Emerald | Journal of Islamic Accounting and Business Research | Table of Contents http://www.emeraldinsight.com/1759-0817.htm Table of contents from the most recently published issue of Journal of Islamic Accounting and Business Research Journal en-gb Tue, 08 Apr 2014 00:00:00 +0100 2014 Emerald Group Publishing Limited editorial@emeraldinsight.com support@emeraldinsight.com 60 Emerald | Journal of Islamic Accounting and Business Research | Table of Contents http://www.emeraldinsight.com/common_assets/img/covers_journal/jiabrcover.gif http://www.emeraldinsight.com/1759-0817.htm 120 157 Tunisia Islamic finance: overview and future prospects http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108317&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-02-2014-0007 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The purpose of this paper is to better understand the current state of the Islamic financial system in Tunisia. In addition, it is aimed at discussing the preconditions that can help exploit the potential development of Tunisia's Islamic finance and expand the banked population. <B>Design/methodology/approach</B> – The paper describes the regulatory and legal framework governing the Tunisian Islamic banks. It provides a mapping of Islamic banks, mutual funds, Takaful institutions and a potential Sukuk market. The paper also relates recent developments including academic qualifications and training in Islamic finance. <B>Findings</B> – The paper concludes with various recommendations for the successful transition from a niche position to a critical mass. It argues the need to establish a specific regulatory framework, supervisory standards and rules of accounting for this kind of institutions. It suggests the development of Islamic financial education to strengthen the role played by the Islamic financing Ecosystem and to help Tunisia promote local and exportable expertise to other countries. Finally, authorities should focus more on promoting market Sukuk, Takaful and microcredit to fund SME. <B>Originality/value</B> – This paper contributes to the assessment of the current situation of Islamic finance in Tunisia by performing a full scan of the Islamic financial landscape instead of being limited only to Islamic banks. It proposes some prerequisites to benefit from the opportunities offered by the Islamic finance industry in Tunisia to take advantage of its future potential and ensure its promotion. Article literatinetwork@emeraldinsight.com (Neila Boulila Taktak, Sarra Ben Slama Zouari) Tue, 08 Apr 2014 00:00:00 +0100 Islamic insurance prospects in Tunisia in the wake of the Jasmine revolution: A survey from customers' perspective http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108318&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-06-2012-0032 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The purpose of the study is to examine the willingness (or otherwise) of the Tunisian customers to adopt Islamic insurance services (takaful) and to determine the factors that influence their decisions. <B>Design/methodology/approach</B> – Hundred questionnaires are randomly distributed to Tunisian customers, and the data are subsequently analysed using SEM as well as one sample <IT>t</IT>-test. <B>Findings</B> – Overall, the results indicate that the Tunisian customers are willing to adopt Islamic insurance services. Furthermore, compatibility of these services is a determinant factor of their decision. <B>Originality/value</B> – This is one of the few studies of customers' behaviour towards Islamic insurance services, and the first to be conducted in the context of Tunisia. Furthermore, the study extends theory of innovations diffusions to a different area of study and a different context, i.e. Islamic insurance and Tunisia, respectively. Article literatinetwork@emeraldinsight.com (Abdelghani Echchabi, Lukman Ayinde Olorogun, Dhekra Azouzi) Tue, 08 Apr 2014 00:00:00 +0100 Competitive conditions and market power of Islamic and conventional commercial banks http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108319&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-05-2012-0030 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The expansion of the Islamic banking industry seems to accentuate the banking competition in MENA and Southeast Asia where conventional and Islamic banks coexist. In this context, the research aims\ to examine the competitive conditions and the market power of the conventional and Islamic banks during the period 2004-2009 in MENA and Southeast Asia region. <B>Design/methodology/approach</B> – The authors use a variety of structural and non-structural measures related to the traditional approach and the new empirical approach of the industrial organization. The methodology is based on set of measures of the competition and market power. The first measure is a set of concentration ratios (C3, C5) and Herfindahl-Hirschman index (HHI). The second measures are the Panzar and Ross H statistic and the Lerner index based on econometric estimations with the aim of evaluating the structure of market and measuring its power in terms of price setting. <B>Findings</B> – The results indicate that under the HHI index, both markets are low concentrated, while according to the concentration ratios, the Islamic market is considered as moderately concentrated. The estimations results, through the H-PR-statistic of Panzar and Ross related to degree of competition and the Lerner index of market power, indicate that both markets are characterized by a monopolistic competition and the Islamic banking expressed a high degree of market power. <B>Research limitations/implications</B> – The research focuses exclusively on the countries where the data are available and excludes the other countries where competition and market power might have different forms. <B>Practical implications</B> – In a competitive environment, each bank is required to analyze the structure of its market and competitive conditions, in order to develop a business strategy and effective action plans. In the context of the multiplication of the Islamic banks in the MENA and Southeast Asia, the enhancement of Islamic bank competitiveness by offering new products is determinant for their success. <B>Originality/value</B> – To the best of the authors' knowledge few studies have examined this subject in a comparative analysis between the Islamic and conventional banks. So the authors contribute to the literature on Islamic banking by considering a sample of Islamic and conventional banks operating in the same countries in order to examine the existence or not of difference between them. Article literatinetwork@emeraldinsight.com (Hichem Hamza, Safa Kachtouli) Tue, 08 Apr 2014 00:00:00 +0100 Islamic banks-Sukuk markets relationships and economic development: The case of the Tunisian post-revolution economy http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108320&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-07-2012-0054 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The purpose of this paper is to examine the opportunities of Islamic finance in spurring economic development in Tunisia after the revolution of 2011. Precisely, this paper seeks to explore whether the Islamic banks-Sukuk markets relationships are more conducive of economic growth. <B>Design/methodology/approach</B> – This work reviews the role of Islamic finance in economic development, examines the current dominance of Islamic banks on the saving-investment process and compares it with a situation characterized by a more important implication of banks in the Sukuk markets both as issuers and buyers. <B>Findings</B> – This paper finds that the “marketable Islamic intermediation” provides easily more funds to finance the economic development and solve the problems of poverty and unemployment. It also reveals that Islamic intermediation can be improved by a more important implication of banks in the Sukuk markets. This permits to overcome many problems related to saving mobilization, bank liquidity management, risk taking and long-run investment. <B>Social implications</B> – The author's recommendations related to the economic policy suggest strict rules to establish accountability, disclosure laws and transparency in Tunisia. <B>Originality/value</B> – This paper is a first attempt to study the role of the relationships between Islamic banks and Sukuk markets in the economic development process. It stresses the importance of these relationships to better meet the requirements of development financing in Tunisia. Article literatinetwork@emeraldinsight.com (Daoud Ben Jedidia Khoutem) Tue, 08 Apr 2014 00:00:00 +0100 Shariah-compliance and value of analysts' recommendations: evidence from the MENA region http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108321&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-04-2013-0010 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The purpose of this paper is to document the performance of analysts' recommendations for shariah-compliant firms and non-shariah-compliant firms in the MENA region during the period between 2005 and 2009. <B>Design/methodology/approach</B> – This paper uses post-recommendation market-adjusted returns as a measure of performance and computes returns for different holding periods. Significant positive (negative) returns following buy (sell) recommendation will indicate value relevance of these recommendations. <B>Findings</B> – The results show that analysts are not able to make any value relevant recommendations for shariah-compliant firms. The author documents insignificant returns following analysts' buy and sell recommendations for shariah-compliant firms. In contrast to their performance for shariah-compliant firms, the results show that analysts are able to produce value relevant recommendations for non-shariah-complaint firms. The author reports significant returns following analysts' buy recommendations for non-shariah-complaint firms. The author also reports significantly positive spread between returns following analysts' buy and sell recommendations for non-shariah-compliant firms. Positive spread indicates that analysts are able to differentiate between well-performing and badly-performing non-shariah-compliant firms. Interestingly, in case of sell recommendations, the results show no significant value in analysts' sell recommendations for non-shariah-complaint firms. <B>Practical implications</B> – The results imply that investors should not blindly follow analyst recommendations for shariah-compliant firms while making their investment decisions in the MENA region. <B>Originality/value</B> – This paper makes detailed analysis of analyst recommendations for shariah-compliant firms and non-shariah-compliant firms in previously unexplored MENA region. Article literatinetwork@emeraldinsight.com (Omar Farooq) Tue, 08 Apr 2014 00:00:00 +0100 Risk management tools practiced in Islamic banks: evidence in MENA region http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108322&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-10-2012-0070 <strong>Abstract</strong><br /><br /><B>Purpose</B> – The main purpose of this study is to investigate in detail the way each risk is being measured and managed by Islamic banks in the MENA region. <B>Design/methodology/approach</B> – This research attempts to examine the perceptions of Islamic bankers about the importance of transparency and public disclosure in the understanding of the bank's risk profile. It covers 23 Islamic banks located in the MENA region using self-administered questionnaire. <B>Findings</B> – The results show that there are differences in the level of risk perception across funding modes. Also Islamic banks use extensively the traditional tools in mitigating risk. <B>Practical implications</B> – The paper discusses and analyses the current practices employed in the risk management of Islamic banks. It identifies the tools and methods used in managing credit risk, market risk, liquidity risk and operational risk by Islamic banks. <B>Originality/value</B> – This study aims to extend the existing literature in two ways. First, this paper contributes to the dearth of studies on examination of tools practiced in the risk management by Islamic banks located in the MENA region. Next, this work integrates the methods used in the management of liquidity risk that have not been studied earlier. Article literatinetwork@emeraldinsight.com (Rim Ben Selma Mokni, Abdelghani Echchabi, Dhekra Azouzi, Houssem Rachdi) Tue, 08 Apr 2014 00:00:00 +0100 The determinants of loan loss and allowances for MENA banks: Simultaneous equation and three-stage approaches http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108323&show=abstract http://www.emeraldinsight.com/10.1108/JIABR-07-2013-0027 <strong>Abstract</strong><br /><br /><B>Purpose</B> – This study aims to examine the determinants of the allowance for loan losses (ALL) and loan loss provisions (LLP) for banks in the Middle East and North African (MENA) region using both a two-stage approach and simultaneous equation system to address the potential problem of estimation bias introduced by estimating the ALL and LLP separately. The paper also tests three competing hypotheses: the earnings management hypothesis, the capital management hypothesis, and the signaling hypothesis. <B>Design/methodology/approach</B> – The authors adopt a simultaneous equation and three-stage approaches to test whether MENA banks jointly determine LLP and ALL and the determinants of the two accounts. The sample consists of all available electronic data for 75 banks (451 bank-year observations) in nine MENA countries over the period 2000-2008. <B>Findings</B> – Evidence suggests that the two accounts are jointly determined. The results support the earnings management hypothesis – meaning that MENA banks have engaged in year-to-year income smoothing. The authors also find that LLP and ALL provide signals about future earnings. <B>Research limitations/implications</B> – The authors acknowledge that the LLP account is only one of many accounts on the income statement that could be used for signaling or to manage earnings, and that the ALL is one of several accounts that could be used for signaling, earnings or capital management. Future studies could examine other accruals for their role in managing earnings, signaling and capital. <B>Practical implications</B> – The results indicate that bank managers use LLP and ALL accounts to manage earnings management, policy makers may want to limit the ability of banks to manipulate earnings. <B>Originality/value</B> – Prior research on the loan loss accounting practices has been based on single equation models of the determinants of LLP and ALL. An issue that has not been adequately addressed in this literature is that ALL and LLP may be interrelated and jointly determined by banks. If the two accounts are not independent of each other, failure to include one when estimating the other may lead to an omitted variable problem, while including both in the same equation induces a potential simultaneity bias. The study is the first empirical work examining whether ALL and LLP are jointly determined by banks. By jointly estimating LLP and ALL, the study permits an assessment of the magnitude of the potential error from adopting ordinary least squares estimation of a single equation model. Article literatinetwork@emeraldinsight.com (Dennis Olson, Taisier A. Zoubi) Tue, 08 Apr 2014 00:00:00 +0100 2013 Awards for Excellence http://www.emeraldinsight.com/journals.htm?issn=1759-0817&volume=5&issue=1&articleid=17108324&show=abstract 2013 Awards for Excellence Tue, 08 Apr 2014 00:00:00 +0100