nep-isf New Economics Papers
on Islamic Finance
Issue of 2026–04–06
two papers chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi


  1. Between Adam Smith’s Self-Love and the Impartial Spectator: Ādamiyyah as a Moral Bridge in Human Conscience By Şentürk, Recep; Aysan, Fatma Nur; Aysan, Ahmet Faruk; Özalkan, Seda
  2. How Corporate Governance Drives Financial Performance: Evidence from the Gulf Banking Sector By Abderraouf Ben Ahmed Mtiraoui; Ben Ayed

  1. By: Şentürk, Recep; Aysan, Fatma Nur; Aysan, Ahmet Faruk; Özalkan, Seda
    Abstract: This article proposes a novel moral synthesis between Adam Smith’s Enlightenment conception of the impartial spectator and the Abrahamic concept of Ādamiyyah. It argues that while Smith’s theory offers a robust model of internal moral regulation, its reliance on socially constructed norms leaves it vulnerable to moral relativism and cultural fragmentation. In contrast, Ādamiyyah, rooted in Qur’anic anthropology, provides a fixed ontological foundation for human dignity, affirming rights and duties by virtue of being human. Through a comparative philosophical methodology, this paper demonstrates that Ādamiyyah can validate self-regard as sacred and universal, while also anchoring the impartial spectator in a transcendent framework of accountability. Ibn Khaldūn’s notion of wāziʿ min anfusihim, the internal restraining power, offers an applied articulation of this synthesis. It mirrors Smith’s impartial spectator as a mechanism of self-regulation, yet grounds it in the Adamic dignity of Ādamiyyah, where moral restraint links the self to both divine accountability and social order. The article further employs the metaphor of the fixed-point theorem from mathematics to conceptualize Ādamiyyah as an invariant moral constant, stabilizing ethical reasoning across cultural and technological transformations. By addressing both individual moral formation and institutional justice, this framework resolves the micro–macro divide in ethics. The paper concludes by proposing that this integration contributes to the emerging discourse on “Rooted Futures, ” a call to design inclusive, ethically grounded futures by drawing on the enduring insights of classical moral traditions, and to renew the Adamic covenant of human dignity that signifies the primordial moral bond between humanity and God vertically, and among human beings horizontally. Reclaiming this covenant not only restores a global moral order grounded in justice, equality, and the inviolability of every person, but also provides the impartial spectator with the transcendent moral anchor it lacked, thereby closing the gap between self-regard and universal moral responsibility.
    Keywords: Ādamiyyah; Impartial Spectator; Self-Love; Adam Smith; Moral Psychology; Islamic Ethics; Comparative Ethics; Ibn Khaldun; Fixed-point theorem.
    JEL: A13 B12 D63 P16 Z12
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:128309
  2. By: Abderraouf Ben Ahmed Mtiraoui (MOFID-Université de Sousse); Ben Ayed (USO - جامعة سوسة = Université de Sousse = University of Sousse)
    Abstract: In recent years, corporate governance has attracted increasing attention, especially in the banking sector, due to its crucial role in improving financial performance, stock market value, and information transparency. This study aims to conceptualize the importance of corporate governance in relation to the financial performance and stock market value of banking institutions in the Gulf region. By analyzing the financial statements of these institutions for the period 2010-2020, the study employed econometric models to assess the relationships between corporate governance, financial performance, and stock market value. The results show a significant positive correlation between the quality of governance and financial performance, which indirectly influences the stock market value of firms. The analysis used linear regression tests and statistical significance tests to establish the coefficients and measure the robustness of the observed relationships. The findings suggest that improving corporate governance could be a key lever to improve bank performance, with implications for banking regulation. Key recommendations include strengthening bank governance regulations, suspending companies that fail to comply with governance standards and providing ongoing training for employees on governance practices and securities regulations
    Keywords: Banking Governance, Financial Performance, Company Performance, Market Value of Shares, Corporate Governance
    Date: 2026–03–09
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05544442

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