Accountability and the Enforcement of Ethical Values in Finance: Insights from Islamic Finance

Lai, Jikon

doi:10.1111/1467-8500.12108

Cited by 5 publications

(4 citation statements)

References 35 publications

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“…Such decisions not only have massive financial repercussions, they also may have strong political consequences. Some criticisms of the CRAs is their lack of transparency (Tichy et al, 2011 ), delays in issuing risk perception (White, 2010 ), self-interest with a focus on profitability (Lai, 2014 ) but without considering the negative impact on society, such as youth unemployment, but the need to hold them accountable (Iglesias-Rodríguez, 2016 ; Kavas & Kalender, 2014 ), and the need to, but inability to, regulate them to eliminate their conflicts (Bayar, 2014 ; Vousinas, 2015 ). Regulation may be difficult since global governance is increasingly becoming decentralized (Luckhurst, 2018 ).…”

Section: What Possible Risks Exist With Crss?mentioning

confidence: 99%

A credit-like rating system to determine the legitimacy of scientific journals and publishers

et al. 2021

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The predatory nature of a journal is in constant debate because it depends on multiple factors, which keep evolving. The classification of a journal as being predatory, or not, is no longer exclusively associated with its open access status, by inclusion or exclusion on perceived reputable academic indexes and/or on whitelists or blacklists. Inclusion in the latter may itself be determined by a host of criteria, may be riddled with type I errors (e.g., erroneous inclusion of a truly predatory journal in a whitelist) and/or type II errors (e.g., erroneous exclusion of a truly valid scholarly journal in a whitelist). While extreme cases of predatory publishing behavior may be clear cut, with true predatory journals displaying ample predatory properties, journals in non-binary grey zones of predatory criteria are difficult to classify. They may have some legitimate properties, but also some illegitimate ones. In such cases, it might be too extreme to refer to such entities as “predatory”. Simply referring to them as “potentially predatory” or “borderline predatory” also does little justice to discern a predatory entity from an unscholarly, low-quality, unprofessional, or exploitative one. Faced with the limitations caused by this gradient of predatory dimensionality, this paper introduces a novel credit-like rating system, based in part on well-known financial credit ratings companies used to assess investment risk and creditworthiness, to assess journal or publisher quality. Cognizant of the weaknesses and criticisms of these rating systems, we suggest their use as a new way to view the scholarly nature of a journal or publisher. When used as a tool to supplement, replace, or reinforce current sets of criteria used for whitelists and blacklists, this system may provide a fresh perspective to gain a better understanding of predatory publishing behavior. Our tool does not propose to offer a definitive solution to this problem.

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Section: What Possible Risks Exist With Crss?mentioning

confidence: 99%

A credit-like rating system to determine the legitimacy of scientific journals and publishers

et al. 2021

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“…Indeed, over time, the industry developed a complex system of governance to ensure that the features of Islamic finance are preserved. Malaysia was a pioneer in this regard (Lai, 2015b). However, as identified in this article, market practices in recent years might have undermined the promise of Islamic finance.…”

Section: Securitisation and Financialisation And The Promise Of Islamic Financementioning

confidence: 99%

Financialised ethics, economic security and the promise of Islamic finance

Lai

2021

Asian Journal of Comparative Politics

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The character and state of a financial system are important contributing factors to the performance, stability and security of any economy, something which has been repeatedly demonstrated during times of financial crisis. While assessments of earlier financial crises tended to focus on shortcomings in the governance of financial sectors, not least when crises occurred in the developing world, many have noted issues with the moral character of the industry, and the attendant processes of securitisation and financialisation, in the wake of the transatlantic financial crisis of 2007–2008. Against these recent criticisms, Islamic finance was pitched as a more ethical, stable and secure alternative. Although the ideas that inform the development of Islamic finance might hold the promise of a more ethical alternative to conventional finance, the industry itself has not been immune to processes of financialisation and securitisation, which have arguably undermined the market's initial promise.

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“…Yet, evidence suggests that the volume of ethics research published in finance has remained at a low constant rate since the late 1980s. Bernadi et al (2008) This is not to conclude that there are no applications of ethical theory to the field of finance, in for example areas such as policy discussions of regulation and supervision and the rights and duties in financial contracts (Lai, 2014). A steady trickle of articles within ethics and finance journals has applied ethics concepts to the professional practice of finance.…”

Section: To What Extent Do Practitioners Make Use Of Academic Research?mentioning

confidence: 99%

Why does research in finance have so little impact?

Brooks

Fenton

Schopohl

et al. 2019

Critical Perspectives on Accounting

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The quantity of finance research has grown enormously over the past two decades, yet questions remain over its breadth and ability to benefit the economy and society beyond academia. Using multisource data, we argue that individual and institutional incentives have fostered insularity and a consequent homogeneity in the discipline. We examine the characteristics of research that is published and cited in the leading field journals in finance, arguing that the work has become abstract and unrelated to real world issues. The work published in the 'top' journals makes increasing use of US data, even where the researchers are drawn from different countries. Using information from impact assessment, publication patterns, and grant capture, we illustrate that this narrow agenda lacks relevance to the financial services sector, the economy or wider society compared to other areas of business and management research. In particular, we highlight the relative absence of research on ethics in academic finance and discuss the likely consequences for the discipline including its relevance to society. P a g e | 1 citation database of peer-reviewed academic studies, 4 and funding data from the Economic and Social Research Council (ESRC, the main UK government funding body for social science research).The two UK research evaluation exercises both provided a panel-based assessment of the 'quality' of research undertaken by UK higher education institutions separately for each subject (referred to as a panel, or more accurately in RAE / REF parlance as a sub-panel). Data from the RAE2008 and REF2014 provide snapshots at those specific points in time of the panels' assessments of the 'quality' of work being undertaken in UK universities over the previous six years in each case (2002-2007 and 2008-2013 respectively). The RAE / REF only take place periodically and thus data are only available for these specific intervals. While the work being assessed comprises publications in (peer-reviewed) journals, monographs, book chapters and working papers, our analysis concentrates on those outputs submitted to the RAE/REF that represent publications in peer-reviewed journals. The nature and purpose of the RAE and REF are summarised nicely in Brooks et al. (2014, p. 991): 'The RAE [and REF are] evaluation[s] of the 'quality'

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Accountability and the Enforcement of Ethical Values in Finance: Insights from Islamic Finance

Cited by 5 publications

References 35 publications

A credit-like rating system to determine the legitimacy of scientific journals and publishers

A credit-like rating system to determine the legitimacy of scientific journals and publishers

Financialised ethics, economic security and the promise of Islamic finance

Why does research in finance have so little impact?

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