Finance: on earth as it is in heaven?

Abstract

Purpose

The purpose of this paper is to explore a Christian perspective on the field of finance.

Design/methodology/approach

This paper begins by examining the theoretical underpinnings of finance and how finance is practiced today. The paper then considers the implications of a reformed Christian worldview for finance, with special attention to the implications of the Biblical description of heaven for the practice of finance. The paper concludes by offering suggestions for the practice of finance.

Findings

Finance as it practiced today is overly concerned with short‐term considerations, shareholder interests over those of other stakeholders, and contractual relationships over other types of relationships. A model based on the Christian Scriptures that utilizes the themes of creation, fall, redemption, and consummation can be used to critique both the theory and practice of finance. This model suggests that finance is part of God’s intended structure for the world, and that it should contribute to the promotion of shalom, that is the universal flourishing of both humankind and the earth.

Practical implications

An examination of the Christian Scriptures provides a model for the practice of corporate finance. The authors assert that finance should be covenantal, long‐term oriented, inclusive, and stakeholder‐driven, and that it should promote the cause of justice.

Originality/value

The value of this paper is that it develops a Christian perspective on finance based on the reformed tradition of Christianity; it also offers suggestions for the practice of finance.

Citation

Steen, T.P., VanderVeen, S. and Voskuil, J. (2006), "Finance: on earth as it is in heaven?", Managerial Finance, Vol. 32 No. 10, pp. 802-811. https://doi.org/10.1108/03074350710688297