Faith Intergration

Topics: Investment, Finance, Risk Pages: 4 (1178 words) Published: April 14, 2013
Integration of Faith and Corporate Finance

The purpose of this paper is to briefly discuss how biblical principals can be applied to topics covered in corporate finance. In Matthew 25: 14-30, the Parable of Talents is introduced. In this parable a master gives three of his servants some talents (which could be interpreted as money) according to their own ability. Two of the servants were able to earn twice the amount given to them. The third servant, however, earns nothing. As a result the master praises the two servants and criticizes the third. This parable along with the stories of Joseph and Daniel are used throughout this paper to give biblical insight on how to properly manage monetary resources and as a source of guidance when faced with decisions concerning finance. Some key principals discussed are risk taking, interest, and liquidity..

Keywords: interest, steward, liquidity, risk taking

Integration of Faith and Corporate Finance
In Matthew 25: 14-30 the Parable of Talents is introduced. The parable of talents can be interpreted in a couple of ways. One interpretation, for example, suggests that the "talents" are the individual gifts that God gives us to fulfill His will for our lives. Another interpretation is that the "talents" are actual monetary instruments. For purposes of this paper we will use the later. In this parable, prior to leaving for an extended period of time, a master gives three of his servants talents according to their own abilities. The first servant is given 5 talents, the second servant is given 2 talents, and the third servant is given one talent. The first servant traded with his talents and earned 5 more. The second was able to earn 2 more talents, although the Bible doesn't indicate how. The third servant, however, buried his money and earned nothing. When their master returned, the first two servants were praised for being good stewards of the money that was given to them. The...

References: Brealey, R., Myers, S., & Marcus, A. (2012). Fundamentals of corporate finance. (7th ed.). New York City, NY: McGraw-Hill Irwin.
Graham, B. (2006). The intelligent investor. New York City, NY: HarperCollins Publishers.
Liang, E.P. (2006). The global financial crisis: biblical perspectives on corporate finance. The Journal of Biblical Integration in Business, 12, 48-61.
Maxwell, J. (2007). The Maxwell leadership bible: New King James version. (2nd ed.).Nashville, TN: Thomas Nelson.
Monnet, C. & Weber, W. E. (2001). Money and interest rates. Quarterly Review,25(4), 2-13.
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