Investigating the impact of personality dimensions and the amount of people's income on their economic preferences in Islamic banking in Iran

Document Type : Original Article

Authors

• Azadeh Jafari Kargar ¹
• Abolghasem Tohidinia ²

¹ School of Economics, University of Tehran, Tehran, Iran

² Faculty of Economics, University of Tehran, Tehran, Iran

Abstract

Objective/Main Question: Individuals with different personality traits have different preferences in using non-usury (goodwill loans) or usury (interest-bearing loans) banking services. The income level of individuals can play an important role in determining whether they seek usury-free financial solutions or not. This is very important and helps to better understand the factors affecting the acceptance or non-acceptance of Islamic financial systems.

Research Methodology: The present study is applied and descriptive. The statistical population of the study includes individuals who have received bank facilities at least once in the past 5 years, from which 441 individuals were selected through purposive sampling. To collect data, three questionnaires were used, including a researcher-made questionnaire for obtaining facilities, a short-form Hexaco personality questionnaire, and a questionnaire to examine individuals' income. Regression analysis was used to analyze the data.

Findings: The results of the present study showed that there is a positive and significant relationship between personality dimensions and income and making economic decisions. Accordingly, a positive and significant relationship is observed between the personality traits of honesty and modesty, excitability, extraversion, adaptability, conscientiousness and openness to experience, and monthly income of individuals on economic decisions of individuals (P<0.05).

Discussion and Conclusion: Therefore, the personality traits of individuals and the amount of their income are the source of an effect on individuals' economic preferences for obtaining Qarz al-Hasana facilities.

Keywords

• Income
• economic decisions
• personality dimensions
• credit
• Islamic banking

Main Subjects

• Muslims consumer behavior

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