Herding and financial decision: proposing an Islamic model of tabayyun

Abstract

This paper proposes an Islamic model of Tabayyun to deal with information especially with regard to financial decisions. It enhances the literature by adding the jurisdictions and perspective of Islamic laws on herding behavior. Relying on the primary sources of the Shariah which are related Quranic verses, hadith, as well as Islamic legal maxims (Qawaid Fiqhiyyah) to explain the proposed model of Tabayyun (decision-making process). The paper proposes a Tabayyun Model which is based on the Quranic verses and Hadith, as well as Islamic legal maxims as guidelines for the decision making process. Overall, it is imperative to discuss herding behaviour from the Islamic perspective as Muslim nowadays are more relying on worldly sources rather than return to the ultimate sources of Islam to make any judgment and decisio

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