International Journal of Islamic and Middle Eastern Finance and ManagementTable of Contents for International Journal of Islamic and Middle Eastern Finance and Management. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1753-8394/vol/17/iss/1?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestInternational Journal of Islamic and Middle Eastern Finance and ManagementEmerald Publishing LimitedInternational Journal of Islamic and Middle Eastern Finance and ManagementInternational Journal of Islamic and Middle Eastern Finance and Managementhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/2eb03fd4b6372daea0734f90fb6df72b/urn:emeraldgroup.com:asset:id:binary:imefm.cover.jpghttps://www.emerald.com/insight/publication/issn/1753-8394/vol/17/iss/1?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestPredicting the intention to use Paytech services by Islamic banking usershttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-07-2022-0298/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to identify the factors that could explain the intention to use Paytech services within an Islamic banking context. The authors use an extended version of the technology acceptance model to develop a causal–predictive analysis. The research model and hypotheses were tested by applying partial least square-structured equation modeling to data collected from 214 users of Islamic banking in Saudi Arabia. The results show that perceived trust has a highly significant direct effect on the intention to use Islamic Paytech services, whereas perceived risk has a significant indirect effect on IU. Internet banking behavior may not be static. In technology acceptance, during the various phases from introduction to the maturity phase, the respondent’s perceptions tend to change From the point of view of Fintech services providers, the knowledge of the factors fostering the adoption of Fintech services would allow an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks. These digital payment services would allow access to financial services to the entire Muslim population regardless of their location (Islamic and non-Islamic nations) and will also reach out to the next generation of young Muslims as a majority are “digital natives” ready for digital Islamic financial solutions. This study is the first to explore the intention to use Paytech services by Islamic banking users in Saudi Arabia. From a theoretical perspective, this work contributes to the academic literature by analyzing the intention to use Paytech services in an Islamic banking context. On the practical front, the study identifies the crucial factors that industry players can use to design their Paytech applications and services to increase financial inclusion in Saudi Arabia and other countries with similar cultures as well as to design an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.Predicting the intention to use Paytech services by Islamic banking users
Ana Irimia-Diéguez, Gema Albort-Morant, Maria Dolores Oliver-Alfonso, Shakir Ullah
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.1-15

This study aims to identify the factors that could explain the intention to use Paytech services within an Islamic banking context. The authors use an extended version of the technology acceptance model to develop a causal–predictive analysis.

The research model and hypotheses were tested by applying partial least square-structured equation modeling to data collected from 214 users of Islamic banking in Saudi Arabia.

The results show that perceived trust has a highly significant direct effect on the intention to use Islamic Paytech services, whereas perceived risk has a significant indirect effect on IU.

Internet banking behavior may not be static. In technology acceptance, during the various phases from introduction to the maturity phase, the respondent’s perceptions tend to change

From the point of view of Fintech services providers, the knowledge of the factors fostering the adoption of Fintech services would allow an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.

These digital payment services would allow access to financial services to the entire Muslim population regardless of their location (Islamic and non-Islamic nations) and will also reach out to the next generation of young Muslims as a majority are “digital natives” ready for digital Islamic financial solutions.

This study is the first to explore the intention to use Paytech services by Islamic banking users in Saudi Arabia. From a theoretical perspective, this work contributes to the academic literature by analyzing the intention to use Paytech services in an Islamic banking context. On the practical front, the study identifies the crucial factors that industry players can use to design their Paytech applications and services to increase financial inclusion in Saudi Arabia and other countries with similar cultures as well as to design an international expansion without the inconvenience of establishing offices or companies in countries whose legislation does not favor the operations carried out by Islamic banks.

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Predicting the intention to use Paytech services by Islamic banking users10.1108/IMEFM-07-2022-0298International Journal of Islamic and Middle Eastern Finance and Management2023-05-29© 2023 Ana Irimia-Diéguez, Gema Albort-Morant, Maria Dolores Oliver-Alfonso and Shakir Ullah.Ana Irimia-DiéguezGema Albort-MorantMaria Dolores Oliver-AlfonsoShakir UllahInternational Journal of Islamic and Middle Eastern Finance and Management1712023-05-2910.1108/IMEFM-07-2022-0298https://www.emerald.com/insight/content/doi/10.1108/IMEFM-07-2022-0298/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Ana Irimia-Diéguez, Gema Albort-Morant, Maria Dolores Oliver-Alfonso and Shakir Ullah.
Bank-specific factors, market conditions and the riskiness of Islamic and conventional banks: evidence from recent quantile approacheshttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-11-2022-0435/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to investigate how bank-specific factors affect the riskiness of conventional and Islamic banks in response to shocks in major financial indices as market conditions change. The authors use a multivariate quantile model using daily equity returns data to analyze financial risk spillovers in the values at risk that may occur between major financial indices and the equity prices of conventional and Islamic banks worldwide. Then, using both quantile and quantile-on-quantile models, the authors examine the effects of bank-specific variables such as leverage ratio, bank size, return on equity and capital adequacy ratio on the initial impact of shocks in major global financial indices on bank equity price returns at different quantiles of shocks and bank-specific variables. The findings reveal that major financial indices can predict bank stock returns. Moreover, the authors find that the effect of bank-specific factors on the riskiness of banks is heterogeneous in that it depends on the bank type (Islamic vs conventional), the level of banking variable (high vs low) and, more importantly, market conditions. To the best of the authors’ knowledge, this is the first study that compares the dual banking system with stock market performance while considering bank-specific variables as market conditions change. The results of this study reveal that the effect of bank-specific variables on bank performance varies according to different quantiles of shocks and bank-specific variables. Islamic banks may echo or differ from conventional banks depending on the specific factor under investigation.Bank-specific factors, market conditions and the riskiness of Islamic and conventional banks: evidence from recent quantile approaches
Resul Aydemir, Huzeyfe Zahit Atan, Bulent Guloglu
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.16-44

The purpose of this paper is to investigate how bank-specific factors affect the riskiness of conventional and Islamic banks in response to shocks in major financial indices as market conditions change.

The authors use a multivariate quantile model using daily equity returns data to analyze financial risk spillovers in the values at risk that may occur between major financial indices and the equity prices of conventional and Islamic banks worldwide. Then, using both quantile and quantile-on-quantile models, the authors examine the effects of bank-specific variables such as leverage ratio, bank size, return on equity and capital adequacy ratio on the initial impact of shocks in major global financial indices on bank equity price returns at different quantiles of shocks and bank-specific variables.

The findings reveal that major financial indices can predict bank stock returns. Moreover, the authors find that the effect of bank-specific factors on the riskiness of banks is heterogeneous in that it depends on the bank type (Islamic vs conventional), the level of banking variable (high vs low) and, more importantly, market conditions.

To the best of the authors’ knowledge, this is the first study that compares the dual banking system with stock market performance while considering bank-specific variables as market conditions change. The results of this study reveal that the effect of bank-specific variables on bank performance varies according to different quantiles of shocks and bank-specific variables. Islamic banks may echo or differ from conventional banks depending on the specific factor under investigation.

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Bank-specific factors, market conditions and the riskiness of Islamic and conventional banks: evidence from recent quantile approaches10.1108/IMEFM-11-2022-0435International Journal of Islamic and Middle Eastern Finance and Management2023-10-20© 2023 Emerald Publishing LimitedResul AydemirHuzeyfe Zahit AtanBulent GulogluInternational Journal of Islamic and Middle Eastern Finance and Management1712023-10-2010.1108/IMEFM-11-2022-0435https://www.emerald.com/insight/content/doi/10.1108/IMEFM-11-2022-0435/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An analysis of spatial effects of terrorism on stock market returns in the Middle East countrieshttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-01-2023-0031/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestStock markets are highly sensitive to foreign and domestic events. Stock exchange markets react promptly to news and are known as an indicator of good and bad trading conditions. Terrorist attacks leave adverse effects on the economy and cause stock price volatility and, consequently, stock return volatility. Therefore, this paper aims to analyze the spatial effects of terrorism on stock market returns in the Middle East from 2008 to 2019. This paper uses analytical research design and estimates spatial model. Before estimating the spatial model, the spillover effects were confirmed for the spatial autoregressive model using Moran’s diagnostic test for spatial dependence, Geary’s C test and Akaike statistic. The results of this study on spatial panel data and based on spatial autoregressive estimator indicated that terrorism and associated neighborhood effects had a negative impact on stock returns in Middle East countries. Also, the corruption index and oil price negatively affected stock market return in these countries, while the democracy index had a positive effect on stock market returns. According to the results, to achieve a high and stable stock market return, it is recommended that high-level consultation is pursued with leaders of involved countries to reduce the devastating effects of terrorist activities, increase political and economic stability, attract stockholders to stock markets and spend corresponding incomes developing the infrastructures in this sector in countries of this region. Most of the studies have investigated the impact of terrorism on the stock market returns at the national or provincial level. However, the effect of terrorism on the stock market index in the tense region of the Middle East, which is the center of terrorist attacks in the world, has not been dealt with by considering the spatial econometric effects. Thus, to the best of the authors’ knowledge, this research is a first attempt to study the impact of terrorism on the stock market returns in Middle East countries using the spatial econometric approach.An analysis of spatial effects of terrorism on stock market returns in the Middle East countries
Ali Rezazadeh, Vahid Nikpey Pesyan, Azhdar Karami
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.45-62

Stock markets are highly sensitive to foreign and domestic events. Stock exchange markets react promptly to news and are known as an indicator of good and bad trading conditions. Terrorist attacks leave adverse effects on the economy and cause stock price volatility and, consequently, stock return volatility. Therefore, this paper aims to analyze the spatial effects of terrorism on stock market returns in the Middle East from 2008 to 2019.

This paper uses analytical research design and estimates spatial model. Before estimating the spatial model, the spillover effects were confirmed for the spatial autoregressive model using Moran’s diagnostic test for spatial dependence, Geary’s C test and Akaike statistic.

The results of this study on spatial panel data and based on spatial autoregressive estimator indicated that terrorism and associated neighborhood effects had a negative impact on stock returns in Middle East countries. Also, the corruption index and oil price negatively affected stock market return in these countries, while the democracy index had a positive effect on stock market returns. According to the results, to achieve a high and stable stock market return, it is recommended that high-level consultation is pursued with leaders of involved countries to reduce the devastating effects of terrorist activities, increase political and economic stability, attract stockholders to stock markets and spend corresponding incomes developing the infrastructures in this sector in countries of this region.

Most of the studies have investigated the impact of terrorism on the stock market returns at the national or provincial level. However, the effect of terrorism on the stock market index in the tense region of the Middle East, which is the center of terrorist attacks in the world, has not been dealt with by considering the spatial econometric effects. Thus, to the best of the authors’ knowledge, this research is a first attempt to study the impact of terrorism on the stock market returns in Middle East countries using the spatial econometric approach.

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An analysis of spatial effects of terrorism on stock market returns in the Middle East countries10.1108/IMEFM-01-2023-0031International Journal of Islamic and Middle Eastern Finance and Management2023-11-17© 2023 Emerald Publishing LimitedAli RezazadehVahid Nikpey PesyanAzhdar KaramiInternational Journal of Islamic and Middle Eastern Finance and Management1712023-11-1710.1108/IMEFM-01-2023-0031https://www.emerald.com/insight/content/doi/10.1108/IMEFM-01-2023-0031/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Antecedents of Islamic welfare: productivity, education, and the financial aspecthttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-07-2022-0299/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to analyse, firstly, whether education, financial inclusion, financial literacy and financial planning can be antecedents that affect Islamic welfare and, secondly, whether productivity can be a mediator to improve Islamic welfare. This study involved quantitative research using data obtained from a survey. The respondents were 538 Muslim families in East Java, Indonesia. Structural equation modelling was used for the analysis. This study tested 13 hypotheses, of which 10 were accepted. The accepted hypotheses refer to the effects of financial literacy on productivity, financial inclusion on productivity, financial planning on productivity, financial planning on Islamic welfare, education on Islamic welfare, productivity on Islamic welfare, financial literacy and productivity on Islamic welfare, financial inclusion and productivity on Islamic welfare and financial planning and productivity on Islamic welfare, as well as the effects of financial inclusion on Islamic welfare. Meanwhile, three hypotheses were not accepted; they refer to the effects of financial literacy on Islamic welfare, the effect of education on productivity, as well as the impact of education and productivity on Islamic welfare. The study was conducted only with respondents living in East Java, so the results depict the condition of Muslim families’ welfare in East Java. Research into the antecedents of Islamic welfare has received little academic attention, so this study explores how education, financial inclusion, financial literacy, financial planning and productivity could affect Islamic welfare among Muslim families.Antecedents of Islamic welfare: productivity, education, and the financial aspect
Meri Indri Hapsari, Amin Hanif Mahmud, Sri Herianingrum, R. Moh Qudsi Fauzy, Siti Ngayesah Ab. Hamid, Arka Prabaswara, Lina Mawaddatul Masfiyah
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.63-85

The purpose of this study is to analyse, firstly, whether education, financial inclusion, financial literacy and financial planning can be antecedents that affect Islamic welfare and, secondly, whether productivity can be a mediator to improve Islamic welfare.

This study involved quantitative research using data obtained from a survey. The respondents were 538 Muslim families in East Java, Indonesia. Structural equation modelling was used for the analysis.

This study tested 13 hypotheses, of which 10 were accepted. The accepted hypotheses refer to the effects of financial literacy on productivity, financial inclusion on productivity, financial planning on productivity, financial planning on Islamic welfare, education on Islamic welfare, productivity on Islamic welfare, financial literacy and productivity on Islamic welfare, financial inclusion and productivity on Islamic welfare and financial planning and productivity on Islamic welfare, as well as the effects of financial inclusion on Islamic welfare. Meanwhile, three hypotheses were not accepted; they refer to the effects of financial literacy on Islamic welfare, the effect of education on productivity, as well as the impact of education and productivity on Islamic welfare.

The study was conducted only with respondents living in East Java, so the results depict the condition of Muslim families’ welfare in East Java.

Research into the antecedents of Islamic welfare has received little academic attention, so this study explores how education, financial inclusion, financial literacy, financial planning and productivity could affect Islamic welfare among Muslim families.

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Antecedents of Islamic welfare: productivity, education, and the financial aspect10.1108/IMEFM-07-2022-0299International Journal of Islamic and Middle Eastern Finance and Management2023-11-14© 2023 Emerald Publishing LimitedMeri Indri HapsariAmin Hanif MahmudSri HerianingrumR. Moh Qudsi FauzySiti Ngayesah Ab. HamidArka PrabaswaraLina Mawaddatul MasfiyahInternational Journal of Islamic and Middle Eastern Finance and Management1712023-11-1410.1108/IMEFM-07-2022-0299https://www.emerald.com/insight/content/doi/10.1108/IMEFM-07-2022-0299/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The sustainability and performance of : waqf-based microfinance in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2022-0233/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to empirically investigate the sustainability and performance of Bank Wakaf Mikro (hereafter called BWM), which is a waqf-based microfinance in the context of Indonesia. The authors use several model specifications. The specifications mainly take the BWM’s characteristics and governance into account. The authors use a standard-panel data approach with a fixed-effects model as the Hausman test result favors the fixed-effects model. The authors collected monthly data from the Indonesia Financial Services Authority for the period 2018–2020. The detailed data, 39 BWM enabling us to observe the financial, social and governance elements of BWMs. The results reveal interesting findings. The authors find that BWM characteristics, governance and social capital are significant in shaping BWM’s sustainability, performance and risk. Furthermore, the authors find that BWM located in a province with higher lending density has lower performance than those located in a province with lower lending density. The results provide some evidence on how waqf-based microfinance could achieve both economic and social goals. It could provide perspectives for stakeholders in designing microfinance institutions. This paper is the first to empirically study the waqf-based microfinance institutions in Indonesia by looking at the determinants of performance and sustainability of those institutions.The sustainability and performance of : waqf-based microfinance in Indonesia
Inka Yusgiantoro, Putra Pamungkas, Irwan Trinugroho
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.86-101

This study aims to empirically investigate the sustainability and performance of Bank Wakaf Mikro (hereafter called BWM), which is a waqf-based microfinance in the context of Indonesia.

The authors use several model specifications. The specifications mainly take the BWM’s characteristics and governance into account. The authors use a standard-panel data approach with a fixed-effects model as the Hausman test result favors the fixed-effects model. The authors collected monthly data from the Indonesia Financial Services Authority for the period 2018–2020. The detailed data, 39 BWM enabling us to observe the financial, social and governance elements of BWMs.

The results reveal interesting findings. The authors find that BWM characteristics, governance and social capital are significant in shaping BWM’s sustainability, performance and risk. Furthermore, the authors find that BWM located in a province with higher lending density has lower performance than those located in a province with lower lending density. The results provide some evidence on how waqf-based microfinance could achieve both economic and social goals. It could provide perspectives for stakeholders in designing microfinance institutions.

This paper is the first to empirically study the waqf-based microfinance institutions in Indonesia by looking at the determinants of performance and sustainability of those institutions.

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The sustainability and performance of : waqf-based microfinance in Indonesia10.1108/IMEFM-06-2022-0233International Journal of Islamic and Middle Eastern Finance and Management2023-12-05© 2023 Emerald Publishing LimitedInka YusgiantoroPutra PamungkasIrwan TrinugrohoInternational Journal of Islamic and Middle Eastern Finance and Management1712023-12-0510.1108/IMEFM-06-2022-0233https://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2022-0233/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Prospects of Islamic capital market in Uzbekistan: issues and challengeshttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-04-2022-0145/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestDespite its potential as an emerging market for Islamic financial services, Uzbekistan has lagged in legislative support. This study aims to evaluate the feasibility of introducing an Islamic capital market (ICM) in Uzbekistan, preceding a broader industry establishment. The authors begin by assessing Islamic finance literacy and the potential demand for ICMs in Uzbekistan. The authors then scrutinize Uzbekistan’s capital market legislation and its readiness. This analysis uses primary data, including surveys and interviews, and secondary data from literature and financial legislation. This study highlights a significant demand for ICMs, despite low Islamic finance awareness in Uzbekistan. Presently, Uzbekistan’s capital market development is lacking, with regulations not yet suitable for ICMs. As a result, legal and operational enhancements are needed. The authors provide essential policy recommendations for authorities and practitioners to facilitate the effective launch of ICMs and enhance Uzbekistan’s capital market stature. To the best of the authors’ knowledge, this is the first study offering an in-depth analysis of the potential and feasibility of ICMs in Uzbekistan.Prospects of Islamic capital market in Uzbekistan: issues and challenges
Alam Asadov, Ikhtiyorjon Turaboev, Ramazan Yildirim
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.102-123

Despite its potential as an emerging market for Islamic financial services, Uzbekistan has lagged in legislative support. This study aims to evaluate the feasibility of introducing an Islamic capital market (ICM) in Uzbekistan, preceding a broader industry establishment.

The authors begin by assessing Islamic finance literacy and the potential demand for ICMs in Uzbekistan. The authors then scrutinize Uzbekistan’s capital market legislation and its readiness. This analysis uses primary data, including surveys and interviews, and secondary data from literature and financial legislation.

This study highlights a significant demand for ICMs, despite low Islamic finance awareness in Uzbekistan. Presently, Uzbekistan’s capital market development is lacking, with regulations not yet suitable for ICMs. As a result, legal and operational enhancements are needed.

The authors provide essential policy recommendations for authorities and practitioners to facilitate the effective launch of ICMs and enhance Uzbekistan’s capital market stature.

To the best of the authors’ knowledge, this is the first study offering an in-depth analysis of the potential and feasibility of ICMs in Uzbekistan.

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Prospects of Islamic capital market in Uzbekistan: issues and challenges10.1108/IMEFM-04-2022-0145International Journal of Islamic and Middle Eastern Finance and Management2023-12-11© 2023 Emerald Publishing LimitedAlam AsadovIkhtiyorjon TuraboevRamazan YildirimInternational Journal of Islamic and Middle Eastern Finance and Management1712023-12-1110.1108/IMEFM-04-2022-0145https://www.emerald.com/insight/content/doi/10.1108/IMEFM-04-2022-0145/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Assessing the impact of external determinants on the social performance of Islamic bankshttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-08-2022-0335/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestExplaining the sources of the differences in social performance among Islamic banks (IBs) is the motivation for this research. Consequently, the purpose of this paper is to investigate the relationship between the development of Islamic finance regulation, the development of an Islamic financial system, the proportions of affected Muslim populations and the level of competition, on the one hand, and the social performance of IBs, on the other. To the best of the authors' knowledge, this is the first study that investigates the impact of the development of regulation and the Islamic financial system on the social performance of IBs. A balanced panel of annual data for 40 banks from 13 countries is applied, spanning 2012–2018. A social performance index with eight dimensions is constructed and measures the social performance of IBs. The index based on qualitative and quantitative data derives from IBs’ annual reports and financial statements. The linear scaling transformation method articulates the quantitative dimensions of the index. In hypotheses testing, the authors use OLS, LSDV, FEM and Random Effect Model to estimate Model (1) and panel-corrected standard errors with Prais–Winsten transformation to estimate Model (2). This unique research confirms the positive impact of the development of Islamic finance regulation on the social performance of IBs. The results show that the development of Islamic finance regulation is consistently significant on all standard significance levels. IBs’ age and the presence of Muslim populations in the country are also significant in most estimators. The results of this research highlight a significant value for regulators, shareholders and the management of IBs. Without proper regulation, these banks can hardly operate under the principles and expectations of the Islamic moral economy. This is pioneering research that explores the development of Islamic finance regulation and market concentration as a determinant of social performance of IBs. Development of Islamic finance regulation has proved significant in all estimated models, which confirms that a new variable has been discovered among determinants of the social performance of IBs.Assessing the impact of external determinants on the social performance of Islamic banks
Admir Meskovic, Alija Avdukic, Emira Kozarevic
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.124-145

Explaining the sources of the differences in social performance among Islamic banks (IBs) is the motivation for this research. Consequently, the purpose of this paper is to investigate the relationship between the development of Islamic finance regulation, the development of an Islamic financial system, the proportions of affected Muslim populations and the level of competition, on the one hand, and the social performance of IBs, on the other. To the best of the authors' knowledge, this is the first study that investigates the impact of the development of regulation and the Islamic financial system on the social performance of IBs.

A balanced panel of annual data for 40 banks from 13 countries is applied, spanning 2012–2018. A social performance index with eight dimensions is constructed and measures the social performance of IBs. The index based on qualitative and quantitative data derives from IBs’ annual reports and financial statements. The linear scaling transformation method articulates the quantitative dimensions of the index. In hypotheses testing, the authors use OLS, LSDV, FEM and Random Effect Model to estimate Model (1) and panel-corrected standard errors with Prais–Winsten transformation to estimate Model (2).

This unique research confirms the positive impact of the development of Islamic finance regulation on the social performance of IBs. The results show that the development of Islamic finance regulation is consistently significant on all standard significance levels. IBs’ age and the presence of Muslim populations in the country are also significant in most estimators.

The results of this research highlight a significant value for regulators, shareholders and the management of IBs. Without proper regulation, these banks can hardly operate under the principles and expectations of the Islamic moral economy.

This is pioneering research that explores the development of Islamic finance regulation and market concentration as a determinant of social performance of IBs. Development of Islamic finance regulation has proved significant in all estimated models, which confirms that a new variable has been discovered among determinants of the social performance of IBs.

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Assessing the impact of external determinants on the social performance of Islamic banks10.1108/IMEFM-08-2022-0335International Journal of Islamic and Middle Eastern Finance and Management2023-12-11© 2023 Emerald Publishing LimitedAdmir MeskovicAlija AvdukicEmira KozarevicInternational Journal of Islamic and Middle Eastern Finance and Management1712023-12-1110.1108/IMEFM-08-2022-0335https://www.emerald.com/insight/content/doi/10.1108/IMEFM-08-2022-0335/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The national-level potential of Zakat and its integration into the fiscal framework: sector-specific insights from the economy of Bangladeshhttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-09-2023-0313/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestZakat, one of the fundamental pillars of Islam, holds the potential to significantly contribute to fiscal consolidation, particularly in developing nations. However, the national-level potential of Zakat often remains unexplored. This study aims to explore the potential of national-level Zakat and the opportunity to integrate it into the fiscal framework. This study estimates Zakat’s potential on national financial and economic components. The components include bank deposits, shares and securities, pensions (provident fund), industrial production and trade services, mining resources, Ushr on agro-crops and forestry, Ushr on livestock, Ushr on fishery, gross domestic product (GDP), national budget and national revenue. The study gathers data, ranging from FY2000 to FY2018, on national economic sectors from reliable secondary sources. The net value (NV) of each indicator is calculated as NV = TV − LA, where NV is the wage-adjusted net value after deducting the living adjustment (LA) value from the sectoral total. The proposed LA value, approximately 20%, is suggested to be deducted from the total sectoral value of each sector (excluding specific industries with preadjusted wages), equating to the Nisab value. It is estimated that the aggregate potential of Zakat in Bangladesh was US$9,749m in FY2018, compared to US$809m in FY2000, revealing the value is 3.77% of GDP and 21% of the national fiscal budget. In FY2018, the service sector was the largest contributor (30%), followed by bank deposits (23%). Pension funds made minimal contributions, whereas shares and bonds, as well as the manufacturing sector, each made a 10% contribution to the estimated Zakat potential. Zakat on agriculture output accounted for 15% of the total. The aggregate potential Zakat in FY2018 was 12% higher than that in FY2000. The paper highlights a novel contribution through its nuanced analysis of sector-specific Zakat on macrolevel data and its implications within the fiscal framework. The results suggest that Zakat has substantial potential to impact fiscal dynamics, providing valuable insights for policymakers and stakeholders to recognize the national-level Zakat for development plans such as the five-year plan. The study suggests piloting a central and independent national body to study the feasibility of national-level Zakat collection and its utilization in the fiscal budget. It will help the government reduce the burden of external debt and deficit budget and, instead, will promote revenue collection in collaboration with the National Board of Revenue.The national-level potential of Zakat and its integration into the fiscal framework: sector-specific insights from the economy of Bangladesh
M. Kabir Hassan, M. Zakir Hossain Khan, Mohammad Ayub Miah, Md. Karimul Islam
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.146-169

Zakat, one of the fundamental pillars of Islam, holds the potential to significantly contribute to fiscal consolidation, particularly in developing nations. However, the national-level potential of Zakat often remains unexplored. This study aims to explore the potential of national-level Zakat and the opportunity to integrate it into the fiscal framework.

This study estimates Zakat’s potential on national financial and economic components. The components include bank deposits, shares and securities, pensions (provident fund), industrial production and trade services, mining resources, Ushr on agro-crops and forestry, Ushr on livestock, Ushr on fishery, gross domestic product (GDP), national budget and national revenue. The study gathers data, ranging from FY2000 to FY2018, on national economic sectors from reliable secondary sources. The net value (NV) of each indicator is calculated as NV = TV − LA, where NV is the wage-adjusted net value after deducting the living adjustment (LA) value from the sectoral total. The proposed LA value, approximately 20%, is suggested to be deducted from the total sectoral value of each sector (excluding specific industries with preadjusted wages), equating to the Nisab value.

It is estimated that the aggregate potential of Zakat in Bangladesh was US$9,749m in FY2018, compared to US$809m in FY2000, revealing the value is 3.77% of GDP and 21% of the national fiscal budget. In FY2018, the service sector was the largest contributor (30%), followed by bank deposits (23%). Pension funds made minimal contributions, whereas shares and bonds, as well as the manufacturing sector, each made a 10% contribution to the estimated Zakat potential. Zakat on agriculture output accounted for 15% of the total. The aggregate potential Zakat in FY2018 was 12% higher than that in FY2000.

The paper highlights a novel contribution through its nuanced analysis of sector-specific Zakat on macrolevel data and its implications within the fiscal framework. The results suggest that Zakat has substantial potential to impact fiscal dynamics, providing valuable insights for policymakers and stakeholders to recognize the national-level Zakat for development plans such as the five-year plan. The study suggests piloting a central and independent national body to study the feasibility of national-level Zakat collection and its utilization in the fiscal budget. It will help the government reduce the burden of external debt and deficit budget and, instead, will promote revenue collection in collaboration with the National Board of Revenue.

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The national-level potential of Zakat and its integration into the fiscal framework: sector-specific insights from the economy of Bangladesh10.1108/IMEFM-09-2023-0313International Journal of Islamic and Middle Eastern Finance and Management2024-01-09© 2023 Emerald Publishing LimitedM. Kabir HassanM. Zakir Hossain KhanMohammad Ayub MiahMd. Karimul IslamInternational Journal of Islamic and Middle Eastern Finance and Management1712024-01-0910.1108/IMEFM-09-2023-0313https://www.emerald.com/insight/content/doi/10.1108/IMEFM-09-2023-0313/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An empirical analysis of the dynamic impact of DeFi on GCC foreign exchange forward markets: portfolio implicationhttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0228/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the conditional equicorrelation and cross-quantile dependence between the DeFi, European and GCC currency markets (Oman, Qatar, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates). This study applies the GARCH-DECO model and cross-quantilogram framework. The findings reveal evidence of weak and negative average equicorrelations between the examined markets through time, excluding the COVID-19 outbreak and Russia–Ukraine conflict, which is consistent with the literature examining relationships in different markets. From the cross-quantilogram model, the authors note that the dependence between DeFi, EURO and GCC foreign exchange rate markets is greatest in the short run and diminishes over the medium- and long-term horizons, indicating rapid information processing between the markets under consideration, as most innovations are transmitted in the short term. For the pairs of DeFi and currency markets, the static and dynamic optimal weights and hedging ratios are also estimated, providing new empirical data for portfolio managers and investors. To the best of the authors’ knowledge, this is one of the most important research looking into the conditional correlation and predictability between the DeFi, EURO and GCC foreign exchange markets. More importantly, this study provides the first empirical proof of the safe-haven, hedging and diversification qualities of DeFi, EURO and GCC currencies, and this work also covers the COVID-19 pandemic and the Russia–Ukraine war with the use of a single dynamic measure produced by the GARCH-DECO model. In addition, the directional predictability between variables under consideration using the cross-quantilogram model is examined, which can be capable of capturing the asymmetry in the quantile dependent structure. The findings are helpful for both policymakers and investors in improving their trading selections and strategies for risk management in different market conditions.An empirical analysis of the dynamic impact of DeFi on GCC foreign exchange forward markets: portfolio implication
Ho Thuy Tien, Nguyen Mau Ba Dang, Ngo Thai Hung
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.170-194

This paper aims to investigate the conditional equicorrelation and cross-quantile dependence between the DeFi, European and GCC currency markets (Oman, Qatar, Bahrain, Kuwait, Saudi Arabia and the United Arab Emirates).

This study applies the GARCH-DECO model and cross-quantilogram framework.

The findings reveal evidence of weak and negative average equicorrelations between the examined markets through time, excluding the COVID-19 outbreak and Russia–Ukraine conflict, which is consistent with the literature examining relationships in different markets. From the cross-quantilogram model, the authors note that the dependence between DeFi, EURO and GCC foreign exchange rate markets is greatest in the short run and diminishes over the medium- and long-term horizons, indicating rapid information processing between the markets under consideration, as most innovations are transmitted in the short term.

For the pairs of DeFi and currency markets, the static and dynamic optimal weights and hedging ratios are also estimated, providing new empirical data for portfolio managers and investors.

To the best of the authors’ knowledge, this is one of the most important research looking into the conditional correlation and predictability between the DeFi, EURO and GCC foreign exchange markets. More importantly, this study provides the first empirical proof of the safe-haven, hedging and diversification qualities of DeFi, EURO and GCC currencies, and this work also covers the COVID-19 pandemic and the Russia–Ukraine war with the use of a single dynamic measure produced by the GARCH-DECO model. In addition, the directional predictability between variables under consideration using the cross-quantilogram model is examined, which can be capable of capturing the asymmetry in the quantile dependent structure. The findings are helpful for both policymakers and investors in improving their trading selections and strategies for risk management in different market conditions.

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An empirical analysis of the dynamic impact of DeFi on GCC foreign exchange forward markets: portfolio implication10.1108/IMEFM-06-2023-0228International Journal of Islamic and Middle Eastern Finance and Management2023-12-29© 2023 Emerald Publishing LimitedHo Thuy TienNguyen Mau Ba DangNgo Thai HungInternational Journal of Islamic and Middle Eastern Finance and Management1712023-12-2910.1108/IMEFM-06-2023-0228https://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0228/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Push – pull – mooring determinants of non-Muslims’ withdrawal from Islamic banking: evidence from Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-04-2023-0144/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to attempt to investigate the factors that influence non-Muslims’ withdrawal behavioural intention from Islamic banking in Malaysia. The push–pull–mooring approach is used to examine the determinants of withdrawal intention by non-Muslims from Islamic banking in Malaysia. Variables used in this study include religiosity (RELG) under push, deposit guarantee (DG), rate of return (RR), Islamic banks’ specific factors (IBSF) under pull and mooring factors as social influence (SI) and voluntary switching (VS) as the determinants of withdrawal intention from Islamic banking. In this study, the SPSS Statistics Version 22 and smart partial least squares were used to measure the withdrawal level. Three variables, namely, SI, RR and IBSF are found to significantly influence the withdrawal behaviour intention. Meanwhile, three other variables, namely, RELG, DG and VS are not significant. This study provides valuable insights pertaining to non-Muslim consumer withdrawal behaviour from Islamic banks. Bank managers, marketers and regulators could use these findings in developing effective strategies to increase and retain customer withdrawal. This study expands the understanding of key determinants of the non-Muslim withdrawal behaviour from Islamic banks in Malaysia. To the best of the authors’ knowledge, this research is among the pioneer empirical study to assess the issue.Push – pull – mooring determinants of non-Muslims’ withdrawal from Islamic banking: evidence from Malaysia
Hassanudin Mohd Thas Thaker, Bawani Lelchumanan, Abdollah Ah Mand, Ahmad Khaliq
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.195-212

This study aims to attempt to investigate the factors that influence non-Muslims’ withdrawal behavioural intention from Islamic banking in Malaysia.

The push–pull–mooring approach is used to examine the determinants of withdrawal intention by non-Muslims from Islamic banking in Malaysia. Variables used in this study include religiosity (RELG) under push, deposit guarantee (DG), rate of return (RR), Islamic banks’ specific factors (IBSF) under pull and mooring factors as social influence (SI) and voluntary switching (VS) as the determinants of withdrawal intention from Islamic banking. In this study, the SPSS Statistics Version 22 and smart partial least squares were used to measure the withdrawal level.

Three variables, namely, SI, RR and IBSF are found to significantly influence the withdrawal behaviour intention. Meanwhile, three other variables, namely, RELG, DG and VS are not significant.

This study provides valuable insights pertaining to non-Muslim consumer withdrawal behaviour from Islamic banks. Bank managers, marketers and regulators could use these findings in developing effective strategies to increase and retain customer withdrawal.

This study expands the understanding of key determinants of the non-Muslim withdrawal behaviour from Islamic banks in Malaysia. To the best of the authors’ knowledge, this research is among the pioneer empirical study to assess the issue.

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Push – pull – mooring determinants of non-Muslims’ withdrawal from Islamic banking: evidence from Malaysia10.1108/IMEFM-04-2023-0144International Journal of Islamic and Middle Eastern Finance and Management2024-01-08© 2023 Emerald Publishing LimitedHassanudin Mohd Thas ThakerBawani LelchumananAbdollah Ah MandAhmad KhaliqInternational Journal of Islamic and Middle Eastern Finance and Management1712024-01-0810.1108/IMEFM-04-2023-0144https://www.emerald.com/insight/content/doi/10.1108/IMEFM-04-2023-0144/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Examining the demand side factors of green banking adoption – a study exploring the case of Omanhttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2022-0483/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestCommercial banks are the financial powerhouses of a nation that can create a penetrating impact at the grassroots level. This study aims to investigate the demand-side drivers of green banking purchase intention by extending the popular theory of planned behavior (TPB) model. This study used a mono-method research approach to collect customers’ cross-sectional responses using structured questionnaires. The data were further analyzed using CB-SEM. This study points out that attitude, subjective norms, perceived behavioral control and environmental concern are demand-side factors that drive the intention of individual customers to adopt green banking services. The moderating roles of collectivism, age and gender are also discussed in this study. The present study’s results suffer from mono-method bias as they are based on primary data analysis alone. This limitation can be addressed by incorporating a mixed-method approach. Several policy suggestions are offered based on the findings on improving green banking adoption among individual customers. The proper incorporation of these guidelines will expedite a nation’s aspirations for sustainable economic growth. To the best of the authors’ knowledge, this is the first study to explore the demand-side factors that drive Omani customers’ intention to adopt green banking. Moreover, this study extends the TPB with environmental concern and personal values to examine the green banking adoption by individual customers.Examining the demand side factors of green banking adoption – a study exploring the case of Oman
Ubais Parayil Iqbal, Sobhith Mathew Jose, Muhammad Tahir
International Journal of Islamic and Middle Eastern Finance and Management, Vol. 17, No. 1, pp.213-231

Commercial banks are the financial powerhouses of a nation that can create a penetrating impact at the grassroots level. This study aims to investigate the demand-side drivers of green banking purchase intention by extending the popular theory of planned behavior (TPB) model.

This study used a mono-method research approach to collect customers’ cross-sectional responses using structured questionnaires. The data were further analyzed using CB-SEM.

This study points out that attitude, subjective norms, perceived behavioral control and environmental concern are demand-side factors that drive the intention of individual customers to adopt green banking services. The moderating roles of collectivism, age and gender are also discussed in this study.

The present study’s results suffer from mono-method bias as they are based on primary data analysis alone. This limitation can be addressed by incorporating a mixed-method approach.

Several policy suggestions are offered based on the findings on improving green banking adoption among individual customers. The proper incorporation of these guidelines will expedite a nation’s aspirations for sustainable economic growth.

To the best of the authors’ knowledge, this is the first study to explore the demand-side factors that drive Omani customers’ intention to adopt green banking. Moreover, this study extends the TPB with environmental concern and personal values to examine the green banking adoption by individual customers.

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Examining the demand side factors of green banking adoption – a study exploring the case of Oman10.1108/IMEFM-12-2022-0483International Journal of Islamic and Middle Eastern Finance and Management2024-01-09© 2023 Emerald Publishing LimitedUbais Parayil IqbalSobhith Mathew JoseMuhammad TahirInternational Journal of Islamic and Middle Eastern Finance and Management1712024-01-0910.1108/IMEFM-12-2022-0483https://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2022-0483/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Theorizing Islamic entrepreneurship from an Islamic governance perspectivehttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-05-2023-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestResearch on Islamic entrepreneurship (IE) is growing but with difficulty. After reviewing six IE models, several problematic inconsistencies were identified, which can be categorized into three: sporadic objectives of IE, diverging core components and inconsistent levels of analysis. This study aims to articulate a synthesized IE model. An Islamic critical realist synthesis is used by combining six IE models and situating them within an Islamic system of governance. Specifically, the Islamic governance conceptual matrix is used to offer an objective template. A synthesized model of IE within an Islamic system of governance comprises the following: the objectives of IE are not to be confined to only financial sustainability, but to achieve all five Maqās.id of the Sharī’ah (i.e. preservation and promotion of faith, life, intellect, posterity and wealth); models of IE should cover the individual, group, organizational, societal, state and international levels for comprehensiveness; tawhīd is crucial to distinguish between IE and conventional entrepreneurship; halal IE activities can be further categorized into obligatory, recommended, permissible and reprehensible; Islamic values are to be differentiated from cultural values; and both Islamic and cultural values shape IE and vice versa. Limited number of models of IE were included in this synthesis. Although the resulting synthesized model is extensive, additional models of IE can be built to extend or even challenge it. A novel model of IE within an Islamic system of governance is presented.Theorizing Islamic entrepreneurship from an Islamic governance perspective
Iznan Tarip
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

Research on Islamic entrepreneurship (IE) is growing but with difficulty. After reviewing six IE models, several problematic inconsistencies were identified, which can be categorized into three: sporadic objectives of IE, diverging core components and inconsistent levels of analysis. This study aims to articulate a synthesized IE model.

An Islamic critical realist synthesis is used by combining six IE models and situating them within an Islamic system of governance. Specifically, the Islamic governance conceptual matrix is used to offer an objective template.

A synthesized model of IE within an Islamic system of governance comprises the following: the objectives of IE are not to be confined to only financial sustainability, but to achieve all five Maqās.id of the Sharī’ah (i.e. preservation and promotion of faith, life, intellect, posterity and wealth); models of IE should cover the individual, group, organizational, societal, state and international levels for comprehensiveness; tawhīd is crucial to distinguish between IE and conventional entrepreneurship; halal IE activities can be further categorized into obligatory, recommended, permissible and reprehensible; Islamic values are to be differentiated from cultural values; and both Islamic and cultural values shape IE and vice versa.

Limited number of models of IE were included in this synthesis. Although the resulting synthesized model is extensive, additional models of IE can be built to extend or even challenge it.

A novel model of IE within an Islamic system of governance is presented.

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Theorizing Islamic entrepreneurship from an Islamic governance perspective10.1108/IMEFM-05-2023-0172International Journal of Islamic and Middle Eastern Finance and Management2024-01-12© 2024 Emerald Publishing LimitedIznan TaripInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-01-1210.1108/IMEFM-05-2023-0172https://www.emerald.com/insight/content/doi/10.1108/IMEFM-05-2023-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Small firm auditing using the analytical procedures (APs) in a politically challenging contexthttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-05-2023-0187/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to explore the use, effectiveness, motives and obstacles of analytical procedures (APs) used by auditors in Palestine, a context characterised by a pool of small and medium enterprises (SMEs), a limited skill set, poor quality of data, political uncertainty and a community-based business culture. The study considers the audit market in Palestine using a sequential mixed-methods approach combining a questionnaire survey and a series of in-depth interviews. A total of 129 Big-4 and non-Big-4 auditors were surveyed. The use of APs is driven by the auditor size (Big-4 vs non-Big-4) and the client size (large vs SMEs). Even though the use of APs has increased over the past decade, audit objectives, know-how, and personal, family and social connections among auditors and clients influence the quality of the audit process. Small firms take advantage of the lack of audit governance in Palestine. Our findings suggest that the regulators should help bridge the knowledge-sharing programmes between the small and large audit firms to help improve audit quality. Studies on audit quality, particularly using APs, in the context of politically unstable cases such as Palestine are limited. The study has implications for the use of APs in the case of SMEs to prepare for the technological revolution that will modernise audit procedures and quality soon.Small firm auditing using the analytical procedures (APs) in a politically challenging context
Muiz Abu Alia, Islam Abdeljawad, Mamunur Rashid, Renad Anwar Frehat
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to explore the use, effectiveness, motives and obstacles of analytical procedures (APs) used by auditors in Palestine, a context characterised by a pool of small and medium enterprises (SMEs), a limited skill set, poor quality of data, political uncertainty and a community-based business culture.

The study considers the audit market in Palestine using a sequential mixed-methods approach combining a questionnaire survey and a series of in-depth interviews. A total of 129 Big-4 and non-Big-4 auditors were surveyed.

The use of APs is driven by the auditor size (Big-4 vs non-Big-4) and the client size (large vs SMEs). Even though the use of APs has increased over the past decade, audit objectives, know-how, and personal, family and social connections among auditors and clients influence the quality of the audit process.

Small firms take advantage of the lack of audit governance in Palestine. Our findings suggest that the regulators should help bridge the knowledge-sharing programmes between the small and large audit firms to help improve audit quality.

Studies on audit quality, particularly using APs, in the context of politically unstable cases such as Palestine are limited. The study has implications for the use of APs in the case of SMEs to prepare for the technological revolution that will modernise audit procedures and quality soon.

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Small firm auditing using the analytical procedures (APs) in a politically challenging context10.1108/IMEFM-05-2023-0187International Journal of Islamic and Middle Eastern Finance and Management2024-03-12© 2024 Emerald Publishing LimitedMuiz Abu AliaIslam AbdeljawadMamunur RashidRenad Anwar FrehatInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-03-1210.1108/IMEFM-05-2023-0187https://www.emerald.com/insight/content/doi/10.1108/IMEFM-05-2023-0187/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Real estate and business fixed assets in the early Islamic economy from a Zakah perspectivehttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0204/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe face value of nonowner-occupied real estate and business fixed assets is excluded from Zakah, according to most Fiqh scholars who argue that it has not been explicitly ordered during the lifetime of Prophet Muhammad (sas). This study aims to test the hypothesis that the role of these properties in the early Islamic economy was insignificant and, therefore, differed from today. A qualitative historical analysis of primary Islamic sources and narrations from early Muslim historiography has been conducted to understand real estate sales and rent, construction costs and the number and size of houses owned by the Sahabah. In addition, inheritance reports and land gift records have been examined to obtain relevant information about the value of real estate. As for business fixed assets, the type, number and wealth of craftspeople as well as their tools have been analyzed to reveal their significance in comparison with today. The findings of this study confirm the hypothesis that real estate for investment purposes and business fixed assets were quasi-non-existent during the lifetime of the Prophet (sas) and, therefore, irrelevant from a Zakah perspective. This study intends to be a catalyst for the reconsideration of Zakah on these items of wealth and contributes to the Fiqhi discourse.Real estate and business fixed assets in the early Islamic economy from a Zakah perspective
Zaid Al-Aifari, Mehmet Bulut, Monzer Kahf
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The face value of nonowner-occupied real estate and business fixed assets is excluded from Zakah, according to most Fiqh scholars who argue that it has not been explicitly ordered during the lifetime of Prophet Muhammad (sas). This study aims to test the hypothesis that the role of these properties in the early Islamic economy was insignificant and, therefore, differed from today.

A qualitative historical analysis of primary Islamic sources and narrations from early Muslim historiography has been conducted to understand real estate sales and rent, construction costs and the number and size of houses owned by the Sahabah. In addition, inheritance reports and land gift records have been examined to obtain relevant information about the value of real estate. As for business fixed assets, the type, number and wealth of craftspeople as well as their tools have been analyzed to reveal their significance in comparison with today.

The findings of this study confirm the hypothesis that real estate for investment purposes and business fixed assets were quasi-non-existent during the lifetime of the Prophet (sas) and, therefore, irrelevant from a Zakah perspective.

This study intends to be a catalyst for the reconsideration of Zakah on these items of wealth and contributes to the Fiqhi discourse.

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Real estate and business fixed assets in the early Islamic economy from a Zakah perspective10.1108/IMEFM-06-2023-0204International Journal of Islamic and Middle Eastern Finance and Management2024-03-13© 2024 Emerald Publishing LimitedZaid Al-AifariMehmet BulutMonzer KahfInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-03-1310.1108/IMEFM-06-2023-0204https://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0204/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
ESG practices and bank efficiency: new evidence from an oil-driven economyhttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0212/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to investigate whether banks’ environmental, social and governance (ESG) initiatives increase or decrease banks’ efficiency. The sample used includes all listed banks in Saudi Arabia over the years 2016–2021. The authors performed different methods, including data envelopment analysis (DEA), ordinary least squares (OLS) and quantile regressions. The OLS regression results show a negative linkage between ESG and banks’ efficiency. Further, the quantile regression analysis indicates that the ESG effect on banks' efficiency is negative across different quantiles. However, the DEA method shows that the DEA-generated scores for Banks’ efficiency are higher for ESG-adjusted scores in comparison to efficiency scores without incorporating ESG. Further, the comparison of the DEA-generated efficiency scores, over the sample period, of adjusted ESG banks still suffers from decreasing in their efficiency over the years. Concerning existing theory, the results are consistent with the stakeholders and the resource-based theories postulating that banks' ESG practices are ethical commitments and enable firms to gain competitive advantage and increase their reputation among stakeholders. The findings of this study offer important implications for regulators and bankers. Policymakers and bank regulators should make collective efforts to encourage financial institutions to adopt green finance initiatives to create an efficient financial system capable of counteracting risks from the external environment and stimulating economic growth. Banks’ managers should be aware that ESG initiatives serve society and the environment and offer a positive influence on banks’ efficiency. To the best of the authors’ knowledge, this is the first study to explore the influence of ESG activities on banks' efficiency using DEA for banks in Saudi Arabia.ESG practices and bank efficiency: new evidence from an oil-driven economy
Ali Shaddady, Faisal Alnori
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to investigate whether banks’ environmental, social and governance (ESG) initiatives increase or decrease banks’ efficiency.

The sample used includes all listed banks in Saudi Arabia over the years 2016–2021. The authors performed different methods, including data envelopment analysis (DEA), ordinary least squares (OLS) and quantile regressions.

The OLS regression results show a negative linkage between ESG and banks’ efficiency. Further, the quantile regression analysis indicates that the ESG effect on banks' efficiency is negative across different quantiles. However, the DEA method shows that the DEA-generated scores for Banks’ efficiency are higher for ESG-adjusted scores in comparison to efficiency scores without incorporating ESG. Further, the comparison of the DEA-generated efficiency scores, over the sample period, of adjusted ESG banks still suffers from decreasing in their efficiency over the years. Concerning existing theory, the results are consistent with the stakeholders and the resource-based theories postulating that banks' ESG practices are ethical commitments and enable firms to gain competitive advantage and increase their reputation among stakeholders.

The findings of this study offer important implications for regulators and bankers. Policymakers and bank regulators should make collective efforts to encourage financial institutions to adopt green finance initiatives to create an efficient financial system capable of counteracting risks from the external environment and stimulating economic growth. Banks’ managers should be aware that ESG initiatives serve society and the environment and offer a positive influence on banks’ efficiency.

To the best of the authors’ knowledge, this is the first study to explore the influence of ESG activities on banks' efficiency using DEA for banks in Saudi Arabia.

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ESG practices and bank efficiency: new evidence from an oil-driven economy10.1108/IMEFM-06-2023-0212International Journal of Islamic and Middle Eastern Finance and Management2024-01-08© 2023 Emerald Publishing LimitedAli ShaddadyFaisal AlnoriInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-01-0810.1108/IMEFM-06-2023-0212https://www.emerald.com/insight/content/doi/10.1108/IMEFM-06-2023-0212/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Exploring the moderating role of religious orientation on Islamic Fintech adoptionhttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-09-2023-0315/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to delve into the factors influencing the adoption of Islamic Fintech and investigates the potential impact of Religious Orientation. The study uses a questionnaire to collect data from 291 Jordanians, using Structural Equation Model – Partial Least Squares (SEM-PLS) to evaluate the research model and test hypotheses. The outcomes of the Smart PLS path analysis revealed that several factors significantly influence the adoption of Islamic Fintech. Notably, perceived risk, financial literacy, trust and convenience were identified as pivotal determinants in shaping individuals' decisions to adopt Islamic Fintech. Additionally, the study unveils the noteworthy role of religious orientation as a moderator, impacting the relationship between perceived risk, financial literacy, trust and convenience concerning the adoption of Islamic Fintech. This study contributes fresh insights to the existing literature concerning the adoption of Islamic Fintech, enhancing the understanding of the key drivers in this domain. Furthermore, it emphasizes the practical implications of religious orientation in shaping individuals' attitudes and behaviors pertaining to Islamic Fintech adoption.Exploring the moderating role of religious orientation on Islamic Fintech adoption
Ayman Abdalmajeed Alsmadi
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to delve into the factors influencing the adoption of Islamic Fintech and investigates the potential impact of Religious Orientation.

The study uses a questionnaire to collect data from 291 Jordanians, using Structural Equation Model – Partial Least Squares (SEM-PLS) to evaluate the research model and test hypotheses.

The outcomes of the Smart PLS path analysis revealed that several factors significantly influence the adoption of Islamic Fintech. Notably, perceived risk, financial literacy, trust and convenience were identified as pivotal determinants in shaping individuals' decisions to adopt Islamic Fintech. Additionally, the study unveils the noteworthy role of religious orientation as a moderator, impacting the relationship between perceived risk, financial literacy, trust and convenience concerning the adoption of Islamic Fintech.

This study contributes fresh insights to the existing literature concerning the adoption of Islamic Fintech, enhancing the understanding of the key drivers in this domain. Furthermore, it emphasizes the practical implications of religious orientation in shaping individuals' attitudes and behaviors pertaining to Islamic Fintech adoption.

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Exploring the moderating role of religious orientation on Islamic Fintech adoption10.1108/IMEFM-09-2023-0315International Journal of Islamic and Middle Eastern Finance and Management2024-02-19© 2024 Emerald Publishing LimitedAyman Abdalmajeed AlsmadiInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-02-1910.1108/IMEFM-09-2023-0315https://www.emerald.com/insight/content/doi/10.1108/IMEFM-09-2023-0315/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Ownership structure, board characteristics, and performance of Indonesian Islamic rural bankshttps://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2022-0465/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model. This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors. The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures. This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia. To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks
Muhamad Umar Mai, Ruhadi Nansuri, Setiawan Setiawan
International Journal of Islamic and Middle Eastern Finance and Management, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model.

This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors.

The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures.

This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia.

To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.

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Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks10.1108/IMEFM-12-2022-0465International Journal of Islamic and Middle Eastern Finance and Management2024-02-02© 2024 Emerald Publishing LimitedMuhamad Umar MaiRuhadi NansuriSetiawan SetiawanInternational Journal of Islamic and Middle Eastern Finance and Managementahead-of-printahead-of-print2024-02-0210.1108/IMEFM-12-2022-0465https://www.emerald.com/insight/content/doi/10.1108/IMEFM-12-2022-0465/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited