Hidayah, Nunung Nurul and Lowe, Alan and Woods, Margaret,(2019), Accounting and pseudo spirituality in Islamic financial institutions. , Critical Perspectives on Accounting, UNSPECIFIED
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Abstract
The global financial crisis was followed by calls for a transformation of conventional
finance, towards more ethico-aesthetic models. One avenue was to consider the alternative
aesthetic of Islamic financial institutions (IFIs). IFIs offer profit-loss sharing (PLS) schemes
as a distinctive spiritual alternative to conventional investment products. IFIs ontotheology
clashes with the epistemology of modern banking and finance. The accounting for PLS creates
tensions due to practical complexity that militates against implementation of the
authentic Islamic financial contracts. This paper seeks to identify the role of accounting
in IFIs’ practice of interpretation to resolve the struggles that have taken place around
the implementation of PLS schemes as a means of spiritual based financial alternatives.
We explore how IFIs use accounting in rendering notions of spiritual/prophetic values
applicable to practice or how it colludes against their implementation. Our study adopts
a qualitative research methodology, framed around 40 interviews and observations of
PLS implementation in IFIs in five Muslim countries in Asia and the Middle East, and one
in the United Kingdom. We combine the literature on accounting and religion with the
ideas/concepts from the literature on religion in organizations, political economy and
Islamic law/finance. These perspectives enable us to better reveal how accounting works
to reinvent spirituality. In our context we show how accounting mediates the conflicting
interests and intentions that arise within the epistemological clashes that happen as the
scared/religious strives to take its place in the capitalistic context of the conventional
finance industry.
Keywords : | Accounting in tensions Profit-loss sharing Pseudo spirituality Religious/spiritual ideals, UNSPECIFIED |
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Journal or Publication Title: | Critical Perspectives on Accounting |
Volume: | 61 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 20 Dec 2019 07:58 |
Last Modified: | 20 Dec 2019 07:58 |
URI: | https://repofeb.undip.ac.id/id/eprint/592 |