Measurements in the Interacting Domains of Social Accounting, Economics and Management
The first perspective concerns the direction of financial resources into ethical directions that meet both the Shari’ah modes of financing as well as the suitability of the identified projects. The second perspective on ethical and moral measurement and knowledge-induced ethical investment relates to a three-pronged approach that subsequently evolves into multi-dimensional system of network and linkages. The third part of the circular interrelationships evolves the establishing of inter-linkages expressed by complementarities between the variables of the first two parts. Finally, to see the resulting multi-dimensional co-evolution of the three parts mentioned above, we need to invoke the circular causation interrelationship between the Tawhidi derived knowledge-flows and the financing and accounting variables and instruments and their measurements as recursively generated and governed by the evolution of knowledge-flows along the IIE-process.
Selecting Variables for the Social Accounting, Economics and Management Interrelationship in the Tawhidi Framework of Unity of Knowledge
Because of inter-variable complementarities the value of assets (A) equals the value of liabilities (L) as the total value (VS) of all portfolio of shares (S). The evaluation of such shares (VS) is done according to a forward intergenerational overlapping model of assets valuation in term of the net yield rate (r).
The Simulation Problem Interrelating Social Accounting, Economics and Management Issues in the Light of the IPE & WS Methodology.
Because r/I and thereby M are endogenously related recursive function of each other and the q value, and likewise, the number of shares (product diversification) S and the value of shares VS (risk diversification by portfolio diversification) are functions of (r/i).
The formalized simulation model takes the following form:
Simulate q = SW (S, VS, r/I, M, q)
S = f1(VS, r/i, M I q = q*)
VS = f2(S, r/I, M I q = q*)
r/i = f3(S, VS, M I q = q*)
M = f4(S, VS, r/i I q = q*)
