IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v7y2017i2p686-699.html
   My bibliography  Save this article

The Determining Factors for Muslim Household Deemed Ideal to be in Debt: Proposed Conceptual Framework

Author

Listed:
  • Hainnur Aqma Rahim

Abstract

The dependency of Malaysia towards the debt industry has made the trend of growth of household debt according to the ratio of household debt to the Gross Domestic Production (GDP) in 2015 to have reached a level that is more than 89.1 percent compared to 86.8 percent in the previous year and further increased to 89.9 percent in 2016. Such an increase has placed Malaysia at the highest rank, as a country with the highest growth rate of household debt in Asia and the trend of the household debt growth has seen the high-income group becoming the largest contributor to the increased rate of household debt compared to the middle and low income counterparts. Other than that, Islam has established a guideline on debt-making, implying that the Malay ethnic (or Muslims in specific) should stay being moderate and should not face the issue of debt. However, cases on debt practice have shown some opposing findings. The question is what are the determining factors for a Muslim household that is deemed ideal to be in debt? How is the factor of Religious Adherence determining the high income Muslim household to start making debts? Therefore, this study seeks to contribute to the relevant past literature and establish a conceptual framework that determines the ideal household to make debts by integrating the intrinsic determinants with the extrinsic determinants and further elaborates on the methodology that will be used in this work.

Suggested Citation

  • Hainnur Aqma Rahim, 2017. "The Determining Factors for Muslim Household Deemed Ideal to be in Debt: Proposed Conceptual Framework," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(2), pages 686-699, February.
  • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:2:p:686-699
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/The_Determining_Factors_for_Muslim_Household_Deemed_Ideal_to_be_in_Debt.pdf
    Download Restriction: no

    File URL: http://hrmars.com/hrmars_papers/The_Determining_Factors_for_Muslim_Household_Deemed_Ideal_to_be_in_Debt.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lunt, Peter K. & Livingstone, Sonia M., 1991. "Psychological, social and economic determinants of saving: comparing recurrent and total savings," Journal of Economic Psychology, Elsevier, vol. 12(4), pages 621-641, December.
    2. Davies, Emma & Lea, Stephen E. G., 1995. "Student attitudes to student debt," Journal of Economic Psychology, Elsevier, vol. 16(4), pages 663-679, December.
    3. Hamza Khraim, 2010. "Measuring Religiosity in Consumer Research From an Islamic Perspective," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 26(1), pages 52-78, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Furnham, Adrian, 1999. "The saving and spending habits of young people," Journal of Economic Psychology, Elsevier, vol. 20(6), pages 677-697, December.
    2. Gerhard, Patrick & Gladstone, Joe J. & Hoffmann, Arvid O.I., 2018. "Psychological characteristics and household savings behavior: The importance of accounting for latent heterogeneity," Journal of Economic Behavior & Organization, Elsevier, vol. 148(C), pages 66-82.
    3. Rendall, Stella & Brooks, Chris & Hillenbrand, Carola, 2021. "The impacts of emotions and personality on borrowers’ abilities to manage their debts," International Review of Financial Analysis, Elsevier, vol. 74(C).
    4. Keval Amin & Erica Harris, 2022. "The Effect of Investor Sentiment on Nonprofit Donations," Journal of Business Ethics, Springer, vol. 175(2), pages 427-450, January.
    5. Ralph Stevens & Jennifer Alonso Garcia & Hazel Bateman & Arthur van Soest & Johan Bonekamp, 2022. "Saving preferences after retirement," ULB Institutional Repository 2013/342267, ULB -- Universite Libre de Bruxelles.
    6. Tamaki Kitagawa & Kenichi Kashiwagi & Hiroko Isoda, 2020. "Effect of Religious and Cultural Information of Olive Oil on Consumer Behavior: Evidence from Japan," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    7. Lunt, Peter, 1996. "Discourses of savings," Journal of Economic Psychology, Elsevier, vol. 17(6), pages 677-690, December.
    8. Wood, Michael, 1998. "Socio-economic status, delay of gratification, and impulse buying," Journal of Economic Psychology, Elsevier, vol. 19(3), pages 295-320, June.
    9. Ilisa Fajriyati & Adi Zakaria Afiff & Gita Gayatri & Sri Rahayu Hijrah Hati, 2022. "Attributes Influencing Overall Tourist Satisfaction and Its Consequences for Muslim-Majority Destination," SAGE Open, , vol. 12(1), pages 21582440211, January.
    10. Nikolaos Satsios & Spyros Hadjidakis & Ioannis Sotiropoulos & Nicholas Tsounis, 2020. "Religiosity and Intention towards Saving of a Muslim Minority in Greece," Asian Culture and History, Canadian Center of Science and Education, vol. 12(1), pages 1-28, March.
    11. Nor Khasimah Aliman & Zailin Zainal Ariffin & Shareena Mohamed Hashim, 2018. "Religiosity Commitment and Decision-Making Styles Among Generation Y Muslim Consumers in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 554-576, January.
    12. Muhammad Abdullah Khan & Usman Ghani & Sadia Aziz, 2019. "Impact of Islamic Religiosity on Consumers’ Attitudes towards Islamic and Conventional ways of Advertisements, Attitude towards Brands and Purchase Intentions," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 11(1), pages 1-30, March.
    13. Stephan Thomsen & Friederike von Haaren-Giebel, 2016. "Did tuition fees in Germany constrain students’ budgets? New evidence from a natural experiment," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    14. Booij, Adam S. & Leuven, Edwin & Oosterbeek, Hessel, 2012. "The role of information in the take-up of student loans," Economics of Education Review, Elsevier, vol. 31(1), pages 33-44.
    15. Michael Daly & Liam Delaney & Séamus McManus, 2010. "Risk Attitudes as an Independent Predictor of Debt," Working Papers 201049, Geary Institute, University College Dublin.
    16. Mewse, Avril J. & Lea, Stephen E.G. & Wrapson, Wendy, 2010. "First steps out of debt: Attitudes and social identity as predictors of contact by debtors with creditors," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 1021-1034, December.
    17. Johari Bin Abdullah & Firdaus Abdullah & Saimi Bin Bujang, 2023. "Conceptualizing Muslim Consumer Religiosity: Challenges and Recommendations for Future Research," Information Management and Business Review, AMH International, vol. 15(1), pages 114-120.
    18. C. Leigh ANDERSON & Mary Kay GUGERTY, 2009. "Intertemporal Choice And Development Policy: New Evidence On Time‐Varying Discount Rates From Vietnam And Russia," The Developing Economies, Institute of Developing Economies, vol. 47(2), pages 123-146, June.
    19. Shweta Singh & David H. Rylander & Tina C. Mims, 2018. "Understanding credit card payment behavior among college students," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(1), pages 38-49, March.
    20. Basharat Ali & Nazim Baluch & Zulkifli Mohamed Udin, 2015. "The Moderating Effect of Religiosity on the Relationship between Trust and Diffusion of Electronic Commerce," Modern Applied Science, Canadian Center of Science and Education, vol. 9(13), pages 176-176, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijarbs:v:7:y:2017:i:2:p:686-699. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.