Chapter 8: The Effect of Religion on Financial and Investing Decisions

Investor Behavior: The Psychology of Financial Planning and Investing. H. Kent Baker and Victor Ricciardi, editors, 135-151, Hoboken, NJ: John Wiley & Sons, Inc. , 2014.

Posted: 9 Jun 2014

See all articles by Walid Mansour

Walid Mansour

University of Sousse

Mouna Jlassi

University of La Manouba in Tunisia

Date Written: February 10, 2014

Abstract

Religion has a major impact on people’s daily life and is closely connected with their economic condition. The purpose of this chapter is to discuss the connection between religion and economic factors and to show how religion affects investment and financing decisions. It focuses on this interplay by emphasizing various corporate and personal facets. For instance, the chapter analyzes the effect of religious beliefs on investors’ preferences, risk perception, ethical values, and psychological behavior. This aspect is often missing in academic finance including the behavioral paradigm. Furthermore, the chapter discusses how religious beliefs can conflict with financial theory involving making financial and investing decisions.

Keywords: Religion, socially responsible investment, individual investment decision, investor psychological behavior, corporate finance, behavioral finance, financial psychology, behavioural finance, behavioral economics, behavioural economics

JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41

Suggested Citation

Mansour, Walid and Jlassi, Mouna, Chapter 8: The Effect of Religion on Financial and Investing Decisions (February 10, 2014). Investor Behavior: The Psychology of Financial Planning and Investing. H. Kent Baker and Victor Ricciardi, editors, 135-151, Hoboken, NJ: John Wiley & Sons, Inc. , 2014. , Available at SSRN: https://ssrn.com/abstract=2443296

Walid Mansour (Contact Author)

University of Sousse ( email )

Sousse
Sousse, 5000
Tunisia

Mouna Jlassi

University of La Manouba in Tunisia ( email )

Campus Universitaire de la Manouba
Manouba, 2010
Tunisia

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