored in a retrieval system, without prior permission of the author(s).
Item Access Status
Note
Finance
Access the data
Related item(s)
Subject
G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
L20 - Firm Objectives, Organization, and Behavior: General
O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Islamic methods of finance
Islamic banking
Business attitudes and perceptions.
Persistent link to this record
Citation
Collections