Scintific Journal of "Islamic Finance Researches" (IFR)

Investigating the Causes of Non-Acceptance and Innovation Diffusion in Islamic Financial Instruments in Iran's Capital Market

Document Type : Paper

Authors

1 Ph.D. Student of Financial Management, Faculty of Islamic Studies and Management, Imam Sadiq University

2 Assistant Professor at Department of Finance, Faculty of Islamic Education and Management, Imam Sadiq University, Tehran, Iran.

3 Assistant Professor at Stevens Institute of Technology, New Jersey, USA

Abstract

In this paper, after a quick review of a summary of the financial innovation diffusion literature, with an emphasis on modern Islamic financial instruments, we address the process of Islamic financial innovation diffusion in Iran's capital market, as well as focusing on the categorization of the barriers of promotion and diffusion of modern Islamic financial instruments with providing some relevant examples.  Then, according to the literature of adopting innovations and the author's practical experiences, we examine how to consider the Islamic Jurisprudence and Sharia viewpoint on the structure, components, and effects of a new financial instrument in the capital market. In this paper, we have emphasized the local design or institutional approach in Islamic financial innovations which is paid less attention by Islamic financial scholars and financial operations managers. The presented approach has some differences from the current Sharia Compliance approach in Iran's Islamic capital market, although it may include methods of eliminating jurisprudential contradictions in conventional financial instruments.

Keywords

روزنهد، جاناتان و جان مینجرز (1392). مدلسازی نرم در مدیریت، مترجمان: عادل آذر و علی انوری، تهران: نگاه دانش.
طباطبایی، محمدحسین (1388). انسان از آغاز تا انجام، مترجمه: صادق آملی‌لاریجانی و به کوشش هادی خسروشاهی، قم: بوستان کتاب.
مصباحی‌مقدم، غلامرضا، حمیدرضا اسمعیلی‌گیوی و علیرضا ناصرپور (1389). «ارائه مدل مفهومی شاخص‌های موفقیت قراردادهای آتی پیشنهادی در بازار سرمایه جمهوری اسلامی ایران»، جستارهای اقتصادی، دوره 7، شماره 13، 45-72.
میلز، پاول و جان پرسلی (1382). ملاحظاتی در ابزارهای تأمین مالی در اسلام؛ نظریه و عمل، مترجمان: یدالله دادگر، سیداسحق علوی، قم: دانشگاه مفید.
نیکومرام، هاشم و حسین نزاکتی‌علیزاده (1384). «ارزیابی نظریه بسط و گسترش نوآوری‌ها در ارتباط با زمان پذیرش مصرف‌کنندگان صنایع الکترونیک»، آینده پژوهی مدیریت، شماره 67، 41-54.
Akhavein, J., Frame, W. S., & White, L. J. (2005). The Diffusion of Financial Innovations: An Examination of the Adoption of Small Business Credit Scoring by Large Banking Organizations. The Journal of Business, 78(2), 577-596.
Allen, F., & Gale, D. (1991). Arbitrage, Short Sales, and Financial Innovation. Econometrica: Journal of the Econometric Society, 1041-1068.
Ang, J. B., & Kumar, S. (2014). Financial Development and Barriers to the Cross-Border Diffusion of Financial Innovation. Journal of Banking & Finance, 39, 43-56.
Black, D. G. (1985). Success and Failure of Futures Contracts: Theory and Empirical Evidence (Doctoral Dissertation, Salomon Brothers Center for the Study of Financial Institutions, Graduate School of Business Administration, New York University).
Bofondi, M., & Lotti, F. (2006). Innovation in the Retail Banking Industry: the Diffusion of Credit Scoring. Review of Industrial Organization, 28(4),
343-358.
Chu, W. (2008). Diffusion of Innovation: the Case of Mobile Communications in Taiwan.
Elul, R. (1995). Welfare Effects of Financial Innovation in Incomplete Markets Economies With Several Consumption Goods. Journal of Economic Theory, 65(1), 43-78.
Fabozzi, F. J. (Ed.). (2008). Handbook of Finance, Financial Markets and Instruments (Vol. 1). John Wiley & Sons.
Scintific Journal of
Volume 7, Issue 2 - Serial Number 14
May 2018
Pages 277-308
  • Receive Date: 05 August 2016
  • Accept Date: 08 January 2017