Journal of Islamic Accounting and Business ResearchTable of Contents for Journal of Islamic Accounting and Business Research. List of articles from the current issue, including Just Accepted (EarlyCite)https://www.emerald.com/insight/publication/issn/1759-0817/vol/15/iss/4?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestJournal of Islamic Accounting and Business ResearchEmerald Publishing LimitedJournal of Islamic Accounting and Business ResearchJournal of Islamic Accounting and Business Researchhttps://www.emerald.com/insight/proxy/containerImg?link=/resource/publication/journal/d318ed24753a7a851088c385caa2ba2e/urn:emeraldgroup.com:asset:id:binary:jiabr.cover.jpghttps://www.emerald.com/insight/publication/issn/1759-0817/vol/15/iss/4?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestA systematic literature review on the role of sharia governance in improving financial performance in sharia bankinghttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0192/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking. Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review. The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking. The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia. Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.A systematic literature review on the role of sharia governance in improving financial performance in sharia banking
Annisa Adha Minaryanti, Muhammad Iman Sastra Mihajat
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.553-568

The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.

Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.

The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.

The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.

Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.

]]>
A systematic literature review on the role of sharia governance in improving financial performance in sharia banking10.1108/JIABR-08-2022-0192Journal of Islamic Accounting and Business Research2023-05-15© 2023 Emerald Publishing LimitedAnnisa Adha MinaryantiMuhammad Iman Sastra MihajatJournal of Islamic Accounting and Business Research1542023-05-1510.1108/JIABR-08-2022-0192https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0192/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Financial stability nexus of Islamic banks: an influential and intellectual science mapping structurehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0167/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to provide a comprehensive bibliometric investigation of the antecedents to financial stability in Islamic banking, a transition economy with a volatile stock market focusing on banks following the Shariah approach. The data for this analysis was extracted from the Scopus database, which combines a comprehensively crafted abstract and citation database with augmented data and linked scholarly works across various disciplines. It quickly finds relevant research and provides access to reliable data and analytical tools. This study deploys “bibliometrix 3.0,” a biblioshiny R-package for influential structure and the VOS viewer for intellectual structure. The investigation’s main findings revealed that 1,910 documents were published from 1987 to 2022. Published manuscripts received 39,050 citations, with an average of 10.18 citations per year. However, the instructed empirical research was experienced during 2009 and 2020, while earlier periods (1987–2008) were relatively inactive where banking was considered protective in the presence of BASEL-II capital accords regulations. While the International Journal of Bank Market has been at the top of the list to publish articles related to the area under investigation, the Journal of Banking and Finance is ranked one of the most cited articles. Malaysia has been at the top of the list of countries to research Islamic Sharia compliance principles in the banking industry, and International Islamic University Malaysia has produced enough evidence in this regard. The intellectual structure provided essential foundations for future research, and the bibliometric coupling approach was used. While most of the banking research has been conducted to determine the banking business efficiency, risk and profitability, little focus is given to financial stability and that too concerning the Islamic banks. Therefore, researchers need to investigate this horizon from an Islamic banking point of view and focus on key issues that discriminate between Islamic and conventional banks in determining their stability level. Briefly, to the best of the authors’ knowledge, this study would be the first to provide bibliometric information about financial stability keeping in view the sample data from banks with the Shariah approach. Furthermore, the proven analysis demonstrates a novel contribution that financially stable Islamic banks might strengthen the financial industry and overall economy.Financial stability nexus of Islamic banks: an influential and intellectual science mapping structure
Rabia Asif, Adeel Nasir
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.569-589

This study aims to provide a comprehensive bibliometric investigation of the antecedents to financial stability in Islamic banking, a transition economy with a volatile stock market focusing on banks following the Shariah approach.

The data for this analysis was extracted from the Scopus database, which combines a comprehensively crafted abstract and citation database with augmented data and linked scholarly works across various disciplines. It quickly finds relevant research and provides access to reliable data and analytical tools. This study deploys “bibliometrix 3.0,” a biblioshiny R-package for influential structure and the VOS viewer for intellectual structure.

The investigation’s main findings revealed that 1,910 documents were published from 1987 to 2022. Published manuscripts received 39,050 citations, with an average of 10.18 citations per year. However, the instructed empirical research was experienced during 2009 and 2020, while earlier periods (1987–2008) were relatively inactive where banking was considered protective in the presence of BASEL-II capital accords regulations. While the International Journal of Bank Market has been at the top of the list to publish articles related to the area under investigation, the Journal of Banking and Finance is ranked one of the most cited articles. Malaysia has been at the top of the list of countries to research Islamic Sharia compliance principles in the banking industry, and International Islamic University Malaysia has produced enough evidence in this regard. The intellectual structure provided essential foundations for future research, and the bibliometric coupling approach was used.

While most of the banking research has been conducted to determine the banking business efficiency, risk and profitability, little focus is given to financial stability and that too concerning the Islamic banks. Therefore, researchers need to investigate this horizon from an Islamic banking point of view and focus on key issues that discriminate between Islamic and conventional banks in determining their stability level.

Briefly, to the best of the authors’ knowledge, this study would be the first to provide bibliometric information about financial stability keeping in view the sample data from banks with the Shariah approach. Furthermore, the proven analysis demonstrates a novel contribution that financially stable Islamic banks might strengthen the financial industry and overall economy.

]]>
Financial stability nexus of Islamic banks: an influential and intellectual science mapping structure10.1108/JIABR-07-2022-0167Journal of Islamic Accounting and Business Research2023-05-03© 2023 Emerald Publishing LimitedRabia AsifAdeel NasirJournal of Islamic Accounting and Business Research1542023-05-0310.1108/JIABR-07-2022-0167https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0167/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Intergenerational analysis of cash waqf behavior: lessons learned from Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0086/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe proponents of cash waqf speak highly about its huge potential for mobilizing the third sector of the economy to fund the socio-economic development agenda. However, the under-collection issue has been characterizing the cash waqf movement globally. This study aims to examine how understanding the distinct cash waqf donating behavior across different generations has the potential to address the problem. This study extends the theory of planned behavior by adding religiosity and knowledge variables into the standard model, using the partial least square structural equation modeling. A survey is conducted on 684 respondents representing the main provinces in Indonesia and four major generations (Baby Boomers [BB], Generations X, Y and Z). Religiosity, Knowledge, Attitude, Subjective Norms and Perceived Behavioral Control directly or indirectly affect cash waqf intention. The effect is contingent on the characteristics of generations. This study covers only the Indonesian case with limited coverage of the more heterogeneous provinces in the country. The sample distribution for BB can also be enlarged. Cash waqf institutions (government and private) should apply the dynamic segmenting strategy, where the diversification of the promotion, marketing, awareness and approaches are contingent on the different characteristics of each generation. To the best of the authors’ knowledge, this is the first study evaluating the intergenerational determinants of Intention toward cash waqf, particularly in Indonesia.Intergenerational analysis of cash waqf behavior: lessons learned from Indonesia
Wahyu Jatmiko, Banu Muhammad Haidlir, A. Azizon, Bambang Shergi Laksmono, Rahmatina Kasri
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.590-618

The proponents of cash waqf speak highly about its huge potential for mobilizing the third sector of the economy to fund the socio-economic development agenda. However, the under-collection issue has been characterizing the cash waqf movement globally. This study aims to examine how understanding the distinct cash waqf donating behavior across different generations has the potential to address the problem.

This study extends the theory of planned behavior by adding religiosity and knowledge variables into the standard model, using the partial least square structural equation modeling. A survey is conducted on 684 respondents representing the main provinces in Indonesia and four major generations (Baby Boomers [BB], Generations X, Y and Z).

Religiosity, Knowledge, Attitude, Subjective Norms and Perceived Behavioral Control directly or indirectly affect cash waqf intention. The effect is contingent on the characteristics of generations.

This study covers only the Indonesian case with limited coverage of the more heterogeneous provinces in the country. The sample distribution for BB can also be enlarged.

Cash waqf institutions (government and private) should apply the dynamic segmenting strategy, where the diversification of the promotion, marketing, awareness and approaches are contingent on the different characteristics of each generation.

To the best of the authors’ knowledge, this is the first study evaluating the intergenerational determinants of Intention toward cash waqf, particularly in Indonesia.

]]>
Intergenerational analysis of cash waqf behavior: lessons learned from Indonesia10.1108/JIABR-03-2022-0086Journal of Islamic Accounting and Business Research2023-04-26© 2023 Emerald Publishing LimitedWahyu JatmikoBanu Muhammad HaidlirA. AzizonBambang Shergi LaksmonoRahmatina KasriJournal of Islamic Accounting and Business Research1542023-04-2610.1108/JIABR-03-2022-0086https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0086/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Shariah governance disclosure and its effect on Islamic banks' financial performance: evidence from Malaysia and GCC countrieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2021-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait, Bahrain, United Arab Emirates, Qatar, Oman and Saudi Arabia). On top of that, the effect of Shariah governance disclosure on Islamic banks financial performance is investigated. Data underwent quantitative content analysis and a mean comparison of the Shariah governance disclosure mechanisms as well as multiple regression analysis. Shariah governance information is obtained from the Islamic banks' official websites and the Bursa Malaysia Exchange. The results of the content analysis revealed that the level of Shariah governance disclosure among Malaysian Islamic banks has been more pronounced than in the GCC countries. Additionally, the multiple regression analysis results specified that of the five Shariah governance disclosure mechanisms, the Shariah committee emerged as the strongest determinant in the financial performance of the Islamic banks, followed by transparency and disclosure. Islamic banks should emphasise publishing Shariah governance information in annual reports to reflect superior accounting practices as assessed by certified Shariah auditors with an effective monitoring system. The empirical findings are vital for serving as a guideline for Islamic banks in Malaysia and the GCC countries to disclose their practice of Shariah governance and gain empirical insights into its effect on firms’ financial performance. Following that, Islamic banks would improve their accounting practices while adhering to Shariah principles, strengthen internal controls and boost their brand reputation.Shariah governance disclosure and its effect on Islamic banks' financial performance: evidence from Malaysia and GCC countries
Memiyanty Abdul Rahim, Nur ’Ain Syahirah Shaharuddin, Norazah Mohd Suki
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.619-642

The purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait, Bahrain, United Arab Emirates, Qatar, Oman and Saudi Arabia). On top of that, the effect of Shariah governance disclosure on Islamic banks financial performance is investigated.

Data underwent quantitative content analysis and a mean comparison of the Shariah governance disclosure mechanisms as well as multiple regression analysis. Shariah governance information is obtained from the Islamic banks' official websites and the Bursa Malaysia Exchange.

The results of the content analysis revealed that the level of Shariah governance disclosure among Malaysian Islamic banks has been more pronounced than in the GCC countries. Additionally, the multiple regression analysis results specified that of the five Shariah governance disclosure mechanisms, the Shariah committee emerged as the strongest determinant in the financial performance of the Islamic banks, followed by transparency and disclosure.

Islamic banks should emphasise publishing Shariah governance information in annual reports to reflect superior accounting practices as assessed by certified Shariah auditors with an effective monitoring system.

The empirical findings are vital for serving as a guideline for Islamic banks in Malaysia and the GCC countries to disclose their practice of Shariah governance and gain empirical insights into its effect on firms’ financial performance. Following that, Islamic banks would improve their accounting practices while adhering to Shariah principles, strengthen internal controls and boost their brand reputation.

]]>
Shariah governance disclosure and its effect on Islamic banks' financial performance: evidence from Malaysia and GCC countries10.1108/JIABR-08-2021-0235Journal of Islamic Accounting and Business Research2023-05-10© 2023 Emerald Publishing LimitedMemiyanty Abdul RahimNur ’Ain Syahirah ShaharuddinNorazah Mohd SukiJournal of Islamic Accounting and Business Research1542023-05-1010.1108/JIABR-08-2021-0235https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2021-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Zakat as an instrument of poverty reduction in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2021-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia. This study used a qualitative method based on library research sourced from books, financial reports and another previous research. The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line. This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia. Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.Zakat as an instrument of poverty reduction in Indonesia
Sri Herianingrum, Indri Supriani, Raditya Sukmana, Effendie Effendie, Tika Widiastuti, Qudsi Fauzi, Atina Shofawati
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.643-660

This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.

This study used a qualitative method based on library research sourced from books, financial reports and another previous research.

The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.

This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.

Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

]]>
Zakat as an instrument of poverty reduction in Indonesia10.1108/JIABR-11-2021-0307Journal of Islamic Accounting and Business Research2023-05-10© 2023 Emerald Publishing LimitedSri HerianingrumIndri SuprianiRaditya SukmanaEffendie EffendieTika WidiastutiQudsi FauziAtina ShofawatiJournal of Islamic Accounting and Business Research1542023-05-1010.1108/JIABR-11-2021-0307https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2021-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The motivating factors for switching intention to use halal cosmetics in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0220/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe halal cosmetics industry continues to grow significantly. Furthermore, using halal cosmetics is a must for Muslims. This study aims to analyze the factors influencing the switching intention to halal cosmetics in Indonesia. This quantitative study uses a Partial Least Square-Structural Equation Modelling (PLS-SEM) on 214 respondents. The variables include halal certification, halal awareness, product image, perceived behavioral control, subjective norm, attitude, advertisement and switching intention. The product image plays the most influential role in deriving the attitude toward switching intention to halal cosmetics, following perceived behavioral control, halal awareness and subjective norm, but not halal certification and advertisement. The result indicates that the image of halal cosmetics influences customers’ attitudes toward switching to using halal cosmetics. Indonesian customers know the obligation to use halal products because they are Muslim. However, the existence of halal certification does not derive the switching intention to halal cosmetics. This study conducts research only in Indonesia. As a recommendation, further studies might conduct a comparative test using multicultural respondents in several countries. Other studies also suggested examining factors of switching intention through different generational, especially in countries with high individualism traits. This study will encourage the halal industry, especially the halal cosmetics industry, to pay more attention to the product image. Meanwhile, the government can provide incentives or rewards to promote industry participation in halal cosmetics. The findings provide a more detailed understanding of how product image can influence someone to switch to halal cosmetics. Research on switching intention to halal cosmetics is still limited. This study uses halal variables, while previous studies only used religiosity. This study also introduced the product images motivating customers’ switching intention to use halal cosmetics.The motivating factors for switching intention to use halal cosmetics in Indonesia
Wisudanto , Tika Widiastuti, Dien Mardhiyah, Imron Mawardi, Anidah Robani, Muhammad Ubaidillah Al Mustofa
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.661-683

The halal cosmetics industry continues to grow significantly. Furthermore, using halal cosmetics is a must for Muslims. This study aims to analyze the factors influencing the switching intention to halal cosmetics in Indonesia.

This quantitative study uses a Partial Least Square-Structural Equation Modelling (PLS-SEM) on 214 respondents. The variables include halal certification, halal awareness, product image, perceived behavioral control, subjective norm, attitude, advertisement and switching intention.

The product image plays the most influential role in deriving the attitude toward switching intention to halal cosmetics, following perceived behavioral control, halal awareness and subjective norm, but not halal certification and advertisement. The result indicates that the image of halal cosmetics influences customers’ attitudes toward switching to using halal cosmetics. Indonesian customers know the obligation to use halal products because they are Muslim. However, the existence of halal certification does not derive the switching intention to halal cosmetics.

This study conducts research only in Indonesia. As a recommendation, further studies might conduct a comparative test using multicultural respondents in several countries. Other studies also suggested examining factors of switching intention through different generational, especially in countries with high individualism traits.

This study will encourage the halal industry, especially the halal cosmetics industry, to pay more attention to the product image. Meanwhile, the government can provide incentives or rewards to promote industry participation in halal cosmetics. The findings provide a more detailed understanding of how product image can influence someone to switch to halal cosmetics.

Research on switching intention to halal cosmetics is still limited. This study uses halal variables, while previous studies only used religiosity. This study also introduced the product images motivating customers’ switching intention to use halal cosmetics.

]]>
The motivating factors for switching intention to use halal cosmetics in Indonesia10.1108/JIABR-08-2022-0220Journal of Islamic Accounting and Business Research2023-05-30© 2023 Emerald Publishing LimitedWisudanto Tika WidiastutiDien MardhiyahImron MawardiAnidah RobaniMuhammad Ubaidillah Al MustofaJournal of Islamic Accounting and Business Research1542023-05-3010.1108/JIABR-08-2022-0220https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0220/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Finance – growth nexus: evidence from systemically important Islamic finance countrieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the effects of financial development on the economic growth of jurisdictions with systemically important Islamic finance. The authors use several estimation methods. The primary analysis is based on the LSDVC method using a sample of 23 countries covering the period of 2000–2019. The findings suggest that the financial sector may not be a significant factor in determining economic growth, or that it may decrease it depending on the proxy used. These results are in line with recent studies and robust across different estimation specifications and methods used. Finance practitioners may reconsider the way they conduct their daily activities as their impact on economic growth is fading away. Similarly, policymakers should consider the role that financial development plays in economic growth alongside other factors that may influence its impact. It may be necessary to examine the moderating effects of institutional development on the relationship between finance and growth and consider the channels through which financial development can contribute to economic growth. Additionally, it would be useful to study the impact of Islamic finance on economic growth using different data sources. Although the topic has been explored using different data sets and focusing on different samples, it has not been explored considering the impact of Islamic finance development on economic growth. Given the global appeal of the Islamic finance industry, it is worth investigating its significance for economic growth.Finance – growth nexus: evidence from systemically important Islamic finance countries
Edib Smolo, Ruslan Nagayev
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.684-700

The purpose of this study is to examine the effects of financial development on the economic growth of jurisdictions with systemically important Islamic finance.

The authors use several estimation methods. The primary analysis is based on the LSDVC method using a sample of 23 countries covering the period of 2000–2019.

The findings suggest that the financial sector may not be a significant factor in determining economic growth, or that it may decrease it depending on the proxy used. These results are in line with recent studies and robust across different estimation specifications and methods used.

Finance practitioners may reconsider the way they conduct their daily activities as their impact on economic growth is fading away. Similarly, policymakers should consider the role that financial development plays in economic growth alongside other factors that may influence its impact. It may be necessary to examine the moderating effects of institutional development on the relationship between finance and growth and consider the channels through which financial development can contribute to economic growth. Additionally, it would be useful to study the impact of Islamic finance on economic growth using different data sources.

Although the topic has been explored using different data sets and focusing on different samples, it has not been explored considering the impact of Islamic finance development on economic growth. Given the global appeal of the Islamic finance industry, it is worth investigating its significance for economic growth.

]]>
Finance – growth nexus: evidence from systemically important Islamic finance countries10.1108/JIABR-01-2022-0020Journal of Islamic Accounting and Business Research2023-05-08© 2023 Emerald Publishing LimitedEdib SmoloRuslan NagayevJournal of Islamic Accounting and Business Research1542023-05-0810.1108/JIABR-01-2022-0020https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Religiosity and entrepreneurial motivation roles in the goal-specific relation: a case of Muslim students in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0056/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate religiosity and entrepreneurial motivation roles in the goal-specific, involving Muslim students’ entrepreneurial intention and self-efficacy. Besides, it examines the robustness model based on group context. Partial least square structural equation modelling is employed to examine 502 data collected from Muslim students in Indonesia through an online survey. Meanwhile, partial least square multigroup analysis tests the robustness model. Religiosity plays a powerful role in increasing goal-specificity. Meanwhile, entrepreneurial motivation and self-efficacy perform as full mediations in the pathway mechanism of religiosity's effect on entrepreneurial intention. The current study is conducted based on the previous recommendations and contradictions. Therefore, it clarifies and develops a study on the role of religiosity and entrepreneurial motivation in the goal-specific motivation of Muslim students. To increase the goal-specificity of entrepreneurship activities, policymakers in the ministry of education and universities must implement and revitalize Muslim students' understanding of the relationship between religiosity and entrepreneurship. This study defines the role of religiosity in goal-specific, especially Muslim students’ entrepreneurial intentions, by gender, faculty/department and age. Furthermore, it completes the opportunity for research agendas on the relationship between religiosity, entrepreneurial motivation, self-efficacy and entrepreneurial intention.Religiosity and entrepreneurial motivation roles in the goal-specific relation: a case of Muslim students in Indonesia
Siswanto
Journal of Islamic Accounting and Business Research, Vol. 15, No. 4, pp.701-725

This study aims to investigate religiosity and entrepreneurial motivation roles in the goal-specific, involving Muslim students’ entrepreneurial intention and self-efficacy. Besides, it examines the robustness model based on group context.

Partial least square structural equation modelling is employed to examine 502 data collected from Muslim students in Indonesia through an online survey. Meanwhile, partial least square multigroup analysis tests the robustness model.

Religiosity plays a powerful role in increasing goal-specificity. Meanwhile, entrepreneurial motivation and self-efficacy perform as full mediations in the pathway mechanism of religiosity's effect on entrepreneurial intention.

The current study is conducted based on the previous recommendations and contradictions. Therefore, it clarifies and develops a study on the role of religiosity and entrepreneurial motivation in the goal-specific motivation of Muslim students.

To increase the goal-specificity of entrepreneurship activities, policymakers in the ministry of education and universities must implement and revitalize Muslim students' understanding of the relationship between religiosity and entrepreneurship.

This study defines the role of religiosity in goal-specific, especially Muslim students’ entrepreneurial intentions, by gender, faculty/department and age. Furthermore, it completes the opportunity for research agendas on the relationship between religiosity, entrepreneurial motivation, self-efficacy and entrepreneurial intention.

]]>
Religiosity and entrepreneurial motivation roles in the goal-specific relation: a case of Muslim students in Indonesia10.1108/JIABR-02-2022-0056Journal of Islamic Accounting and Business Research2023-05-10© 2023 Emerald Publishing Limited SiswantoJournal of Islamic Accounting and Business Research1542023-05-1010.1108/JIABR-02-2022-0056https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0056/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Recombinant collagen-like protein: ethical policy and consumers’ likelihood to consumehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0002/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the tendency that Malaysian consumers will choose the recombinant collagen-like protein (RCLP) from bacteria as an alternative source of collagen in their consumption and the determinants of the consumer acceptance. Quantitative approach is adopted in the study. Descriptive analysis and logistic regression are used to analyze primary data collected from a survey. The likelihood of consumers choosing RCLP as an alternative source of collagen is higher among elderly and females. The choice is significantly influenced by the idea that the collagen should support maqasid al-syariah, approved by national Islamic body, should clear on the ingredients used and could boost local economic activities in the future. An ethical halal policy should be outlined as the guiding principles to the potential producers of RCLP. An alternative source of collagen using bacteria as proposed is not yet being introduced in Malaysian industry, and the analysis on probability that consumers will accept this new sourced collagen product is using primary data from survey.Recombinant collagen-like protein: ethical policy and consumers’ likelihood to consume
Jarita Duasa, Nurul Jannah Zainan Nazri, Raudlotul Firdaus Fatah Yasin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the tendency that Malaysian consumers will choose the recombinant collagen-like protein (RCLP) from bacteria as an alternative source of collagen in their consumption and the determinants of the consumer acceptance.

Quantitative approach is adopted in the study. Descriptive analysis and logistic regression are used to analyze primary data collected from a survey.

The likelihood of consumers choosing RCLP as an alternative source of collagen is higher among elderly and females. The choice is significantly influenced by the idea that the collagen should support maqasid al-syariah, approved by national Islamic body, should clear on the ingredients used and could boost local economic activities in the future.

An ethical halal policy should be outlined as the guiding principles to the potential producers of RCLP.

An alternative source of collagen using bacteria as proposed is not yet being introduced in Malaysian industry, and the analysis on probability that consumers will accept this new sourced collagen product is using primary data from survey.

]]>
Recombinant collagen-like protein: ethical policy and consumers’ likelihood to consume10.1108/JIABR-01-2022-0002Journal of Islamic Accounting and Business Research2023-08-08© 2023 Emerald Publishing LimitedJarita DuasaNurul Jannah Zainan NazriRaudlotul Firdaus Fatah YasinJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-0810.1108/JIABR-01-2022-0002https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0002/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Financial development and economic diversification in Qatar: does Islamic finance mattershttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0021/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe financial system plays an essential role in facilitating the intermediation process for economic growth. Policymakers stress on achieving a well-developed and regulated financial system to achieve economic development and resiliency. Using data from the State of Qatar, this paper aims to examine the impact of financial development indicator on economic growth; the impact of financial development indicator on hydrocarbon and nonhydrocarbon sector; the impact of Islamic banking on hydrocarbon and nonhydrocarbon economic growth. The research uses quarterly data from 2007 to 2019 and adopts autoregressive distributed lag cointegration techniques to test the long- and short-run dynamic relationship between various measures of financial development and economic growth. The results present evidence of long-term cointegration between overall financial development indicator and economic growth. Furthermore, the authors document the existence of long-term relationship between financial development and nonhydrocarbon sector. However, there is a lack of evidence on the long-run relationship between financial development and the hydrocarbon sector. Notwithstanding, Islamic banking contributes to overall economic development, as well as to the nonhydrocarbon sector. This paper offers policymakers with insights to evaluate measures to diversify the economy. It also assists decision-makers in promoting Islamic finance, particularly to the banking sector as a vital contributor to economic growth. To the best of the author’s knowledge, this paper is the first to evaluate financial development and economic growth for the case of Qatar in light of recent developments in Islamic finance.Financial development and economic diversification in Qatar: does Islamic finance matters
Fekri Ali Shawtari, Bilal Ahmad Elsalem, Milad Abdelnabi Salem, Mohamed Eskandar Shah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The financial system plays an essential role in facilitating the intermediation process for economic growth. Policymakers stress on achieving a well-developed and regulated financial system to achieve economic development and resiliency. Using data from the State of Qatar, this paper aims to examine the impact of financial development indicator on economic growth; the impact of financial development indicator on hydrocarbon and nonhydrocarbon sector; the impact of Islamic banking on hydrocarbon and nonhydrocarbon economic growth.

The research uses quarterly data from 2007 to 2019 and adopts autoregressive distributed lag cointegration techniques to test the long- and short-run dynamic relationship between various measures of financial development and economic growth.

The results present evidence of long-term cointegration between overall financial development indicator and economic growth. Furthermore, the authors document the existence of long-term relationship between financial development and nonhydrocarbon sector. However, there is a lack of evidence on the long-run relationship between financial development and the hydrocarbon sector. Notwithstanding, Islamic banking contributes to overall economic development, as well as to the nonhydrocarbon sector.

This paper offers policymakers with insights to evaluate measures to diversify the economy. It also assists decision-makers in promoting Islamic finance, particularly to the banking sector as a vital contributor to economic growth.

To the best of the author’s knowledge, this paper is the first to evaluate financial development and economic growth for the case of Qatar in light of recent developments in Islamic finance.

]]>
Financial development and economic diversification in Qatar: does Islamic finance matters10.1108/JIABR-01-2022-0021Journal of Islamic Accounting and Business Research2023-06-09© 2023 Emerald Publishing LimitedFekri Ali ShawtariBilal Ahmad ElsalemMilad Abdelnabi SalemMohamed Eskandar ShahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-0910.1108/JIABR-01-2022-0021https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2022-0021/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Social capital accounting and financial performance improvement: the role of financial information reliability as a mediatorhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to investigate the role of accounting measurement and disclosure of social capital (AMDSC) in improving financial performance (FP) in industrial companies in the Kurdistan Region of Iraq (KRG) and Sulaimani city. The research also examines the mediating role of reliability of financial information (RFI) between AMDSC and FP. This research uses SmartPLS to analyze the questionnaire that was sent to 10 industrial companies operating in the iron sector during 2021. The findings reveal that AMDSC has a significant effect on improving the FP of the industrial companies in KRG. The results also confirm that the RFI mediates between AMDSC and FP. Thus, this suggests that social capital (SC) needs to be considered in the companies’ strategy to secure future financing in this area. This paper is limited to the iron sector of KRG/Sulaimani city. Future studies could address other sectors, such as sugar, cement, clothes, automobiles and medicines. This paper focuses on improving FP in industrial companies in KRG and Sulaimani city through considering SC in their companies’ strategies, as there was no concern for SC in KRG before.Social capital accounting and financial performance improvement: the role of financial information reliability as a mediator
Chnar Abdullah Rashid
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to investigate the role of accounting measurement and disclosure of social capital (AMDSC) in improving financial performance (FP) in industrial companies in the Kurdistan Region of Iraq (KRG) and Sulaimani city. The research also examines the mediating role of reliability of financial information (RFI) between AMDSC and FP.

This research uses SmartPLS to analyze the questionnaire that was sent to 10 industrial companies operating in the iron sector during 2021.

The findings reveal that AMDSC has a significant effect on improving the FP of the industrial companies in KRG. The results also confirm that the RFI mediates between AMDSC and FP. Thus, this suggests that social capital (SC) needs to be considered in the companies’ strategy to secure future financing in this area.

This paper is limited to the iron sector of KRG/Sulaimani city. Future studies could address other sectors, such as sugar, cement, clothes, automobiles and medicines.

This paper focuses on improving FP in industrial companies in KRG and Sulaimani city through considering SC in their companies’ strategies, as there was no concern for SC in KRG before.

]]>
Social capital accounting and financial performance improvement: the role of financial information reliability as a mediator10.1108/JIABR-01-2023-0001Journal of Islamic Accounting and Business Research2023-09-14© 2023 Emerald Publishing LimitedChnar Abdullah RashidJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-1410.1108/JIABR-01-2023-0001https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0001/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An investigation of the Iranian audit firms’ transparency: evidence from an Islamic contexthttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate factors that drive or deter audit firms (AFs) from disclosing audit quality (AQ) information to stakeholders in Iran. Furthermore, information items that should be contained in their disclosures are examined. The study followed an interpretive approach. In this regard, 21 semi-structured and face-to-face interviews were conducted to explore the viewpoints of audit partners and investment managers. Interviewees were selected by snowball sampling method. The transcripts of audio records were prepared, and a thematic perspective was applied to evaluate transcriptions. Participants’ interpretations indicate that certain factors, such as signaling to stakeholders, active audit committees and investor demand, promote transparency among Iranian AFs. Nonetheless, this inclination is deterred by some concerns, including poor AQ, lack of financial resources, lack of legal enforcement, fear of raising stakeholders’ expectations, inactive professional associations and contextual factors which should be addressed. Interviewees believe five items should be contained in AFs’ disclosures to enhance transparency. This study contributes to recognizing factors explaining AFs’ behavior in the context of an Islamic country. Furthermore, the type of disclosure that should be contained can provide good insight for standard setters or oversight bodies. The semi-structured interviews shed light on the contextual factors that influence transparency within the accountancy profession, either enabling or hindering it. Additionally, it is crucial to consider each country’s unique characteristics when determining the disclosure items in transparency reports.An investigation of the Iranian audit firms’ transparency: evidence from an Islamic context
Hamideh Asnaashari, Mohammad Hossein Safarzadeh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate factors that drive or deter audit firms (AFs) from disclosing audit quality (AQ) information to stakeholders in Iran. Furthermore, information items that should be contained in their disclosures are examined.

The study followed an interpretive approach. In this regard, 21 semi-structured and face-to-face interviews were conducted to explore the viewpoints of audit partners and investment managers. Interviewees were selected by snowball sampling method. The transcripts of audio records were prepared, and a thematic perspective was applied to evaluate transcriptions.

Participants’ interpretations indicate that certain factors, such as signaling to stakeholders, active audit committees and investor demand, promote transparency among Iranian AFs. Nonetheless, this inclination is deterred by some concerns, including poor AQ, lack of financial resources, lack of legal enforcement, fear of raising stakeholders’ expectations, inactive professional associations and contextual factors which should be addressed. Interviewees believe five items should be contained in AFs’ disclosures to enhance transparency.

This study contributes to recognizing factors explaining AFs’ behavior in the context of an Islamic country. Furthermore, the type of disclosure that should be contained can provide good insight for standard setters or oversight bodies.

The semi-structured interviews shed light on the contextual factors that influence transparency within the accountancy profession, either enabling or hindering it. Additionally, it is crucial to consider each country’s unique characteristics when determining the disclosure items in transparency reports.

]]>
An investigation of the Iranian audit firms’ transparency: evidence from an Islamic context10.1108/JIABR-01-2023-0003Journal of Islamic Accounting and Business Research2023-08-21© 2023 Emerald Publishing LimitedHamideh AsnaashariMohammad Hossein SafarzadehJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-2110.1108/JIABR-01-2023-0003https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0003/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The role of zakat distribution on the sustainability of (genuine debtors) in Islamic financial institutions in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0004/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to explore the COVID-19 impact on the sustainability of gharimin (genuine debtors) in Islamic financial institutions (IFI) in Malaysia. The analysis was further conducted to expand the interpretation of gharimin in zakat institutions (ZI) to use the role of zakat distribution during the post-pandemic period due to income shock and long-term unemployment. This study adopted a qualitative research approach with grounded theory analysis to integrate theoretical insights into the interpretation of gharimin and current practices from the perspectives of ZI and IFI. An in-depth interview with 18 informants was conducted, and data were collected from senior management positions in the zakat distribution department, academicians who are experts in the area of zakat, and heads of Shariah departments in IFI. Expanding the interpretation of gharimin could help ZI and IFI recover the sustainability of gharimin for preparedness during post-pandemic and any emergency crisis in the future. This study implies the potential role of ZI in combating the risk of defaulting debtors in IFI to prepare for pandemic recovery in the future. The new interpretation assists gharimin in reducing the burden debt using the zakat fund and protects genuine debtors by preventing IFI from declaring default or bankruptcy. This study narrows the literature gaps about gharimin in IFI in the context of the pandemic. To the best of the authors’ knowledge, this is, perhaps, the first paper to present the expansion of interpretation for gharimin into mu’sir in IFI in Malaysia.The role of zakat distribution on the sustainability of (genuine debtors) in Islamic financial institutions in Malaysia
Siti Mazlita Yamaludin, Sharifah Faigah Syed Alwi, Romzie Rosman, Mohd Rahim Khamis
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to explore the COVID-19 impact on the sustainability of gharimin (genuine debtors) in Islamic financial institutions (IFI) in Malaysia. The analysis was further conducted to expand the interpretation of gharimin in zakat institutions (ZI) to use the role of zakat distribution during the post-pandemic period due to income shock and long-term unemployment.

This study adopted a qualitative research approach with grounded theory analysis to integrate theoretical insights into the interpretation of gharimin and current practices from the perspectives of ZI and IFI. An in-depth interview with 18 informants was conducted, and data were collected from senior management positions in the zakat distribution department, academicians who are experts in the area of zakat, and heads of Shariah departments in IFI.

Expanding the interpretation of gharimin could help ZI and IFI recover the sustainability of gharimin for preparedness during post-pandemic and any emergency crisis in the future.

This study implies the potential role of ZI in combating the risk of defaulting debtors in IFI to prepare for pandemic recovery in the future.

The new interpretation assists gharimin in reducing the burden debt using the zakat fund and protects genuine debtors by preventing IFI from declaring default or bankruptcy.

This study narrows the literature gaps about gharimin in IFI in the context of the pandemic. To the best of the authors’ knowledge, this is, perhaps, the first paper to present the expansion of interpretation for gharimin into mu’sir in IFI in Malaysia.

]]>
The role of zakat distribution on the sustainability of (genuine debtors) in Islamic financial institutions in Malaysia10.1108/JIABR-01-2023-0004Journal of Islamic Accounting and Business Research2023-06-16© 2023 Emerald Publishing LimitedSiti Mazlita YamaludinSharifah Faigah Syed AlwiRomzie RosmanMohd Rahim KhamisJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-1610.1108/JIABR-01-2023-0004https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0004/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A review on dimension in modern Islamic finance transactionshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to systematically review the literature on modern Islamic finance transactions pertaining to Gharar dimensions. Gharar is defined as uncertainty that potentially leads to ambiguities and conflicts in contracts. The articles reviewed in this study consisted of 13 articles related to Gharar published between 2013 and 2022. All selected articles were empirically and descriptively searched using specific keywords and strings. The main sources for this study were Scopus and Web of Science (WoS), whereas Google Scholar was a supportive database. The review found that the dimensions that discussed previous research were trying their best to elaborating Gharar in modern financial transactions. They also demonstrate that rigorous study and deployment of the definition remain in the context defined by jurisprudence scholars. The focus of recent studies pertaining to Gharar is derivatives products that indicate high possibility of uncertainty in its operation. This method relies heavily on the accessed database, namely, Scopus and WoS, also referred to the articles as recommended by the databases. Furthermore, the criteria of inclusion and exclusion of papers outlined by the authors deemed as an intrinsic limitation in writing systematic literature review. To the best of the authors’ knowledge, this paper is original in its nature whereby the scholars had different comprehension on how Gharar exists in transaction but they still centred in its original meaning of uncertainty. As a result, this paper also realized how Gharar were interpreted differently relied on the contract’s nature and behaviour. In addition, this paper is expected to contribute to understand how Gharar been interpreted in modern finance transactions and finally reached to the point that further research is needed in establishing Gharar parameter for each contract in Islamic commercial law.A review on dimension in modern Islamic finance transactions
Mohd Shahid Mohd Noh, Suffian Haqiem Nor Azelan, Muhammad Izzul Syahmi Zulkepli
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to systematically review the literature on modern Islamic finance transactions pertaining to Gharar dimensions. Gharar is defined as uncertainty that potentially leads to ambiguities and conflicts in contracts.

The articles reviewed in this study consisted of 13 articles related to Gharar published between 2013 and 2022. All selected articles were empirically and descriptively searched using specific keywords and strings. The main sources for this study were Scopus and Web of Science (WoS), whereas Google Scholar was a supportive database.

The review found that the dimensions that discussed previous research were trying their best to elaborating Gharar in modern financial transactions. They also demonstrate that rigorous study and deployment of the definition remain in the context defined by jurisprudence scholars. The focus of recent studies pertaining to Gharar is derivatives products that indicate high possibility of uncertainty in its operation.

This method relies heavily on the accessed database, namely, Scopus and WoS, also referred to the articles as recommended by the databases. Furthermore, the criteria of inclusion and exclusion of papers outlined by the authors deemed as an intrinsic limitation in writing systematic literature review.

To the best of the authors’ knowledge, this paper is original in its nature whereby the scholars had different comprehension on how Gharar exists in transaction but they still centred in its original meaning of uncertainty. As a result, this paper also realized how Gharar were interpreted differently relied on the contract’s nature and behaviour. In addition, this paper is expected to contribute to understand how Gharar been interpreted in modern finance transactions and finally reached to the point that further research is needed in establishing Gharar parameter for each contract in Islamic commercial law.

]]>
A review on dimension in modern Islamic finance transactions10.1108/JIABR-01-2023-0006Journal of Islamic Accounting and Business Research2024-03-29© 2024 Emerald Publishing LimitedMohd Shahid Mohd NohSuffian Haqiem Nor AzelanMuhammad Izzul Syahmi ZulkepliJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-03-2910.1108/JIABR-01-2023-0006https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0006/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Dividend policy and shareholders’ wealth. A comparative analysis of Shariah-compliant and noncompliant nonfinancial firms in Pakistanhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to comparatively analyze the effect of dividend policy on shareholders’ wealth in Shariah-compliant (SC) and noncompliant (NC) nonfinancial firms in Pakistan. All the nonfinancial firms listed on the Pakistan stock exchange have been taken as a sample for 2016–2021. The Karachi Meezan index screening criteria were applied to screen SC firms. Based on the BPLM and Hausman test results, the authors used the fixed-effect and pooled OLS model for SC and NC firms, respectively. The F-test was used to compare the effect of each dividend policy variable on shareholders’ wealth for both firm types. The findings reveal that the dividend policy does affect the shareholders’ wealth in both firm types. Dividend per share (DPS), dividend yield (DY) and earnings per share significantly affect the shareholders’ wealth in SC firms. For NC firms, the dividend payout, DPS and DY are critical. Moreover, the F-test results show that the DPS, DY and leverage effect on the shareholders’ wealth significantly differ for both firm types. This study fills the research gap in the Pakistani context specifically as well as globally by providing important insights into the relationship between a firm’s dividend policy and shareholders’ wealth for SC and NC firms. In addition, this study comprehensively compares the results for both firm types, which is also lacking in the existing literature. Because this study is based in Pakistan, the generalizability of the results would be limited. The findings of this study are helpful for the management of SC and NC firms in devising their dividend policies that can maximize their shareholders’ wealth. This study also provides guidance and knowledge to investors in choosing companies for their investments that can maximize their wealth. To the best of the authors’ knowledge, this is the first study that analyzes the relationship between dividend policy and shareholders’ wealth for SC firms in Pakistan. It is also the first study that comprehensively compares the dividend policy relationship with shareholders’ wealth for SC and NC firms. In addition, using the F-test for joint hypotheses to compare the specific effect of each dividend policy variable is a methodological contribution of the study.Dividend policy and shareholders’ wealth. A comparative analysis of Shariah-compliant and noncompliant nonfinancial firms in Pakistan
Saeed Akbar, Shehzad Khan, Zahoor Ul Haq, Muhammad Yusuf Amin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to comparatively analyze the effect of dividend policy on shareholders’ wealth in Shariah-compliant (SC) and noncompliant (NC) nonfinancial firms in Pakistan.

All the nonfinancial firms listed on the Pakistan stock exchange have been taken as a sample for 2016–2021. The Karachi Meezan index screening criteria were applied to screen SC firms. Based on the BPLM and Hausman test results, the authors used the fixed-effect and pooled OLS model for SC and NC firms, respectively. The F-test was used to compare the effect of each dividend policy variable on shareholders’ wealth for both firm types.

The findings reveal that the dividend policy does affect the shareholders’ wealth in both firm types. Dividend per share (DPS), dividend yield (DY) and earnings per share significantly affect the shareholders’ wealth in SC firms. For NC firms, the dividend payout, DPS and DY are critical. Moreover, the F-test results show that the DPS, DY and leverage effect on the shareholders’ wealth significantly differ for both firm types.

This study fills the research gap in the Pakistani context specifically as well as globally by providing important insights into the relationship between a firm’s dividend policy and shareholders’ wealth for SC and NC firms. In addition, this study comprehensively compares the results for both firm types, which is also lacking in the existing literature. Because this study is based in Pakistan, the generalizability of the results would be limited.

The findings of this study are helpful for the management of SC and NC firms in devising their dividend policies that can maximize their shareholders’ wealth. This study also provides guidance and knowledge to investors in choosing companies for their investments that can maximize their wealth.

To the best of the authors’ knowledge, this is the first study that analyzes the relationship between dividend policy and shareholders’ wealth for SC firms in Pakistan. It is also the first study that comprehensively compares the dividend policy relationship with shareholders’ wealth for SC and NC firms. In addition, using the F-test for joint hypotheses to compare the specific effect of each dividend policy variable is a methodological contribution of the study.

]]>
Dividend policy and shareholders’ wealth. A comparative analysis of Shariah-compliant and noncompliant nonfinancial firms in Pakistan10.1108/JIABR-01-2023-0007Journal of Islamic Accounting and Business Research2023-12-25© 2023 Emerald Publishing LimitedSaeed AkbarShehzad KhanZahoor Ul HaqMuhammad Yusuf AminJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-2510.1108/JIABR-01-2023-0007https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0007/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Earnings management practices and effectiveness of auditing mechanisms in Islamic and emerging economieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0013/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the impact of audit mechanisms on earnings management (EM) practices in listed Saudi Arabian companies. Specifically, it examines the association between audit committee (AC) characteristics, external audit quality and EM before and after the revision of Saudi Regulations on Corporate Governance (SRCGs) in 2017. The study analyzes a data set comprising 135 Saudi-listed companies observed from 2013 to 2020. EM practices are measured using the absolute value of discretionary accruals, and external audit quality is assessed by the involvement of BIG 4 auditors. The authors also consider four variables to gauge AC characteristics: independence, size, meeting frequency and expertise. To test the hypotheses, the authors use multivariate regression on panel data. The findings provide robust evidence regarding the impact of audit mechanisms on EM practices. The presence of accounting and finance experts within the AC is shown to have a substantial and statistically significant effect in reducing EM practices. Similarly, AC independence demonstrates a negative association with EM after the implementation of the SRCGs 2017. However, the study does not uncover any statistically significant impact of AC size and meeting frequency on EM practices. Moreover, the research highlights a noteworthy positive relationship between EM practices and engagement with BIG 4 audit firms before the SRCGs 2017. However, this relationship ceases to exist following the regulatory amendment. The practical implications of this research are significant for policymakers and companies operating in Saudi Arabia, as well as for practitioners and auditors working in the region. The findings underscore the importance of high-quality auditing work to prevent EM practices and promote transparent financial reporting. The study recommends increasing the number of independent members and financial experts on the AC, as well as rigorous monitoring of AC size and meetings. It also emphasizes the need for compliance with governance regulations to focus on effective monitoring of the AC rather than mere fulfillment of requirements. The study enhances the existing literature on the effectiveness of ACs and external audit quality in mitigating EM by providing evidence from a unique and Islamic context that has not been extensively studied before. This can help in validating or challenging the findings of previous studies and provide a more comprehensive understanding of the factors that impact EM in different contexts.Earnings management practices and effectiveness of auditing mechanisms in Islamic and emerging economies
Ines Kateb, Mouna Youssef
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the impact of audit mechanisms on earnings management (EM) practices in listed Saudi Arabian companies. Specifically, it examines the association between audit committee (AC) characteristics, external audit quality and EM before and after the revision of Saudi Regulations on Corporate Governance (SRCGs) in 2017.

The study analyzes a data set comprising 135 Saudi-listed companies observed from 2013 to 2020. EM practices are measured using the absolute value of discretionary accruals, and external audit quality is assessed by the involvement of BIG 4 auditors. The authors also consider four variables to gauge AC characteristics: independence, size, meeting frequency and expertise. To test the hypotheses, the authors use multivariate regression on panel data.

The findings provide robust evidence regarding the impact of audit mechanisms on EM practices. The presence of accounting and finance experts within the AC is shown to have a substantial and statistically significant effect in reducing EM practices. Similarly, AC independence demonstrates a negative association with EM after the implementation of the SRCGs 2017. However, the study does not uncover any statistically significant impact of AC size and meeting frequency on EM practices. Moreover, the research highlights a noteworthy positive relationship between EM practices and engagement with BIG 4 audit firms before the SRCGs 2017. However, this relationship ceases to exist following the regulatory amendment.

The practical implications of this research are significant for policymakers and companies operating in Saudi Arabia, as well as for practitioners and auditors working in the region. The findings underscore the importance of high-quality auditing work to prevent EM practices and promote transparent financial reporting. The study recommends increasing the number of independent members and financial experts on the AC, as well as rigorous monitoring of AC size and meetings. It also emphasizes the need for compliance with governance regulations to focus on effective monitoring of the AC rather than mere fulfillment of requirements.

The study enhances the existing literature on the effectiveness of ACs and external audit quality in mitigating EM by providing evidence from a unique and Islamic context that has not been extensively studied before. This can help in validating or challenging the findings of previous studies and provide a more comprehensive understanding of the factors that impact EM in different contexts.

]]>
Earnings management practices and effectiveness of auditing mechanisms in Islamic and emerging economies10.1108/JIABR-01-2023-0013Journal of Islamic Accounting and Business Research2023-11-29© 2023 Emerald Publishing LimitedInes KatebMouna YoussefJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2910.1108/JIABR-01-2023-0013https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0013/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Analysis of demand for Takaful insurance: a case study in Iranhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe Islamic financial system consists of three functional areas of Islamic banking, Islamic insurance and the Islamic capital market, which, with its development and progress, has become an important part of the global financial market and as an alternative, efficient financial model in front of the financial system. Takaful insurance is a relatively new but growing sector of the Islamic financial industry. Today, this insurance has attracted the attention of many researchers and executives. To further improve, it is important to identify the key factors according to the demand and also to evaluate their importance. In Iran’s insurance industry, Takaful product has not yet been released, and insurers have recently entered this field. Therefore, the purpose of this paper, an attempt has been made to identify the factors affecting the demand for Takaful insurance in Iran. The results of this research can be useful for policymakers and Takaful providers in formulating appropriate strategies to increase the demand for Takaful insurance. In this regard, in this research, using library studies, indicators affecting demand were identified. After that, using a field study and distributing a questionnaire among experts in the field of research, the importance of the indicators was analyzed relative to each other and the indicators were ranked based on their importance. Based on the results, the indicators are divided into five categories of economic, social, demographic, marketing and sales and features of Takaful insurance products. To the best of the authors’ knowledge, this is the first study regarding the identification and ranking of factors affecting the demand for Takaful insurance in Iran’s insurance industry.Analysis of demand for Takaful insurance: a case study in Iran
Asma Hamzeh, Mitra Ghanbarzadeh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The Islamic financial system consists of three functional areas of Islamic banking, Islamic insurance and the Islamic capital market, which, with its development and progress, has become an important part of the global financial market and as an alternative, efficient financial model in front of the financial system. Takaful insurance is a relatively new but growing sector of the Islamic financial industry. Today, this insurance has attracted the attention of many researchers and executives. To further improve, it is important to identify the key factors according to the demand and also to evaluate their importance. In Iran’s insurance industry, Takaful product has not yet been released, and insurers have recently entered this field. Therefore, the purpose of this paper, an attempt has been made to identify the factors affecting the demand for Takaful insurance in Iran. The results of this research can be useful for policymakers and Takaful providers in formulating appropriate strategies to increase the demand for Takaful insurance.

In this regard, in this research, using library studies, indicators affecting demand were identified. After that, using a field study and distributing a questionnaire among experts in the field of research, the importance of the indicators was analyzed relative to each other and the indicators were ranked based on their importance.

Based on the results, the indicators are divided into five categories of economic, social, demographic, marketing and sales and features of Takaful insurance products.

To the best of the authors’ knowledge, this is the first study regarding the identification and ranking of factors affecting the demand for Takaful insurance in Iran’s insurance industry.

]]>
Analysis of demand for Takaful insurance: a case study in Iran10.1108/JIABR-01-2023-0020Journal of Islamic Accounting and Business Research2023-07-25© 2023 Emerald Publishing LimitedAsma HamzehMitra GhanbarzadehJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-2510.1108/JIABR-01-2023-0020https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0020/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A bibliometric analysis of halal tourism: future research agendahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestOver the past few decades, a large number of research studies have examined tourism. However, studies that examine halal tourism are still limited. Therefore, the purpose of this study is to conduct a bibliometric analysis related to halal tourism based on the results of empirical research studies that have been published. The approach in this study uses a systematic literature review related to halal tourism as a reference in “Article Title, Abstract and Keywords” based on the Scopus database from 1997 to 2023. The analysis was conducted on January 8, 2023. The data that has been collected will be analyzed bibliometrically using VOSviewer. The research findings show that research related to halal tourism is still relatively rare, especially in countries/locations where the majority of the population is non-Muslim. This can be seen from the majority of previous studies conducted in Muslim-majority countries/locations, such as Malaysia and Indonesia. Future research should be conducted in countries/locations where the majority of the population is non-Muslim. This study relies on research in halal tourism literature in the Scopus database. Future studies can combine with the Web of Science database to expand generalization. The results of this study include implications for managing and developing sustainable halal tourism in the future for practitioners. The results of this study provide a strategic perspective to practitioners and society in general to find out how the concept of sustainable halal tourism development in the future is in accordance with Islamic sharia. Research related to halal tourism is currently starting to develop in various countries, both with a majority Muslim and non-Muslim population. In addition, until now research related to halal tourism is still limited literature that discusses.A bibliometric analysis of halal tourism: future research agenda
Lalu Supardin, Mohammad Suyanto, Anas Hidayat, Tony Wijaya
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Over the past few decades, a large number of research studies have examined tourism. However, studies that examine halal tourism are still limited. Therefore, the purpose of this study is to conduct a bibliometric analysis related to halal tourism based on the results of empirical research studies that have been published.

The approach in this study uses a systematic literature review related to halal tourism as a reference in “Article Title, Abstract and Keywords” based on the Scopus database from 1997 to 2023. The analysis was conducted on January 8, 2023. The data that has been collected will be analyzed bibliometrically using VOSviewer.

The research findings show that research related to halal tourism is still relatively rare, especially in countries/locations where the majority of the population is non-Muslim. This can be seen from the majority of previous studies conducted in Muslim-majority countries/locations, such as Malaysia and Indonesia. Future research should be conducted in countries/locations where the majority of the population is non-Muslim.

This study relies on research in halal tourism literature in the Scopus database. Future studies can combine with the Web of Science database to expand generalization.

The results of this study include implications for managing and developing sustainable halal tourism in the future for practitioners.

The results of this study provide a strategic perspective to practitioners and society in general to find out how the concept of sustainable halal tourism development in the future is in accordance with Islamic sharia.

Research related to halal tourism is currently starting to develop in various countries, both with a majority Muslim and non-Muslim population. In addition, until now research related to halal tourism is still limited literature that discusses.

]]>
A bibliometric analysis of halal tourism: future research agenda10.1108/JIABR-01-2023-0028Journal of Islamic Accounting and Business Research2023-09-29© 2023 Emerald Publishing LimitedLalu SupardinMohammad SuyantoAnas HidayatTony WijayaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-2910.1108/JIABR-01-2023-0028https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The relationship between corporate governance and financial performance in the Islamic and conventional banking industries: a Malaysian evidencehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0030/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the relationship between corporate governance characteristics and the financial performance of both Islamic and conventional banks in the context of an emerging market, i.e. Malaysia. This study includes 300 bank-year observations from Islamic and conventional banks over the period 2010–2021. The dynamic panel model (generalized method of moments [GMM]) was considered the primary estimation model that solves simultaneity, endogeneity and omitted variable problems as most governance variables are endogenous by nature. Hence, static models are considered biased after conducting the DWH test of endogeneity, and considering dynamic panel GMM is valid proven by Sargan and Hensen and first-order (ARI) and second-order (ARII) tests. Based on the regression results, the authors discovered that board size, female participation in the board and director remuneration have a significant positive impact on bank performance, whereas board meetings have a significant negative impact. Furthermore, the board governance structure of commercial banks is found to be more passive than that of Islamic banks. The study’s findings added a new dimension to governance research, which could be a valuable source of knowledge for policymakers, investors and regulators looking to improve existing governance mechanisms for better performance of conventional and Islamic banks. The goal of this study is to add to the existing literature by focusing on the impact of female board participation and other board governance mechanisms in both conventional and Islamic banks on bank performance.The relationship between corporate governance and financial performance in the Islamic and conventional banking industries: a Malaysian evidence
Muhammad Farooq, Qadri Al-Jabri, Muhammad Tahir Khan, Asad Afzal Humayon, Saif Ullah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the relationship between corporate governance characteristics and the financial performance of both Islamic and conventional banks in the context of an emerging market, i.e. Malaysia.

This study includes 300 bank-year observations from Islamic and conventional banks over the period 2010–2021. The dynamic panel model (generalized method of moments [GMM]) was considered the primary estimation model that solves simultaneity, endogeneity and omitted variable problems as most governance variables are endogenous by nature. Hence, static models are considered biased after conducting the DWH test of endogeneity, and considering dynamic panel GMM is valid proven by Sargan and Hensen and first-order (ARI) and second-order (ARII) tests.

Based on the regression results, the authors discovered that board size, female participation in the board and director remuneration have a significant positive impact on bank performance, whereas board meetings have a significant negative impact. Furthermore, the board governance structure of commercial banks is found to be more passive than that of Islamic banks.

The study’s findings added a new dimension to governance research, which could be a valuable source of knowledge for policymakers, investors and regulators looking to improve existing governance mechanisms for better performance of conventional and Islamic banks.

The goal of this study is to add to the existing literature by focusing on the impact of female board participation and other board governance mechanisms in both conventional and Islamic banks on bank performance.

]]>
The relationship between corporate governance and financial performance in the Islamic and conventional banking industries: a Malaysian evidence10.1108/JIABR-01-2023-0030Journal of Islamic Accounting and Business Research2023-09-07© 2023 Emerald Publishing LimitedMuhammad FarooqQadri Al-JabriMuhammad Tahir KhanAsad Afzal HumayonSaif UllahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-0710.1108/JIABR-01-2023-0030https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0030/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Improving Islamic bank performance through agency cost and dual board governancehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0035/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the impact of agency cost, Islamic board characteristics and corporate governance on the performance of Islamic institutions. Based on the selected criteria, 92 Islamic banks (IBs) from 20 countries were selected for further research. The authors used generalized method moments (GMM) estimation method. The agency cost and Shariah board characteristics are the explanatory variables. The author uses the age of the bank and the size of the bank for variable control. Empirical results indicate that first, agency costs represented by cast/total assets negatively affect IBs’ return on equity and net income. As agency costs rise, IBs’ financial performance declines. Second, Shariah supervisory board (SSB) size and board independence affect IB performance. The study found that SSB size positively affects IB performance. This research contributes to the literature on IBs in different countries, which policymakers and practitioners can use to improve agency cost functions and Shariah board characteristics. Second, this analysis shows that IBs require specific attention for agency charges, given their operations and business structures. This study contributes to agency theory, which requires Islamic banking information and practices. Finally, the author has aided regulators and IBs by identifying the sources of agency cost practices that can be resolved. The other bank governance contribution is twofold. First, the author studied dual board governance in IBs (SSB and ordinary boards of directors). Second, the author examines how SSB and traditional board governance affect IB performance. This research focuses on banks listed on stock exchanges in the 20 countries analysed. The research has policy and practical implications for central banks and IBs. By outlining appropriate regulatory guidelines and reporting systems, regulatory authorities can ensure Sharia compliance and protect the independence of IB Shariah department officers. Regulators and relevant stakeholders must ensure Sharia compliance, audits, inspections, reporting and accurate disclosure for IBs. This paper offers original contributions to professionals in the field of IBs and stakeholders investigating the relationship between agency costs, governance of IBs, characteristics of Islamic supervisory boards and the performance of IBs.Improving Islamic bank performance through agency cost and dual board governance
Early Ridho Kismawadi
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the impact of agency cost, Islamic board characteristics and corporate governance on the performance of Islamic institutions.

Based on the selected criteria, 92 Islamic banks (IBs) from 20 countries were selected for further research. The authors used generalized method moments (GMM) estimation method. The agency cost and Shariah board characteristics are the explanatory variables. The author uses the age of the bank and the size of the bank for variable control.

Empirical results indicate that first, agency costs represented by cast/total assets negatively affect IBs’ return on equity and net income. As agency costs rise, IBs’ financial performance declines. Second, Shariah supervisory board (SSB) size and board independence affect IB performance. The study found that SSB size positively affects IB performance.

This research contributes to the literature on IBs in different countries, which policymakers and practitioners can use to improve agency cost functions and Shariah board characteristics. Second, this analysis shows that IBs require specific attention for agency charges, given their operations and business structures. This study contributes to agency theory, which requires Islamic banking information and practices. Finally, the author has aided regulators and IBs by identifying the sources of agency cost practices that can be resolved. The other bank governance contribution is twofold. First, the author studied dual board governance in IBs (SSB and ordinary boards of directors). Second, the author examines how SSB and traditional board governance affect IB performance. This research focuses on banks listed on stock exchanges in the 20 countries analysed.

The research has policy and practical implications for central banks and IBs. By outlining appropriate regulatory guidelines and reporting systems, regulatory authorities can ensure Sharia compliance and protect the independence of IB Shariah department officers. Regulators and relevant stakeholders must ensure Sharia compliance, audits, inspections, reporting and accurate disclosure for IBs.

This paper offers original contributions to professionals in the field of IBs and stakeholders investigating the relationship between agency costs, governance of IBs, characteristics of Islamic supervisory boards and the performance of IBs.

]]>
Improving Islamic bank performance through agency cost and dual board governance10.1108/JIABR-01-2023-0035Journal of Islamic Accounting and Business Research2023-09-27© 2023 Emerald Publishing LimitedEarly Ridho KismawadiJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-2710.1108/JIABR-01-2023-0035https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0035/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Linkages between capital, bank financing and economic growth: the case of Islamic and conventional banks from a panel of Muslim countrieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how changes in capital regulation can impact banking lending practices and subsequently influence economic growth, while also investigating the reciprocal effects of banking lending on economic growth. The author follows several previous studies such as Shrieves and Dahl (1992), Beck and Levine (2002), Altunbas et al. (2007), Saeed et al. (2020) and Stewart et al. (2021) to identify a system of three equations, regarding economic growth, capital and banking financing growth, respectively. The author estimates the parameters of all equations simultaneously using the seemingly unrelated regression method (Zellner, 1962) for a sample of 46 Islamic banks and 113 conventional banks during 2002–2022. These banks operate in 13 Muslim countries from Middle East and North Africa and Southeast Asia. The author’s findings demonstrate that in the case of Islamic banking, an increase in loan growth stimulates economic growth, while an increasing capital ratio positively influences economic growth but is accompanied by a reduction in loan growth. This result corroborates the findings of Stewart et al. (2021), which indicate that regulatory capital reduces unstable credit while improving gross domestic product growth. However, in the case of conventional banks, the response to an increase in loan growth on Gross Domestic Product Per Capita Growth (GDPCG) is ambiguous, while the capital ratio improves GDPCG and promotes LOANG, which, in turn, increases risk. The Islamic banks can continue to significantly contribute to economic growth by effectively directing their available capital toward viable investment opportunities and supporting sustainable financial practices, even in the presence of potential constraints on loan growth. As for conventional banks, they are invited to increase their capital levels to ensure a strong and resilient financial system that can support lending and facilitate economic growth. To the best of the author’s knowledge, this paper is the first to explore the triple relationship between capital requirements, Islamic bank lending and economic growth.Linkages between capital, bank financing and economic growth: the case of Islamic and conventional banks from a panel of Muslim countries
Mohamed Ghroubi
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how changes in capital regulation can impact banking lending practices and subsequently influence economic growth, while also investigating the reciprocal effects of banking lending on economic growth.

The author follows several previous studies such as Shrieves and Dahl (1992), Beck and Levine (2002), Altunbas et al. (2007), Saeed et al. (2020) and Stewart et al. (2021) to identify a system of three equations, regarding economic growth, capital and banking financing growth, respectively. The author estimates the parameters of all equations simultaneously using the seemingly unrelated regression method (Zellner, 1962) for a sample of 46 Islamic banks and 113 conventional banks during 2002–2022. These banks operate in 13 Muslim countries from Middle East and North Africa and Southeast Asia.

The author’s findings demonstrate that in the case of Islamic banking, an increase in loan growth stimulates economic growth, while an increasing capital ratio positively influences economic growth but is accompanied by a reduction in loan growth. This result corroborates the findings of Stewart et al. (2021), which indicate that regulatory capital reduces unstable credit while improving gross domestic product growth. However, in the case of conventional banks, the response to an increase in loan growth on Gross Domestic Product Per Capita Growth (GDPCG) is ambiguous, while the capital ratio improves GDPCG and promotes LOANG, which, in turn, increases risk.

The Islamic banks can continue to significantly contribute to economic growth by effectively directing their available capital toward viable investment opportunities and supporting sustainable financial practices, even in the presence of potential constraints on loan growth. As for conventional banks, they are invited to increase their capital levels to ensure a strong and resilient financial system that can support lending and facilitate economic growth.

To the best of the author’s knowledge, this paper is the first to explore the triple relationship between capital requirements, Islamic bank lending and economic growth.

]]>
Linkages between capital, bank financing and economic growth: the case of Islamic and conventional banks from a panel of Muslim countries10.1108/JIABR-01-2023-0036Journal of Islamic Accounting and Business Research2023-10-19© 2023 Emerald Publishing LimitedMohamed GhroubiJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1910.1108/JIABR-01-2023-0036https://www.emerald.com/insight/content/doi/10.1108/JIABR-01-2023-0036/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Market development of Islamic banking in Pakistan and its economic impacthttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the dynamics of the market development of Islamic banking in Pakistan. This study investigates how shocks to the economy in the form of changes in benchmark rate and exchange rate and internal factors such as efficiency, profitability and asset quality affect the development of Islamic banking. The study also evaluates the impact of Islamic banking on the real economy in the macro perspective and society at large in terms of inclusiveness, competitiveness and fairness. Autoregressive distributed lagged model method is used for analysing the short-run and long-run determinants of market development of Islamic banking and the economic impact of Islamic banking on the real economy. Profitability and exchange rate have a positive effect on market development of Islamic banking while higher inefficiency and interbank rate have a negative effect. On the other hand, financing intensity and profitability in Islamic banking positively affect the large-scale manufacturing sector. Stable profits, high asset quality, efficiency and rising import demand with low policy rate environment complement Islamic banking growth. Moreover, the economic assessment shows that Islamic banks have been able to achieve the financial inclusion of those who want to avoid Riba, but they need concerted efforts to improve competitiveness and distinction with regard to distributional impact. To the best of the authors’ knowledge, this is the first study in Pakistan to evaluate determinants of market development of Islamic banking taking 16-year quarterly data and assessing the economic effects of Islamic banking on inclusiveness, competitiveness and fairness.Market development of Islamic banking in Pakistan and its economic impact
Salman Ahmed Shaikh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the dynamics of the market development of Islamic banking in Pakistan. This study investigates how shocks to the economy in the form of changes in benchmark rate and exchange rate and internal factors such as efficiency, profitability and asset quality affect the development of Islamic banking. The study also evaluates the impact of Islamic banking on the real economy in the macro perspective and society at large in terms of inclusiveness, competitiveness and fairness.

Autoregressive distributed lagged model method is used for analysing the short-run and long-run determinants of market development of Islamic banking and the economic impact of Islamic banking on the real economy.

Profitability and exchange rate have a positive effect on market development of Islamic banking while higher inefficiency and interbank rate have a negative effect. On the other hand, financing intensity and profitability in Islamic banking positively affect the large-scale manufacturing sector.

Stable profits, high asset quality, efficiency and rising import demand with low policy rate environment complement Islamic banking growth. Moreover, the economic assessment shows that Islamic banks have been able to achieve the financial inclusion of those who want to avoid Riba, but they need concerted efforts to improve competitiveness and distinction with regard to distributional impact.

To the best of the authors’ knowledge, this is the first study in Pakistan to evaluate determinants of market development of Islamic banking taking 16-year quarterly data and assessing the economic effects of Islamic banking on inclusiveness, competitiveness and fairness.

]]>
Market development of Islamic banking in Pakistan and its economic impact10.1108/JIABR-02-2022-0028Journal of Islamic Accounting and Business Research2023-08-08© 2023 Emerald Publishing LimitedSalman Ahmed ShaikhJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-0810.1108/JIABR-02-2022-0028https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0028/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Democratizing Islamic home financing and reimagining fractional homeownership model: a conceptual framework via big data and blockchain technologyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0033/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to propose a model for democratization of Islamic home financing to tackle the issue of sustainability of homeownership affordability. A conceptual framework and fractional equity model (FEM) are developed to incorporate big data analytics, artificial intelligence and blockchain technology in an ecosystem for affordability and sustainability of homeownership via the proposed financing model. In addition, the FEM adopts the simulation approach to show its validity in terms of liquidity when compared with traditional home financing. In this regard, this paper is focused on developing and demonstrating the feasibility of a new financing model, rather than testing specific hypotheses or relationships. This is to propose the democratization model for Islamic Home Financing that will not benefit the prospective home buyers without compromising the profitability of the financial institutions. The findings indicate that the proposed end-to-end solution within the financing ecosystem can lead to more efficient matching market between the buyers and sellers of houses, reduced transaction costs, greater transparency and enhanced efficiency which in the end could lead to lower costs of owning homes and sustained financial resilience among house owners. The findings indicate that the FEM model is able to increase homeownership with more elements of liquidity, marketability and sustainability for homebuyers. This research highlights the potential of big data and blockchain technology in democratizing Islamic home financing and evidence that the transfer of ownership is possible through tokenization. However, this will require a mature financing environment to adapt the technology for practical application. The model proposes a solution to propagate shared prosperity among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies. The proposed FEM model provides alternative home financing that is more marketable, flexible and sustainable for households/buyers and financiers. It is hoped that with the proposed financing ecosystem to promote affordability and sustainability of homeownership via big data analytics, artificial intelligence and blockchain technology can lead to greater financial resilience for homeowners which can then be translated to enhanced well-being, increased productivity and can further promote economic growth. This research is a concept paper based on academic research and industry collaboration with a technology provider.Democratizing Islamic home financing and reimagining fractional homeownership model: a conceptual framework via big data and blockchain technology
Rosylin Mohd Yusof, Zaemah Zainuddin, Hafirda Akma Bt Musaddad, Siti Latipah Harun, Mohd Aamir Adeeb Abdul Rahim
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to propose a model for democratization of Islamic home financing to tackle the issue of sustainability of homeownership affordability.

A conceptual framework and fractional equity model (FEM) are developed to incorporate big data analytics, artificial intelligence and blockchain technology in an ecosystem for affordability and sustainability of homeownership via the proposed financing model. In addition, the FEM adopts the simulation approach to show its validity in terms of liquidity when compared with traditional home financing. In this regard, this paper is focused on developing and demonstrating the feasibility of a new financing model, rather than testing specific hypotheses or relationships. This is to propose the democratization model for Islamic Home Financing that will not benefit the prospective home buyers without compromising the profitability of the financial institutions.

The findings indicate that the proposed end-to-end solution within the financing ecosystem can lead to more efficient matching market between the buyers and sellers of houses, reduced transaction costs, greater transparency and enhanced efficiency which in the end could lead to lower costs of owning homes and sustained financial resilience among house owners. The findings indicate that the FEM model is able to increase homeownership with more elements of liquidity, marketability and sustainability for homebuyers.

This research highlights the potential of big data and blockchain technology in democratizing Islamic home financing and evidence that the transfer of ownership is possible through tokenization. However, this will require a mature financing environment to adapt the technology for practical application.

The model proposes a solution to propagate shared prosperity among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies. The proposed FEM model provides alternative home financing that is more marketable, flexible and sustainable for households/buyers and financiers.

It is hoped that with the proposed financing ecosystem to promote affordability and sustainability of homeownership via big data analytics, artificial intelligence and blockchain technology can lead to greater financial resilience for homeowners which can then be translated to enhanced well-being, increased productivity and can further promote economic growth.

This research is a concept paper based on academic research and industry collaboration with a technology provider.

]]>
Democratizing Islamic home financing and reimagining fractional homeownership model: a conceptual framework via big data and blockchain technology10.1108/JIABR-02-2022-0033Journal of Islamic Accounting and Business Research2023-10-09© 2023 Emerald Publishing LimitedRosylin Mohd YusofZaemah ZainuddinHafirda Akma Bt MusaddadSiti Latipah HarunMohd Aamir Adeeb Abdul RahimJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-0910.1108/JIABR-02-2022-0033https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0033/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviourhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0034/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTakaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka. This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling. Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference. This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs. Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme. This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviour
Abi Huraira Rifas, Asmak Ab Rahman, Ahmad Hidayat Buang, Muzalwana Abdul Talib
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka.

This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling.

Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference.

This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs.

Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme.

This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.

]]>
Business entrepreneurs’ intention towards takaful participation to mitigate risk: a study in Sri Lanka based on the theory of planned behaviour10.1108/JIABR-02-2022-0034Journal of Islamic Accounting and Business Research2023-06-15© 2023 Emerald Publishing LimitedAbi Huraira RifasAsmak Ab RahmanAhmad Hidayat BuangMuzalwana Abdul TalibJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-1510.1108/JIABR-02-2022-0034https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2022-0034/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Intellectual capital and financial performance: does board size and independent directors matter? An empirical enquiryhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestIntellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role. The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique. The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan. Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE. The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.Intellectual capital and financial performance: does board size and independent directors matter? An empirical enquiry
Syed Quaid Ali Shah, Fong Woon Lai, Muhammad Tahir, Muhammad Kashif Shad, Salaheldin Hamad, Syed Emad Azhar Ali
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Intellectual capital (IC) is a paramount resource for competitiveness in the knowledge-based financial sectors of the economy. As financial technology advances, specifically in the banking industry, it is vital to understand the effect of IC on financial performance. This study aims to investigate the effect of IC on return on equity (ROE), with a unique emphasis on the moderating role of board attributes. Previous studies have overlooked this moderating role.

The study sample consists of 17 banks and a panel data set spanning 2016–2021, extracted from annual reports. Antel Pulic’s value-added intellectual coefficient (VAIC) model is used to compute IC. To analyze the data, a generalized least squares analysis is conducted. The robustness of the analysis is ensured by using the two-stage least squares (2SLS) econometric technique.

The findings indicate that both the VAIC and human capital efficiency (HCE) have a significant impact on the ROE of banks. In terms of moderation, it is observed that board size (BS) exerts a negative effect on the association between VAIC, HCE, structural capital efficiency and ROE. Additionally, BS positively compounds the connection between capital employed efficiency and ROE. Similarly, the presence of independent directors (IND) significantly moderates the effects of VAIC and its components on the ROE of banks in Pakistan.

Banks should focus on the HCE for a higher ROE. Moreover, banks ought to prioritize appointing more independent directors in the boardroom for effective utilization of IC and greater ROE.

The findings of the study, which analyzed data from Pakistan’s banking sector, are original and provide additional insights into the literature on IC and board attributes.

]]>
Intellectual capital and financial performance: does board size and independent directors matter? An empirical enquiry10.1108/JIABR-02-2023-0043Journal of Islamic Accounting and Business Research2024-03-26© 2024 Emerald Publishing LimitedSyed Quaid Ali ShahFong Woon LaiMuhammad TahirMuhammad Kashif ShadSalaheldin HamadSyed Emad Azhar AliJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-03-2610.1108/JIABR-02-2023-0043https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0043/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Capital requirements – risk taking/stability nexus during the global financial crisis and COVID-19: international evidence of Islamic bankshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0044/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to determine how Basel III capital requirements affect the stability of Islamic banks globally during the global financial crisis and the COVID-19 pandemic. The secondary data for all Islamic banks worldwide from 2004 to 2021 is obtained from the FitchConnect database. The main technique was a two-step generalized method of moment (GMM) system, and the data were tested using pooled ordinary least squares, fixed effects and difference GMM models for robustness checks. Regression results support the moral hazard hypothesis based on evidence that both the total capital ratio and the Tier 1 capital ratio have a statistically significant positive impact on the stability of Islamic banks globally. Furthermore, neither the global financial crisis of 2008–2009 nor COVID-19 (2020–2021) significantly impacted the stability of Islamic banks worldwide. The results are robust across alternative measures of stability, capital buffers, dummy variables and estimation techniques. According to the descriptive statistics, the number of Islamic banks that disclose their regulatory capital ratios to the public has increased over the study period, and the mean of total capital and Tier 1 ratios are considerably greater than what is required by Basel II and Basel III. Bankers, regulators and policymakers should benefit from the evidence on capital and risk management in Islamic banking according to Basel Committee on Banking Supervision (BCBS) and Islamic financial services board (IFSB) international standards in various jurisdictions. This research builds on earlier studies that were both beneficial and instructive by exploring the relationship between BCBS and IFSB capital guidelines and the trustworthiness of Islamic banks in greater depth. This study uses numerous capital ratios, buffers and stability measures to provide an international context for research on Islamic banking. In addition, the database is up-to-date to include information about the COVID-19 pandemic aftereffects in the year 2021. This study also introduces the Basel membership of Islamic banks to provide context for countries still at the Basel II stage or are yet to begin implementing the Basel III international standard.Capital requirements – risk taking/stability nexus during the global financial crisis and COVID-19: international evidence of Islamic banks
Xiao Ling Ding, Razali Haron, Aznan Hasan
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to determine how Basel III capital requirements affect the stability of Islamic banks globally during the global financial crisis and the COVID-19 pandemic.

The secondary data for all Islamic banks worldwide from 2004 to 2021 is obtained from the FitchConnect database. The main technique was a two-step generalized method of moment (GMM) system, and the data were tested using pooled ordinary least squares, fixed effects and difference GMM models for robustness checks.

Regression results support the moral hazard hypothesis based on evidence that both the total capital ratio and the Tier 1 capital ratio have a statistically significant positive impact on the stability of Islamic banks globally. Furthermore, neither the global financial crisis of 2008–2009 nor COVID-19 (2020–2021) significantly impacted the stability of Islamic banks worldwide. The results are robust across alternative measures of stability, capital buffers, dummy variables and estimation techniques. According to the descriptive statistics, the number of Islamic banks that disclose their regulatory capital ratios to the public has increased over the study period, and the mean of total capital and Tier 1 ratios are considerably greater than what is required by Basel II and Basel III.

Bankers, regulators and policymakers should benefit from the evidence on capital and risk management in Islamic banking according to Basel Committee on Banking Supervision (BCBS) and Islamic financial services board (IFSB) international standards in various jurisdictions.

This research builds on earlier studies that were both beneficial and instructive by exploring the relationship between BCBS and IFSB capital guidelines and the trustworthiness of Islamic banks in greater depth. This study uses numerous capital ratios, buffers and stability measures to provide an international context for research on Islamic banking. In addition, the database is up-to-date to include information about the COVID-19 pandemic aftereffects in the year 2021. This study also introduces the Basel membership of Islamic banks to provide context for countries still at the Basel II stage or are yet to begin implementing the Basel III international standard.

]]>
Capital requirements – risk taking/stability nexus during the global financial crisis and COVID-19: international evidence of Islamic banks10.1108/JIABR-02-2023-0044Journal of Islamic Accounting and Business Research2023-10-17© 2023 Emerald Publishing LimitedXiao Ling DingRazali HaronAznan HasanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1710.1108/JIABR-02-2023-0044https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0044/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Business process model for “crowdfunding cash waqf model”https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0046/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestCash waqf is a powerful financial instrument that deals with the issue of liquidity constraints in waqf institutions. While there are several models of cash waqf operating in different countries, there is increasing demand for innovative cash waqf models, especially within the financial technology context. This paper aims to propose a practical alternative model of funding for waqf institutions using the concepts of crowdfunding and cash waqf. This study evaluated the literature relevant to cash waqf models that have been implemented in different countries and proposed a new viable alternative model. Results offer an alternative financing model, named crowdfunding cash waqf model, for waqf institutions to overcome monetary constraints and enable development projects to be completed. The current study has important implications for both officials and relevant stakeholders. It is sought to bring better consistency between cash waqf donors, solving the liquidity problem faced by waqf institutions, enhancing the transparency of waqf institutions and their use of waqf funds, wealth circulation and financing businesses without interest-based loans (riba). By incorporating a crowdfunding and investment mechanism in the model, this method of collecting funds will assist governments in reducing their expenditure on waqf institutions and other social development programmes. The proposed model differs from current methods of generating cash waqf, including those are also internet-based. The proposed model is devised to help waqf institutions achieve financial sustainability by including an investment mechanism in the model to sustain the development of waqf projects.Business process model for “crowdfunding cash waqf model”
Meshari Al-Daihani, Khadar Ahmed Dirie, Md. Mahmudul Alam, Ahmad Sufian Abdullah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Cash waqf is a powerful financial instrument that deals with the issue of liquidity constraints in waqf institutions. While there are several models of cash waqf operating in different countries, there is increasing demand for innovative cash waqf models, especially within the financial technology context. This paper aims to propose a practical alternative model of funding for waqf institutions using the concepts of crowdfunding and cash waqf.

This study evaluated the literature relevant to cash waqf models that have been implemented in different countries and proposed a new viable alternative model.

Results offer an alternative financing model, named crowdfunding cash waqf model, for waqf institutions to overcome monetary constraints and enable development projects to be completed.

The current study has important implications for both officials and relevant stakeholders. It is sought to bring better consistency between cash waqf donors, solving the liquidity problem faced by waqf institutions, enhancing the transparency of waqf institutions and their use of waqf funds, wealth circulation and financing businesses without interest-based loans (riba). By incorporating a crowdfunding and investment mechanism in the model, this method of collecting funds will assist governments in reducing their expenditure on waqf institutions and other social development programmes.

The proposed model differs from current methods of generating cash waqf, including those are also internet-based. The proposed model is devised to help waqf institutions achieve financial sustainability by including an investment mechanism in the model to sustain the development of waqf projects.

]]>
Business process model for “crowdfunding cash waqf model”10.1108/JIABR-02-2023-0046Journal of Islamic Accounting and Business Research2023-10-03© 2023 Emerald Publishing LimitedMeshari Al-DaihaniKhadar Ahmed DirieMd. Mahmudul AlamAhmad Sufian AbdullahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-0310.1108/JIABR-02-2023-0046https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0046/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Islamic vs. conventional banking: what about the efficiency during coronavirus?https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0048/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe aim of this paper is to investigate and to measure the efficiency of Islamic banks through a comparative study with their conventional counterparts during the coronavirus period for the case of MENA region. Indeed, this study will use the parametric method for a panel of 92 banks, including 27 Islamic banks and 65 conventional banks, over a ten-year period (2012–2021) and from eight MENA countries, namely, Bahrain, Egypt, Jordan, Kuwait, Qatar, UAE, Yemen and Tunisia. The findings show that Islamic banks are more profitable than conventional banks before and during Covid-19, this result can be explained by the effectiveness of Shariah principles, differences in cost control, management and resource allocation. In addition, this study found that conventional banks outperformed Islamic banks after Covid-19. This is a recent empirical study that investigates a timely and important topic.Islamic vs. conventional banking: what about the efficiency during coronavirus?
Amal Bakour
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The aim of this paper is to investigate and to measure the efficiency of Islamic banks through a comparative study with their conventional counterparts during the coronavirus period for the case of MENA region.

Indeed, this study will use the parametric method for a panel of 92 banks, including 27 Islamic banks and 65 conventional banks, over a ten-year period (2012–2021) and from eight MENA countries, namely, Bahrain, Egypt, Jordan, Kuwait, Qatar, UAE, Yemen and Tunisia.

The findings show that Islamic banks are more profitable than conventional banks before and during Covid-19, this result can be explained by the effectiveness of Shariah principles, differences in cost control, management and resource allocation. In addition, this study found that conventional banks outperformed Islamic banks after Covid-19.

This is a recent empirical study that investigates a timely and important topic.

]]>
Islamic vs. conventional banking: what about the efficiency during coronavirus?10.1108/JIABR-02-2023-0048Journal of Islamic Accounting and Business Research2023-11-28© 2023 Emerald Publishing LimitedAmal BakourJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2810.1108/JIABR-02-2023-0048https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0048/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The impact of material internal control weaknesses, institutional ownership and managerial ownership on future-oriented disclosure: evidence from Islamic economyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0052/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to assess the effect of material internal control weaknesses (MICW) on the relationship between ownership structures and future-oriented disclosure. A total number of 197 firms were assessed in this study during 2014–2021. Two measures were used for MICW. First, the number of existing MICW was assessed in independent auditors’ reports. In Iran, the maximum number of weaknesses is 13. Second, the scoring (0 or 1) method was used as a dummy variable, 1 for a firm with MICW and otherwise 0. Moreover, the scoring (0 or 1) method was used to measure the level of future-oriented disclosure of 13 indicators. The findings showed that institutional ownership and managerial ownership have a significant positive effect on future-oriented disclosure, whereas the MICW have a significant negative effect on future-oriented disclosure. In addition, MICW played a moderator role in the relationship between ownership structures and future-oriented disclosure. The robustness checks confirmed the results. As the studies conducted on future-oriented disclosure and the contributing factors are limited, and also the effect of MICW on future-oriented disclosure is not explored, the present findings can show the importance of the study, and fill the gap in this field. This study offers theoretical and practical implications to drive policymakers and managers to the effectiveness of internal control and future-oriented transparency.The impact of material internal control weaknesses, institutional ownership and managerial ownership on future-oriented disclosure: evidence from Islamic economy
Arash Arianpoor, Imad Taher Lamloom, Hameed Mohsin Khayoon, Ali Shakir Zaidan
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to assess the effect of material internal control weaknesses (MICW) on the relationship between ownership structures and future-oriented disclosure.

A total number of 197 firms were assessed in this study during 2014–2021. Two measures were used for MICW. First, the number of existing MICW was assessed in independent auditors’ reports. In Iran, the maximum number of weaknesses is 13. Second, the scoring (0 or 1) method was used as a dummy variable, 1 for a firm with MICW and otherwise 0. Moreover, the scoring (0 or 1) method was used to measure the level of future-oriented disclosure of 13 indicators.

The findings showed that institutional ownership and managerial ownership have a significant positive effect on future-oriented disclosure, whereas the MICW have a significant negative effect on future-oriented disclosure. In addition, MICW played a moderator role in the relationship between ownership structures and future-oriented disclosure. The robustness checks confirmed the results.

As the studies conducted on future-oriented disclosure and the contributing factors are limited, and also the effect of MICW on future-oriented disclosure is not explored, the present findings can show the importance of the study, and fill the gap in this field. This study offers theoretical and practical implications to drive policymakers and managers to the effectiveness of internal control and future-oriented transparency.

]]>
The impact of material internal control weaknesses, institutional ownership and managerial ownership on future-oriented disclosure: evidence from Islamic economy10.1108/JIABR-02-2023-0052Journal of Islamic Accounting and Business Research2023-10-30© 2023 Emerald Publishing LimitedArash ArianpoorImad Taher LamloomHameed Mohsin KhayoonAli Shakir ZaidanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-3010.1108/JIABR-02-2023-0052https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0052/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Waqif preference of waqf-based qardhul hassan financing in Malaysia using a maqāṣid approachhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0054/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to develop a new framework to measure waqif preference of waqf-based qardhul hassan financing in Malaysia. Using a maqāṣid approach, this study’s data were drawn from 286 valid usable questionnaires to examine the effects of consumer, family, ummah and humanity factors on the preference. The study found that the said factors sourced from Attia’s maqāṣid al-Shariah were instrumental in determining waqif preference to donate in waqf-based qardhul hassan financing. Like others, this study’s findings are limited in terms of their generalisations and applications. The theory, context and variables used should be expanded in future works. The results obtained are useful as a yardstick to enable the offered waqf-based qardhul hassan financing for improved mutual well-being among different classes of the wealth of societal groups in Malaysia. Furthermore, the results provide valuable insights into the direction for practitioners mainly managers involved in introducing waqf-based qardhul hassan financing as a new Islamic social financial instrument for poor and needy folks, at best. This study is novel in terms of the proposed conceptual framework, where the waqif perspective comes into play.Waqif preference of waqf-based qardhul hassan financing in Malaysia using a maqāṣid approach
Hanudin Amin, Faizah Panggi, Imran Mehboob Shaikh, Muhamad Abduh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to develop a new framework to measure waqif preference of waqf-based qardhul hassan financing in Malaysia.

Using a maqāṣid approach, this study’s data were drawn from 286 valid usable questionnaires to examine the effects of consumer, family, ummah and humanity factors on the preference.

The study found that the said factors sourced from Attia’s maqāṣid al-Shariah were instrumental in determining waqif preference to donate in waqf-based qardhul hassan financing.

Like others, this study’s findings are limited in terms of their generalisations and applications. The theory, context and variables used should be expanded in future works.

The results obtained are useful as a yardstick to enable the offered waqf-based qardhul hassan financing for improved mutual well-being among different classes of the wealth of societal groups in Malaysia. Furthermore, the results provide valuable insights into the direction for practitioners mainly managers involved in introducing waqf-based qardhul hassan financing as a new Islamic social financial instrument for poor and needy folks, at best.

This study is novel in terms of the proposed conceptual framework, where the waqif perspective comes into play.

]]>
Waqif preference of waqf-based qardhul hassan financing in Malaysia using a maqāṣid approach10.1108/JIABR-02-2023-0054Journal of Islamic Accounting and Business Research2024-02-19© 2024 Emerald Publishing LimitedHanudin AminFaizah PanggiImran Mehboob ShaikhMuhamad AbduhJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-1910.1108/JIABR-02-2023-0054https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0054/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Achieving SMEs’ excellence: scale development of Islamic entrepreneurship from business and spiritual perspectiveshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0060/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper investigates the effect of Islamic entrepreneurship on small and medium-sized enterprises' (SMEs) business performance and the development of a framework to comprehensively investigate Islamic entrepreneurship to achieve competitive business advantages. Islamic entrepreneurship was measured through the Islamic entrepreneurial model, which is based on two unobserved constructs: business and spiritual perspectives. These two constructs were used as predictors of business performance. This paper aims to develop a new scale of Islamic entrepreneurship from business and spiritual perspectives to achieve SMEs’ successful business performance. In total, 189 Muslim respondents were involved and analyzed their responses using exploratory factor analysis and confirmatory composite analysis. The empirical findings proved that the Islamic entrepreneurial scale with two perspectives is an absolute measure. Besides, the predictive validity findings revealed that business (i.e. trustworthiness, honesty and truthfulness) and spiritual perspectives of Islamic entrepreneurship (i.e. Taqwa, good intention and respecting religious obligations) positively affected SMEs’ business performance. The novelty of this study lies in expanding the existing research, developing a measurement scale and empirically testing the Islamic entrepreneurship model. To the best of the authors’ knowledge, this is the first study that contributes to the Islamic entrepreneurship literature in the SME context and offers new avenues for potential researchers. The new scale will allow SMEs to understand the halal and haram concepts in more depth and apply the Islamic rules and principles with full spirit.Achieving SMEs’ excellence: scale development of Islamic entrepreneurship from business and spiritual perspectives
Mohsin Raza, Muhammad Khalique, Rimsha Khalid, Jati Kasuma, Waqas Ali, Kareem M. Selem
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper investigates the effect of Islamic entrepreneurship on small and medium-sized enterprises' (SMEs) business performance and the development of a framework to comprehensively investigate Islamic entrepreneurship to achieve competitive business advantages. Islamic entrepreneurship was measured through the Islamic entrepreneurial model, which is based on two unobserved constructs: business and spiritual perspectives. These two constructs were used as predictors of business performance. This paper aims to develop a new scale of Islamic entrepreneurship from business and spiritual perspectives to achieve SMEs’ successful business performance.

In total, 189 Muslim respondents were involved and analyzed their responses using exploratory factor analysis and confirmatory composite analysis.

The empirical findings proved that the Islamic entrepreneurial scale with two perspectives is an absolute measure. Besides, the predictive validity findings revealed that business (i.e. trustworthiness, honesty and truthfulness) and spiritual perspectives of Islamic entrepreneurship (i.e. Taqwa, good intention and respecting religious obligations) positively affected SMEs’ business performance.

The novelty of this study lies in expanding the existing research, developing a measurement scale and empirically testing the Islamic entrepreneurship model. To the best of the authors’ knowledge, this is the first study that contributes to the Islamic entrepreneurship literature in the SME context and offers new avenues for potential researchers. The new scale will allow SMEs to understand the halal and haram concepts in more depth and apply the Islamic rules and principles with full spirit.

]]>
Achieving SMEs’ excellence: scale development of Islamic entrepreneurship from business and spiritual perspectives10.1108/JIABR-02-2023-0060Journal of Islamic Accounting and Business Research2023-08-08© 2023 Emerald Publishing LimitedMohsin RazaMuhammad KhaliqueRimsha KhalidJati KasumaWaqas AliKareem M. SelemJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-0810.1108/JIABR-02-2023-0060https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0060/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Behavioral and Islamic economics critique mainstream views on unemployment: a joint perspectivehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0067/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to discuss the behavioral economics and Islamic economic joint criticisms against the conceptual and economic political view of the mainstream. The purpose of this study is to examine the effectiveness of mainstream economic policies in addressing unemployment. Furthermore, it critically assesses the mainstream perspective on unemployment within the contexts of Islamic economics and behavioral economics, separately. The commonalities and disparities between the approaches of Islamic economics and behavioral economics regarding unemployment are evaluated. Subsequently, the conventional viewpoint on unemployment is scrutinized from the combined standpoint of Islamic economics and behavioral economics. This article employs a theoretical approach to address these concerns. Although there are some differences, the recommendations and values of Islamic Economics and behavioral economics in the context of unemployment are almost the same. And, more importantly, both approaches are similar in their emphasis on the ineffectiveness and distance from human values of mainstream economic policies. This article is the first to examine unemployment from the joint perspectives of Islamic economics and behavioral economics. It is also the first article to criticize the mainstream view of unemployment from the common framework of these two approaches.Behavioral and Islamic economics critique mainstream views on unemployment: a joint perspective
Ekrem Yilmaz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to discuss the behavioral economics and Islamic economic joint criticisms against the conceptual and economic political view of the mainstream.

The purpose of this study is to examine the effectiveness of mainstream economic policies in addressing unemployment. Furthermore, it critically assesses the mainstream perspective on unemployment within the contexts of Islamic economics and behavioral economics, separately. The commonalities and disparities between the approaches of Islamic economics and behavioral economics regarding unemployment are evaluated. Subsequently, the conventional viewpoint on unemployment is scrutinized from the combined standpoint of Islamic economics and behavioral economics. This article employs a theoretical approach to address these concerns.

Although there are some differences, the recommendations and values of Islamic Economics and behavioral economics in the context of unemployment are almost the same. And, more importantly, both approaches are similar in their emphasis on the ineffectiveness and distance from human values of mainstream economic policies.

This article is the first to examine unemployment from the joint perspectives of Islamic economics and behavioral economics. It is also the first article to criticize the mainstream view of unemployment from the common framework of these two approaches.

]]>
Behavioral and Islamic economics critique mainstream views on unemployment: a joint perspective10.1108/JIABR-02-2023-0067Journal of Islamic Accounting and Business Research2023-10-25© 2023 Emerald Publishing LimitedEkrem YilmazJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-2510.1108/JIABR-02-2023-0067https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0067/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Is Islamic financial management getting enough attention? A bibliometric analysishttps://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0068/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to provide quantitative information about the development of Islamic financial management literature. For this purpose, it is aimed to draw attention to the development of this field by revealing the literature gap in the field of Islamic financial management. In this study, the document analysis method is used and the Web of Science (WOS) site is used to obtain the desired data. The time range of the study covers the years 1980–2023/January. The results obtained from the scans were analyzed by the bibliometric analysis method. The data obtained within the scope of the study are classified and analyzed using the VOSviewer program, which is one of the many software developed for scientific mapping analysis. The obtained data are presented in a certain order with the visual mapping method. In the analyses made, bibliometric analysis based on document review and including the subject of “Islamic financial management” in the WOS database between the relevant years has not been used in any study, which points to an important gap in the literature. However, 3,022 studies on “Financial management” and 1,830 studies on “Islamic finance” have been identified. Although there is no data on “Financial Management”, the subjects of “Islamic finance” and “Financial management” related to the subject have been evaluated in terms of countries, the most publishing organizations, authors, publications and word–word groups, using the bibliometric analysis method, as well as making numerical and visual evaluations. These studies show that an infrastructure to include the subject of “Islamic financial management” has not been formed in the literature. This study points to an important gap in the literature. The subjects of “Islamic finance” and “Financial management” have been sufficiently covered in the literature separately. By combining this knowledge with new studies there appears an environment where original studies on the subject of “Islamic financial management” can be made and this study is aimed to shed light on this virgin area. In the literature bibliometric analysis based on document review including the subject of “Islamic financial management” has not been used in any study. To the best of the author’s knowledge this study is the first in the literature to address the related issue and with it an important gap in the literature has been identified and an important case that will be a source for future studies has been revealed.Is Islamic financial management getting enough attention? A bibliometric analysis
Hasan Kazak
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to provide quantitative information about the development of Islamic financial management literature. For this purpose, it is aimed to draw attention to the development of this field by revealing the literature gap in the field of Islamic financial management.

In this study, the document analysis method is used and the Web of Science (WOS) site is used to obtain the desired data. The time range of the study covers the years 1980–2023/January. The results obtained from the scans were analyzed by the bibliometric analysis method. The data obtained within the scope of the study are classified and analyzed using the VOSviewer program, which is one of the many software developed for scientific mapping analysis. The obtained data are presented in a certain order with the visual mapping method.

In the analyses made, bibliometric analysis based on document review and including the subject of “Islamic financial management” in the WOS database between the relevant years has not been used in any study, which points to an important gap in the literature. However, 3,022 studies on “Financial management” and 1,830 studies on “Islamic finance” have been identified. Although there is no data on “Financial Management”, the subjects of “Islamic finance” and “Financial management” related to the subject have been evaluated in terms of countries, the most publishing organizations, authors, publications and word–word groups, using the bibliometric analysis method, as well as making numerical and visual evaluations. These studies show that an infrastructure to include the subject of “Islamic financial management” has not been formed in the literature.

This study points to an important gap in the literature. The subjects of “Islamic finance” and “Financial management” have been sufficiently covered in the literature separately. By combining this knowledge with new studies there appears an environment where original studies on the subject of “Islamic financial management” can be made and this study is aimed to shed light on this virgin area.

In the literature bibliometric analysis based on document review including the subject of “Islamic financial management” has not been used in any study. To the best of the author’s knowledge this study is the first in the literature to address the related issue and with it an important gap in the literature has been identified and an important case that will be a source for future studies has been revealed.

]]>
Is Islamic financial management getting enough attention? A bibliometric analysis10.1108/JIABR-02-2023-0068Journal of Islamic Accounting and Business Research2023-06-27© 2023 Emerald Publishing LimitedHasan KazakJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-2710.1108/JIABR-02-2023-0068https://www.emerald.com/insight/content/doi/10.1108/JIABR-02-2023-0068/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Risk management efficiency of Takaful and conventional insurance sectors in UAE and KSAhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0065/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to extend previous literature and examine risk management efficiency among Takaful (TI) and conventional insurance (CI) firms in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE). This study also aims to determine whether Takaful firms are more efficient in managing risks, compared to CI firms. This study examines risk management efficiency among Takaful and CI firms in the KSA and the UAE for a sample of 20 insurance firms comprising 10 TI firms and 10 CI firms for the period 2018–2020. The authors use Data Envelopment Analysis to estimate efficiency scores among insurance companies to compare risk management efficiency between CI and TI companies and apply two-way analysis of variance to statistically analyze the data. The results of this study show that TI firms have a higher efficiency score than CI firms, but not significantly and that insurance firms in KSA have higher efficiency scores than insurance firms in UAE. The results also reveal that TI firms did not significantly outperform CI firms in managing risks; however, there is a significant difference in efficiency scores among insurance firms in KSA and UAE. The authors also contribute to the literature by providing important insights into how the operational business environment of the country can influence the risk management efficiency of CI and TI companies. This study promotes understanding the insurance industry, its efficiency and risk management, thus offering key implications for decision-makers, regulators and managers associated with the insurance industry in UAE, KSA and other emerging insurance markets. Regulators could provide enabling policies that foster and promote the business environment, as there is a need to improve risk management efficiency in the insurance industry. Also, the results of this study show that the operating status of the UAE insurance industry in terms of efficiency and risk management is lower than that of KSA. Hence, it would be useful for UAE managers and regulators in taking steps to improve the overall insurance industry market. The results of this study make significant contributions by providing new insights to the existing literature on the risk management efficiency in the insurance industry, as it adopts a different methodological approach that examines risk management efficiency among TI and CI companies.Risk management efficiency of Takaful and conventional insurance sectors in UAE and KSA
Elias Abu Al-Haija, Asma Houcine
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to extend previous literature and examine risk management efficiency among Takaful (TI) and conventional insurance (CI) firms in the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE). This study also aims to determine whether Takaful firms are more efficient in managing risks, compared to CI firms.

This study examines risk management efficiency among Takaful and CI firms in the KSA and the UAE for a sample of 20 insurance firms comprising 10 TI firms and 10 CI firms for the period 2018–2020. The authors use Data Envelopment Analysis to estimate efficiency scores among insurance companies to compare risk management efficiency between CI and TI companies and apply two-way analysis of variance to statistically analyze the data.

The results of this study show that TI firms have a higher efficiency score than CI firms, but not significantly and that insurance firms in KSA have higher efficiency scores than insurance firms in UAE. The results also reveal that TI firms did not significantly outperform CI firms in managing risks; however, there is a significant difference in efficiency scores among insurance firms in KSA and UAE.

The authors also contribute to the literature by providing important insights into how the operational business environment of the country can influence the risk management efficiency of CI and TI companies.

This study promotes understanding the insurance industry, its efficiency and risk management, thus offering key implications for decision-makers, regulators and managers associated with the insurance industry in UAE, KSA and other emerging insurance markets. Regulators could provide enabling policies that foster and promote the business environment, as there is a need to improve risk management efficiency in the insurance industry. Also, the results of this study show that the operating status of the UAE insurance industry in terms of efficiency and risk management is lower than that of KSA. Hence, it would be useful for UAE managers and regulators in taking steps to improve the overall insurance industry market.

The results of this study make significant contributions by providing new insights to the existing literature on the risk management efficiency in the insurance industry, as it adopts a different methodological approach that examines risk management efficiency among TI and CI companies.

]]>
Risk management efficiency of Takaful and conventional insurance sectors in UAE and KSA10.1108/JIABR-03-2022-0065Journal of Islamic Accounting and Business Research2023-07-25© 2023 Emerald Publishing LimitedElias Abu Al-HaijaAsma HoucineJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-2510.1108/JIABR-03-2022-0065https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0065/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Selected issues in the use of RegTech in the Islamic and conventional financial marketshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0069/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to explore several challenges in the use of regulatory technologies (RegTech) in Islamic and conventional financial markets and share recommendations in this regard. A qualitative research methodology was used to identify the existing challenges. Literature was reviewed and analyzed, and seven experts were interviewed or consulted online and their feedback examined. The judgment of the case B2C2 Ltd v Quoine Pte Ltd. was reviewed. This study reveals a lack of relevant regulatory frameworks capable of meeting some of the evolving challenges, lack of awareness among market players and lack of expertise in RegTech. The list of additional challenges includes the issue of legacy technology, the weaknesses of human programmers and the need for a multifaceted solution for compliance requirements. This study notes the novelty of RegTech in the financial world, especially in the Islamic financial market. Thus, there is a dearth of relevant literature. This study assists relevant conventional and Islamic financial market entities and authorities in determining the potential impact of RegTech on their respective businesses and the financial system. This study proffers recommendations to assist in addressing the challenges facing its users and paving the way for innovative solutions that will facilitate and enhance the use of RegTech in financial markets. Regulators and other stakeholders of the financial industry will learn from the challenges identified and can review the recommendations for adoption. Apart from that, the decision of B2C2 Ltd v Quoine has practical implications for RegTech users, as the court in B2C2 Ltd v Quoine accessed the “knowledge” of the programmers of deterministic software at the time of the coding. RegTech can offer cost-effective and efficient means to comply with regulations and ensure the accuracy of the information provided to regulators. This study provides a better understanding of the challenges associated with its use. The recommendations include enactment of a blueprint for a digitally enabled regulatory framework, creating awareness of RegTech via stakeholder roundtable discussions, development of human talent, formulating human governance standards and finding innovative ways to manage risks.Selected issues in the use of RegTech in the Islamic and conventional financial markets
Sherin Kunhibava, Aishath Muneeza, Zakariya Mustapha, Mohammad Ershadul Karim, Auwal Adam Sa’ad
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to explore several challenges in the use of regulatory technologies (RegTech) in Islamic and conventional financial markets and share recommendations in this regard.

A qualitative research methodology was used to identify the existing challenges. Literature was reviewed and analyzed, and seven experts were interviewed or consulted online and their feedback examined. The judgment of the case B2C2 Ltd v Quoine Pte Ltd. was reviewed.

This study reveals a lack of relevant regulatory frameworks capable of meeting some of the evolving challenges, lack of awareness among market players and lack of expertise in RegTech. The list of additional challenges includes the issue of legacy technology, the weaknesses of human programmers and the need for a multifaceted solution for compliance requirements.

This study notes the novelty of RegTech in the financial world, especially in the Islamic financial market. Thus, there is a dearth of relevant literature. This study assists relevant conventional and Islamic financial market entities and authorities in determining the potential impact of RegTech on their respective businesses and the financial system.

This study proffers recommendations to assist in addressing the challenges facing its users and paving the way for innovative solutions that will facilitate and enhance the use of RegTech in financial markets. Regulators and other stakeholders of the financial industry will learn from the challenges identified and can review the recommendations for adoption. Apart from that, the decision of B2C2 Ltd v Quoine has practical implications for RegTech users, as the court in B2C2 Ltd v Quoine accessed the “knowledge” of the programmers of deterministic software at the time of the coding.

RegTech can offer cost-effective and efficient means to comply with regulations and ensure the accuracy of the information provided to regulators. This study provides a better understanding of the challenges associated with its use. The recommendations include enactment of a blueprint for a digitally enabled regulatory framework, creating awareness of RegTech via stakeholder roundtable discussions, development of human talent, formulating human governance standards and finding innovative ways to manage risks.

]]>
Selected issues in the use of RegTech in the Islamic and conventional financial markets10.1108/JIABR-03-2022-0069Journal of Islamic Accounting and Business Research2023-05-10© 2023 Emerald Publishing LimitedSherin KunhibavaAishath MuneezaZakariya MustaphaMohammad Ershadul KarimAuwal Adam Sa’adJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-1010.1108/JIABR-03-2022-0069https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0069/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The influence of national and individual Islamic governance on Islamic banks’ social performancehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the relationship between Islamic governance and the social performance of Islamic banks, pioneering a new aspect in terms of the impact of the National Shariah Board (NSB) on the social performance of Islamic banks. The essential body in the Islamic banks in charge of Islamic governance is the Shariah Supervisory Board (SSB). Therefore, in this study, the authors explore how the characteristics of the Shariah board and Islamic governance mechanisms influence the social performance of Islamic banks. Panel data methods are applied to the annual data of 43 banks from 14 countries over the period 2012–2018 to explore the impact of Islamic governance on Islamic banks’ social performance. The authors have used all available bank annual reports in the given period. Social performance is measured by Maqasid al-Shariah (in terms of the goals of the Islamic moral economy) index using a comprehensive evaluation framework. Islamic governance is represented by the improved Islamic Governance Score (IG-Score) index, which measures the quality of Islamic governance in Islamic banks. In the research, the authors also introduce the frequency of SSB meetings in IG-Score. The findings suggest a strong link between Islamic governance and the social performance of Islamic banks, illustrating the importance of the Shariah board in achieving maqasid. On the other hand, the research discovered that NSBs are inefficient and the existence of NSB can jeopardize the social performance of Islamic banks. The results of this research imply valuable recommendations for Islamic banks that are keen to improve their social performance. Besides investigating the impact of SSB governance on the social performance of Islamic banks by using an improved IG score index, to the best of the authors’ knowledge, this is the first study that investigates the impact of NSBs on the social performance of Islamic banks.The influence of national and individual Islamic governance on Islamic banks’ social performance
Admir Meskovic, Emira Kozarevic, Alija Avdukic
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the relationship between Islamic governance and the social performance of Islamic banks, pioneering a new aspect in terms of the impact of the National Shariah Board (NSB) on the social performance of Islamic banks. The essential body in the Islamic banks in charge of Islamic governance is the Shariah Supervisory Board (SSB). Therefore, in this study, the authors explore how the characteristics of the Shariah board and Islamic governance mechanisms influence the social performance of Islamic banks.

Panel data methods are applied to the annual data of 43 banks from 14 countries over the period 2012–2018 to explore the impact of Islamic governance on Islamic banks’ social performance. The authors have used all available bank annual reports in the given period. Social performance is measured by Maqasid al-Shariah (in terms of the goals of the Islamic moral economy) index using a comprehensive evaluation framework. Islamic governance is represented by the improved Islamic Governance Score (IG-Score) index, which measures the quality of Islamic governance in Islamic banks. In the research, the authors also introduce the frequency of SSB meetings in IG-Score.

The findings suggest a strong link between Islamic governance and the social performance of Islamic banks, illustrating the importance of the Shariah board in achieving maqasid. On the other hand, the research discovered that NSBs are inefficient and the existence of NSB can jeopardize the social performance of Islamic banks. The results of this research imply valuable recommendations for Islamic banks that are keen to improve their social performance.

Besides investigating the impact of SSB governance on the social performance of Islamic banks by using an improved IG score index, to the best of the authors’ knowledge, this is the first study that investigates the impact of NSBs on the social performance of Islamic banks.

]]>
The influence of national and individual Islamic governance on Islamic banks’ social performance10.1108/JIABR-03-2022-0077Journal of Islamic Accounting and Business Research2023-06-06© 2023 Emerald Publishing LimitedAdmir MeskovicEmira KozarevicAlija AvdukicJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-0610.1108/JIABR-03-2022-0077https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Determinants of customer perception on the adoption of takaful in Somaliahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0093/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to determine current and potential takaful customers’ perception of takaful product and its adoption in Somalia. This study used three originally selected constructs of perceived relative advantage, perceived compatibility and perceived complexity of diffusion of innovation (DOI) theory and adds three additional constructs of level of customer awareness, culture and perceived trust. A total of 427 questionnaires were collected from the participants of the study using a nonprobability convenience sampling technique. For data analysis, Smart PLS3 and SPSS software were used. The survey was conducted in Somalia, with respondents being current and potential takaful product’s customers. The DOI theoretical model was put to the test using structural equation modeling. The findings showed that perceived relative advantage, perceived compatibility, awareness, perceived culture and perceived trust have a positive and significant influence, whereas perceived complexity has an insignificant influence on the adoption of takaful products. This research is a pioneering attempt to investigate the determinants of current and potential takaful customers’ adoption by changing the DOI theory, and it presents a unique contribution to the field with regard to Somalia.Determinants of customer perception on the adoption of takaful in Somalia
Yonis Ali Mukhtar, Galad Mohamed Barre
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to determine current and potential takaful customers’ perception of takaful product and its adoption in Somalia.

This study used three originally selected constructs of perceived relative advantage, perceived compatibility and perceived complexity of diffusion of innovation (DOI) theory and adds three additional constructs of level of customer awareness, culture and perceived trust. A total of 427 questionnaires were collected from the participants of the study using a nonprobability convenience sampling technique. For data analysis, Smart PLS3 and SPSS software were used. The survey was conducted in Somalia, with respondents being current and potential takaful product’s customers. The DOI theoretical model was put to the test using structural equation modeling.

The findings showed that perceived relative advantage, perceived compatibility, awareness, perceived culture and perceived trust have a positive and significant influence, whereas perceived complexity has an insignificant influence on the adoption of takaful products.

This research is a pioneering attempt to investigate the determinants of current and potential takaful customers’ adoption by changing the DOI theory, and it presents a unique contribution to the field with regard to Somalia.

]]>
Determinants of customer perception on the adoption of takaful in Somalia10.1108/JIABR-03-2022-0093Journal of Islamic Accounting and Business Research2023-06-13© 2023 Emerald Publishing LimitedYonis Ali MukhtarGalad Mohamed BarreJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-1310.1108/JIABR-03-2022-0093https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2022-0093/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic bankshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks. This study uses panel data analysis of annual report disclosures over the past 10 years. The authors have selected 79 Islamic banks for the period ranging from 2012 to 2021. The criteria for SSB efficiency used in this research are disclosure of Zakat and disclosure in the SSB report. The econometric results show that digitalization has a positive effect on improving the work efficiency of the SSB in Islamic banks. Accordingly, the authors provide evidence that the higher the bank's digital engagement, the higher the quality of the SSB. The findings highlight the need to improve the current understanding of SSB structures and governance mechanisms that can better assist Islamic banks in engaging in effective compliance with recent governance and accounting reforms. Moreover, Islamic banks are the most capable and appropriate to implement and activate digitalization because they are based on a vital root calling for development if there are executives believing in it, as well as legislation supporting and serving them.Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks
Sabrine Cherni, Anis Ben Amar
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks.

This study uses panel data analysis of annual report disclosures over the past 10 years. The authors have selected 79 Islamic banks for the period ranging from 2012 to 2021. The criteria for SSB efficiency used in this research are disclosure of Zakat and disclosure in the SSB report.

The econometric results show that digitalization has a positive effect on improving the work efficiency of the SSB in Islamic banks. Accordingly, the authors provide evidence that the higher the bank's digital engagement, the higher the quality of the SSB.

The findings highlight the need to improve the current understanding of SSB structures and governance mechanisms that can better assist Islamic banks in engaging in effective compliance with recent governance and accounting reforms. Moreover, Islamic banks are the most capable and appropriate to implement and activate digitalization because they are based on a vital root calling for development if there are executives believing in it, as well as legislation supporting and serving them.

]]>
Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks10.1108/JIABR-03-2023-0077Journal of Islamic Accounting and Business Research2024-02-26© 2024 Emerald Publishing LimitedSabrine CherniAnis Ben AmarJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-2610.1108/JIABR-03-2023-0077https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0077/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Efficiency, liquidity risk and asset quality: a comparative analysis of Islamic and conventional banks in Pakistanhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0079/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate differences between Islamic and conventional banks in Pakistan with respect to their operational efficiency, liquidity risk and asset quality. Importantly, in addition to full-fledged Islamic and conventional banks, this study also investigates a more recently emerged breed of hybrid banks, i.e. Islamic divisions of conventional banks. Data for the period 2011–2020 was collected from financial reports of all full-fledged Islamic banks (5), Islamic banking divisions of conventional banks (8) and conventional banks (20) in Pakistan. Logistic regressions were designed to test the proposed hypotheses. The findings suggest that full-fledged Islamic banks are operationally less efficient and experience higher liquidity risk than conventional banks. However, the asset quality of Islamic banks is better than that of conventional banks. Next, in the robustness analysis, the authors extended the sample size by adding the Islamic divisions (window) of the conventional banks; they found almost the same result except for efficiency which turned out to be non-significantly related to bank type. The findings are beneficial for investors, depositors, consumers and bank management in understanding the financial features of such as efficiency, liquidity and liquidity risk that separate Islamic banks from conventional banks. The findings of this study present a clear picture to bankers and practitioners about some financial features of banking systems and depict that Islamic banks are in need to improve their liquidity risk management practices to compete with conventional banks.Efficiency, liquidity risk and asset quality: a comparative analysis of Islamic and conventional banks in Pakistan
Raheel Safdar, Afira Fatima, Memoona Sajid
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate differences between Islamic and conventional banks in Pakistan with respect to their operational efficiency, liquidity risk and asset quality. Importantly, in addition to full-fledged Islamic and conventional banks, this study also investigates a more recently emerged breed of hybrid banks, i.e. Islamic divisions of conventional banks.

Data for the period 2011–2020 was collected from financial reports of all full-fledged Islamic banks (5), Islamic banking divisions of conventional banks (8) and conventional banks (20) in Pakistan. Logistic regressions were designed to test the proposed hypotheses.

The findings suggest that full-fledged Islamic banks are operationally less efficient and experience higher liquidity risk than conventional banks. However, the asset quality of Islamic banks is better than that of conventional banks. Next, in the robustness analysis, the authors extended the sample size by adding the Islamic divisions (window) of the conventional banks; they found almost the same result except for efficiency which turned out to be non-significantly related to bank type.

The findings are beneficial for investors, depositors, consumers and bank management in understanding the financial features of such as efficiency, liquidity and liquidity risk that separate Islamic banks from conventional banks.

The findings of this study present a clear picture to bankers and practitioners about some financial features of banking systems and depict that Islamic banks are in need to improve their liquidity risk management practices to compete with conventional banks.

]]>
Efficiency, liquidity risk and asset quality: a comparative analysis of Islamic and conventional banks in Pakistan10.1108/JIABR-03-2023-0079Journal of Islamic Accounting and Business Research2024-04-01© 2024 Emerald Publishing LimitedRaheel SafdarAfira FatimaMemoona SajidJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-04-0110.1108/JIABR-03-2023-0079https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0079/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Macro level literature analysis of Islamic banking and finance in Covid-19 crisishttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0082/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to conduct a systematic content review and bibliometric analysis of the current research trends, core concepts and knowledge mapping on the topic Islamic Banking and Finance (IBF) during Covid-19. Apart from highlighting the contributions of prolific authors, prominent institutions and countries, a comprehensive review of a significant number of documents using co-citation and co-word analysis is carried out for the science mapping. A data set of 125 papers was collected published in Scopus database during the period December, 2019 and January 5th, 2023. Yearly publications, most-cited papers and authors, active sources, affiliations and countries are highlighted with descriptive analysis. Knowledge structure of the topic was mapped with investigating the social, intellectual and conceptual structures of IBF research. Content analysis is carried out to uncover the underlying research clusters that shape the scientific knowledge structure of studies. A diverse group of authors and institutions contribute to the growing body of knowledge on the topic. IBF is adopting new paradigms and frameworks to integrate FinTech, crowd funding and Islamic social finance to provide sustainable solutions in both crisis and normal periods. The research on IBF is classified in to three themes: “financial markets in Covid-19,” “modeling risk and market regimes” and “FinTech and Islamic social finance.” This study collects data only from Scopus database. Future studies must include research articles from other databases such as, Web of Sciences. This study highlights research gaps in the existing literature and provides directions for future research.Macro level literature analysis of Islamic banking and finance in Covid-19 crisis
Muhammad Wajid Raza
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to conduct a systematic content review and bibliometric analysis of the current research trends, core concepts and knowledge mapping on the topic Islamic Banking and Finance (IBF) during Covid-19. Apart from highlighting the contributions of prolific authors, prominent institutions and countries, a comprehensive review of a significant number of documents using co-citation and co-word analysis is carried out for the science mapping.

A data set of 125 papers was collected published in Scopus database during the period December, 2019 and January 5th, 2023. Yearly publications, most-cited papers and authors, active sources, affiliations and countries are highlighted with descriptive analysis. Knowledge structure of the topic was mapped with investigating the social, intellectual and conceptual structures of IBF research. Content analysis is carried out to uncover the underlying research clusters that shape the scientific knowledge structure of studies.

A diverse group of authors and institutions contribute to the growing body of knowledge on the topic. IBF is adopting new paradigms and frameworks to integrate FinTech, crowd funding and Islamic social finance to provide sustainable solutions in both crisis and normal periods. The research on IBF is classified in to three themes: “financial markets in Covid-19,” “modeling risk and market regimes” and “FinTech and Islamic social finance.”

This study collects data only from Scopus database. Future studies must include research articles from other databases such as, Web of Sciences.

This study highlights research gaps in the existing literature and provides directions for future research.

]]>
Macro level literature analysis of Islamic banking and finance in Covid-19 crisis10.1108/JIABR-03-2023-0082Journal of Islamic Accounting and Business Research2024-02-09© 2024 Emerald Publishing LimitedMuhammad Wajid RazaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-0910.1108/JIABR-03-2023-0082https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0082/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
How does economic policy uncertainty shift the firm’s future profitability enhancement through intangible capital?https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0087/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the effect of intangible capital (e.g. intangible investments and research and development (R&D) expenditures) on future profitability in an emerging economy and the moderating role of economic policy uncertainty (EPU) for companies listed on the Tehran Stock Exchange. To this aim, information about 210 companies during 2014–2021 was collected. This study calculated EPU based on the inflation rate, interest rate, exchange rate and economic growth. The results showed that both R&D expenditures and other intangible investments positively affect future profitability. Moreover, EPU decreases the positive effect of R&D expenditures and other intangible investments on future profitability. Hypothesis testing based on ordinary least squares and generalized method of moments regressions confirmed these results. This study emphasizes the urgent need to adjust how they operate the business during the COVID-19 pandemic. The nature and degree of intangible assets and R&D expenditures in firms in emerging markets is an interesting area of research. However, empirical studies in this area have not led to any unanimous conclusion in emerging markets. Moreover, intangible assets and R&D expenditures become very important in the economy affected by the financial crisis and conditions of uncertainties. In light of the COVID-19 crisis, significant changes occurred at all levels and affected accounting-related issues, and the present study highlighted COVID-19. The findings of this research will not only help the managers of companies in developing countries but also, because of the dearth of similar research, they can help managers in developed countries and the global community.How does economic policy uncertainty shift the firm’s future profitability enhancement through intangible capital?
Arash Arianpoor, Fatemeh Eslami Khargh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the effect of intangible capital (e.g. intangible investments and research and development (R&D) expenditures) on future profitability in an emerging economy and the moderating role of economic policy uncertainty (EPU) for companies listed on the Tehran Stock Exchange.

To this aim, information about 210 companies during 2014–2021 was collected. This study calculated EPU based on the inflation rate, interest rate, exchange rate and economic growth.

The results showed that both R&D expenditures and other intangible investments positively affect future profitability. Moreover, EPU decreases the positive effect of R&D expenditures and other intangible investments on future profitability. Hypothesis testing based on ordinary least squares and generalized method of moments regressions confirmed these results. This study emphasizes the urgent need to adjust how they operate the business during the COVID-19 pandemic.

The nature and degree of intangible assets and R&D expenditures in firms in emerging markets is an interesting area of research. However, empirical studies in this area have not led to any unanimous conclusion in emerging markets. Moreover, intangible assets and R&D expenditures become very important in the economy affected by the financial crisis and conditions of uncertainties. In light of the COVID-19 crisis, significant changes occurred at all levels and affected accounting-related issues, and the present study highlighted COVID-19. The findings of this research will not only help the managers of companies in developing countries but also, because of the dearth of similar research, they can help managers in developed countries and the global community.

]]>
How does economic policy uncertainty shift the firm’s future profitability enhancement through intangible capital?10.1108/JIABR-03-2023-0087Journal of Islamic Accounting and Business Research2023-10-19© 2023 Emerald Publishing LimitedArash ArianpoorFatemeh Eslami KharghJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1910.1108/JIABR-03-2023-0087https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0087/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Digitalization and sustainable development goals in emerging Islamic economieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0092/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study examines the intersection of emerging Islamic economies and the digital economy in the context of the United Nations sustainable development goals (UN SDGs). This study aims to investigate the opportunities, challenges and barriers faced by emerging Islamic economies in the context of the digital economy. It specifically focuses on how these economies can contribute to the achievement of UN SDGs established in 2015. In addition, the study explores the prospects of Islamic digital finance and its potential to facilitate the adoption of the UN SDGs. The following components outline the design, methods and approach of this study, identify and select specific UN SDGs that are relevant to the research aims. These selected goals serve as the basis for evaluating the impact of conventional and Islamic digital financial inclusion, gathered data from credible sources such as Bloomberg and Refinitiv Thomson Reuters to support the analysis. These sources provide comprehensive data on global indicators, progress and targets related to the UN SDGs, compare and evaluate the impact of both conventional and Islamic digital financial inclusion strategies on the selected UN SDGs; the study uses qualitative interpretation of the gathered data, which involves identifying patterns, themes and connections within the data to draw meaningful conclusions. Results revealed that Islamic digital finance has the potential to contribute significantly to achieving the UN SDGs by promoting financial inclusion, encouraging ethical investments, supporting small and medium enterprises, promoting sustainable investments and leveraging technology to expand access to Islamic financial services and support sustainable investments. While there are many potential benefits of Islamic digital finance in helping to achieve the UN SDGs, there are also several limitations that should be considered in research, such as limited access to digital infrastructure, regulatory challenges, product offerings, scale, awareness and adoption. Addressing these limitations will be critical to maximizing the potential of Islamic digital finance to contribute to achieving the UN SDGs. This study points to an important gap in the literature; for practitioners, this study has significant managerial consequences for achieving the UN SDGs in emerging economies by facilitating social impact investments and promoting ethical and sustainable investments. This study’s uniqueness lies in its exploration of the limited exploration of connecting the implementation of digital financial systems to promote UN SDGs within emerging Islamic economies.Digitalization and sustainable development goals in emerging Islamic economies
Issam Tlemsani, Asif Zaman, Mohamed Ashmel Mohamed Hashim, Robin Matthews
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study examines the intersection of emerging Islamic economies and the digital economy in the context of the United Nations sustainable development goals (UN SDGs). This study aims to investigate the opportunities, challenges and barriers faced by emerging Islamic economies in the context of the digital economy. It specifically focuses on how these economies can contribute to the achievement of UN SDGs established in 2015. In addition, the study explores the prospects of Islamic digital finance and its potential to facilitate the adoption of the UN SDGs.

The following components outline the design, methods and approach of this study, identify and select specific UN SDGs that are relevant to the research aims. These selected goals serve as the basis for evaluating the impact of conventional and Islamic digital financial inclusion, gathered data from credible sources such as Bloomberg and Refinitiv Thomson Reuters to support the analysis. These sources provide comprehensive data on global indicators, progress and targets related to the UN SDGs, compare and evaluate the impact of both conventional and Islamic digital financial inclusion strategies on the selected UN SDGs; the study uses qualitative interpretation of the gathered data, which involves identifying patterns, themes and connections within the data to draw meaningful conclusions.

Results revealed that Islamic digital finance has the potential to contribute significantly to achieving the UN SDGs by promoting financial inclusion, encouraging ethical investments, supporting small and medium enterprises, promoting sustainable investments and leveraging technology to expand access to Islamic financial services and support sustainable investments.

While there are many potential benefits of Islamic digital finance in helping to achieve the UN SDGs, there are also several limitations that should be considered in research, such as limited access to digital infrastructure, regulatory challenges, product offerings, scale, awareness and adoption. Addressing these limitations will be critical to maximizing the potential of Islamic digital finance to contribute to achieving the UN SDGs.

This study points to an important gap in the literature; for practitioners, this study has significant managerial consequences for achieving the UN SDGs in emerging economies by facilitating social impact investments and promoting ethical and sustainable investments.

This study’s uniqueness lies in its exploration of the limited exploration of connecting the implementation of digital financial systems to promote UN SDGs within emerging Islamic economies.

]]>
Digitalization and sustainable development goals in emerging Islamic economies10.1108/JIABR-03-2023-0092Journal of Islamic Accounting and Business Research2023-11-09© 2023 Emerald Publishing LimitedIssam TlemsaniAsif ZamanMohamed Ashmel Mohamed HashimRobin MatthewsJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-0910.1108/JIABR-03-2023-0092https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0092/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Analyzing investor types and marketing strategies for sukuk: insights from preference similarity theory and protection motivation theoryhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0097/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the applicability of Preference Similarity Theory (PST) and Protection Motivation Theory (PMT) in identifying the target audience and developing effective marketing strategies, particularly in non-Muslim countries, to increase the market growth and reach of sukuk to broader investor groups and provide recommendations for such strategies. After separately examining the effects of PST and PMT on marketing sukuk, recommendations are presented from a shared perspective of these two theories. The findings of this study suggest that understanding the values, beliefs and perceptions of potential investors is crucial for effectively marketing sukuk investments, especially in non-Muslim countries. The PST and PMT provide useful frameworks for tailoring sukuk offerings and communicating effectively about the risks and benefits of sukuk investments to attract investors who identify with the values and beliefs embodied in sukuk. To the best of the author's knowledge, this is the first paper to examine the marketing of sukuk in non-Muslim countries. This study is also the first paper to discuss sukuk in the context of PST and PMT. In addition, this study is expected to guide banks in the marketing of sukuk.Analyzing investor types and marketing strategies for sukuk: insights from preference similarity theory and protection motivation theory
Ekrem Yilmaz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine the applicability of Preference Similarity Theory (PST) and Protection Motivation Theory (PMT) in identifying the target audience and developing effective marketing strategies, particularly in non-Muslim countries, to increase the market growth and reach of sukuk to broader investor groups and provide recommendations for such strategies.

After separately examining the effects of PST and PMT on marketing sukuk, recommendations are presented from a shared perspective of these two theories.

The findings of this study suggest that understanding the values, beliefs and perceptions of potential investors is crucial for effectively marketing sukuk investments, especially in non-Muslim countries. The PST and PMT provide useful frameworks for tailoring sukuk offerings and communicating effectively about the risks and benefits of sukuk investments to attract investors who identify with the values and beliefs embodied in sukuk.

To the best of the author's knowledge, this is the first paper to examine the marketing of sukuk in non-Muslim countries. This study is also the first paper to discuss sukuk in the context of PST and PMT. In addition, this study is expected to guide banks in the marketing of sukuk.

]]>
Analyzing investor types and marketing strategies for sukuk: insights from preference similarity theory and protection motivation theory10.1108/JIABR-03-2023-0097Journal of Islamic Accounting and Business Research2023-10-16© 2023 Emerald Publishing LimitedEkrem YilmazJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1610.1108/JIABR-03-2023-0097https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0097/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
A game-theoretical approach to Islamic law disputeshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0100/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze notable distribution dispute cases from Islamic law history. The authors will assess these alongside resolutions proposed by historical authorities, some of which evolved into established Islamic case law. In addition, the authors intend to apply classic fair division rules to these cases, providing alternative solutions. Using a game-theoretical approach, the authors plan to compare Islamic solutions with traditional division rules through axiomatic analysis. The goal of this study is to systematically explore the unique principles underpinning Islamic distributions. In this study, the authors collate Islamic inheritance law disputes involving conflicting claims, unresolvable by primary Islamic law sources, from historical and modern texts. The authors formally model these as claims problems, surplus-sharing problems and adapted claims problems. Concurrently, the authors gather the proposed solutions and historical backgrounds offered by the era’s authorities and jurists. These solutions are axiomatically generalized into rules, while the axioms characterizing distribution rules are checked if they are aligned with Islamic norms and values. This approach facilitates a comparison between Islamic distributions and classic division rules. The 'Awl and Radd doctrines, used in Islamic inheritance law, are axiomatically equivalent to the Proportional Rule, a prevalent non-Jewish division rule. These doctrines present solutions impervious to manipulation by legal heirs through rights transfer, unlike other possible distributions. Ibn 'Abbas' solution for Awliyya cases uses sequential priorities and diverges uniquely from classic fair division rules in the literature. In addition, it is established that Abu Yusuf's (b. 729) distribution for a legal dispute is axiomatically identical to Abraham ibn Ezra's (b. 1089) division rule. There is a noticeable dearth of comprehensive studies investigating contentious disputes concerning resource claims within Islamic law. Many of these studies are lacking in-depth analyses of diverse cases, casting doubts on their reliability. As a result, a robust focus is needed on case collection prior to any analytical process. Future research should concentrate on collating instances of fair division problems throughout Islamic history, as well as separately collecting methods of Islamic sharing. This procedure may lead to the characterization of various Islamic regulations, thereby emphasizing distinct Islamic principles. In forthcoming studies, conducting an exhaustive axiomatic evaluation of the cases and proposed resolutions is imperative. This research illuminates existing knowledge gaps, setting a course for novel research trajectories. It underlines the fair division literature’s oversight of disputes within Islamic law, despite the plentiful existence of contentious cases. The research underscores the relevance of cooperative game theory as a tool for dissecting Islamic legal disputes. By accounting for unique Islamic norms and principles, this study lays a foundation for a nuanced comprehension of the dynamics and outcomes of legal disputes. By integrating an interdisciplinary approach, this research strives to bridge the gap between game theory and Islamic law. Beyond addressing a significant research lacuna, this study carries extensive societal implications. By shedding light on enduring debates within Islamic law, it encourages a rejuvenated understanding of the evolution and interpretation of legal disputes. The axiomatic disparities between rulers’ and jurists’ methods provide invaluable insights within the Islamic context, bolstering the understanding of sociocultural dynamics that influence legal decision-making. This research has the potential to shape legal discourse, guide policymaking and spur scholarly, juristic and societal dialogue. Consequently, it may foster a more comprehensive and enlightened approach toward the resolution of legal disputes in Islamic law. To the best of the authors’ knowledge, this study is the first to examine Islamic law’s historical legal disputes from a game-theoretical standpoint. Existing studies rarely collect distribution disputes systematically, and none scrutinize the axiomatic rationales underlying authorities’ and jurists’ distributions, opting instead to focus on historical backgrounds. While the fair division literature extensively examines disputes, it often overlooks those originating from Islamic law, which presents a rich source of disputes that can be modeled as fair division problems. This research makes a distinct contribution by incorporating disputes from Islamic law into the existing body of cooperative game theory literature.A game-theoretical approach to Islamic law disputes
Burak Doğan, Sinan Ertemel
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze notable distribution dispute cases from Islamic law history. The authors will assess these alongside resolutions proposed by historical authorities, some of which evolved into established Islamic case law. In addition, the authors intend to apply classic fair division rules to these cases, providing alternative solutions. Using a game-theoretical approach, the authors plan to compare Islamic solutions with traditional division rules through axiomatic analysis. The goal of this study is to systematically explore the unique principles underpinning Islamic distributions.

In this study, the authors collate Islamic inheritance law disputes involving conflicting claims, unresolvable by primary Islamic law sources, from historical and modern texts. The authors formally model these as claims problems, surplus-sharing problems and adapted claims problems. Concurrently, the authors gather the proposed solutions and historical backgrounds offered by the era’s authorities and jurists. These solutions are axiomatically generalized into rules, while the axioms characterizing distribution rules are checked if they are aligned with Islamic norms and values. This approach facilitates a comparison between Islamic distributions and classic division rules.

The 'Awl and Radd doctrines, used in Islamic inheritance law, are axiomatically equivalent to the Proportional Rule, a prevalent non-Jewish division rule. These doctrines present solutions impervious to manipulation by legal heirs through rights transfer, unlike other possible distributions. Ibn 'Abbas' solution for Awliyya cases uses sequential priorities and diverges uniquely from classic fair division rules in the literature. In addition, it is established that Abu Yusuf's (b. 729) distribution for a legal dispute is axiomatically identical to Abraham ibn Ezra's (b. 1089) division rule.

There is a noticeable dearth of comprehensive studies investigating contentious disputes concerning resource claims within Islamic law. Many of these studies are lacking in-depth analyses of diverse cases, casting doubts on their reliability. As a result, a robust focus is needed on case collection prior to any analytical process. Future research should concentrate on collating instances of fair division problems throughout Islamic history, as well as separately collecting methods of Islamic sharing. This procedure may lead to the characterization of various Islamic regulations, thereby emphasizing distinct Islamic principles. In forthcoming studies, conducting an exhaustive axiomatic evaluation of the cases and proposed resolutions is imperative.

This research illuminates existing knowledge gaps, setting a course for novel research trajectories. It underlines the fair division literature’s oversight of disputes within Islamic law, despite the plentiful existence of contentious cases. The research underscores the relevance of cooperative game theory as a tool for dissecting Islamic legal disputes. By accounting for unique Islamic norms and principles, this study lays a foundation for a nuanced comprehension of the dynamics and outcomes of legal disputes. By integrating an interdisciplinary approach, this research strives to bridge the gap between game theory and Islamic law.

Beyond addressing a significant research lacuna, this study carries extensive societal implications. By shedding light on enduring debates within Islamic law, it encourages a rejuvenated understanding of the evolution and interpretation of legal disputes. The axiomatic disparities between rulers’ and jurists’ methods provide invaluable insights within the Islamic context, bolstering the understanding of sociocultural dynamics that influence legal decision-making. This research has the potential to shape legal discourse, guide policymaking and spur scholarly, juristic and societal dialogue. Consequently, it may foster a more comprehensive and enlightened approach toward the resolution of legal disputes in Islamic law.

To the best of the authors’ knowledge, this study is the first to examine Islamic law’s historical legal disputes from a game-theoretical standpoint. Existing studies rarely collect distribution disputes systematically, and none scrutinize the axiomatic rationales underlying authorities’ and jurists’ distributions, opting instead to focus on historical backgrounds. While the fair division literature extensively examines disputes, it often overlooks those originating from Islamic law, which presents a rich source of disputes that can be modeled as fair division problems. This research makes a distinct contribution by incorporating disputes from Islamic law into the existing body of cooperative game theory literature.

]]>
A game-theoretical approach to Islamic law disputes10.1108/JIABR-03-2023-0100Journal of Islamic Accounting and Business Research2023-09-29© 2023 Emerald Publishing LimitedBurak DoğanSinan ErtemelJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-2910.1108/JIABR-03-2023-0100https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0100/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Shariah governance framework for Islamic banking in Pakistan: a critical review and comparison with AAOIFIhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0101/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe study aims to critically review the Shariah governance framework for Islamic banking prevailing in Pakistan and provide a comparison with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). It analyzes 16 circulars issued by the State Bank of Pakistan (SBP) since 2002, including three Shariah governance frameworks in 2014, 2015 and 2018. Additionally, the study compares the SBP and AAOIFI Shariah governance standards to evaluate the soundness of the SBP framework against international benchmarks. Pakistan’s Shariah governance model is centralized, with the SBP’s Shariah board having ultimate authority. The SBP has provided a comprehensive Shariah framework, which includes among others, the criteria for the qualifications and conflict of interests of Shariah members. Both AAOIFI and SBP Shariah governance frameworks have similarities and differences in terms of the tenure of Shariah Supervisory Board (SSB) members, reporting line of SSB, number of SSB meetings, minimum experience of SSB members, primary duties of Shariah board, code of ethics and conduct for SSB and management and requirement of publication of SSB report in the annual report of Islamic banks. The frameworks differ in terms of the delegation of SSB powers, assessment and appraisal of SSB effectiveness and outsourcing of Shariah Compliance Department and Internal Shariah Audit Unit. The study recommends expanding the qualification criteria for Shariah advisors to include additional degrees and qualifications, upholding stringent criteria for conflict of interests and promoting stakeholder consultation through exposure drafts. To the best of the authors’ knowledge, this is the first of its kind which critically review and compare the Shariah governance framework prevailing in Pakistan.Shariah governance framework for Islamic banking in Pakistan: a critical review and comparison with AAOIFI
Mustanir Hussain Wasim, Muhammad Bilal Zafar
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The study aims to critically review the Shariah governance framework for Islamic banking prevailing in Pakistan and provide a comparison with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

It analyzes 16 circulars issued by the State Bank of Pakistan (SBP) since 2002, including three Shariah governance frameworks in 2014, 2015 and 2018. Additionally, the study compares the SBP and AAOIFI Shariah governance standards to evaluate the soundness of the SBP framework against international benchmarks.

Pakistan’s Shariah governance model is centralized, with the SBP’s Shariah board having ultimate authority. The SBP has provided a comprehensive Shariah framework, which includes among others, the criteria for the qualifications and conflict of interests of Shariah members. Both AAOIFI and SBP Shariah governance frameworks have similarities and differences in terms of the tenure of Shariah Supervisory Board (SSB) members, reporting line of SSB, number of SSB meetings, minimum experience of SSB members, primary duties of Shariah board, code of ethics and conduct for SSB and management and requirement of publication of SSB report in the annual report of Islamic banks. The frameworks differ in terms of the delegation of SSB powers, assessment and appraisal of SSB effectiveness and outsourcing of Shariah Compliance Department and Internal Shariah Audit Unit.

The study recommends expanding the qualification criteria for Shariah advisors to include additional degrees and qualifications, upholding stringent criteria for conflict of interests and promoting stakeholder consultation through exposure drafts.

To the best of the authors’ knowledge, this is the first of its kind which critically review and compare the Shariah governance framework prevailing in Pakistan.

]]>
Shariah governance framework for Islamic banking in Pakistan: a critical review and comparison with AAOIFI10.1108/JIABR-03-2023-0101Journal of Islamic Accounting and Business Research2023-12-18© 2023 Emerald Publishing LimitedMustanir Hussain WasimMuhammad Bilal ZafarJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-1810.1108/JIABR-03-2023-0101https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0101/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The role of ownership structure, board, and audit committee in corporate social responsibility disclosure: Jordanian evidencehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0102/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to explore the extent of corporate social responsibility disclosure (hereafter CSRD) in Jordan and also examine whether ownership structure, board of directors and audit committee characteristics influence CSRD. The extent of CSRD is measured by constructing a CSRD index for industrial firms listed on the Amman Stock Exchange from 2016 to 2021. Panel regression analysis is used to examine the potential effect of ownership structure, board of directors and audit committee on the level of CSRD. This study provides empirical evidence that diverse groups of shareholders have different effects on CSR engagement, and board characteristics (board size, board independence and gender diversity) play a vital role in increasing voluntary disclosure, including CSR information. There is no evidence to support that CSRD is influenced by audit committee characteristics. This study recommends that corporate regulators and policymakers can improve CSRD practices by expanding the scope of existing disclosure requirements related to CSR and developing a structured CSRD index to measure the degree of CSRD practices for comparative purposes. Encourage firms to actively participate in social responsibility programs by granting tax incentives and government facilities to firms with the best CSR reports. Policymakers should introduce initiatives that support female’s representation on board. Finally, firms should restructure their boards by increasing board size and the percentage of independent directors to enhance their effectiveness to support CSRD. This paper contributes further insights into the literature on CSRD practices and disclosure by analyzing data from developing market contexts.The role of ownership structure, board, and audit committee in corporate social responsibility disclosure: Jordanian evidence
Hanady Bataineh, Amneh Alkurdi, Ala’a Adden Abuhommous, Mohammad Abdel Latif
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to explore the extent of corporate social responsibility disclosure (hereafter CSRD) in Jordan and also examine whether ownership structure, board of directors and audit committee characteristics influence CSRD.

The extent of CSRD is measured by constructing a CSRD index for industrial firms listed on the Amman Stock Exchange from 2016 to 2021. Panel regression analysis is used to examine the potential effect of ownership structure, board of directors and audit committee on the level of CSRD.

This study provides empirical evidence that diverse groups of shareholders have different effects on CSR engagement, and board characteristics (board size, board independence and gender diversity) play a vital role in increasing voluntary disclosure, including CSR information. There is no evidence to support that CSRD is influenced by audit committee characteristics.

This study recommends that corporate regulators and policymakers can improve CSRD practices by expanding the scope of existing disclosure requirements related to CSR and developing a structured CSRD index to measure the degree of CSRD practices for comparative purposes. Encourage firms to actively participate in social responsibility programs by granting tax incentives and government facilities to firms with the best CSR reports. Policymakers should introduce initiatives that support female’s representation on board. Finally, firms should restructure their boards by increasing board size and the percentage of independent directors to enhance their effectiveness to support CSRD.

This paper contributes further insights into the literature on CSRD practices and disclosure by analyzing data from developing market contexts.

]]>
The role of ownership structure, board, and audit committee in corporate social responsibility disclosure: Jordanian evidence10.1108/JIABR-03-2023-0102Journal of Islamic Accounting and Business Research2023-11-29© 2023 Emerald Publishing LimitedHanady BatainehAmneh AlkurdiAla’a Adden AbuhommousMohammad Abdel LatifJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2910.1108/JIABR-03-2023-0102https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0102/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Islamic, ethical and conventional mutual funds: a comparative study (1990–2022)https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0105/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to test mutual fund superiority, comparing the performance of 646 Islamic mutual funds with 475 ethical funds and conventional proxies. This study uses statistical methods including paired t-statistics of independent samples, one-way Bonferroni test–analysis of variance–F-statistic for testing means equality, the chi-squared test for median equality and regression models corrected for heteroscedasticity. These methods are used to identify superiority of mutual funds and to validate the significance of the results. The findings confirm the superiority of conventional funds over ethical funds and ethical funds over Islamic funds. Both ethical and Islamic funds, however, outperform conventional proxies during some recessionary periods. Moreover, stronger performance is recorded for Islamic funds in Europe and North America regions and across age and asset allocation categories, but limited support for reversal fund size, composition focus and reversed price effect. These findings should assist investors when deciding to invest and motivate Islamic and ethical funds to improve their portfolio formation and asset allocation strategies set by their professional managers. The originality of this study is in its comprehensive approach in that it compares the performance of funds after accounting for such characteristics as fund objectives, size, age, asset allocation, geographical investment focus, fund composition focus, share price levels and the effect of global crises. This study approach is not only original and productive in documenting Islamic funds’ performance for the past three decades (1990–2022) but can also update the literature on these characteristics collectively and individually.Islamic, ethical and conventional mutual funds: a comparative study (1990–2022)
Said Elfakhani
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to test mutual fund superiority, comparing the performance of 646 Islamic mutual funds with 475 ethical funds and conventional proxies.

This study uses statistical methods including paired t-statistics of independent samples, one-way Bonferroni test–analysis of variance–F-statistic for testing means equality, the chi-squared test for median equality and regression models corrected for heteroscedasticity. These methods are used to identify superiority of mutual funds and to validate the significance of the results.

The findings confirm the superiority of conventional funds over ethical funds and ethical funds over Islamic funds. Both ethical and Islamic funds, however, outperform conventional proxies during some recessionary periods. Moreover, stronger performance is recorded for Islamic funds in Europe and North America regions and across age and asset allocation categories, but limited support for reversal fund size, composition focus and reversed price effect.

These findings should assist investors when deciding to invest and motivate Islamic and ethical funds to improve their portfolio formation and asset allocation strategies set by their professional managers.

The originality of this study is in its comprehensive approach in that it compares the performance of funds after accounting for such characteristics as fund objectives, size, age, asset allocation, geographical investment focus, fund composition focus, share price levels and the effect of global crises. This study approach is not only original and productive in documenting Islamic funds’ performance for the past three decades (1990–2022) but can also update the literature on these characteristics collectively and individually.

]]>
Islamic, ethical and conventional mutual funds: a comparative study (1990–2022)10.1108/JIABR-03-2023-0105Journal of Islamic Accounting and Business Research2024-03-08© 2024 Emerald Publishing LimitedSaid ElfakhaniJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-03-0810.1108/JIABR-03-2023-0105https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0105/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Prominent scholars in Islamic economics and allied disciplines: a bibliometric reviewhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0114/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to address the lack of a proper database or finding system for scholars of Islamic economics (IE), as well as the dearth of literature on bibliographic search and trend analyses of scholars in this field. This study aims to adopt a bibliometric review of the bibliography of experts in IE and scholars in disciplines allied to IE. This study adopts a bibliometric review of the bibliography of experts in IE and scholars in disciplines allied to IE. The researchers collected data on scholars’ profiles and scholarly works and analyzed them to identify trends and patterns. This study presents two main themes: the profiles of the scholars in IE and allied disciplines, and their scholarly works. The findings on the scholars’ profiles reveal that most scholars are contemporaries born between the 1940s and 1990s, concentrated in Malaysia and affiliated with the International Islamic University Malaysia. Regarding their scholarly works, the majority of their efforts resulted in 11,736 materials in the form of books, articles and conference papers spread across 13 sub-areas in IE. This study fills the gap in literature by providing a database and finding system for scholars in IE and conducting a bibliographic search and trend analysis of scholars in this field. The findings shed light on the profiles of scholars and their scholarly works, which can guide future research in this area.Prominent scholars in Islamic economics and allied disciplines: a bibliometric review
Mohamed Aslam Akbar, Mohamed Asmy Mohd Thas Thaker, Mustafa Omar Mohammed, Nik Hziman Nik Mat, Hassanuddeen Abd.Aziz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to address the lack of a proper database or finding system for scholars of Islamic economics (IE), as well as the dearth of literature on bibliographic search and trend analyses of scholars in this field. This study aims to adopt a bibliometric review of the bibliography of experts in IE and scholars in disciplines allied to IE.

This study adopts a bibliometric review of the bibliography of experts in IE and scholars in disciplines allied to IE. The researchers collected data on scholars’ profiles and scholarly works and analyzed them to identify trends and patterns.

This study presents two main themes: the profiles of the scholars in IE and allied disciplines, and their scholarly works. The findings on the scholars’ profiles reveal that most scholars are contemporaries born between the 1940s and 1990s, concentrated in Malaysia and affiliated with the International Islamic University Malaysia. Regarding their scholarly works, the majority of their efforts resulted in 11,736 materials in the form of books, articles and conference papers spread across 13 sub-areas in IE.

This study fills the gap in literature by providing a database and finding system for scholars in IE and conducting a bibliographic search and trend analysis of scholars in this field. The findings shed light on the profiles of scholars and their scholarly works, which can guide future research in this area.

]]>
Prominent scholars in Islamic economics and allied disciplines: a bibliometric review10.1108/JIABR-03-2023-0114Journal of Islamic Accounting and Business Research2023-11-21© 2023 Emerald Publishing LimitedMohamed Aslam AkbarMohamed Asmy Mohd Thas ThakerMustafa Omar MohammedNik Hziman Nik MatHassanuddeen Abd.AzizJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2110.1108/JIABR-03-2023-0114https://www.emerald.com/insight/content/doi/10.1108/JIABR-03-2023-0114/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An analysis of zakat disclosure in Islamic bankshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2021-0123/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the zakat disclosure of Islamic banks at the global level. It is important for depositors and shareholders of Islamic banks to know whether the bank is paying zakat on their behalf or not. Additionally, disclosing the calculation method used is also necessary to eliminate uncertainties resulting from ambiguous reporting that can mislead the stakeholders. This issue becomes more obvious when considering that depositors and shareholders may have different accounts with different Islamic banks, which makes it quite confusing to have multiple ways of zakat calculation or different approaches on who is the party that pays it. This study analyzes the current practices across 13 countries and recommends best practices. The objective of the paper objective is achieved through analyzing the annual reports of 34 Islamic banks in 13 countries for the years 2014 and 2019. It further quantifies the zakat disclosure by constructing a zakat disclosure index. This index considers the disclosure of four major constituents covering the amount and the responsibility for payment, the calculation method, the involvement of the Shariah board and the zakat duty on investment account holders. For further robustness, this study is further supported by content analysis measures using the zakat word count in annual reports. The results indicate a major issue in zakat disclosure. The overall average of disclosure index is low. Most of the banks disclose limited information about zakat, such as the amount and the responsibility for payment, in their annual reports. Less than 40% of the examined banks disclose information about the role of the Shariah board in zakat calculation, and a very limited number of banks (9%) are found to disclose enough details about the zakat calculation method. Furthermore, none of the examined banks mentions the zakat due for the investment accounts. Overall, zakat disclosure of most of the banks, whether following Accounting and Auditing Organization for Islamic Financial Institutions or otherwise, are found to be not up to the expected best practices. Among the limitations of this study is the sole dependence on annual reports of Islamic banks without considering other means that banks might be using to communicate zakat-related matters to stakeholders. Examples of such means include a website, social media and other direct or indirect marketing materials. Additionally, the results of this study shall not be overgeneralized regarding differences between countries because the sample does not include all Islamic banks in the selected country. Future research may use the proposed zakat disclosure index on a country-specific data sample. The findings have significant implications as they raise a serious concern regarding the sufficiency of the Islamic banks’ disclosure about a core area of their responsibility, that is, the zakat. The index developed can be a tentative measure of zakat disclosure transparency pending further review. The result further suggests looking at the composition of members of Shariah boards to include at least one member with a sound accounting background. Zakat is a religious duty; therefore, a perceived lack of transparency on the amount, method of calculation and how the zakat is paid may affect the future injection of capital into Islamic banks. An important contribution of this paper lies in the fact that the collected data is not provided in any available database. Rather, it is manually captured from the individual annual reports of reviewed Islamic banks. Further, this paper proposes an index to measure the zakat disclosure at bank and country levels.An analysis of zakat disclosure in Islamic banks
Moutaz Abojeib, Mohammad Ghaith Mahaini, Mhd Osama Alchaar
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the zakat disclosure of Islamic banks at the global level. It is important for depositors and shareholders of Islamic banks to know whether the bank is paying zakat on their behalf or not. Additionally, disclosing the calculation method used is also necessary to eliminate uncertainties resulting from ambiguous reporting that can mislead the stakeholders. This issue becomes more obvious when considering that depositors and shareholders may have different accounts with different Islamic banks, which makes it quite confusing to have multiple ways of zakat calculation or different approaches on who is the party that pays it. This study analyzes the current practices across 13 countries and recommends best practices.

The objective of the paper objective is achieved through analyzing the annual reports of 34 Islamic banks in 13 countries for the years 2014 and 2019. It further quantifies the zakat disclosure by constructing a zakat disclosure index. This index considers the disclosure of four major constituents covering the amount and the responsibility for payment, the calculation method, the involvement of the Shariah board and the zakat duty on investment account holders. For further robustness, this study is further supported by content analysis measures using the zakat word count in annual reports.

The results indicate a major issue in zakat disclosure. The overall average of disclosure index is low. Most of the banks disclose limited information about zakat, such as the amount and the responsibility for payment, in their annual reports. Less than 40% of the examined banks disclose information about the role of the Shariah board in zakat calculation, and a very limited number of banks (9%) are found to disclose enough details about the zakat calculation method. Furthermore, none of the examined banks mentions the zakat due for the investment accounts. Overall, zakat disclosure of most of the banks, whether following Accounting and Auditing Organization for Islamic Financial Institutions or otherwise, are found to be not up to the expected best practices.

Among the limitations of this study is the sole dependence on annual reports of Islamic banks without considering other means that banks might be using to communicate zakat-related matters to stakeholders. Examples of such means include a website, social media and other direct or indirect marketing materials. Additionally, the results of this study shall not be overgeneralized regarding differences between countries because the sample does not include all Islamic banks in the selected country. Future research may use the proposed zakat disclosure index on a country-specific data sample.

The findings have significant implications as they raise a serious concern regarding the sufficiency of the Islamic banks’ disclosure about a core area of their responsibility, that is, the zakat. The index developed can be a tentative measure of zakat disclosure transparency pending further review. The result further suggests looking at the composition of members of Shariah boards to include at least one member with a sound accounting background. Zakat is a religious duty; therefore, a perceived lack of transparency on the amount, method of calculation and how the zakat is paid may affect the future injection of capital into Islamic banks.

An important contribution of this paper lies in the fact that the collected data is not provided in any available database. Rather, it is manually captured from the individual annual reports of reviewed Islamic banks. Further, this paper proposes an index to measure the zakat disclosure at bank and country levels.

]]>
An analysis of zakat disclosure in Islamic banks10.1108/JIABR-04-2021-0123Journal of Islamic Accounting and Business Research2023-11-17© 2023 Emerald Publishing LimitedMoutaz AbojeibMohammad Ghaith MahainiMhd Osama AlchaarJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-1710.1108/JIABR-04-2021-0123https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2021-0123/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Revisiting the paradigm of Sharīʿah governance of Islamic financial institutionshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2022-0110/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to find out the possible gaps in the Sharīʿah governance, and suggest how to fill the same, in line with the principles of Islamic finance and the global developments regarding social and value-based financial intermediation. The paper uses secondary data gathered through analysis of documents and regulations to portray the current Sharīʿah governance framework and to suggest a unique paradigm to be adopted by the regulators of Islamic financial institutions. The paradigm encompassing value-oriented financial ecosystem would need a comprehensive set of discipline, accountability and governance for making the pursuit of sustainable development goals and corporate social responsibilities effective in a well-defined schedule prepared and implemented by the regulators. The scope of this research is limited to theory building in the light of emerging trends in responsible and social finance. It is not to empirically test the impact of the governance framework in terms of social justice, corporate responsibility and sustainability. It would help the policy makers, regulators, researchers and the practitioners in finance to align banking and finance with social and environmental responsibility, and equity through governance and accountability for realizing the sustainable development goals. It links the regulatory approaches to the emerging paradigm and ecosystem comprising sustainability and value-based governance, awareness and corporate social responsibility. The paper adds value to the current regulatory frameworks enabling the Islamic financial institutions to realize the economic, social and sustainability objectives, in addition to Shariah legitimacy and enhanced credibility.Revisiting the paradigm of Sharīʿah governance of Islamic financial institutions
Muhammad Ayub, M. Kabir Hassan, Irum Saba
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to find out the possible gaps in the Sharīʿah governance, and suggest how to fill the same, in line with the principles of Islamic finance and the global developments regarding social and value-based financial intermediation.

The paper uses secondary data gathered through analysis of documents and regulations to portray the current Sharīʿah governance framework and to suggest a unique paradigm to be adopted by the regulators of Islamic financial institutions.

The paradigm encompassing value-oriented financial ecosystem would need a comprehensive set of discipline, accountability and governance for making the pursuit of sustainable development goals and corporate social responsibilities effective in a well-defined schedule prepared and implemented by the regulators.

The scope of this research is limited to theory building in the light of emerging trends in responsible and social finance. It is not to empirically test the impact of the governance framework in terms of social justice, corporate responsibility and sustainability.

It would help the policy makers, regulators, researchers and the practitioners in finance to align banking and finance with social and environmental responsibility, and equity through governance and accountability for realizing the sustainable development goals.

It links the regulatory approaches to the emerging paradigm and ecosystem comprising sustainability and value-based governance, awareness and corporate social responsibility.

The paper adds value to the current regulatory frameworks enabling the Islamic financial institutions to realize the economic, social and sustainability objectives, in addition to Shariah legitimacy and enhanced credibility.

]]>
Revisiting the paradigm of Sharīʿah governance of Islamic financial institutions10.1108/JIABR-04-2022-0110Journal of Islamic Accounting and Business Research2023-07-07© 2023 Emerald Publishing LimitedMuhammad AyubM. Kabir HassanIrum SabaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-0710.1108/JIABR-04-2022-0110https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2022-0110/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Intention to buy halal food through the ShopeeFood application on Generation Z Muslimshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0120/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to show the factors that influence the intention of Generation Z Muslims to buy halal food products through ShopeeFood. This study used quantitative methods. The analytical technique used is partial least square-structural equation modeling with 230 respondents as a sample of Generation Z Muslims in West Java, Indonesia. This research was conducted in June 2022 by distributing questionnaires via Google Forms and social media. The results showed that perceived ease of use, perceived usefulness, attitudes, subjective norms, perceived behavioral control, religiosity and intention to buy halal food through ShopeeFood in Generation Z Muslims in West Java were in the high category. However, subjective norms and perceived behavioral control are the only ones that positively and significantly affect purchase intention. ShopeeFood is expected to be able to identify and take advantage of the high level of intention of Generation Z Muslims to buy halal food through ShopeeFood. ShopeeFood can socialize and increase consumer attention that ShopeeFood is different from other online food delivery services. ShopeeFood can require merchants to display transparency in the composition of food products. To the best of the authors’ knowledge, this study is perhaps the first study in the context of Generation Z Muslims in West Java, Indonesia, that deals with the perceived ease of use, perceived usefulness, attitudes, subjective norms, perceived behavioral control and religiosity on the intention to buy halal food through ShopeeFood. The study’s findings are essential in Islamic marketing and technological acceptance (ShopeeFood Apps).Intention to buy halal food through the ShopeeFood application on Generation Z Muslims
Juliana Juliana, Annisa Sabilla Limayurid, Fitranty Adirestuty, Ahmad Ajib Ridlwan, Sylva Alif Rusmita, Shafinar Ismail
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to show the factors that influence the intention of Generation Z Muslims to buy halal food products through ShopeeFood.

This study used quantitative methods. The analytical technique used is partial least square-structural equation modeling with 230 respondents as a sample of Generation Z Muslims in West Java, Indonesia. This research was conducted in June 2022 by distributing questionnaires via Google Forms and social media.

The results showed that perceived ease of use, perceived usefulness, attitudes, subjective norms, perceived behavioral control, religiosity and intention to buy halal food through ShopeeFood in Generation Z Muslims in West Java were in the high category. However, subjective norms and perceived behavioral control are the only ones that positively and significantly affect purchase intention.

ShopeeFood is expected to be able to identify and take advantage of the high level of intention of Generation Z Muslims to buy halal food through ShopeeFood. ShopeeFood can socialize and increase consumer attention that ShopeeFood is different from other online food delivery services. ShopeeFood can require merchants to display transparency in the composition of food products.

To the best of the authors’ knowledge, this study is perhaps the first study in the context of Generation Z Muslims in West Java, Indonesia, that deals with the perceived ease of use, perceived usefulness, attitudes, subjective norms, perceived behavioral control and religiosity on the intention to buy halal food through ShopeeFood. The study’s findings are essential in Islamic marketing and technological acceptance (ShopeeFood Apps).

]]>
Intention to buy halal food through the ShopeeFood application on Generation Z Muslims10.1108/JIABR-04-2023-0120Journal of Islamic Accounting and Business Research2024-01-09© 2023 Emerald Publishing LimitedJuliana JulianaAnnisa Sabilla LimayuridFitranty AdirestutyAhmad Ajib RidlwanSylva Alif RusmitaShafinar IsmailJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-01-0910.1108/JIABR-04-2023-0120https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0120/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Millennials’ acceptance towards : extending Islamic theory of consumer behaviourhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0126/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia. For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials. The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students. Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements. To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.Millennials’ acceptance towards : extending Islamic theory of consumer behaviour
Imran Mehboob Shaikh, Hanudin Amin, Nurul Ashiqin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.

For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials.

The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students.

Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements.

To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.

]]>
Millennials’ acceptance towards : extending Islamic theory of consumer behaviour10.1108/JIABR-04-2023-0126Journal of Islamic Accounting and Business Research2024-02-12© 2024 Emerald Publishing LimitedImran Mehboob ShaikhHanudin AminNurul AshiqinJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-1210.1108/JIABR-04-2023-0126https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0126/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Upper-middle-class Muslim characteristics on cash (Islamic endowment) participation for productive purposes: does one-fits-all strategy still works?https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0134/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestTo better understand the characteristics of Indonesian Muslims, this study uses cluster analysis to group upper-middle-class Muslims based on psychographic variables related to participation in cash waqf for productive purposes. This study used mixed methods to build and analyse the segmentation of upper-middle-class Muslims towards cash waqf and propose scenarios for a cash waqf model based on the findings. This study identified six clusters for upper-middle-class Muslims related to the participation in cash waqf for productive purposes. All clusters show heterogeneous values of all factors. Although relatively few Muslims perform cash waqf for productive purposes, the high scores for the economic rational, family and community factors indicate great potential for the development of various cash waqf models for investment purposes. The next challenge will lie in reviewing the “one-fits-all strategy” in the development of program, education and socialisation. Based on the findings, this study proposes three scenarios of cash waqf participation: as wakif only (waqf donor), investor only (capital provider) and hybrid participation (waqf donor and capital provider). The limitation of this study is the location and object of the sample are only Muslims in Indonesia who are categorised as upper-middle class in terms of their monthly income. Based on this study’s findings, other Muslim-majority countries worldwide have the potential to develop a cash waqf model that is integrated with financial instruments and involves the role of Islamic banking and other Islamic commercial institutions in future research development. Researchers can also attempt to include a simulation or experiment method to construct and validate the proposed cash waqf model based on this study’s findings and to explore other factors that have not been addressed. The findings of this study can contribute as a foundation for the development of a cash waqf model and business-marketing strategy to increase the participation of upper-middle-class Muslims. The findings of this study will support the acceleration of cash waqf collection for investment initiatives, which in turn will have a broader social and economic impact nationally. To the best of the authors’ knowledge, this study constitutes the first attempt to specifically investigate upper-middle-class Muslim segmentation toward cash waqf participation for productive purposes. This study’s knowledge is helpful for various stakeholders such as academia, the Islamic banking industry, regulators and the Muslim community about customer segmentation to Islamic banking products and services related to cash waqf.Upper-middle-class Muslim characteristics on cash (Islamic endowment) participation for productive purposes: does one-fits-all strategy still works?
Rindawati Maulina, Wawan Dhewanto, Taufik Faturohman
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

To better understand the characteristics of Indonesian Muslims, this study uses cluster analysis to group upper-middle-class Muslims based on psychographic variables related to participation in cash waqf for productive purposes.

This study used mixed methods to build and analyse the segmentation of upper-middle-class Muslims towards cash waqf and propose scenarios for a cash waqf model based on the findings.

This study identified six clusters for upper-middle-class Muslims related to the participation in cash waqf for productive purposes. All clusters show heterogeneous values of all factors. Although relatively few Muslims perform cash waqf for productive purposes, the high scores for the economic rational, family and community factors indicate great potential for the development of various cash waqf models for investment purposes. The next challenge will lie in reviewing the “one-fits-all strategy” in the development of program, education and socialisation. Based on the findings, this study proposes three scenarios of cash waqf participation: as wakif only (waqf donor), investor only (capital provider) and hybrid participation (waqf donor and capital provider).

The limitation of this study is the location and object of the sample are only Muslims in Indonesia who are categorised as upper-middle class in terms of their monthly income. Based on this study’s findings, other Muslim-majority countries worldwide have the potential to develop a cash waqf model that is integrated with financial instruments and involves the role of Islamic banking and other Islamic commercial institutions in future research development. Researchers can also attempt to include a simulation or experiment method to construct and validate the proposed cash waqf model based on this study’s findings and to explore other factors that have not been addressed.

The findings of this study can contribute as a foundation for the development of a cash waqf model and business-marketing strategy to increase the participation of upper-middle-class Muslims.

The findings of this study will support the acceleration of cash waqf collection for investment initiatives, which in turn will have a broader social and economic impact nationally.

To the best of the authors’ knowledge, this study constitutes the first attempt to specifically investigate upper-middle-class Muslim segmentation toward cash waqf participation for productive purposes. This study’s knowledge is helpful for various stakeholders such as academia, the Islamic banking industry, regulators and the Muslim community about customer segmentation to Islamic banking products and services related to cash waqf.

]]>
Upper-middle-class Muslim characteristics on cash (Islamic endowment) participation for productive purposes: does one-fits-all strategy still works?10.1108/JIABR-04-2023-0134Journal of Islamic Accounting and Business Research2023-10-30© 2023 Emerald Publishing LimitedRindawati MaulinaWawan DhewantoTaufik FaturohmanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-3010.1108/JIABR-04-2023-0134https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0134/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Behaviour determinants of two Muslims classes towards cash for productive purposes: explanation from Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0139/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the behaviour determinants towards cash waqf for productive purposes between two different classes of Muslims: the upper-middle class and the lower-middle class. Under the Theory of Planned Behavior framework, this study modified previous literature to investigate the determinants of two Muslim classes’ behaviour towards cash waqf for productive purposes. A structural equation model was applied to test the hypothesis, and an in-depth interview was conducted to explain the findings further. The behaviour of participating in cash waqf for productive purposes differs between the two Muslim segments. Upper-middle-class Muslims’ intentions will not necessarily consider subjective norms, even though they will consider religiosity as their deciding factor. Meanwhile, this study found different results on the influence of attitude, religiosity and subjective norms to intention in the lower-middle-income group. Other attributes such as perceived behaviour control, knowledge, trust and perceived benefits show positive and significant effects on the intention for both income classes of Muslims. The current findings may not accurately reflect ideal conditions due to the low level of waqf literacy and actual participation of Muslims in cash waqf for productive purposes. Researchers can conduct further studies based on other criteria, such as gender, age, education level or area of residence, using experimental or simulation methods to complement the research. This study’s findings can support policymakers and related waqf stakeholders to set strategies for cash waqf literacy and participation by providing more detailed information about the differences in Muslims characteristics based on the income classes. This study specifically modifies the behavioural framework to investigate differences in the behaviour of two classes of Muslims towards their participation in cash waqf for productive purposes in Indonesia.Behaviour determinants of two Muslims classes towards cash for productive purposes: explanation from Indonesia
Rindawati Maulina, Wawan Dhewanto, Taufik Faturohman
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the behaviour determinants towards cash waqf for productive purposes between two different classes of Muslims: the upper-middle class and the lower-middle class.

Under the Theory of Planned Behavior framework, this study modified previous literature to investigate the determinants of two Muslim classes’ behaviour towards cash waqf for productive purposes. A structural equation model was applied to test the hypothesis, and an in-depth interview was conducted to explain the findings further.

The behaviour of participating in cash waqf for productive purposes differs between the two Muslim segments. Upper-middle-class Muslims’ intentions will not necessarily consider subjective norms, even though they will consider religiosity as their deciding factor. Meanwhile, this study found different results on the influence of attitude, religiosity and subjective norms to intention in the lower-middle-income group. Other attributes such as perceived behaviour control, knowledge, trust and perceived benefits show positive and significant effects on the intention for both income classes of Muslims.

The current findings may not accurately reflect ideal conditions due to the low level of waqf literacy and actual participation of Muslims in cash waqf for productive purposes. Researchers can conduct further studies based on other criteria, such as gender, age, education level or area of residence, using experimental or simulation methods to complement the research.

This study’s findings can support policymakers and related waqf stakeholders to set strategies for cash waqf literacy and participation by providing more detailed information about the differences in Muslims characteristics based on the income classes.

This study specifically modifies the behavioural framework to investigate differences in the behaviour of two classes of Muslims towards their participation in cash waqf for productive purposes in Indonesia.

]]>
Behaviour determinants of two Muslims classes towards cash for productive purposes: explanation from Indonesia10.1108/JIABR-04-2023-0139Journal of Islamic Accounting and Business Research2023-11-17© 2023 Emerald Publishing LimitedRindawati MaulinaWawan DhewantoTaufik FaturohmanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-1710.1108/JIABR-04-2023-0139https://www.emerald.com/insight/content/doi/10.1108/JIABR-04-2023-0139/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Intellectual capital, social capital components and internal control weaknesses: evidence from Iran’s business environmenthttps://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0121/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses. The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression. The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years. This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.Intellectual capital, social capital components and internal control weaknesses: evidence from Iran’s business environment
Mahdi Salehi, Raha Rajaeei, Ehsan Khansalar, Samane Edalati Shakib
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses.

The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression.

The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years.

This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.

]]>
Intellectual capital, social capital components and internal control weaknesses: evidence from Iran’s business environment10.1108/JIABR-05-2022-0121Journal of Islamic Accounting and Business Research2023-05-30© 2023 Emerald Publishing LimitedMahdi SalehiRaha RajaeeiEhsan KhansalarSamane Edalati ShakibJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-3010.1108/JIABR-05-2022-0121https://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0121/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Efficiency and performance of Islamic banks amid COVID-19https://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0129/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the efficiency and performance of the Islamic banking industry amid the COVID-19 pandemic. The authors used a two-stage data envelopment analysis to first estimate the efficiency of 78 Islamic banks (IBs) across 15 countries for the 2005–2020 period (a total of 782 bank-year observations) and then to examine their determinants, including the COVID-19 pandemic. The authors found that the Islamic banking industry performed at a moderate level during the 2005–2020 period, providing evidence that IBs are resilient to the financial shocks created by COVID-19. The authors also found that bank-level characteristics (such as bank size) and country-level characteristics (such as inflation) can contribute to the bank’s operational efficiency. The results of this study suggested that banking management and government macroeconomic policy, especially in terms of precautions and continuous support, are important for IBs to improve their performance. To the best of the authors’ knowledge, this is the first study to examine the efficiency and performance of IBs amid COVID-19.Efficiency and performance of Islamic banks amid COVID-19
Lan-Huong Nguyen, Tu D.Q. Le, Thanh Ngo
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the efficiency and performance of the Islamic banking industry amid the COVID-19 pandemic.

The authors used a two-stage data envelopment analysis to first estimate the efficiency of 78 Islamic banks (IBs) across 15 countries for the 2005–2020 period (a total of 782 bank-year observations) and then to examine their determinants, including the COVID-19 pandemic.

The authors found that the Islamic banking industry performed at a moderate level during the 2005–2020 period, providing evidence that IBs are resilient to the financial shocks created by COVID-19. The authors also found that bank-level characteristics (such as bank size) and country-level characteristics (such as inflation) can contribute to the bank’s operational efficiency.

The results of this study suggested that banking management and government macroeconomic policy, especially in terms of precautions and continuous support, are important for IBs to improve their performance.

To the best of the authors’ knowledge, this is the first study to examine the efficiency and performance of IBs amid COVID-19.

]]>
Efficiency and performance of Islamic banks amid COVID-1910.1108/JIABR-05-2022-0129Journal of Islamic Accounting and Business Research2023-11-02© 2023 Emerald Publishing LimitedLan-Huong NguyenTu D.Q. LeThanh NgoJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-0210.1108/JIABR-05-2022-0129https://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0129/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An analysis of housing affordability in Malaysia: random effect approachhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study paper is to highlight certain related barriers and issues of housing affordability and examine the factors that influence housing affordability in Malaysia. This study used panel data including several variables, namely, household expense, population, home financing, interest rate, inflation rate (IF) and rental rate (RR). The regression models of panel data, namely, the ordinary least square model, the fixed effects model and the random effects model, were evaluated for their suitability. The findings revealed that RR and IF have a positive and significant impact towards housing affordability. The results provide strong evidence that RR as alternative in determining the home affordability as it helped in reducing the cost and the financing duration period of houses while at the same time increasing the level of capability of homeownership. Meanwhile, the level of IF has positive and significant impact towards housing affordability because it will cause a drop or increase in the purchasing power of households, as well as a decline or increase in the capability to own a house. The most significant aspects to consider when analysing housing affordability in Malaysia are demand and supply. However, this study focuses on only five variables and only covers Malaysia. As a result, future researchers should analyse the study’s location, such as by region or district, and include additional variables from both the demand and supply sides. Homeownership of affordability requires a broader and more realistic definition in the current context of a more disruptive environment where technology such as fintech, blockchain and the internet of things acts as enablers for not only promoting homeownership but also ensuring homeownership sustainability. As a result, democratising Islamic home financing appears to be a viable option that requires rethinking, and further research is recommended. The study proposes an end-to-end solution to promote homeownership levels by considering the level of RR as significant variables among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies in influencing affordability in Malaysia. This paper discusses the indicators of housing affordability index over the 21-year period of 2000–2020, covering all states in Malaysia. The comparison of affordability level can be seen through all states and by regions. Besides that, the findings revealed that RR and IF have a positive and significant impact towards housing affordability. RR is considered an essential variable in promoting homeownership in Malaysia and warrants further investigation towards policy implication. This paper also provides contribution on data on RR by states in Malaysia that can be used by policymakers to some extent.An analysis of housing affordability in Malaysia: random effect approach
Hafirda Akma Musaddad, Selamah Maamor, Zairy Zainol
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study paper is to highlight certain related barriers and issues of housing affordability and examine the factors that influence housing affordability in Malaysia.

This study used panel data including several variables, namely, household expense, population, home financing, interest rate, inflation rate (IF) and rental rate (RR). The regression models of panel data, namely, the ordinary least square model, the fixed effects model and the random effects model, were evaluated for their suitability.

The findings revealed that RR and IF have a positive and significant impact towards housing affordability. The results provide strong evidence that RR as alternative in determining the home affordability as it helped in reducing the cost and the financing duration period of houses while at the same time increasing the level of capability of homeownership. Meanwhile, the level of IF has positive and significant impact towards housing affordability because it will cause a drop or increase in the purchasing power of households, as well as a decline or increase in the capability to own a house.

The most significant aspects to consider when analysing housing affordability in Malaysia are demand and supply. However, this study focuses on only five variables and only covers Malaysia. As a result, future researchers should analyse the study’s location, such as by region or district, and include additional variables from both the demand and supply sides. Homeownership of affordability requires a broader and more realistic definition in the current context of a more disruptive environment where technology such as fintech, blockchain and the internet of things acts as enablers for not only promoting homeownership but also ensuring homeownership sustainability. As a result, democratising Islamic home financing appears to be a viable option that requires rethinking, and further research is recommended.

The study proposes an end-to-end solution to promote homeownership levels by considering the level of RR as significant variables among stakeholders such as the house buyers/owners, sellers, investors as well the government agencies in influencing affordability in Malaysia.

This paper discusses the indicators of housing affordability index over the 21-year period of 2000–2020, covering all states in Malaysia. The comparison of affordability level can be seen through all states and by regions. Besides that, the findings revealed that RR and IF have a positive and significant impact towards housing affordability. RR is considered an essential variable in promoting homeownership in Malaysia and warrants further investigation towards policy implication. This paper also provides contribution on data on RR by states in Malaysia that can be used by policymakers to some extent.

]]>
An analysis of housing affordability in Malaysia: random effect approach10.1108/JIABR-05-2022-0132Journal of Islamic Accounting and Business Research2023-11-21© 2023 Emerald Publishing LimitedHafirda Akma MusaddadSelamah MaamorZairy ZainolJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2110.1108/JIABR-05-2022-0132https://www.emerald.com/insight/content/doi/10.1108/JIABR-05-2022-0132/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Purchase intention behavior of halal cosmetics. Comparing study between Indonesia and Malaysia millennial generationhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2021-0177/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFew studies only focus on halal cosmetics, although several previous studies have examined halal food and beverages. This study aims to explore the relationship between knowledge, emotional attachment and religiosity on purchase intention, mediated by satisfaction and brand trust. This study stems from the theory of reasoned action (TRA), which merges the knowledge, emotional attachment, religiosity and purchase intention of halal cosmetics. The researchers distributed online questionnaires to respondents via Google Form using social media (Instagram)/messaging application (WhatsApp). The respondents were Indonesian and Malaysian millennial Muslims. The sampling technique used was purposive sampling. A total of 528 respondents were involved, consisting of 335 Indonesians and 193 Malaysians. However, data for 381 respondents were successfully screened for normality, outliers and multicollinearity. Furthermore, the data was used for examining the hypotheses proposed. The results for Indonesian and Malaysian samples showed that there is a significant positive effect of knowledge, emotional attachments and religiosity on satisfaction and brand trust. But the Indonesia sample showed that there is no significant effect of religiosity on satisfaction. For Indonesia, there is a positive significant mediating role of satisfaction on purchasing intention. For Malaysia, there is no significant mediating role of satisfaction on purchasing intention. For Indonesia and Malaysia, there are positive significant mediating role of brand trust on purchasing intention. The study compared consumers of the millennial generation in Indonesia and Malaysia with limited samples. For future research, it is suggested to exploring and combining non-Muslims and Muslims in the millennial generation and testing it in more than two countries. The study provides an accurate understanding of the relationships proposed, such as knowledge, emotional attachment and religiosity, on satisfaction, brand trust and purchasing intention of millennial Muslim woman consumers in Indonesia and Malaysia, because the millennial Muslim woman consumers in Indonesia and Malaysia had the same behavioral characteristics: Muslim consumers and product characteristics. The study of halal cosmetics can provide a spiritual commitment for Muslims, who consciously prefer socio-religious values in choosing cosmetic products. Therefore, the halal label of the product is also a reason for social and religious values to increase the social awareness of the Muslim millennial generation in Malaysia and Indonesia. This research discusses the antecedents and consequences of satisfaction and brand trust on the purchasing intention of halal cosmetics. The response of Muslim consumers to halal cosmetics has not been widely studied in Indonesia and Malaysia. Meanwhile, in Indonesia, the halal label on all products has recently been made mandatory by the Indonesian Ulema Council. Therefore, this research offers insights into the attitudes of Muslim consumers towards halal cosmetics products.Purchase intention behavior of halal cosmetics. Comparing study between Indonesia and Malaysia millennial generation
Nuryakin, Mohd Shamsuri Md Saad, Maghfira Rizky Maulani
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Few studies only focus on halal cosmetics, although several previous studies have examined halal food and beverages. This study aims to explore the relationship between knowledge, emotional attachment and religiosity on purchase intention, mediated by satisfaction and brand trust. This study stems from the theory of reasoned action (TRA), which merges the knowledge, emotional attachment, religiosity and purchase intention of halal cosmetics.

The researchers distributed online questionnaires to respondents via Google Form using social media (Instagram)/messaging application (WhatsApp). The respondents were Indonesian and Malaysian millennial Muslims. The sampling technique used was purposive sampling. A total of 528 respondents were involved, consisting of 335 Indonesians and 193 Malaysians. However, data for 381 respondents were successfully screened for normality, outliers and multicollinearity. Furthermore, the data was used for examining the hypotheses proposed.

The results for Indonesian and Malaysian samples showed that there is a significant positive effect of knowledge, emotional attachments and religiosity on satisfaction and brand trust. But the Indonesia sample showed that there is no significant effect of religiosity on satisfaction. For Indonesia, there is a positive significant mediating role of satisfaction on purchasing intention. For Malaysia, there is no significant mediating role of satisfaction on purchasing intention. For Indonesia and Malaysia, there are positive significant mediating role of brand trust on purchasing intention.

The study compared consumers of the millennial generation in Indonesia and Malaysia with limited samples. For future research, it is suggested to exploring and combining non-Muslims and Muslims in the millennial generation and testing it in more than two countries.

The study provides an accurate understanding of the relationships proposed, such as knowledge, emotional attachment and religiosity, on satisfaction, brand trust and purchasing intention of millennial Muslim woman consumers in Indonesia and Malaysia, because the millennial Muslim woman consumers in Indonesia and Malaysia had the same behavioral characteristics: Muslim consumers and product characteristics.

The study of halal cosmetics can provide a spiritual commitment for Muslims, who consciously prefer socio-religious values in choosing cosmetic products. Therefore, the halal label of the product is also a reason for social and religious values to increase the social awareness of the Muslim millennial generation in Malaysia and Indonesia.

This research discusses the antecedents and consequences of satisfaction and brand trust on the purchasing intention of halal cosmetics. The response of Muslim consumers to halal cosmetics has not been widely studied in Indonesia and Malaysia. Meanwhile, in Indonesia, the halal label on all products has recently been made mandatory by the Indonesian Ulema Council. Therefore, this research offers insights into the attitudes of Muslim consumers towards halal cosmetics products.

]]>
Purchase intention behavior of halal cosmetics. Comparing study between Indonesia and Malaysia millennial generation10.1108/JIABR-06-2021-0177Journal of Islamic Accounting and Business Research2023-07-07© 2023 Emerald Publishing Limited NuryakinMohd Shamsuri Md SaadMaghfira Rizky MaulaniJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-0710.1108/JIABR-06-2021-0177https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2021-0177/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Bank employees’ perception of Islamic finance in a non-Islamic developing country: the case of Cameroonhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2022-0142/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe perception of Islamic finance by its various stakeholders is not always reconcilable. Its foundations and attributes are subject to a plurality of perceptions making it almost impossible to reach a consensus about them. This paper aims to understand the perception of Islamic finance by bank employees in Cameroon. This research follows the interpretativist paradigm and is qualitative and exploratory in nature. The data are collected through semi-structured face-to-face interviews with bank employees, mainly branch managers. These interview data are analysed using the thematic analysis method. Bank employees in Cameroon perceive Islamic finance as a finance that: targets everyone, regardless of religion, but Muslims first (Islamic finance is both inclusive and exclusive); offers original products and services; has a religious anchor that may hinder non-Muslim economic agents; has many advantages, mainly for financial institutions, and some limitations for financial institutions and their customers; is full of opportunities for its stakeholders; and is not yet fully practiced in Cameroon. This study mobilises a qualitative approach, provides new insights into the research on the perception of Islamic finance and reaches a consensus on the perception of certain aspects and attributes of Islamic finance, namely, for the perception of the target and the Shariah compliance of Islamic finance. Furthermore, this study is a pioneering effort to understand bank employees’ perception of Islamic finance in non-Islamic and developing countries where Islamic finance is underdeveloped.Bank employees’ perception of Islamic finance in a non-Islamic developing country: the case of Cameroon
Roméo Parfait Ngaha, Sabine Patricia Moungou Mbenda
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The perception of Islamic finance by its various stakeholders is not always reconcilable. Its foundations and attributes are subject to a plurality of perceptions making it almost impossible to reach a consensus about them. This paper aims to understand the perception of Islamic finance by bank employees in Cameroon.

This research follows the interpretativist paradigm and is qualitative and exploratory in nature. The data are collected through semi-structured face-to-face interviews with bank employees, mainly branch managers. These interview data are analysed using the thematic analysis method.

Bank employees in Cameroon perceive Islamic finance as a finance that: targets everyone, regardless of religion, but Muslims first (Islamic finance is both inclusive and exclusive); offers original products and services; has a religious anchor that may hinder non-Muslim economic agents; has many advantages, mainly for financial institutions, and some limitations for financial institutions and their customers; is full of opportunities for its stakeholders; and is not yet fully practiced in Cameroon.

This study mobilises a qualitative approach, provides new insights into the research on the perception of Islamic finance and reaches a consensus on the perception of certain aspects and attributes of Islamic finance, namely, for the perception of the target and the Shariah compliance of Islamic finance. Furthermore, this study is a pioneering effort to understand bank employees’ perception of Islamic finance in non-Islamic and developing countries where Islamic finance is underdeveloped.

]]>
Bank employees’ perception of Islamic finance in a non-Islamic developing country: the case of Cameroon10.1108/JIABR-06-2022-0142Journal of Islamic Accounting and Business Research2023-05-31© 2023 Emerald Publishing LimitedRoméo Parfait NgahaSabine Patricia Moungou MbendaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-3110.1108/JIABR-06-2022-0142https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2022-0142/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Exploring accountability: memory, object, metaphor and common sensehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2022-0156/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to narrate the descriptions of accountability by which a pioneering Malaysian Islamic bank has come to be known and has become a specific model in many countries. This study is based on a four-year ethnographic work from 2002 to 2006, as accessed and analysed by the researcher. The philosophy underpinning this ethnography is from Geertz’s “Common sense as a cultural system” (1975) and The Interpretation of Cultures (1973). This study finds the religious metaphors of “Halal and Haram is not Only on Food” and “Bank for All” are the anticipated conception that envisages the institution of Bank Islam Malaysia Berhad (BIMB), especially the perspective of the Shariah Supervisory Council and the struggles of the assistant managers. The paper aligns with the concerns of McPhail et al. (2004) and calls for engagement in research projects on accounting and accountability related to theology but with an attempt to theorise the “engagement” within the components of human limitation and intelligence which require a narrative from the social and collective dimensions of the present and in the past. By using various objects as symbol, metaphor and memory, such as “counter”, “branch”, “advertising” and “food”, the paper encourages readers to understand the objects as temporalities brought into being by a common sense consciousness and within a historical Malay context; one in which Malaysia is a Muslim society and a by-product of colonialism. This interpretation allows the issues raised by BIMB to represent an authentic Malaysian voice rather than to be read merely as an adjunct to western accounting history. The paper explores the translations of concepts that the self probes and attempts to describe accountability, as well as how these translate into common sense.Exploring accountability: memory, object, metaphor and common sense
Hasri Mustafa
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to narrate the descriptions of accountability by which a pioneering Malaysian Islamic bank has come to be known and has become a specific model in many countries.

This study is based on a four-year ethnographic work from 2002 to 2006, as accessed and analysed by the researcher. The philosophy underpinning this ethnography is from Geertz’s “Common sense as a cultural system” (1975) and The Interpretation of Cultures (1973).

This study finds the religious metaphors of “Halal and Haram is not Only on Food” and “Bank for All” are the anticipated conception that envisages the institution of Bank Islam Malaysia Berhad (BIMB), especially the perspective of the Shariah Supervisory Council and the struggles of the assistant managers.

The paper aligns with the concerns of McPhail et al. (2004) and calls for engagement in research projects on accounting and accountability related to theology but with an attempt to theorise the “engagement” within the components of human limitation and intelligence which require a narrative from the social and collective dimensions of the present and in the past.

By using various objects as symbol, metaphor and memory, such as “counter”, “branch”, “advertising” and “food”, the paper encourages readers to understand the objects as temporalities brought into being by a common sense consciousness and within a historical Malay context; one in which Malaysia is a Muslim society and a by-product of colonialism. This interpretation allows the issues raised by BIMB to represent an authentic Malaysian voice rather than to be read merely as an adjunct to western accounting history.

The paper explores the translations of concepts that the self probes and attempts to describe accountability, as well as how these translate into common sense.

]]>
Exploring accountability: memory, object, metaphor and common sense10.1108/JIABR-06-2022-0156Journal of Islamic Accounting and Business Research2023-07-12© 2023 Emerald Publishing LimitedHasri MustafaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-1210.1108/JIABR-06-2022-0156https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2022-0156/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Institutional work for IFRS adoption: the case of IFRS 17 insurance contract for Islamic insurance in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe global insurance industry has implemented International Financial Reporting Standards (IFRS) 17 insurance contracts effective from January 1, 2023. The Islamic insurance (Takaful) industry would find itself at a crossroads if IFRS 17 should also be adopted for Takaful contracts. This paper aims to explore the process of IFRS 17 adoption for Takaful contracts in Malaysia and the implementation of the standard in the early adoption year. Applying a qualitative approach, this study uses a literature review search and interviews to analyze deeper into the adoption process in Malaysia. Using institutional work, this paper analyses the process timeline, the actors and their roles and actions in the adoption process. The authors interviewed 12 informants from different backgrounds comprising the national standard setters, preparers and the IFRS 17 consultants. The adoption process of IFRS 17 in Malaysia is an interplay between the accounting standard setter, the government and the industry associations who are the major actors in the process. These actors have different roles and contributions, but they work together to accomplish a single vision, adopting IFRS 17 for all. There is an interplay between actors to disrupt the accounting practice and involved in creating various institutional work to ensure the concerns of Takaful practitioners are well addressed. This research also found that the companies faced significant challenges in applying the standard in the early months of implementation. This paper contributes to the literature by providing an explanation and examples of the IFRS adoption for Shariah transactions. The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry. The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry. This paper contributes to the literature on the debate of the application of IFRS to Shariah transactions by using institutional work theory as a framework.Institutional work for IFRS adoption: the case of IFRS 17 insurance contract for Islamic insurance in Malaysia
Ersa Tri Wahyuni, Zubir Azhar, Novy Fajriati
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The global insurance industry has implemented International Financial Reporting Standards (IFRS) 17 insurance contracts effective from January 1, 2023. The Islamic insurance (Takaful) industry would find itself at a crossroads if IFRS 17 should also be adopted for Takaful contracts. This paper aims to explore the process of IFRS 17 adoption for Takaful contracts in Malaysia and the implementation of the standard in the early adoption year.

Applying a qualitative approach, this study uses a literature review search and interviews to analyze deeper into the adoption process in Malaysia. Using institutional work, this paper analyses the process timeline, the actors and their roles and actions in the adoption process. The authors interviewed 12 informants from different backgrounds comprising the national standard setters, preparers and the IFRS 17 consultants.

The adoption process of IFRS 17 in Malaysia is an interplay between the accounting standard setter, the government and the industry associations who are the major actors in the process. These actors have different roles and contributions, but they work together to accomplish a single vision, adopting IFRS 17 for all. There is an interplay between actors to disrupt the accounting practice and involved in creating various institutional work to ensure the concerns of Takaful practitioners are well addressed. This research also found that the companies faced significant challenges in applying the standard in the early months of implementation.

This paper contributes to the literature by providing an explanation and examples of the IFRS adoption for Shariah transactions. The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry.

The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry.

This paper contributes to the literature on the debate of the application of IFRS to Shariah transactions by using institutional work theory as a framework.

]]>
Institutional work for IFRS adoption: the case of IFRS 17 insurance contract for Islamic insurance in Malaysia10.1108/JIABR-06-2023-0173Journal of Islamic Accounting and Business Research2023-11-23© 2023 Emerald Publishing LimitedErsa Tri WahyuniZubir AzharNovy FajriatiJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2310.1108/JIABR-06-2023-0173https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Women empowerment in Africa: can we rely on Islamic finance?https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0175/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the effects of Islamic finance on women empowerment in Africa between the periods of 1975 and 2021. This paper uses secondary data for 27 African countries obtained from the World Development Indicators, World Population Review and the Varieties of Democracy databases. Four dimensions of women empowerment, namely, economic, social, political and household, are considered while Islamic finance is proxied by a binary variable with 1 and 0 representing the presence and the absence of Islamic finance, respectively. The two-staged least square estimation technique is used to control for the problem of endogeneity. This study revealed that Islamic finance positively affects women empowerment in Africa. Specifically, Islamic finance has positive and significant effects on women political empowerment, women economic empowerment and women social empowerment in Africa but nonsignificant effect on home empowerment. These effects are more pronounced in middle-income than in low-income countries and in countries with higher penetration rate of Islamic finance. Policymakers should put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensures the creation of full-fledged Islamic banks, encouraging research in Islamic finance and Islamic economics. These policies should equally be backed by the creation of some accompanying measures such as the abolition of social norms that limit women’s ability to take part in decision-making. To the best of the authors’ knowledge, this is the first study involving an Africa continent-wide analysis of the effects of Islamic finance on women empowerment.Women empowerment in Africa: can we rely on Islamic finance?
Armand Mboutchouang Kountchou, Ali Haruna, Honoré Tekam Oumbé, Muhamadu Awal Kindzeka Wirajing
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine the effects of Islamic finance on women empowerment in Africa between the periods of 1975 and 2021.

This paper uses secondary data for 27 African countries obtained from the World Development Indicators, World Population Review and the Varieties of Democracy databases. Four dimensions of women empowerment, namely, economic, social, political and household, are considered while Islamic finance is proxied by a binary variable with 1 and 0 representing the presence and the absence of Islamic finance, respectively. The two-staged least square estimation technique is used to control for the problem of endogeneity.

This study revealed that Islamic finance positively affects women empowerment in Africa. Specifically, Islamic finance has positive and significant effects on women political empowerment, women economic empowerment and women social empowerment in Africa but nonsignificant effect on home empowerment. These effects are more pronounced in middle-income than in low-income countries and in countries with higher penetration rate of Islamic finance.

Policymakers should put in place the necessary mechanisms for the promotion of Islamic finance such as the enacting of laws that ensures the creation of full-fledged Islamic banks, encouraging research in Islamic finance and Islamic economics. These policies should equally be backed by the creation of some accompanying measures such as the abolition of social norms that limit women’s ability to take part in decision-making.

To the best of the authors’ knowledge, this is the first study involving an Africa continent-wide analysis of the effects of Islamic finance on women empowerment.

]]>
Women empowerment in Africa: can we rely on Islamic finance?10.1108/JIABR-06-2023-0175Journal of Islamic Accounting and Business Research2023-10-30© 2023 Emerald Publishing LimitedArmand Mboutchouang KountchouAli HarunaHonoré Tekam OumbéMuhamadu Awal Kindzeka WirajingJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-3010.1108/JIABR-06-2023-0175https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0175/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Sharia governance and organizational performance in zakat management organization: evidence from Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0188/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to investigate the impact of sharia governance on organizational performance in zakat management institutions in Indonesia over the period 2017–2021. This study examined 33 zakat management organizations in Indonesia from 2017 through 2021 for 151 observations. Gross allocation ratio and growth of ZIS collection are used as organizational performance measures. The independent variables in this study are board of director size, educational background of the board of directors, sharia supervisory board size, sharia supervisory expertise, supervisory size and management size. Also, the study uses size, age and audit opinion as control variables to help measure the relationship between sharia governance and organizational performance. This study shows that the board of directors and supervisory size positively and significantly affect organizational performance. Then, the educational background of board of directors has a negative and significant effect on organizational performance. In Model 1, sharia supervisory board size has a positive and significant effect on organizational performance, but in Model 2, sharia supervisory board size does not. Meanwhile, sharia supervisory expertise and management board size do not affect organizational performance. The findings in this study illustrate the importance of transparency in the zakat management organization. Transparency helps minimize conflicts of interest and information asymmetry in the zakat management organization. In addition, sharia governance mechanism helps regulators and top management to make effective policies to improve and enhance organizational performance. Sharia governance is essential for zakat management organizations to increase accountability, credibility and public trust and support the practice of zakat management organizations. This study discusses sharia governance and organizational performance in socioreligious organizations, especially zakat management organizations, which are still rarely carried out. Thus, this study broadens the insights of sharia governance and highlights the importance of performance appraisal in zakat management organizations.Sharia governance and organizational performance in zakat management organization: evidence from Indonesia
Faris Shalahuddin Zakiy, Falikhatun Falikhatun, Najim Nur Fauziah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to investigate the impact of sharia governance on organizational performance in zakat management institutions in Indonesia over the period 2017–2021.

This study examined 33 zakat management organizations in Indonesia from 2017 through 2021 for 151 observations. Gross allocation ratio and growth of ZIS collection are used as organizational performance measures. The independent variables in this study are board of director size, educational background of the board of directors, sharia supervisory board size, sharia supervisory expertise, supervisory size and management size. Also, the study uses size, age and audit opinion as control variables to help measure the relationship between sharia governance and organizational performance.

This study shows that the board of directors and supervisory size positively and significantly affect organizational performance. Then, the educational background of board of directors has a negative and significant effect on organizational performance. In Model 1, sharia supervisory board size has a positive and significant effect on organizational performance, but in Model 2, sharia supervisory board size does not. Meanwhile, sharia supervisory expertise and management board size do not affect organizational performance.

The findings in this study illustrate the importance of transparency in the zakat management organization. Transparency helps minimize conflicts of interest and information asymmetry in the zakat management organization. In addition, sharia governance mechanism helps regulators and top management to make effective policies to improve and enhance organizational performance.

Sharia governance is essential for zakat management organizations to increase accountability, credibility and public trust and support the practice of zakat management organizations.

This study discusses sharia governance and organizational performance in socioreligious organizations, especially zakat management organizations, which are still rarely carried out. Thus, this study broadens the insights of sharia governance and highlights the importance of performance appraisal in zakat management organizations.

]]>
Sharia governance and organizational performance in zakat management organization: evidence from Indonesia10.1108/JIABR-06-2023-0188Journal of Islamic Accounting and Business Research2023-11-17© 2023 Emerald Publishing LimitedFaris Shalahuddin ZakiyFalikhatun FalikhatunNajim Nur FauziahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-1710.1108/JIABR-06-2023-0188https://www.emerald.com/insight/content/doi/10.1108/JIABR-06-2023-0188/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Interest rates and Islamic commercial property financing: can there be a possible solution?https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2021-0191/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the dynamic interaction between interest rates and commercial property financing offered by Islamic banks in Malaysia. The authors use the autoregressive distributed lag (ARDL) cointegration methodology to analyse the short- and long-run effect of the interest rates and rental rates on commercial property financing of Islamic banks in Malaysia between 2010: Q1 and 2018: Q2. The findings reveal that changes in interest rates affect Islamic commercial property financing. This indicates that Islamic banks still rely on interest rates as a benchmark without fully implementing Islamic rental rates. This corroborates the subsequent finding, where overnight policy rates influence commercial property financing. Despite the authors’ attempt to provide insights into Islamic commercial property financing, the study is limited to secondary data; further research can use survey information to obtain other details that are not included in this study. Similarly, this study does not cover the operation and financial lease debate in Musharakah Mutanaqisah. Future studies can examine the challenges faced by the financial institution towards implementing rental rates in other emerging and developing countries using a different methodology. This study is the first to investigate the dynamic changes in overnight policy rates, average lending rates and rental rates on Islamic commercial property financing in Malaysia using ARDL techniques. The authors uncover the research and institutional implications of Islamic commercial property financing rates and provide policy and future research directions coupled with the proposed modified rental rate to be developed.Interest rates and Islamic commercial property financing: can there be a possible solution?
Siti Latipah Harun, Rosylin Mohd Yusof, Norazlina Abd. Wahab, Sirajo Aliyu
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the dynamic interaction between interest rates and commercial property financing offered by Islamic banks in Malaysia.

The authors use the autoregressive distributed lag (ARDL) cointegration methodology to analyse the short- and long-run effect of the interest rates and rental rates on commercial property financing of Islamic banks in Malaysia between 2010: Q1 and 2018: Q2.

The findings reveal that changes in interest rates affect Islamic commercial property financing. This indicates that Islamic banks still rely on interest rates as a benchmark without fully implementing Islamic rental rates. This corroborates the subsequent finding, where overnight policy rates influence commercial property financing.

Despite the authors’ attempt to provide insights into Islamic commercial property financing, the study is limited to secondary data; further research can use survey information to obtain other details that are not included in this study. Similarly, this study does not cover the operation and financial lease debate in Musharakah Mutanaqisah. Future studies can examine the challenges faced by the financial institution towards implementing rental rates in other emerging and developing countries using a different methodology.

This study is the first to investigate the dynamic changes in overnight policy rates, average lending rates and rental rates on Islamic commercial property financing in Malaysia using ARDL techniques. The authors uncover the research and institutional implications of Islamic commercial property financing rates and provide policy and future research directions coupled with the proposed modified rental rate to be developed.

]]>
Interest rates and Islamic commercial property financing: can there be a possible solution?10.1108/JIABR-07-2021-0191Journal of Islamic Accounting and Business Research2023-06-08© 2023 Emerald Publishing LimitedSiti Latipah HarunRosylin Mohd YusofNorazlina Abd. WahabSirajo AliyuJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-0810.1108/JIABR-07-2021-0191https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2021-0191/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Covid-19 and stock markets’ response in MENA countrieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2021-0196/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestMotivated by the rapid spread of the COVID-19 outbreak in the world, this study aims to explore the stock markets’ response toward it in the Middle East and North Africa (MENA) countries. Ordinary least squares (OLS) regressions were used to analyze the association between the COVID-19 outbreak and stock market returns. The author made use of a panel data set, including 4,195 observations from 13 countries in MENA for the period January 29, 2020, to April 30, 2021. The dependent variable was stock market returns. The explanatory variable, i.e. COVID-19, was proxied by daily growing confirmed infected cases and daily growing confirmed death cases caused by the outbreak. The author finds that stock markets have responded negatively to the growth in COVID-19 deaths. Meanwhile, stock markets show no reaction to the daily growth of confirmed infected COVID-19 cases. This study presents worthy information to regulators and policymakers in MENA countries, whose responsibility is to govern regulations at the macro and micro levels based on a comprehensive route that leaves no one behind. This study also offers significant insights to policymakers, managers, investors and society by showing how the stock markets quickly react to outbreaks. This study is, to the best of the author’s knowledge, among those exploring the impact of the COVID-19 outbreak on stock market returns in the MENA countries.Covid-19 and stock markets’ response in MENA countries
Taha Almarayeh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Motivated by the rapid spread of the COVID-19 outbreak in the world, this study aims to explore the stock markets’ response toward it in the Middle East and North Africa (MENA) countries.

Ordinary least squares (OLS) regressions were used to analyze the association between the COVID-19 outbreak and stock market returns. The author made use of a panel data set, including 4,195 observations from 13 countries in MENA for the period January 29, 2020, to April 30, 2021. The dependent variable was stock market returns. The explanatory variable, i.e. COVID-19, was proxied by daily growing confirmed infected cases and daily growing confirmed death cases caused by the outbreak.

The author finds that stock markets have responded negatively to the growth in COVID-19 deaths. Meanwhile, stock markets show no reaction to the daily growth of confirmed infected COVID-19 cases.

This study presents worthy information to regulators and policymakers in MENA countries, whose responsibility is to govern regulations at the macro and micro levels based on a comprehensive route that leaves no one behind. This study also offers significant insights to policymakers, managers, investors and society by showing how the stock markets quickly react to outbreaks.

This study is, to the best of the author’s knowledge, among those exploring the impact of the COVID-19 outbreak on stock market returns in the MENA countries.

]]>
Covid-19 and stock markets’ response in MENA countries10.1108/JIABR-07-2021-0196Journal of Islamic Accounting and Business Research2023-10-20© 2023 Emerald Publishing LimitedTaha AlmarayehJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-2010.1108/JIABR-07-2021-0196https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2021-0196/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does employee relations climate mediate the effect of Islamic work ethics on organizational performance? Evidence from Qatarhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0164/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestBuilding on the resource-based view (RBV) and the theory of other orientation, this study aims to examine the association between Islamic work ethics (IWEs) and organizational performance highlighting the role of employee relations climate as an underlying mechanism. Data were collected from 239 employees working in diverse sectors in the state of Qatar. Structural equation modeling of partial least squares was used to analyze the data of the study. The results suggest that IWEs positively impact organizational performance and employee relations climate. Furthermore, employee relations climate demonstrated to play a mediating role in the IWEs-organizational performance link. The study can be used by administrators pertaining to the importance of IWE and employee relations climate to cultivate higher organizational outcomes such as organizational performance. This research is distinctive as it examines the connection between IWEs and organizational performance in Qatar, a country where the influence of Islamic values and beliefs on work ethics is profound. In addition, the research sheds light on a topic that has received little attention in the literature: the significance of the workplace climate in determining how IWEs affect organizational performance. Finally, the research integrates two important theoretical frameworks, the RBV and the theory of other orientation, to create a comprehensive model that explains the complex relationship between IWEs, employee relations climate and organizational performance.Does employee relations climate mediate the effect of Islamic work ethics on organizational performance? Evidence from Qatar
Kamal Badar, Mohammed Aboramadan, Wasim Alhabil, Khalid Abed Dahleez, Caterina Farao
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Building on the resource-based view (RBV) and the theory of other orientation, this study aims to examine the association between Islamic work ethics (IWEs) and organizational performance highlighting the role of employee relations climate as an underlying mechanism.

Data were collected from 239 employees working in diverse sectors in the state of Qatar. Structural equation modeling of partial least squares was used to analyze the data of the study.

The results suggest that IWEs positively impact organizational performance and employee relations climate. Furthermore, employee relations climate demonstrated to play a mediating role in the IWEs-organizational performance link.

The study can be used by administrators pertaining to the importance of IWE and employee relations climate to cultivate higher organizational outcomes such as organizational performance.

This research is distinctive as it examines the connection between IWEs and organizational performance in Qatar, a country where the influence of Islamic values and beliefs on work ethics is profound. In addition, the research sheds light on a topic that has received little attention in the literature: the significance of the workplace climate in determining how IWEs affect organizational performance. Finally, the research integrates two important theoretical frameworks, the RBV and the theory of other orientation, to create a comprehensive model that explains the complex relationship between IWEs, employee relations climate and organizational performance.

]]>
Does employee relations climate mediate the effect of Islamic work ethics on organizational performance? Evidence from Qatar10.1108/JIABR-07-2022-0164Journal of Islamic Accounting and Business Research2023-07-03© 2023 Kamal Badar, Mohammed Aboramadan, Wasim Alhabil, Khalid Abed Dahleez and Caterina Farao.Kamal BadarMohammed AboramadanWasim AlhabilKhalid Abed DahleezCaterina FaraoJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-0310.1108/JIABR-07-2022-0164https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0164/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Kamal Badar, Mohammed Aboramadan, Wasim Alhabil, Khalid Abed Dahleez and Caterina Farao.http://creativecommons.org/licences/by/4.0/legalcode
Monetary policy and Islamic banks: a critical literature reviewhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to review to what extent Islamic banks carry conventional monetary policy impulses. Hence, the authors focus to review on the presence or absence of an Islamic financing channel. A systematic approach to the literature review was adopted. The search criterion is confined to empirical studies that examined the transmission of interest-based monetary policy through Islamic banks’ financing, particularly empirical studies that check the existence of an Islamic bank financing channel of conventional monetary policy. By adopting a systematic approach, over 40 empirical papers published in Scopus and Google Scholar were selected for review and analysis to suggest prospects for future analysis in this field. The existence of Islamic banks may raise concerns for local central banks, particularly in terms of implementing monetary policies that rely on interest rates. Indeed, the specific nature of the business model of Islamic banks based on the sharing of losses and profits as an alternative to interest rate–based remuneration suggests a priori the non-transmission of monetary policy through these free-interest banks. Despite this, the actual asset structure of Islamic banks may facilitate the transmission of monetary impulses to the economy. Currently, there are limited and inconclusive empirical studies on how Islamic bank financing contributes to the transmission of monetary policy. Additional research is required to fully comprehend the response of Islamic banks to fluctuations in monetary policy interest rates, as well as the factors that impact their reactions. This literature review is incredibly important as it thoroughly examines a critical issue from both academic and practical perspectives. Analyzing how monetary policy actions can be transmitted through Islamic bank financing is an important task that can provide insights for future research. A straightforward response to this inquiry could assist central banks in formulating effective monetary policy.Monetary policy and Islamic banks: a critical literature review
Zakaria Savon, Abdellah Yousfi
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to review to what extent Islamic banks carry conventional monetary policy impulses. Hence, the authors focus to review on the presence or absence of an Islamic financing channel.

A systematic approach to the literature review was adopted. The search criterion is confined to empirical studies that examined the transmission of interest-based monetary policy through Islamic banks’ financing, particularly empirical studies that check the existence of an Islamic bank financing channel of conventional monetary policy. By adopting a systematic approach, over 40 empirical papers published in Scopus and Google Scholar were selected for review and analysis to suggest prospects for future analysis in this field.

The existence of Islamic banks may raise concerns for local central banks, particularly in terms of implementing monetary policies that rely on interest rates. Indeed, the specific nature of the business model of Islamic banks based on the sharing of losses and profits as an alternative to interest rate–based remuneration suggests a priori the non-transmission of monetary policy through these free-interest banks. Despite this, the actual asset structure of Islamic banks may facilitate the transmission of monetary impulses to the economy. Currently, there are limited and inconclusive empirical studies on how Islamic bank financing contributes to the transmission of monetary policy. Additional research is required to fully comprehend the response of Islamic banks to fluctuations in monetary policy interest rates, as well as the factors that impact their reactions.

This literature review is incredibly important as it thoroughly examines a critical issue from both academic and practical perspectives. Analyzing how monetary policy actions can be transmitted through Islamic bank financing is an important task that can provide insights for future research. A straightforward response to this inquiry could assist central banks in formulating effective monetary policy.

]]>
Monetary policy and Islamic banks: a critical literature review10.1108/JIABR-07-2022-0168Journal of Islamic Accounting and Business Research2023-09-13© 2023 Emerald Publishing LimitedZakaria SavonAbdellah YousfiJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-1310.1108/JIABR-07-2022-0168https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0168/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Impact of accrual and real earnings management on the stock liquidity: the month-of-the-year and Ramadan effectshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0170/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe abnormality of the month-of-the-year and Ramadan effects has extensively existed in the stock and other markets. The commercial strategy pattern and the computation of such predictable patterns in the market allow investors to make money. By using anomalies such as the month-of-the-year and the Ramadan effects on earnings management (EM), it is possible to achieve such a goal. This study aims to investigate the month-of-the-year effect and the Ramadan effect on the relationship between accrual earnings management and real earnings management (AEM and REM, respectively) and liquidity in the Iranian capital market. This empirical analysis comprises a panel data set of 80 listed firms (400 observations) on the Tehran Stock Exchange from 2016 to 2020. The findings exhibit that when AEM and REM increase, information asymmetry also increases. The simultaneous increase of these variables leads to a decrease in stock liquidity. Furthermore, the results indicate that the month-of-the-year and Ramadan effects intensify the negative relationship between AEM and REM with stock liquidity. Therefore, EM is affected by the investor’s behavior in specific months. Anomalies caused by the Ramadan effect and the month-of-the-year effect on reducing liquidity in the Iranian stock market were confirmed. Investors can use these anomalies to identify predictable patterns, exchange securities according to those patterns and earn abnormal returns. To the best of the authors’ knowledge, this is the first study that empirically examined the simultaneous effect of Gregorian and Islamic calendar anomalies on the relationship between EM and liquidity, and while helping managers and other readers, it can be the basis for future research.Impact of accrual and real earnings management on the stock liquidity: the month-of-the-year and Ramadan effects
Allah Karam Salehi, Elham Soleimanizadeh
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The abnormality of the month-of-the-year and Ramadan effects has extensively existed in the stock and other markets. The commercial strategy pattern and the computation of such predictable patterns in the market allow investors to make money. By using anomalies such as the month-of-the-year and the Ramadan effects on earnings management (EM), it is possible to achieve such a goal. This study aims to investigate the month-of-the-year effect and the Ramadan effect on the relationship between accrual earnings management and real earnings management (AEM and REM, respectively) and liquidity in the Iranian capital market.

This empirical analysis comprises a panel data set of 80 listed firms (400 observations) on the Tehran Stock Exchange from 2016 to 2020.

The findings exhibit that when AEM and REM increase, information asymmetry also increases. The simultaneous increase of these variables leads to a decrease in stock liquidity. Furthermore, the results indicate that the month-of-the-year and Ramadan effects intensify the negative relationship between AEM and REM with stock liquidity. Therefore, EM is affected by the investor’s behavior in specific months.

Anomalies caused by the Ramadan effect and the month-of-the-year effect on reducing liquidity in the Iranian stock market were confirmed. Investors can use these anomalies to identify predictable patterns, exchange securities according to those patterns and earn abnormal returns.

To the best of the authors’ knowledge, this is the first study that empirically examined the simultaneous effect of Gregorian and Islamic calendar anomalies on the relationship between EM and liquidity, and while helping managers and other readers, it can be the basis for future research.

]]>
Impact of accrual and real earnings management on the stock liquidity: the month-of-the-year and Ramadan effects10.1108/JIABR-07-2022-0170Journal of Islamic Accounting and Business Research2023-12-20© 2023 Emerald Publishing LimitedAllah Karam SalehiElham SoleimanizadehJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-2010.1108/JIABR-07-2022-0170https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0170/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The case study of the sharia insurance industry: how far is the spin-off policy being effectively implemented in Indonesia?https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the effectiveness of the spin-off policy which includes clarity of objectives and criteria, implementation and monitoring and evaluation functions. The method used is a qualitative method with a theme approach and the analytical hierarchy process (AHP). Data were obtained from the results of focus group discussions and AHP questionnaires with informants from Indonesian Sharia Insurance Association (AASI), the sharia life and general insurance industry, the Sharia Supervisory Board, the government and regulators. The results of the research are the effectiveness of the clarity of goals and criteria has not been realized optimally, the effectiveness of increasing profitability has not been realized, and the effectiveness of the monitoring and evaluation functions by the government and regulators has been realized. The supporting factor that has the highest level of importance is the role of the government and regulator. The limitation of this research is that it has not used a wider range of profitability test tools and projections. The theoretical implication of this research is as a reference for robust research in identifying spin-off success factors because this study uses a mixed method where qualitative methods are used in the study using data from theory and expert informants from three parties: regulatory parties, associations (AASI) and the insurance company (life insurance and general insurance). These results form the basis for compiling a questionnaire with a quantitative method so that the data is become relevant based on theory (design) and practical side. Practical implication of the study is that the Islamic insurance industry has to prepare to achieve condition of Tabarru funds and the investment reaches 50% of the main insurance fund. AASI, as the sharia insurance industry organization, continues innovating the most suitable form of spin-off that can be achieved by the Sharia business unit and also continues to coordinate with regulators to discuss existing problems. The government and regulators also support the implementation of the spin-off by providing convenience in various aspects such as spin-off period relaxation and government incentive and relaxation to enhance sharia insurance industry. The contribution of the results of this research for the government and regulatory agencies is as input in setting policies and regulations related to spin-offs, for the industry is expected to be more prepared in terms of resources, commitment and strategy.The case study of the sharia insurance industry: how far is the spin-off policy being effectively implemented in Indonesia?
Erny Arianty, Tuti S.B. Utami, Syanni Yustiani, Rizqi Haniyah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze the effectiveness of the spin-off policy which includes clarity of objectives and criteria, implementation and monitoring and evaluation functions.

The method used is a qualitative method with a theme approach and the analytical hierarchy process (AHP). Data were obtained from the results of focus group discussions and AHP questionnaires with informants from Indonesian Sharia Insurance Association (AASI), the sharia life and general insurance industry, the Sharia Supervisory Board, the government and regulators.

The results of the research are the effectiveness of the clarity of goals and criteria has not been realized optimally, the effectiveness of increasing profitability has not been realized, and the effectiveness of the monitoring and evaluation functions by the government and regulators has been realized. The supporting factor that has the highest level of importance is the role of the government and regulator.

The limitation of this research is that it has not used a wider range of profitability test tools and projections. The theoretical implication of this research is as a reference for robust research in identifying spin-off success factors because this study uses a mixed method where qualitative methods are used in the study using data from theory and expert informants from three parties: regulatory parties, associations (AASI) and the insurance company (life insurance and general insurance). These results form the basis for compiling a questionnaire with a quantitative method so that the data is become relevant based on theory (design) and practical side.

Practical implication of the study is that the Islamic insurance industry has to prepare to achieve condition of Tabarru funds and the investment reaches 50% of the main insurance fund. AASI, as the sharia insurance industry organization, continues innovating the most suitable form of spin-off that can be achieved by the Sharia business unit and also continues to coordinate with regulators to discuss existing problems. The government and regulators also support the implementation of the spin-off by providing convenience in various aspects such as spin-off period relaxation and government incentive and relaxation to enhance sharia insurance industry.

The contribution of the results of this research for the government and regulatory agencies is as input in setting policies and regulations related to spin-offs, for the industry is expected to be more prepared in terms of resources, commitment and strategy.

]]>
The case study of the sharia insurance industry: how far is the spin-off policy being effectively implemented in Indonesia?10.1108/JIABR-07-2022-0172Journal of Islamic Accounting and Business Research2023-07-11© 2023 Emerald Publishing LimitedErny AriantyTuti S.B. UtamiSyanni YustianiRizqi HaniyahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-1110.1108/JIABR-07-2022-0172https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0172/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Volatility spillovers among Islamic countries and geopolitical riskhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to test for volatility spillovers among Islamic stock markets with the exogenous impact of geopolitical risk (GPR) to check the risk transmission among Saudi Arabia, Malaysia, Indonesia and Turkey. Researchers test for both the symmetric and asymmetric risk transmission. For the symmetric response of volatility, the study uses simple generalized autoregressive conditional heteroscedastic (GARCH) and for the asymmetric response of volatility with the exogenous impact of GPR, the exponential GARCH models have been adopted. The results suggest spillover effects exist from Turkey to Saudi Arabia, Indonesia to Malaysia and Saudi Arabia and Malaysia to Indonesia. The findings of volatility spillover from GPR to sample countries suggest that only Malaysia and Indonesia experience volatility spillovers from GPR. The present study is limited to the context of four countries and Islamic equities; the study contributes to the literature on volatility spillover, Islamic finance, GPR and asset pricing. This study contributes to individual, institutional investors’ policymakers’ knowledge in determining security prices, trading plans, investment hedging and policy regulation. The extant literature disregards the GPR index to examine the volatility spillover effects among Islamic stock markets, which allow researchers to justify the mechanism of risk transmission due to GPR across the Islamic stock market. To the best of the authors’ knowledge, this is the first research of its type to look at volatility spillover and GPR transmission in Islamic stock markets.Volatility spillovers among Islamic countries and geopolitical risk
Suresh Kumar Oad Rajput, Amjad Ali Memon, Tariq Aziz Siyal, Namarta Kumari Bajaj
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to test for volatility spillovers among Islamic stock markets with the exogenous impact of geopolitical risk (GPR) to check the risk transmission among Saudi Arabia, Malaysia, Indonesia and Turkey. Researchers test for both the symmetric and asymmetric risk transmission.

For the symmetric response of volatility, the study uses simple generalized autoregressive conditional heteroscedastic (GARCH) and for the asymmetric response of volatility with the exogenous impact of GPR, the exponential GARCH models have been adopted.

The results suggest spillover effects exist from Turkey to Saudi Arabia, Indonesia to Malaysia and Saudi Arabia and Malaysia to Indonesia. The findings of volatility spillover from GPR to sample countries suggest that only Malaysia and Indonesia experience volatility spillovers from GPR.

The present study is limited to the context of four countries and Islamic equities; the study contributes to the literature on volatility spillover, Islamic finance, GPR and asset pricing.

This study contributes to individual, institutional investors’ policymakers’ knowledge in determining security prices, trading plans, investment hedging and policy regulation.

The extant literature disregards the GPR index to examine the volatility spillover effects among Islamic stock markets, which allow researchers to justify the mechanism of risk transmission due to GPR across the Islamic stock market.

To the best of the authors’ knowledge, this is the first research of its type to look at volatility spillover and GPR transmission in Islamic stock markets.

]]>
Volatility spillovers among Islamic countries and geopolitical risk10.1108/JIABR-07-2022-0173Journal of Islamic Accounting and Business Research2023-05-11© 2023 Emerald Publishing LimitedSuresh Kumar Oad RajputAmjad Ali MemonTariq Aziz SiyalNamarta Kumari BajajJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-1110.1108/JIABR-07-2022-0173https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0173/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Determinants of Islamic bank stability in Asiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0174/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the factors that influenced the stability of Islamic banks in Asia. The panel data consisted of 16 Asian countries operating Islamic banks from 2010 to 2019. The data were analyzed through dynamic panel regression using Arellano–Bond generalized method of moments (GMM). This study provides novel insights into the factors influencing the stability of Islamic banks in Asia. The findings suggest that past financial stability, liquidity risk, loan risk, inflation, gross domestic product, government effectiveness, rule of law and control of corruption are all significant contributors to Islamic bank stability. Notably, political stability, voice and accountability and regulatory quality did not show a significant association. The current study’s focus was solely on Islamic bank stability in Asian countries, which leaves room for further exploration. Future research could benefit from expanding the scope to encompass all nations with active Islamic banking institutions. In addition, incorporating a broader range of macroeconomic variables, such as exchange rates, interest rates, profit-sharing equivalents and investment rates, could provide deeper insights into the factors influencing Islamic bank stability across diverse contexts. This study has significant practical implications for policymakers, bank managers and regulatory authorities seeking to enhance the stability of Islamic banks in Asia. By implementing robust risk management frameworks, adopting prudent regulatory policies, and actively fostering economic growth, policymakers can create an environment conducive to the sustained development and prosperity of Islamic banking institutions. Notably, promoting good governance practices and instituting effective crisis prevention measures can further bolster the resilience of the Islamic banking sector, enabling it to play a more dynamic role in contributing to the overall development and welfare of Asian societies. The findings of this study carry significant social implications, highlighting the need for governments in Asian countries to prioritize public policies that promote good governance and ethical practices within the banking industry. Such policies, coupled with efforts to attract foreign investments and foster a stable and transparent banking sector, have the potential to generate far-reaching positive effects on society. Through economic growth stimulated by a robust Islamic banking sector, Asian countries can create new employment opportunities, improve living standards and ultimately enhance the overall well-being of their citizens. This study contributes to the ongoing discourse on Islamic banking stability by offering novel insights and expanding the empirical knowledge base in this field. The dual application of robust regression methodologies – namely, GMM dynamic panel data models – presents a unique analytical framework for investigating the complex interplay between diverse variables and Islamic bank stability. This methodological choice fosters deeper understanding of the dynamic relationships at play, advancing our understanding of how specific factors influence the sector's resilience and performance. In addition, the study uses rigorous empirical techniques and engages with the extant literature to provide fresh perspectives and nuanced interpretations of the findings, further solidifying its contribution to the field's originality and richness.Determinants of Islamic bank stability in Asia
Muhammad Iqbal, Lukmanul Hakim, Muhammad Abdul Aziz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze the factors that influenced the stability of Islamic banks in Asia.

The panel data consisted of 16 Asian countries operating Islamic banks from 2010 to 2019. The data were analyzed through dynamic panel regression using Arellano–Bond generalized method of moments (GMM).

This study provides novel insights into the factors influencing the stability of Islamic banks in Asia. The findings suggest that past financial stability, liquidity risk, loan risk, inflation, gross domestic product, government effectiveness, rule of law and control of corruption are all significant contributors to Islamic bank stability. Notably, political stability, voice and accountability and regulatory quality did not show a significant association.

The current study’s focus was solely on Islamic bank stability in Asian countries, which leaves room for further exploration. Future research could benefit from expanding the scope to encompass all nations with active Islamic banking institutions. In addition, incorporating a broader range of macroeconomic variables, such as exchange rates, interest rates, profit-sharing equivalents and investment rates, could provide deeper insights into the factors influencing Islamic bank stability across diverse contexts.

This study has significant practical implications for policymakers, bank managers and regulatory authorities seeking to enhance the stability of Islamic banks in Asia. By implementing robust risk management frameworks, adopting prudent regulatory policies, and actively fostering economic growth, policymakers can create an environment conducive to the sustained development and prosperity of Islamic banking institutions. Notably, promoting good governance practices and instituting effective crisis prevention measures can further bolster the resilience of the Islamic banking sector, enabling it to play a more dynamic role in contributing to the overall development and welfare of Asian societies.

The findings of this study carry significant social implications, highlighting the need for governments in Asian countries to prioritize public policies that promote good governance and ethical practices within the banking industry. Such policies, coupled with efforts to attract foreign investments and foster a stable and transparent banking sector, have the potential to generate far-reaching positive effects on society. Through economic growth stimulated by a robust Islamic banking sector, Asian countries can create new employment opportunities, improve living standards and ultimately enhance the overall well-being of their citizens.

This study contributes to the ongoing discourse on Islamic banking stability by offering novel insights and expanding the empirical knowledge base in this field. The dual application of robust regression methodologies – namely, GMM dynamic panel data models – presents a unique analytical framework for investigating the complex interplay between diverse variables and Islamic bank stability. This methodological choice fosters deeper understanding of the dynamic relationships at play, advancing our understanding of how specific factors influence the sector's resilience and performance. In addition, the study uses rigorous empirical techniques and engages with the extant literature to provide fresh perspectives and nuanced interpretations of the findings, further solidifying its contribution to the field's originality and richness.

]]>
Determinants of Islamic bank stability in Asia10.1108/JIABR-07-2022-0174Journal of Islamic Accounting and Business Research2024-02-27© 2024 Emerald Publishing LimitedMuhammad IqbalLukmanul HakimMuhammad Abdul AzizJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-2710.1108/JIABR-07-2022-0174https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0174/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Stock liquidity, future investment and future investment efficiency in an emerging economy: investigating the moderator role of financial constraintshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0177/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the relationship between stock liquidity, future investment, future investment efficiency and the moderating effect of financial constraints. To serve the purpose of the study, the data of 178 companies listed on the Tehran Stock Exchange in 2012–2017 were examined. In this research, two Amihud liquidity and stock trading turnover measures were taken for the liquidity. Due to variance heterogeneity, the FGLS test was used. Moreover, a modified multiple regression analysis was used to investigate the moderating role of financial constraints. The results showed a significant positive relationship between the firm stock liquidity in the current year and the next year investment; the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment; the firm stock liquidity (based on the trading turnover index) in the current year and the next year investment efficiency; and the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment efficiency. Moreover, financial constraints negatively moderated the relationship of firm stock liquidity (based on trading turnover index) in the current year and investment in the next year; investment in the next two years; investment efficiency in the next year; and investment efficiency in the next two years. Given the importance of investment and investment efficiency in emerging markets especially in Asian emerging markets, and because the predicted impacts through financing constraints are usually unclear, this paper attempted to fill the existing gap and be innovative in this regard.Stock liquidity, future investment and future investment efficiency in an emerging economy: investigating the moderator role of financial constraints
Arash Arianpoor, Nahid Mohammadbeikzade
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the relationship between stock liquidity, future investment, future investment efficiency and the moderating effect of financial constraints.

To serve the purpose of the study, the data of 178 companies listed on the Tehran Stock Exchange in 2012–2017 were examined. In this research, two Amihud liquidity and stock trading turnover measures were taken for the liquidity. Due to variance heterogeneity, the FGLS test was used. Moreover, a modified multiple regression analysis was used to investigate the moderating role of financial constraints.

The results showed a significant positive relationship between the firm stock liquidity in the current year and the next year investment; the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment; the firm stock liquidity (based on the trading turnover index) in the current year and the next year investment efficiency; and the firm stock liquidity (based on the stock trading turnover) in the current year and the next two years’ investment efficiency. Moreover, financial constraints negatively moderated the relationship of firm stock liquidity (based on trading turnover index) in the current year and investment in the next year; investment in the next two years; investment efficiency in the next year; and investment efficiency in the next two years.

Given the importance of investment and investment efficiency in emerging markets especially in Asian emerging markets, and because the predicted impacts through financing constraints are usually unclear, this paper attempted to fill the existing gap and be innovative in this regard.

]]>
Stock liquidity, future investment and future investment efficiency in an emerging economy: investigating the moderator role of financial constraints10.1108/JIABR-07-2022-0177Journal of Islamic Accounting and Business Research2023-10-19© 2023 Emerald Publishing LimitedArash ArianpoorNahid MohammadbeikzadeJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1910.1108/JIABR-07-2022-0177https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0177/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The implementation of IFRS9 in Gulf banks: using the GMM and the difference-in-differences with multiple time periods approacheshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0178/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the impact of the mandatory adoption of (International Financial Reporting Standards [IFRS] 9) on loan provisions, nonperforming loans (NPL) and impairment loan loss in Gulf banks. This study also investigates potential variations in outcomes compared to prior models and explores the use of the Callaway and Sant’Anna (2021) estimator for difference-in-differences (DiD) with multiple time periods. The research is based on a sample of 53 Gulf banks covering the period from 2012 to 2020. The study analyzes the changes in loan provisions, impairment loss and NPL following the implementation of IFRS 9. It uses statistical analysis and the DiD method to compare the outcomes between the experimental group (treated by IFRS 9) and the control group (not treated). The findings reveal a statistically insignificant increase in loan provisions, impairment loss and NPL after the adoption of IFRS 9. These results align with previous studies and suggest that Gulf banks were proactive in anticipating and mitigating the impact of the new standard. The study also observes a synchronization of provisioning practices across Gulf countries and a certain level of consistency in recognizing loan losses. The practical implications of this study suggest that Gulf banks have successfully absorbed the impact of IFRS 9 and have implemented collaborative approaches. The study offers some new sight into IFRS9 outcomes in developing countries and opens the door for implementing a novel DiD estimation in future research studies.The implementation of IFRS9 in Gulf banks: using the GMM and the difference-in-differences with multiple time periods approaches
Murad Abuaddous
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the impact of the mandatory adoption of (International Financial Reporting Standards [IFRS] 9) on loan provisions, nonperforming loans (NPL) and impairment loan loss in Gulf banks. This study also investigates potential variations in outcomes compared to prior models and explores the use of the Callaway and Sant’Anna (2021) estimator for difference-in-differences (DiD) with multiple time periods.

The research is based on a sample of 53 Gulf banks covering the period from 2012 to 2020. The study analyzes the changes in loan provisions, impairment loss and NPL following the implementation of IFRS 9. It uses statistical analysis and the DiD method to compare the outcomes between the experimental group (treated by IFRS 9) and the control group (not treated).

The findings reveal a statistically insignificant increase in loan provisions, impairment loss and NPL after the adoption of IFRS 9. These results align with previous studies and suggest that Gulf banks were proactive in anticipating and mitigating the impact of the new standard. The study also observes a synchronization of provisioning practices across Gulf countries and a certain level of consistency in recognizing loan losses.

The practical implications of this study suggest that Gulf banks have successfully absorbed the impact of IFRS 9 and have implemented collaborative approaches.

The study offers some new sight into IFRS9 outcomes in developing countries and opens the door for implementing a novel DiD estimation in future research studies.

]]>
The implementation of IFRS9 in Gulf banks: using the GMM and the difference-in-differences with multiple time periods approaches10.1108/JIABR-07-2022-0178Journal of Islamic Accounting and Business Research2023-08-14© 2023 Emerald Publishing LimitedMurad AbuaddousJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-1410.1108/JIABR-07-2022-0178https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0178/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The interconnectivity between Islamic financial literacy and financial sustainability: evidence from Muslim micro-entrepreneurs in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0191/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestFinancial illiteracy could pose a significant challenge to micro-entrepreneurs. There is a pressing need to foster financial literacy;, therefore, the purpose of this study is to examine particularly how Islamic financial literacy may enhance their businesses toward achieving financial sustainability. This study uses quantitative methods. Three hundred (300) questionnaires were distributed to micro-entrepreneurs in three states in Malaysia, namely, Kedah, Kelantan and Terengganu. This study used the partial least squares (PLS) analysis using the SmartPLS 3.2. The study found that the most robust Islamic financial literacy factors are financial behavior, followed by financial knowledge and financial attitude .The outcome of Islamic financial literacy, which is financial sustainability, also demonstrates a positive and significant relationship. All variables show a positive and significant relationship toward financial sustainability. Stated differently, micro-entrepreneurs are aware that understanding the basic concepts of Islamic finance may help them achieve long-term financial sustainability This study incorporates Islamic financial concepts into financial literacy while also assessing demographic aspects like years of business operation and education as moderators, which were not considered by previous studies.The interconnectivity between Islamic financial literacy and financial sustainability: evidence from Muslim micro-entrepreneurs in Malaysia
Nik Hadiyan Nik Azman, Abdul Hadi Zulkafli, Tajul Ariffin Masron, Abdul Rahman Abdul Majid
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Financial illiteracy could pose a significant challenge to micro-entrepreneurs. There is a pressing need to foster financial literacy;, therefore, the purpose of this study is to examine particularly how Islamic financial literacy may enhance their businesses toward achieving financial sustainability.

This study uses quantitative methods. Three hundred (300) questionnaires were distributed to micro-entrepreneurs in three states in Malaysia, namely, Kedah, Kelantan and Terengganu. This study used the partial least squares (PLS) analysis using the SmartPLS 3.2.

The study found that the most robust Islamic financial literacy factors are financial behavior, followed by financial knowledge and financial attitude .The outcome of Islamic financial literacy, which is financial sustainability, also demonstrates a positive and significant relationship.

All variables show a positive and significant relationship toward financial sustainability. Stated differently, micro-entrepreneurs are aware that understanding the basic concepts of Islamic finance may help them achieve long-term financial sustainability

This study incorporates Islamic financial concepts into financial literacy while also assessing demographic aspects like years of business operation and education as moderators, which were not considered by previous studies.

]]>
The interconnectivity between Islamic financial literacy and financial sustainability: evidence from Muslim micro-entrepreneurs in Malaysia10.1108/JIABR-07-2022-0191Journal of Islamic Accounting and Business Research2023-11-17© 2023 Emerald Publishing LimitedNik Hadiyan Nik AzmanAbdul Hadi ZulkafliTajul Ariffin MasronAbdul Rahman Abdul MajidJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-1710.1108/JIABR-07-2022-0191https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0191/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The potential of Islamic financing in making financial development more entrepreneurship friendlyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0206/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestLiterature has pointed that conventional financial development theories have inconclusive role on motivating new businesses. New ventures often consider the conventional system that passes through risk and provides fixed-interest lending as a burden. Comparatively, Islamic finance contributes using participative and equitable substitute for startups and has a potential in promoting new businesses. This study aims to investigate the holistic financial development index quadratic effect on entrepreneurship and include the moderating role of Islamic financing at national level. Islamic banks of 21 nations constitute the unbalanced panel data. Financial development and entrepreneurship indices were developed using factor analysis and panel median regression to estimate the nonlinear financial market development effects and Islamic financing moderation model. The results indicated that low financial market development is entrepreneurship deterring because of interest burden effect, which could be eased with a proportional increase in the Islamic financing, which is participative. The moderating effect has led to the categorization of the sample countries into entrepreneurship promoting and entrepreneurship discouraging with respect to the current incidence of financial market development and Islamic financing, which can help policymakers in understanding the entrepreneurship promoting combination of financial development and Islamic financing. Central banks and Shari’ah advisory councils can adopt Islamic financing transition in the national financial inclusion policy for new business facilitation. This study is instrumental in exploring the assessment of introducing Islamic financing while developing the financial sector on multidimensional entrepreneurship.The potential of Islamic financing in making financial development more entrepreneurship friendly
Hadia Sohail, Noman Arshed
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Literature has pointed that conventional financial development theories have inconclusive role on motivating new businesses. New ventures often consider the conventional system that passes through risk and provides fixed-interest lending as a burden. Comparatively, Islamic finance contributes using participative and equitable substitute for startups and has a potential in promoting new businesses. This study aims to investigate the holistic financial development index quadratic effect on entrepreneurship and include the moderating role of Islamic financing at national level.

Islamic banks of 21 nations constitute the unbalanced panel data. Financial development and entrepreneurship indices were developed using factor analysis and panel median regression to estimate the nonlinear financial market development effects and Islamic financing moderation model.

The results indicated that low financial market development is entrepreneurship deterring because of interest burden effect, which could be eased with a proportional increase in the Islamic financing, which is participative. The moderating effect has led to the categorization of the sample countries into entrepreneurship promoting and entrepreneurship discouraging with respect to the current incidence of financial market development and Islamic financing, which can help policymakers in understanding the entrepreneurship promoting combination of financial development and Islamic financing.

Central banks and Shari’ah advisory councils can adopt Islamic financing transition in the national financial inclusion policy for new business facilitation.

This study is instrumental in exploring the assessment of introducing Islamic financing while developing the financial sector on multidimensional entrepreneurship.

]]>
The potential of Islamic financing in making financial development more entrepreneurship friendly10.1108/JIABR-07-2023-0206Journal of Islamic Accounting and Business Research2024-02-13© 2024 Emerald Publishing LimitedHadia SohailNoman ArshedJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-1310.1108/JIABR-07-2023-0206https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0206/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Bank liquidity creation, loan concentration and liquidity risk: a comparative analysis of dual banking systemhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0228/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestKeeping in view the robust growth of Islamic banking around the globe, this study aims to comparatively analyze the association between liquidity creation and liquidity risk for Islamic banks (IBANs) and conventional banks (CBANs) in Pakistan and Malaysia over a period of 2004–2021. The moderating role of bank loan concentration on the aforementioned relationship is also studied. Regression estimation methods such as fixed effect, random effect and generalized least square are deployed for obtaining results. Liquidity creation Burger Bouwman measure (cat fat and noncat fat) and Basel-III liquidity risk measure (liquidity coverage ratio) are also used. The results give us insight that liquidity creation is positively and significantly related to liquidity risk in both IBANs and CBANs of Pakistan and Malaysia. This relationship has been moderated negatively (reversed) and significantly by credit concentration showing the importance of risk management and loan portfolio concentration. It is analyzed that during the process of liquidity creation, IBANs in Pakistan faced more liquidity risk for both on and off-balance sheet transactions in the presence of moderation of loan concentration than IBANs in Malaysia necessitating strategic policy-making for important aspects of liquidity risk management and loan concentration while creating liquidity. Such studies comparing IBANs and CBANs comparison keeping in view liquidity creation, liquidity risk and loan concentration are either limited or nonexistent.Bank liquidity creation, loan concentration and liquidity risk: a comparative analysis of dual banking system
Hassan Akram, Adnan Hushmat
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Keeping in view the robust growth of Islamic banking around the globe, this study aims to comparatively analyze the association between liquidity creation and liquidity risk for Islamic banks (IBANs) and conventional banks (CBANs) in Pakistan and Malaysia over a period of 2004–2021. The moderating role of bank loan concentration on the aforementioned relationship is also studied.

Regression estimation methods such as fixed effect, random effect and generalized least square are deployed for obtaining results. Liquidity creation Burger Bouwman measure (cat fat and noncat fat) and Basel-III liquidity risk measure (liquidity coverage ratio) are also used.

The results give us insight that liquidity creation is positively and significantly related to liquidity risk in both IBANs and CBANs of Pakistan and Malaysia. This relationship has been moderated negatively (reversed) and significantly by credit concentration showing the importance of risk management and loan portfolio concentration.

It is analyzed that during the process of liquidity creation, IBANs in Pakistan faced more liquidity risk for both on and off-balance sheet transactions in the presence of moderation of loan concentration than IBANs in Malaysia necessitating strategic policy-making for important aspects of liquidity risk management and loan concentration while creating liquidity.

Such studies comparing IBANs and CBANs comparison keeping in view liquidity creation, liquidity risk and loan concentration are either limited or nonexistent.

]]>
Bank liquidity creation, loan concentration and liquidity risk: a comparative analysis of dual banking system10.1108/JIABR-07-2023-0228Journal of Islamic Accounting and Business Research2024-03-13© 2024 Emerald Publishing LimitedHassan AkramAdnan HushmatJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-03-1310.1108/JIABR-07-2023-0228https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0228/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Developing employee motivation index: McClelland and Maqasid Shariahhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestMany scholars have primarily disregarded employee motivation in the context of Western and Islamic ideas. To better understand employee motivation, this paper aims to explore a novel approach of fusing McClelland’s needs theory (i.e. achievement, power and affiliation) with Maqasid Shariah. This study adopts a theoretical research design. There will be a thorough literature study of McClelland’s theory, Maqasid Shariah, and employee motivation. Qualitative content analysis is used to examine and compile pertinent ideas. To give a thorough framework for comprehending employee motivation from both Western and Islamic ethical viewpoints, McClelland’s theory and Maqasid Shariah are integrated. This paper has conceptualized the integration of Maqasid Shariah’s five requirements with McClelland’s need theory. It is suggested that Maqasid Shariah and McClelland’s need theory be combined to understand employee motivation. For employees, the integration of McClelland’s need theory and Maqasid Shariah entails developing a work environment that attends to their many needs, is consistent with Islamic principles, encourages justice and equity, supports both professional and personal development and promotes social responsibility. By combining McClelland’s need theory and Maqasid Shariah, 15 propositions are developed to explain employee motivation. The study offers a measurement index to explain employee motivation based on the two theories. The integration of McClelland’s theory of need and Maqasid Shariah offers expected positive implications. By considering the cultural and religious context in Islamic societies, researchers can adopt a more sensitive approach to studying motivation. This blend provides a holistic understanding of motivation, incorporating individual needs and broader ethical dimensions. Studies may explore the impact on prosocial behavior, organizational values, leadership practices and employee well-being. Understanding the alignment between personal motives and ethical principles can benefit organizations in diverse workplaces, emphasizing long-term sustainability and fostering employee engagement and commitment. The integration of McClelland’s theory and Maqasid Shariah shows the potential implications to increase employee motivation. This study contributes significantly to Maqasid Shariah theory in business research by guiding ethical decision-making aligned with Islamic values, fostering inclusive workplaces and offering strategies for boosting employee morale. It emphasizes ethical practices, legal compliance and community engagement, while also encouraging sustainable business models that consider societal well-being and the environment. This paper provides its unique value by being among the first to integrate McClelland’s theory and Maqasid Shariah and providing an innovative approach in developing a new measurement index in the context of employee motivation.Developing employee motivation index: McClelland and Maqasid Shariah
Hamdy Abdullah, Fahru Azwa Md Zain, Sheikh Ahmad Faiz Sheikh Ahmad Tajuddin, Nik Hazimi Mohammed Foziah, Muhammad Shahrul Ifwat Ishak
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Many scholars have primarily disregarded employee motivation in the context of Western and Islamic ideas. To better understand employee motivation, this paper aims to explore a novel approach of fusing McClelland’s needs theory (i.e. achievement, power and affiliation) with Maqasid Shariah.

This study adopts a theoretical research design. There will be a thorough literature study of McClelland’s theory, Maqasid Shariah, and employee motivation. Qualitative content analysis is used to examine and compile pertinent ideas. To give a thorough framework for comprehending employee motivation from both Western and Islamic ethical viewpoints, McClelland’s theory and Maqasid Shariah are integrated.

This paper has conceptualized the integration of Maqasid Shariah’s five requirements with McClelland’s need theory. It is suggested that Maqasid Shariah and McClelland’s need theory be combined to understand employee motivation. For employees, the integration of McClelland’s need theory and Maqasid Shariah entails developing a work environment that attends to their many needs, is consistent with Islamic principles, encourages justice and equity, supports both professional and personal development and promotes social responsibility. By combining McClelland’s need theory and Maqasid Shariah, 15 propositions are developed to explain employee motivation. The study offers a measurement index to explain employee motivation based on the two theories.

The integration of McClelland’s theory of need and Maqasid Shariah offers expected positive implications. By considering the cultural and religious context in Islamic societies, researchers can adopt a more sensitive approach to studying motivation. This blend provides a holistic understanding of motivation, incorporating individual needs and broader ethical dimensions. Studies may explore the impact on prosocial behavior, organizational values, leadership practices and employee well-being. Understanding the alignment between personal motives and ethical principles can benefit organizations in diverse workplaces, emphasizing long-term sustainability and fostering employee engagement and commitment.

The integration of McClelland’s theory and Maqasid Shariah shows the potential implications to increase employee motivation. This study contributes significantly to Maqasid Shariah theory in business research by guiding ethical decision-making aligned with Islamic values, fostering inclusive workplaces and offering strategies for boosting employee morale. It emphasizes ethical practices, legal compliance and community engagement, while also encouraging sustainable business models that consider societal well-being and the environment.

This paper provides its unique value by being among the first to integrate McClelland’s theory and Maqasid Shariah and providing an innovative approach in developing a new measurement index in the context of employee motivation.

]]>
Developing employee motivation index: McClelland and Maqasid Shariah10.1108/JIABR-07-2023-0235Journal of Islamic Accounting and Business Research2023-12-06© 2023 Emerald Publishing LimitedHamdy AbdullahFahru Azwa Md ZainSheikh Ahmad Faiz Sheikh Ahmad TajuddinNik Hazimi Mohammed FoziahMuhammad Shahrul Ifwat IshakJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-0610.1108/JIABR-07-2023-0235https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2023-0235/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Responding to Islamic finance anomalies in Indonesia: Sharia financial literacy using virtual reality contexthttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0195/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to investigate the process by which the level of immersion in virtual reality-based behavioral simulation (VR-BS) impacts on the non-cognitive and cognitive outcomes. The cognitive outcome is measured using the increase in the level of Sharia financial literacy, while the noncognitive outcome is measured using the behavioral intention to use VR-BS. The method consists of two parts: First, the development of VR-BS, in the context of sharia financial literacy, using the waterfall model. Second, testing the effectiveness of VR-BS using the theory of interactive media effects framework. The participants were 142 students from three secondary schools (two Islamic religious schools and one public school) in Yogyakarta and Central Java, Indonesia. Partial least squares structural equation modeling was used for testing the hypotheses. VR-BS creates a perceived coolness and vividness, which in turn has an impact on increasing the participants’ engagement. Also, the use of VR has an impact on natural mapping, which increases a user’s engagement through its perceived ease of use. As predicted, the user’s engagement affects VR’s behavior, mediated by the user’s attitude toward VR media. VR’s interactivity, however, does not impact on the cognitive aspect. The participants were not randomly selected, as the data were collected during the COVID-19 pandemic. As a result, the majority of the participants had never tried VR before this study. The participants, however, were digital natives. It is implied from the findings that Islamic financial business actors and the relevant government agencies (e.g. the Indonesian Financial Services Authority [OJK], the Ministry of Education, Culture, Research and Technology and the Ministry of Religious Affairs) should collaborate to best prepare the future generation of ummah by using VR-BS in their joint promotion and education programs. The results of the current study reveal that the use of VR-BS may attract people to engage in Islamic financial activities. By engaging in such activities, or at least engaging in real-life simulations/classes/workshops, people may gradually acquire more knowledge about Islamic finance. As predicted, the user’s engagement has an impact on behavior toward VR-BS, which is mediated by attitude toward VR-BS.Responding to Islamic finance anomalies in Indonesia: Sharia financial literacy using virtual reality context
Ratna Candra Sari, Mahfud Sholihin, Fitra Roman Cahaya, Nurhening Yuniarti, Sariyatul Ilyana, Erna Fitriana
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to investigate the process by which the level of immersion in virtual reality-based behavioral simulation (VR-BS) impacts on the non-cognitive and cognitive outcomes. The cognitive outcome is measured using the increase in the level of Sharia financial literacy, while the noncognitive outcome is measured using the behavioral intention to use VR-BS.

The method consists of two parts: First, the development of VR-BS, in the context of sharia financial literacy, using the waterfall model. Second, testing the effectiveness of VR-BS using the theory of interactive media effects framework. The participants were 142 students from three secondary schools (two Islamic religious schools and one public school) in Yogyakarta and Central Java, Indonesia. Partial least squares structural equation modeling was used for testing the hypotheses.

VR-BS creates a perceived coolness and vividness, which in turn has an impact on increasing the participants’ engagement. Also, the use of VR has an impact on natural mapping, which increases a user’s engagement through its perceived ease of use. As predicted, the user’s engagement affects VR’s behavior, mediated by the user’s attitude toward VR media. VR’s interactivity, however, does not impact on the cognitive aspect.

The participants were not randomly selected, as the data were collected during the COVID-19 pandemic. As a result, the majority of the participants had never tried VR before this study. The participants, however, were digital natives.

It is implied from the findings that Islamic financial business actors and the relevant government agencies (e.g. the Indonesian Financial Services Authority [OJK], the Ministry of Education, Culture, Research and Technology and the Ministry of Religious Affairs) should collaborate to best prepare the future generation of ummah by using VR-BS in their joint promotion and education programs. The results of the current study reveal that the use of VR-BS may attract people to engage in Islamic financial activities. By engaging in such activities, or at least engaging in real-life simulations/classes/workshops, people may gradually acquire more knowledge about Islamic finance.

As predicted, the user’s engagement has an impact on behavior toward VR-BS, which is mediated by attitude toward VR-BS.

]]>
Responding to Islamic finance anomalies in Indonesia: Sharia financial literacy using virtual reality context10.1108/JIABR-08-2022-0195Journal of Islamic Accounting and Business Research2024-02-29© 2024 Emerald Publishing LimitedRatna Candra SariMahfud SholihinFitra Roman CahayaNurhening YuniartiSariyatul IlyanaErna FitrianaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-2910.1108/JIABR-08-2022-0195https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0195/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Long-run asymmetric effects of financial risks on Sukuk market development: empirical evidence from Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0200/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to empirically investigate the asymmetric effects of financial risk on Sukuk market development for a sample of Malaysian countries over the period of 2010–2021. This study refers to the International Country Risk Guide (ICRG) in determining the financial risk factors to be studied in addition to the Malaysia financial stress index (FSI) to capture changes in financial risk level. The authors use the nonlinear autoregressive distributed lag (NARDL) model to tackle the nonlinear relationships between identified financial risk variables and Sukuk market development. The results suggest the existence of a long-run relationship between foreign debt service stability, international liquidity stability (ILS), exchange rate stability (ERS) and financial stress level with the Sukuk market development in Malaysia. Indeed, higher ILS and ERS will boost Sukuk market size, whereas higher foreign debt services and financial stress are negatively related to Sukuk market development. Findings also indicate that the long-run positive and negative impacts of identified financial risk components on Sukuk market development are statistically different. Taking into account the role of the Sukuk market in facilitating Malaysia’s economic growth, the country should aim to keep the foreign debt-to-GDP ratio at a sustainable level. This study points to three possible directions for future research. The first is the differential impact of financial risk components on Sukuk issuance for different Sukuk structures. As more data becomes available in the future, this area could be further explored by conducting the above analysis for different combinations of Sukuk structures and currency denominations. In addition, future researchers could also consider exploring the variability of financial risk impacts through comparative studies of the leading Sukuk-issuing countries to account for differences in regulatory frameworks and supporting infrastructure. This study provides valuable practical and policy implications for strengthening the growth of the Sukuk market. While benefiting from the diversification benefits of funding sources to finance private or government projects and developments, Malaysia should remain vigilant to global economic conditions, foreign exchange markets and financial stress levels, as all of these factors may significantly influence investor sentiment and the rate of return offered by Sukuk issuance. The use of the NARDL approach, which investigates the long-run effects of financial risk factors on Sukuk market development in Malaysia, makes this study a valuable addition to the literature, as there has been little research into the asymmetric effects of those variables on Sukuk market development using samples from emerging Asian markets.Long-run asymmetric effects of financial risks on Sukuk market development: empirical evidence from Malaysia
Siti Nurhidayah Mohd Roslen, Mei-Shan Chua, Rafiatul Adlin Hj Mohd Ruslan
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to empirically investigate the asymmetric effects of financial risk on Sukuk market development for a sample of Malaysian countries over the period of 2010–2021.

This study refers to the International Country Risk Guide (ICRG) in determining the financial risk factors to be studied in addition to the Malaysia financial stress index (FSI) to capture changes in financial risk level. The authors use the nonlinear autoregressive distributed lag (NARDL) model to tackle the nonlinear relationships between identified financial risk variables and Sukuk market development.

The results suggest the existence of a long-run relationship between foreign debt service stability, international liquidity stability (ILS), exchange rate stability (ERS) and financial stress level with the Sukuk market development in Malaysia. Indeed, higher ILS and ERS will boost Sukuk market size, whereas higher foreign debt services and financial stress are negatively related to Sukuk market development. Findings also indicate that the long-run positive and negative impacts of identified financial risk components on Sukuk market development are statistically different. Taking into account the role of the Sukuk market in facilitating Malaysia’s economic growth, the country should aim to keep the foreign debt-to-GDP ratio at a sustainable level.

This study points to three possible directions for future research. The first is the differential impact of financial risk components on Sukuk issuance for different Sukuk structures. As more data becomes available in the future, this area could be further explored by conducting the above analysis for different combinations of Sukuk structures and currency denominations. In addition, future researchers could also consider exploring the variability of financial risk impacts through comparative studies of the leading Sukuk-issuing countries to account for differences in regulatory frameworks and supporting infrastructure.

This study provides valuable practical and policy implications for strengthening the growth of the Sukuk market. While benefiting from the diversification benefits of funding sources to finance private or government projects and developments, Malaysia should remain vigilant to global economic conditions, foreign exchange markets and financial stress levels, as all of these factors may significantly influence investor sentiment and the rate of return offered by Sukuk issuance.

The use of the NARDL approach, which investigates the long-run effects of financial risk factors on Sukuk market development in Malaysia, makes this study a valuable addition to the literature, as there has been little research into the asymmetric effects of those variables on Sukuk market development using samples from emerging Asian markets.

]]>
Long-run asymmetric effects of financial risks on Sukuk market development: empirical evidence from Malaysia10.1108/JIABR-08-2022-0200Journal of Islamic Accounting and Business Research2024-01-09© 2023 Emerald Publishing LimitedSiti Nurhidayah Mohd RoslenMei-Shan ChuaRafiatul Adlin Hj Mohd RuslanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-01-0910.1108/JIABR-08-2022-0200https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0200/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Over a decade of maqashid sharia studies: a bibliometric analysis and direction for future researchhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0207/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to build a relationship between the quantitative and structural indicators of maqashid sharia studies produced from bibliometric analysis and the conceptual discussion developed through a thorough review of selected key literature. The study uses bibliometric analysis, collecting information drawn from 219 articles published in 68 journals during the period of 2006–2022. This study uses VOSviewer, RStudio, Microsoft Excel, and an examination of research time periods using the Scopus database to illustrate the citation analysis and keyword map. It is also strengthened by content analysis of selected studies. The main research theme found in this study is the application of maqashid sharia in Islamic banks, with Islamic banks and Islamic finance among the most frequently used keywords. Meanwhile, the geographical spread of maqashid sharia research has reflected its universal acceptance, as it has spread across both Muslim-dominant and non-Muslim-dominant countries. Besides, maqashid sharia is found to be an extremely important subject for ensuring the ethical dimension of Islamic finance products and services, a more inclusive human development index, and contributing to the international agenda of Sustainable Development Goals. Lastly, future research is expected to broaden it into a multi-dimensional horizon, with several recommendations offered to enrich the understanding of maqashid sharia. The findings of this study can be beneficial to multiple stakeholders in Islamic finance industry, including the management of Islamic banks, who can enhance the values of maqashid sharia in designing their products/services, and the regulators, who can formulate regulatory frameworks which are reflective of maqashid sharia principles. This study will assist future scholars in this field to formulate and design exciting research ideas and models to address the deficiencies found in the current implementation of maqashid sharia within Islamic finance industry. The primary contribution of this study is to provide comprehensive review and discussion of selected significant literature on maqashid sharia and give direction for future research. In addition, this study also extends and incorporates the results of bibliometrics using the recent maqashid sharia studies published at the end of 2022.Over a decade of maqashid sharia studies: a bibliometric analysis and direction for future research
Yunice Karina Tumewang, Herlina Rahmawati Dewi, Hanudin Amin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to build a relationship between the quantitative and structural indicators of maqashid sharia studies produced from bibliometric analysis and the conceptual discussion developed through a thorough review of selected key literature.

The study uses bibliometric analysis, collecting information drawn from 219 articles published in 68 journals during the period of 2006–2022. This study uses VOSviewer, RStudio, Microsoft Excel, and an examination of research time periods using the Scopus database to illustrate the citation analysis and keyword map. It is also strengthened by content analysis of selected studies.

The main research theme found in this study is the application of maqashid sharia in Islamic banks, with Islamic banks and Islamic finance among the most frequently used keywords. Meanwhile, the geographical spread of maqashid sharia research has reflected its universal acceptance, as it has spread across both Muslim-dominant and non-Muslim-dominant countries. Besides, maqashid sharia is found to be an extremely important subject for ensuring the ethical dimension of Islamic finance products and services, a more inclusive human development index, and contributing to the international agenda of Sustainable Development Goals. Lastly, future research is expected to broaden it into a multi-dimensional horizon, with several recommendations offered to enrich the understanding of maqashid sharia.

The findings of this study can be beneficial to multiple stakeholders in Islamic finance industry, including the management of Islamic banks, who can enhance the values of maqashid sharia in designing their products/services, and the regulators, who can formulate regulatory frameworks which are reflective of maqashid sharia principles.

This study will assist future scholars in this field to formulate and design exciting research ideas and models to address the deficiencies found in the current implementation of maqashid sharia within Islamic finance industry.

The primary contribution of this study is to provide comprehensive review and discussion of selected significant literature on maqashid sharia and give direction for future research. In addition, this study also extends and incorporates the results of bibliometrics using the recent maqashid sharia studies published at the end of 2022.

]]>
Over a decade of maqashid sharia studies: a bibliometric analysis and direction for future research10.1108/JIABR-08-2022-0207Journal of Islamic Accounting and Business Research2023-07-20© 2023 Emerald Publishing LimitedYunice Karina TumewangHerlina Rahmawati DewiHanudin AminJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-07-2010.1108/JIABR-08-2022-0207https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0207/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Fast, fresh, healthy and halal: a mobile food app recipe for Muslim millennial loyaltyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0210/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to apprise mobile loyalty to halal food purchasing, including food quality, mobile quality, perceived value and satisfaction as its causes, and analyze the halal trust and health risk moderating role on the connections between mobile loyalty and its determinants. A total of 307 responses from millennial Muslims were collected from the Bandung region of Indonesia via an online survey. Partial least squares modeling was applied to review the proposed mobile loyalty model. This research found that the mobile loyalty model integrating halal food quality, mobile service quality, perceived value and satisfaction has satisfactory goodness of fit. The research confirms the function of mobile service quality but not halal food quality as drivers of mobile loyalty. Next, this study suggests that halal trust and health risks do not moderate the association between mobile loyalty and its determinants. This study recommends that managers devote resources to upgrading the quality of their mobile apps to build loyalty. Offering high-quality halal food is also an important driver of millennial Muslim satisfaction. To the best of the authors’ knowledge, this research is the first to investigate mobile loyalty in halal food.Fast, fresh, healthy and halal: a mobile food app recipe for Muslim millennial loyalty
Dwi Suhartanto, David Dean, Hanudin Amin, Aceng Gima Sugiama, Fatya Alty Amalia
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to apprise mobile loyalty to halal food purchasing, including food quality, mobile quality, perceived value and satisfaction as its causes, and analyze the halal trust and health risk moderating role on the connections between mobile loyalty and its determinants.

A total of 307 responses from millennial Muslims were collected from the Bandung region of Indonesia via an online survey. Partial least squares modeling was applied to review the proposed mobile loyalty model.

This research found that the mobile loyalty model integrating halal food quality, mobile service quality, perceived value and satisfaction has satisfactory goodness of fit. The research confirms the function of mobile service quality but not halal food quality as drivers of mobile loyalty. Next, this study suggests that halal trust and health risks do not moderate the association between mobile loyalty and its determinants.

This study recommends that managers devote resources to upgrading the quality of their mobile apps to build loyalty. Offering high-quality halal food is also an important driver of millennial Muslim satisfaction.

To the best of the authors’ knowledge, this research is the first to investigate mobile loyalty in halal food.

]]>
Fast, fresh, healthy and halal: a mobile food app recipe for Muslim millennial loyalty10.1108/JIABR-08-2022-0210Journal of Islamic Accounting and Business Research2024-01-11© 2023 Emerald Publishing LimitedDwi SuhartantoDavid DeanHanudin AminAceng Gima SugiamaFatya Alty AmaliaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-01-1110.1108/JIABR-08-2022-0210https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0210/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Do actively managed equity funds add value in developing economies? – The case of ‘inverse Gruber puzzle’ in Pakistanhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0211/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper evaluates the performance of actively managed conventional and Islamic equity funds in a developing economy with a focus to assess the performance-growth puzzle posited by Gruber (1993) (a.k.a Gruber’s puzzle). Under the context of an emerging market of Pakistan, this study explores if actively managed equity fund (AMEF) managers have been able to add value by outperforming the market in terms of stock-selection and market-timing abilities; and the comparative performance analysis of Islamic versus conventional AMEFs is also carried out. We employ Sharpe and Treynor ratios, Capital asset pricing model, Fama–French three factors model (1993), Carhart four-factor model (1997) and Hendrickson (1981) market timing models on 45 equity funds comprising of 23 conventional and 22 Islamic equity funds operating in Pakistan for a period of 10 years. The overall sample period (2008–2018) is divided into two 5 years sub-periods (i.e. 2009–2013 and 2014–2018) and three 3 years sub-periods (2009–2011, 2012–2014 and 2015–2017) to be viewed in conjunction with the country's macro-economic condition. We report that the actively managed equity funds (AMEFs) were unable to beat the market index with their stock selection or market timing capabilities. However, AMEFs depicted improved performance in the post-global financial crisis period where both conventional and Islamic AMEFs generated substantial rewards for the given amount of risk. Also, conventional AMEFs outperformed Islamic AMEFs potentially due to their holdings in highly leveraged value and large-cap stocks, while Islamic AMEFS invest more cautiously in small-cap and value firms. Analysis of market timing skills revealed that the funds have not been able to select the undervalued stocks and adopted a defensive strategy in the post-global financial crisis recovery period. Our findings shed some interesting insights and raise some pertinent questions for research, policy, and practice – specifically for developing countries’ context. The no ‘return-growth’ configuration defies its fit with the ‘Gruber puzzle’ and somewhat presents a case of what we call the ‘Inverse Grubber puzzle’. This novel notion of the ‘Inverse Grubber puzzle’ should inform policy and practice to reflect on their practices, institutional arrangement, regulatory framework and policy design in developing economies characterized by lacklustre performance and growth of AMEFs. For example, the regulatory design may consider focusing on stimulating financial inclusion and deepening by motivating low-cost Index tracker funds (ITFs) – with lower fund management costs, while allocating the avoided cost to flow towards effective marketing campaigns driving greater awareness, financial deepening, and investor base diversification. For future research, financial development researchers may explore the implications and appropriateness of AMEFs versus ITFs in other developing economies. The work reported in this paper is original and constitutes a valuable asset for ethno-religious-sensitive investors. The research has not been published in any capacity and is not under consideration for publication elsewhere.Do actively managed equity funds add value in developing economies? – The case of ‘inverse Gruber puzzle’ in Pakistan
Muhammad Arsalan Aqeeq, Sumaira Chamadia
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper evaluates the performance of actively managed conventional and Islamic equity funds in a developing economy with a focus to assess the performance-growth puzzle posited by Gruber (1993) (a.k.a Gruber’s puzzle). Under the context of an emerging market of Pakistan, this study explores if actively managed equity fund (AMEF) managers have been able to add value by outperforming the market in terms of stock-selection and market-timing abilities; and the comparative performance analysis of Islamic versus conventional AMEFs is also carried out.

We employ Sharpe and Treynor ratios, Capital asset pricing model, Fama–French three factors model (1993), Carhart four-factor model (1997) and Hendrickson (1981) market timing models on 45 equity funds comprising of 23 conventional and 22 Islamic equity funds operating in Pakistan for a period of 10 years. The overall sample period (2008–2018) is divided into two 5 years sub-periods (i.e. 2009–2013 and 2014–2018) and three 3 years sub-periods (2009–2011, 2012–2014 and 2015–2017) to be viewed in conjunction with the country's macro-economic condition.

We report that the actively managed equity funds (AMEFs) were unable to beat the market index with their stock selection or market timing capabilities. However, AMEFs depicted improved performance in the post-global financial crisis period where both conventional and Islamic AMEFs generated substantial rewards for the given amount of risk. Also, conventional AMEFs outperformed Islamic AMEFs potentially due to their holdings in highly leveraged value and large-cap stocks, while Islamic AMEFS invest more cautiously in small-cap and value firms. Analysis of market timing skills revealed that the funds have not been able to select the undervalued stocks and adopted a defensive strategy in the post-global financial crisis recovery period.

Our findings shed some interesting insights and raise some pertinent questions for research, policy, and practice – specifically for developing countries’ context. The no ‘return-growth’ configuration defies its fit with the ‘Gruber puzzle’ and somewhat presents a case of what we call the ‘Inverse Grubber puzzle’. This novel notion of the ‘Inverse Grubber puzzle’ should inform policy and practice to reflect on their practices, institutional arrangement, regulatory framework and policy design in developing economies characterized by lacklustre performance and growth of AMEFs. For example, the regulatory design may consider focusing on stimulating financial inclusion and deepening by motivating low-cost Index tracker funds (ITFs) – with lower fund management costs, while allocating the avoided cost to flow towards effective marketing campaigns driving greater awareness, financial deepening, and investor base diversification. For future research, financial development researchers may explore the implications and appropriateness of AMEFs versus ITFs in other developing economies.

The work reported in this paper is original and constitutes a valuable asset for ethno-religious-sensitive investors. The research has not been published in any capacity and is not under consideration for publication elsewhere.

]]>
Do actively managed equity funds add value in developing economies? – The case of ‘inverse Gruber puzzle’ in Pakistan10.1108/JIABR-08-2022-0211Journal of Islamic Accounting and Business Research2023-06-15© 2023 Emerald Publishing LimitedMuhammad Arsalan AqeeqSumaira ChamadiaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-1510.1108/JIABR-08-2022-0211https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0211/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The impact of banks’ capital buffer on equity return: evidence from Islamic and conventional banks of GCC countrieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0218/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the impact of bank’s capital buffer on return on equity (ROE) in the context of Islamic and conventional banks in GCC countries. The authors collect data from 83 commercial banks comprising of 49 conventional banks and 34 Islamic banks for the period 2010–2019. The final data set comprises of 744 bank-year observations. The authors apply generalized methods of moments estimation technique and panel least square to analyze the data. The authors document that Tier-1 capital, total regulatory capital (TRC) and equity to asset ratio (EAR) negatively affect banks’ ROE. However, the impact disappears for conventional banks and sustains for Islamic banks if these two clusters of banks are treated separately. Furthermore, the negative impact of equity capital on earning is more pronounced for large and listed commercial banks. Findings of this research imply that Islamic banks in GCC countries has scope to manage equity capital more efficiently. Hence, they should concentrate on using banks equity wisely to successfully compete with the conventional banks. Since the global financial crisis of 2009, Islamic banks of GCC countries have been reporting lower ROE compared to their conventional counterparts. On the other hand, Islamic banks maintain higher level of Tier-1 capital, TRC and EAR. This evidence hypothetically suggests that Islamic banks are overly cautious in managing their capital buffer that results in lower ROE. To the best of the author’s/authors’ knowledge, no other study in the literature tests this hypothesis in the GCC context.The impact of banks’ capital buffer on equity return: evidence from Islamic and conventional banks of GCC countries
Mohammad Omar Farooq, Mohammad Dulal Miah, Md Nurul Kabir, M. Kabir Hassan
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the impact of bank’s capital buffer on return on equity (ROE) in the context of Islamic and conventional banks in GCC countries.

The authors collect data from 83 commercial banks comprising of 49 conventional banks and 34 Islamic banks for the period 2010–2019. The final data set comprises of 744 bank-year observations. The authors apply generalized methods of moments estimation technique and panel least square to analyze the data.

The authors document that Tier-1 capital, total regulatory capital (TRC) and equity to asset ratio (EAR) negatively affect banks’ ROE. However, the impact disappears for conventional banks and sustains for Islamic banks if these two clusters of banks are treated separately. Furthermore, the negative impact of equity capital on earning is more pronounced for large and listed commercial banks.

Findings of this research imply that Islamic banks in GCC countries has scope to manage equity capital more efficiently. Hence, they should concentrate on using banks equity wisely to successfully compete with the conventional banks.

Since the global financial crisis of 2009, Islamic banks of GCC countries have been reporting lower ROE compared to their conventional counterparts. On the other hand, Islamic banks maintain higher level of Tier-1 capital, TRC and EAR. This evidence hypothetically suggests that Islamic banks are overly cautious in managing their capital buffer that results in lower ROE. To the best of the author’s/authors’ knowledge, no other study in the literature tests this hypothesis in the GCC context.

]]>
The impact of banks’ capital buffer on equity return: evidence from Islamic and conventional banks of GCC countries10.1108/JIABR-08-2022-0218Journal of Islamic Accounting and Business Research2023-08-22© 2023 Emerald Publishing LimitedMohammad Omar FarooqMohammad Dulal MiahMd Nurul KabirM. Kabir HassanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-2210.1108/JIABR-08-2022-0218https://www.emerald.com/insight/content/doi/10.1108/JIABR-08-2022-0218/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Critical perspective on public deficits: contrasting conventional and Islamic viewshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2021-0245/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the public deficit issue by contrasting conventional and Islamic views encompassing the paradigm, technical base, orientation and consequence detailed in nine discussions, which are rarely investigated in the research. There is a predisposition that contemporary Muslim scholars discuss the public deficit as well as the private sector perspective, which is used in the conventional conception, without riba as a primary feature. The paper develops a comparative approach that derives two perspectives from the available literature using the qualitative method under the critical thinking method. It was drawn up in detail on how the paradigm and its related budgeting process contribute to public deficits, mainly in government institutions. The paper reveals a prominent difference in public deficit in the Islamic view from a conventional perspective. From 9 points of comparison, the analysis covers 18 discussion that differentiates between private and public area criticism seems to overlap. The foundation giving a unique perspective in Islam toward public deficit is the concept of ownership that differs from capitalism, mainly the function of public spending is to distribute the wealth among people not for economic growth. The Islamic Government spent for public purposes based on cash-basis budgeting. The budgeting system in Islamic public spending is founded on treasure availability. The paper uses a qualitative method that cannot empirically snapshot the actual or factual condition, in which subjectivity plays a plausible role. Furthermore, there is no actual sample (best practices) of the concept to be examined. The research encompasses overlap between Islamic and conventional perspectives, including public and private issues regarding public deficits. The main beneficiary of the paper is a policymaker, including academicians or practitioners who are appropriate to use the concept in their circumstances. The study is a pioneering study in public deficit comprehensively comparing conventional and Islamic perspectives and drawing up conceptual and technical aspects.Critical perspective on public deficits: contrasting conventional and Islamic views
Ihda Arifin Faiz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the public deficit issue by contrasting conventional and Islamic views encompassing the paradigm, technical base, orientation and consequence detailed in nine discussions, which are rarely investigated in the research. There is a predisposition that contemporary Muslim scholars discuss the public deficit as well as the private sector perspective, which is used in the conventional conception, without riba as a primary feature.

The paper develops a comparative approach that derives two perspectives from the available literature using the qualitative method under the critical thinking method. It was drawn up in detail on how the paradigm and its related budgeting process contribute to public deficits, mainly in government institutions.

The paper reveals a prominent difference in public deficit in the Islamic view from a conventional perspective. From 9 points of comparison, the analysis covers 18 discussion that differentiates between private and public area criticism seems to overlap. The foundation giving a unique perspective in Islam toward public deficit is the concept of ownership that differs from capitalism, mainly the function of public spending is to distribute the wealth among people not for economic growth. The Islamic Government spent for public purposes based on cash-basis budgeting. The budgeting system in Islamic public spending is founded on treasure availability.

The paper uses a qualitative method that cannot empirically snapshot the actual or factual condition, in which subjectivity plays a plausible role. Furthermore, there is no actual sample (best practices) of the concept to be examined.

The research encompasses overlap between Islamic and conventional perspectives, including public and private issues regarding public deficits. The main beneficiary of the paper is a policymaker, including academicians or practitioners who are appropriate to use the concept in their circumstances.

The study is a pioneering study in public deficit comprehensively comparing conventional and Islamic perspectives and drawing up conceptual and technical aspects.

]]>
Critical perspective on public deficits: contrasting conventional and Islamic views10.1108/JIABR-09-2021-0245Journal of Islamic Accounting and Business Research2023-06-28© 2023 Emerald Publishing LimitedIhda Arifin FaizJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-2810.1108/JIABR-09-2021-0245https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2021-0245/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Alternative model of Islamic deposit insurance for the Islamic banking systemhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0231/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to develop a novel approach to Islamic deposit insurance, specifically addressing the deficiencies in the current prevailing models of Islamic deposit insurance. The analysis in this paper adopts a qualitative content analysis approach to review the existing literature on Islamic deposit insurance and propose a new model. The proposed model includes a revised scheme. In the event of a bank failure, the funds used to reimburse depositors of the failed bank are divided into two distinct categories. The first category includes nonrepayable premiums that have been previously paid by the failed bank and managed by the Islamic deposit insurance agency or Islamic deposit insurance corporation. The second category comprises qard hasan, an interest-free loan provided by the Islamic deposit insurance agency or Islamic deposit insurance corporation using the deposit insurance funds from the collective pool of premiums of other banks. The proposed model ensures that well-managed banks are not unfairly burdened by the failures of their poorly managed counterparts, thus preventing a sense of unfairness and inefficiency. Implementing the proposed model may result in higher business practices and risk management standards, ultimately leading to better depositors’ protection and banking system’s stability. This paper offers a significant contribution to the limited literature on Islamic deposit insurance. The proposed model enriches the discourse and offers valuable insights for the future development of Islamic banking.Alternative model of Islamic deposit insurance for the Islamic banking system
Burhanuddin Susamto, Akhmad Akbar Susamto
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to develop a novel approach to Islamic deposit insurance, specifically addressing the deficiencies in the current prevailing models of Islamic deposit insurance.

The analysis in this paper adopts a qualitative content analysis approach to review the existing literature on Islamic deposit insurance and propose a new model.

The proposed model includes a revised scheme. In the event of a bank failure, the funds used to reimburse depositors of the failed bank are divided into two distinct categories. The first category includes nonrepayable premiums that have been previously paid by the failed bank and managed by the Islamic deposit insurance agency or Islamic deposit insurance corporation. The second category comprises qard hasan, an interest-free loan provided by the Islamic deposit insurance agency or Islamic deposit insurance corporation using the deposit insurance funds from the collective pool of premiums of other banks.

The proposed model ensures that well-managed banks are not unfairly burdened by the failures of their poorly managed counterparts, thus preventing a sense of unfairness and inefficiency. Implementing the proposed model may result in higher business practices and risk management standards, ultimately leading to better depositors’ protection and banking system’s stability.

This paper offers a significant contribution to the limited literature on Islamic deposit insurance. The proposed model enriches the discourse and offers valuable insights for the future development of Islamic banking.

]]>
Alternative model of Islamic deposit insurance for the Islamic banking system10.1108/JIABR-09-2022-0231Journal of Islamic Accounting and Business Research2024-02-27© 2024 Emerald Publishing LimitedBurhanuddin SusamtoAkhmad Akbar SusamtoJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-2710.1108/JIABR-09-2022-0231https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0231/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Islamic versus conventional financial market: a meta-literature review of spillover effectshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0233/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study comprehensively aims to review the key influential and intellectual aspects of spillovers between Islamic and conventional financial markets. The study uses the bibliometric and content analysis methods using the VOSviewer software to analyse 52 academic documents derived from the Web of Sciences (WoS) between 2015 and June 2022. The results demonstrate the influential aspects of spillovers between Islamic and conventional financial markets, including the leading authors, journals, countries and institutions and the intellectual aspects of literature. These aspects are synthesised into four main streams: research between stock indexes; studies between stock indexes, oil and precious metal; works between Sukuk, bond and indexes; and empirical studies review. The authors also propose future research directions in spillovers between Islamic and conventional financial markets. Our study is subject to several limitations. Firstly, the authors only used the WoS database. Secondly, the study only includes papers and reviews written in English from the WoS. This study assists academic scholars, practitioners and regulatory bodies in further exploring the suggested issues in future studies and improving and predicting economic and financial stability. To the best of the authors’ knowledge, no extant empirical studies have been conducted in this area of research interest.Islamic versus conventional financial market: a meta-literature review of spillover effects
Siong Min Foo, Nazrul Hisyam Ab Razak, Fakarudin Kamarudin, Noor Azlinna Binti Azizan, Nadisah Zakaria
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study comprehensively aims to review the key influential and intellectual aspects of spillovers between Islamic and conventional financial markets.

The study uses the bibliometric and content analysis methods using the VOSviewer software to analyse 52 academic documents derived from the Web of Sciences (WoS) between 2015 and June 2022.

The results demonstrate the influential aspects of spillovers between Islamic and conventional financial markets, including the leading authors, journals, countries and institutions and the intellectual aspects of literature. These aspects are synthesised into four main streams: research between stock indexes; studies between stock indexes, oil and precious metal; works between Sukuk, bond and indexes; and empirical studies review. The authors also propose future research directions in spillovers between Islamic and conventional financial markets.

Our study is subject to several limitations. Firstly, the authors only used the WoS database. Secondly, the study only includes papers and reviews written in English from the WoS. This study assists academic scholars, practitioners and regulatory bodies in further exploring the suggested issues in future studies and improving and predicting economic and financial stability.

To the best of the authors’ knowledge, no extant empirical studies have been conducted in this area of research interest.

]]>
Islamic versus conventional financial market: a meta-literature review of spillover effects10.1108/JIABR-09-2022-0233Journal of Islamic Accounting and Business Research2023-10-31© 2023 Emerald Publishing LimitedSiong Min FooNazrul Hisyam Ab RazakFakarudin KamarudinNoor Azlinna Binti AzizanNadisah ZakariaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-3110.1108/JIABR-09-2022-0233https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0233/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Bank diversification, stability and oil price in MENA regionhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0234/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to empirically investigate the impact of oil prices, political instability and changes in stability on the bank diversification of the two types of banking systems in the Middle East and North African (MENA) countries. The study uses bank diversification, stability measurement of probability of default and Zscore by adopting the generalised method of moment for the data between 2007 and 2021. The authors estimate short- and long-run dynamic panel analysis and a robustness test. The findings reveal that Islamic banks are slightly lower in diversification and stability than conventional peers in the region. Diversification increases with a positive increase in GDP growth, law and order, political stability, bank size, asset quality, oil price, return on equity, profitability and change in banking asset-based stability. The authors found consistency in the two stability measurements in both short- and long-run situations. Despite the change in banking stability and economic growth and oil prices improved diversification, banks in the region are not diversifying during the crisis period and political instability. Therefore, policymakers should improve mechanisms to monitor the crisis and political unrest to avoid the systemic risk that adversely affects the system through macro-financial linkages in the region. This study uses change dual stability measurements and oil prices to predict MENA region bank diversification. The authors extended the banking literature by estimating the relationship between crisis periods, political and banking stability, oil prices and other institutional indicators of banking diversification. This study uncovers the effect of the global crisis period on banking diversification and the impact of banking stability changes and validates the models through robustness tests.Bank diversification, stability and oil price in MENA region
Sirajo Aliyu, Ahmed Rufa′i Mohammad, Norazlina Abd. Wahab
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to empirically investigate the impact of oil prices, political instability and changes in stability on the bank diversification of the two types of banking systems in the Middle East and North African (MENA) countries.

The study uses bank diversification, stability measurement of probability of default and Zscore by adopting the generalised method of moment for the data between 2007 and 2021. The authors estimate short- and long-run dynamic panel analysis and a robustness test.

The findings reveal that Islamic banks are slightly lower in diversification and stability than conventional peers in the region. Diversification increases with a positive increase in GDP growth, law and order, political stability, bank size, asset quality, oil price, return on equity, profitability and change in banking asset-based stability. The authors found consistency in the two stability measurements in both short- and long-run situations.

Despite the change in banking stability and economic growth and oil prices improved diversification, banks in the region are not diversifying during the crisis period and political instability. Therefore, policymakers should improve mechanisms to monitor the crisis and political unrest to avoid the systemic risk that adversely affects the system through macro-financial linkages in the region.

This study uses change dual stability measurements and oil prices to predict MENA region bank diversification. The authors extended the banking literature by estimating the relationship between crisis periods, political and banking stability, oil prices and other institutional indicators of banking diversification. This study uncovers the effect of the global crisis period on banking diversification and the impact of banking stability changes and validates the models through robustness tests.

]]>
Bank diversification, stability and oil price in MENA region10.1108/JIABR-09-2022-0234Journal of Islamic Accounting and Business Research2023-11-28© 2023 Emerald Publishing LimitedSirajo AliyuAhmed Rufa′i MohammadNorazlina Abd. WahabJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2810.1108/JIABR-09-2022-0234https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0234/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
governance and takaful financial performance: the case of listed takaful insuranceshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0236/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine the Shariah governance mechanisms of takaful insurance and their impact on its financial performance. The effect of Shariah governance mechanisms on financial performance is analyzed over 2012–2018 on a sample of 11 takaful listed insurances in the Middle East region. Using multiple regression models, four hypotheses addressing Shariah governance mechanisms are tested. The findings generally reveal that Shariah governance has an impact on the financial performance of takaful insurance. The Shariah Supervisory Board (SSB) size, the members’ reputation and their qualifications are the main determinants of financial performance for listed takaful insurance. This paper includes two main limitations that may affect the accuracy of the finding. First, the results are restricted to the Middle East region and may not be generalized to other regions. Second, the sample is dominated by UAE, i.e. 4 takaful insurances out of 11. Both Shariah governance and regular governance have an impact on the financial performance of takaful insurance. Yet, the effect of Shariah governance is more robust. To improve its financial performance, takaful insurance should expand the size of the SSB, hiring reputable scholars and recruit doctors in Islamic economics. This research studies takaful insurance, unlike the majority of other works that have focused on Islamic banks. governance and takaful financial performance: the case of listed takaful insurances
Yosra Ridha BenSaid
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine the Shariah governance mechanisms of takaful insurance and their impact on its financial performance.

The effect of Shariah governance mechanisms on financial performance is analyzed over 2012–2018 on a sample of 11 takaful listed insurances in the Middle East region. Using multiple regression models, four hypotheses addressing Shariah governance mechanisms are tested.

The findings generally reveal that Shariah governance has an impact on the financial performance of takaful insurance. The Shariah Supervisory Board (SSB) size, the members’ reputation and their qualifications are the main determinants of financial performance for listed takaful insurance.

This paper includes two main limitations that may affect the accuracy of the finding. First, the results are restricted to the Middle East region and may not be generalized to other regions. Second, the sample is dominated by UAE, i.e. 4 takaful insurances out of 11.

Both Shariah governance and regular governance have an impact on the financial performance of takaful insurance. Yet, the effect of Shariah governance is more robust. To improve its financial performance, takaful insurance should expand the size of the SSB, hiring reputable scholars and recruit doctors in Islamic economics.

This research studies takaful insurance, unlike the majority of other works that have focused on Islamic banks.

]]>
governance and takaful financial performance: the case of listed takaful insurances10.1108/JIABR-09-2022-0236Journal of Islamic Accounting and Business Research2023-08-21© 2023 Emerald Publishing LimitedYosra Ridha BenSaidJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-2110.1108/JIABR-09-2022-0236https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0236/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Cryptocurrencies from Islamic perspectivehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0238/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to derive a compatible Shariah opinion on the permissibility of using cryptocurrencies by Muslims by reviewing the opinions expressed by Shariah scholars on the permissibility of cryptocurrencies. This is a qualitative desk review research where the opinions expressed by the Shariah scholars on the permissibility of cryptocurrencies and the issues related to it have been analyzed using the literature. All the Shariah parameters checked pertaining to currencies have been studied and assessed to derive the Shariah opinion. The research findings suggest that cryptocurrencies do not fully meet the characteristics of money according to Shariah principles. Scholars debate their classification as a medium of exchange due to concerns about volatility, intrinsic value and governance. The treatment of cryptocurrencies varies, and their decentralized nature prevents monopolization. Governance and resistance to manipulation are facilitated by blockchain technology. Classifying cryptocurrencies as hard money and their recognition as the primary unit of account face challenges. While they can be a store of value, price volatility and regulations must be considered. The network effect is crucial for their success, and their supply is controlled through complex protocols. These findings have implications for policymakers in Islamic finance. The differences in Shariah opinions on using cryptocurrencies have been a major debate in the Islamic financial industry. A clear and comprehensive study is not found on the differences in the Shariah opinions on their reasonings, which is important for researchers and professionals in the field. Therefore, this research provides valuable insights for policymakers, scholars and practitioners in Islamic finance, contributing to the understanding of applying Islamic principles to cryptocurrencies.Cryptocurrencies from Islamic perspective
M. Kabir Hassan, Aishath Muneeza, Ismail Mohamed
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to derive a compatible Shariah opinion on the permissibility of using cryptocurrencies by Muslims by reviewing the opinions expressed by Shariah scholars on the permissibility of cryptocurrencies.

This is a qualitative desk review research where the opinions expressed by the Shariah scholars on the permissibility of cryptocurrencies and the issues related to it have been analyzed using the literature. All the Shariah parameters checked pertaining to currencies have been studied and assessed to derive the Shariah opinion.

The research findings suggest that cryptocurrencies do not fully meet the characteristics of money according to Shariah principles. Scholars debate their classification as a medium of exchange due to concerns about volatility, intrinsic value and governance. The treatment of cryptocurrencies varies, and their decentralized nature prevents monopolization. Governance and resistance to manipulation are facilitated by blockchain technology. Classifying cryptocurrencies as hard money and their recognition as the primary unit of account face challenges. While they can be a store of value, price volatility and regulations must be considered. The network effect is crucial for their success, and their supply is controlled through complex protocols. These findings have implications for policymakers in Islamic finance.

The differences in Shariah opinions on using cryptocurrencies have been a major debate in the Islamic financial industry. A clear and comprehensive study is not found on the differences in the Shariah opinions on their reasonings, which is important for researchers and professionals in the field. Therefore, this research provides valuable insights for policymakers, scholars and practitioners in Islamic finance, contributing to the understanding of applying Islamic principles to cryptocurrencies.

]]>
Cryptocurrencies from Islamic perspective10.1108/JIABR-09-2022-0238Journal of Islamic Accounting and Business Research2023-09-13© 2023 Emerald Publishing LimitedM. Kabir HassanAishath MuneezaIsmail MohamedJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-1310.1108/JIABR-09-2022-0238https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0238/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Internal auditors’ independence under workplace bullying stress: an investigative studyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0239/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine the direct influence of workplace bullying (WB) on internal auditors’ independence using the nexus between the agency theory and social exchange theory. From the internal auditors’ perspective, the investigation covered both government and private colleges and universities in one of the Middle East countries. A survey was administered and delivered to internal auditors at each of the 85 educational institutions. A total of 267 valid questionnaires were analysed. The study’s measurement and structural models were tested and evaluated by using SmartPLS v.4 and partial least squares-structural equation modelling. The study results indicated that bullying is common among senior managers, and that it has a significant, negative, high-level and direct effect on the independence of internal auditors in the higher education sector. Regulators and other stakeholders should make a deliberate effort to promote positive behaviours and abandon negative ones regarding the independence of internal auditors and the performance of audit teams, which play a crucial role in enhancing the efficiency of audit units. For example, enhancing coordination and communication internally and externally. In addition to providing the internal auditors with equitable advancement and learning opportunities, senior management should also support their professional development. To the best of the author’s knowledge, this study is the first to examine the relationship between WB and the internal auditor’s independence in the context of government and private organisations in Southwest Asian countries.Internal auditors’ independence under workplace bullying stress: an investigative study
Alaa A.D. Taha
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine the direct influence of workplace bullying (WB) on internal auditors’ independence using the nexus between the agency theory and social exchange theory. From the internal auditors’ perspective, the investigation covered both government and private colleges and universities in one of the Middle East countries.

A survey was administered and delivered to internal auditors at each of the 85 educational institutions. A total of 267 valid questionnaires were analysed. The study’s measurement and structural models were tested and evaluated by using SmartPLS v.4 and partial least squares-structural equation modelling.

The study results indicated that bullying is common among senior managers, and that it has a significant, negative, high-level and direct effect on the independence of internal auditors in the higher education sector.

Regulators and other stakeholders should make a deliberate effort to promote positive behaviours and abandon negative ones regarding the independence of internal auditors and the performance of audit teams, which play a crucial role in enhancing the efficiency of audit units. For example, enhancing coordination and communication internally and externally. In addition to providing the internal auditors with equitable advancement and learning opportunities, senior management should also support their professional development.

To the best of the author’s knowledge, this study is the first to examine the relationship between WB and the internal auditor’s independence in the context of government and private organisations in Southwest Asian countries.

]]>
Internal auditors’ independence under workplace bullying stress: an investigative study10.1108/JIABR-09-2022-0239Journal of Islamic Accounting and Business Research2023-05-18© 2023 Emerald Publishing LimitedAlaa A.D. TahaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-1810.1108/JIABR-09-2022-0239https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0239/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Shariah-compliant firms and earnings management: do continuation and ethnicity matter?https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0245/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to revisit the relationship between Shariah-compliant firms and earnings management. Specifically, the authors examine whether Shariah-certified firms have lower earnings management than non-Shariah-certified firms and how often a firm must hold its certification to observe considerably reduced earnings management. This study also explores how senior management ethnic dualism affects the association of Shariah certification and earnings management. The authors analyze the hypothesized association between Shariah certification and earnings management using a panel regression model and several robustness tests, including the Heckman selection model. The sample consists of 547 nonfinancial firms listed on the Bursa Malaysia stock exchange, with 5,478 firm-year observations over the 2001–2016 sample period. Shariah certification is found to mitigate earnings management, particularly for firms that consistently retain their Shariah status. The longer firms retain their Shariah certification continually, the lower the earnings management. Additionally, the results indicate that the negative impact of Shariah certification on earnings management is driven by ethnic duality when a specific ethnic group dominates the top management. Firms’ commitment to religious-based screening and continuation of certification plays a significant role in improving earnings quality. Firms are committed to abiding by the Shariah code of conduct instead of using the Shariah status for reputation purposes to attract investors. For investors, the continuous compliance status is a crucial indicator of a firm’s commitment to comply with Shariah principles and to mitigate earnings management. Regarding policy implications, Shariah-compliance guidelines can constrain earnings manipulation, especially among firms lacking ethnic diversity. The study shows that Shariah certification must be maintained consecutively to reduce earnings management. Shariah certification’s governance function is crucial in ethnically homogeneous firms, primarily when one ethnic group dominates the senior management.Shariah-compliant firms and earnings management: do continuation and ethnicity matter?
Karren Lee-Hwei Khaw, Hamdan Amer Ali Al-Jaifi, Rozaimah Zainudin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to revisit the relationship between Shariah-compliant firms and earnings management. Specifically, the authors examine whether Shariah-certified firms have lower earnings management than non-Shariah-certified firms and how often a firm must hold its certification to observe considerably reduced earnings management. This study also explores how senior management ethnic dualism affects the association of Shariah certification and earnings management.

The authors analyze the hypothesized association between Shariah certification and earnings management using a panel regression model and several robustness tests, including the Heckman selection model. The sample consists of 547 nonfinancial firms listed on the Bursa Malaysia stock exchange, with 5,478 firm-year observations over the 2001–2016 sample period.

Shariah certification is found to mitigate earnings management, particularly for firms that consistently retain their Shariah status. The longer firms retain their Shariah certification continually, the lower the earnings management. Additionally, the results indicate that the negative impact of Shariah certification on earnings management is driven by ethnic duality when a specific ethnic group dominates the top management.

Firms’ commitment to religious-based screening and continuation of certification plays a significant role in improving earnings quality. Firms are committed to abiding by the Shariah code of conduct instead of using the Shariah status for reputation purposes to attract investors.

For investors, the continuous compliance status is a crucial indicator of a firm’s commitment to comply with Shariah principles and to mitigate earnings management. Regarding policy implications, Shariah-compliance guidelines can constrain earnings manipulation, especially among firms lacking ethnic diversity.

The study shows that Shariah certification must be maintained consecutively to reduce earnings management. Shariah certification’s governance function is crucial in ethnically homogeneous firms, primarily when one ethnic group dominates the senior management.

]]>
Shariah-compliant firms and earnings management: do continuation and ethnicity matter?10.1108/JIABR-09-2022-0245Journal of Islamic Accounting and Business Research2023-12-15© 2023 Emerald Publishing LimitedKarren Lee-Hwei KhawHamdan Amer Ali Al-JaifiRozaimah ZainudinJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-1510.1108/JIABR-09-2022-0245https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2022-0245/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Expanding financial inclusion participation in Muslim-dominated communities through Islamic finance products (IFP) adoptionhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2023-0308/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to expand the theory of planned behaviour (TPB) to understand determinants of financial inclusion participation behaviour through the mediating effect of Islamic finance product (IFP) adoption. A quantitative research design was deployed using primary data from a survey conducted within the Muslim-dominated regions in Nigeria, which was analysed using partial least squares structural equation modelling. It was found that the original TPB variables, attitude, subjective norms, perceived behavioural control (PBC) and behavioural intention have strong positive influences on financial inclusion participation behaviour, however, among the new variables, government support and IFPs adoption directly influence, while awareness and access to banking and digital channels were not. Furthermore, IFPs adoption significantly mediates the relationship between attitude, behavioural intention, government support and access to banking and digital channels and financial inclusion participation, but it failed to mediate that of subjective norms, PBC and awareness. These findings imply the need to establish more Islamic financial institutions or conventional banks to introduce IFPs in Muslim-dominated regions in Nigeria, as such products are desirable in expanding financial inclusion. While such is being pursued, policymaking bodies responsible for financial inclusion should design appropriate programmes to create awareness of IFPs for expanding financial inclusion. To the best of the authors’ knowledge, this study could be the first to expand the TPB by integrating IFP adoption as a mediator within the context of financial inclusion participation as well as the incorporation of awareness, government support and access to banking and digital channels as additional variables.Expanding financial inclusion participation in Muslim-dominated communities through Islamic finance products (IFP) adoption
Haruna Musa, Nor Hayati Binti Ahmad, Alias Mat Nor
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to expand the theory of planned behaviour (TPB) to understand determinants of financial inclusion participation behaviour through the mediating effect of Islamic finance product (IFP) adoption.

A quantitative research design was deployed using primary data from a survey conducted within the Muslim-dominated regions in Nigeria, which was analysed using partial least squares structural equation modelling.

It was found that the original TPB variables, attitude, subjective norms, perceived behavioural control (PBC) and behavioural intention have strong positive influences on financial inclusion participation behaviour, however, among the new variables, government support and IFPs adoption directly influence, while awareness and access to banking and digital channels were not. Furthermore, IFPs adoption significantly mediates the relationship between attitude, behavioural intention, government support and access to banking and digital channels and financial inclusion participation, but it failed to mediate that of subjective norms, PBC and awareness.

These findings imply the need to establish more Islamic financial institutions or conventional banks to introduce IFPs in Muslim-dominated regions in Nigeria, as such products are desirable in expanding financial inclusion. While such is being pursued, policymaking bodies responsible for financial inclusion should design appropriate programmes to create awareness of IFPs for expanding financial inclusion.

To the best of the authors’ knowledge, this study could be the first to expand the TPB by integrating IFP adoption as a mediator within the context of financial inclusion participation as well as the incorporation of awareness, government support and access to banking and digital channels as additional variables.

]]>
Expanding financial inclusion participation in Muslim-dominated communities through Islamic finance products (IFP) adoption10.1108/JIABR-09-2023-0308Journal of Islamic Accounting and Business Research2024-02-14© 2024 Emerald Publishing LimitedHaruna MusaNor Hayati Binti AhmadAlias Mat NorJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-1410.1108/JIABR-09-2023-0308https://www.emerald.com/insight/content/doi/10.1108/JIABR-09-2023-0308/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
A structured literature review on green sukuk (Islamic bonds): implications for government policy and future studieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0255/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestGreen sukuk (Islamic bonds) is one of Islamic financial instrument as an alternative financing source for supporting green finance projects in several sectors such as renewable energy or climate change problems. The aim of study is to present an understanding of the issues, explore the lesson for government policy and identify the potential for future studies directions. This study conducted a literature review on green sukuk or Islamic bonds based on eight journal databases. The authors have carried out a strict selection of journals that are only indexed by Scopus and are protected from predatory journals. This study has selected 7 of 118 published articles on green topics. This study has found that 50% of green sukuk research is dominated by a theoretical qualitative approach. While research that uses a quantitative or empirical approach is still below 30%, followed by using mixed methods. This study finds that research discusses green sukuk on Sustainable Development Goals (SDGs) or environmental issues, especially climate change, COVID-19 issues and green financial reporting. In addition, in the existing literature, this study found that green sukuk has main advantages instead of green bonds where green sukuk must comply with sharia principles, namely, being free from usury, interest and uncertainty. This study analyzes two important implications, namely, first, the implications of government policies regarding the potential for issuing green sukuk in supporting all programs on the agenda for the 2030 SDGs, especially controlling and preventing the adverse impacts of global climate change; second, the implications for further research, further researchers can refer to the results of this review to make it easier to find new research things about the relationship of green sukuk with SGDs. To the best of the authors’ knowledge, this paper is the first review paper that structurally reviews the previous literature on green sukuk (Islamic bonds) based on reputable publisher journals that have been indexed by Scopus.A structured literature review on green sukuk (Islamic bonds): implications for government policy and future studies
Indar Fauziah Ulfah, Raditya Sukmana, Nisful Laila, Sulaeman Sulaeman
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Green sukuk (Islamic bonds) is one of Islamic financial instrument as an alternative financing source for supporting green finance projects in several sectors such as renewable energy or climate change problems. The aim of study is to present an understanding of the issues, explore the lesson for government policy and identify the potential for future studies directions.

This study conducted a literature review on green sukuk or Islamic bonds based on eight journal databases. The authors have carried out a strict selection of journals that are only indexed by Scopus and are protected from predatory journals.

This study has selected 7 of 118 published articles on green topics. This study has found that 50% of green sukuk research is dominated by a theoretical qualitative approach. While research that uses a quantitative or empirical approach is still below 30%, followed by using mixed methods. This study finds that research discusses green sukuk on Sustainable Development Goals (SDGs) or environmental issues, especially climate change, COVID-19 issues and green financial reporting. In addition, in the existing literature, this study found that green sukuk has main advantages instead of green bonds where green sukuk must comply with sharia principles, namely, being free from usury, interest and uncertainty.

This study analyzes two important implications, namely, first, the implications of government policies regarding the potential for issuing green sukuk in supporting all programs on the agenda for the 2030 SDGs, especially controlling and preventing the adverse impacts of global climate change; second, the implications for further research, further researchers can refer to the results of this review to make it easier to find new research things about the relationship of green sukuk with SGDs.

To the best of the authors’ knowledge, this paper is the first review paper that structurally reviews the previous literature on green sukuk (Islamic bonds) based on reputable publisher journals that have been indexed by Scopus.

]]>
A structured literature review on green sukuk (Islamic bonds): implications for government policy and future studies10.1108/JIABR-10-2022-0255Journal of Islamic Accounting and Business Research2023-08-22© 2023 Emerald Publishing LimitedIndar Fauziah UlfahRaditya SukmanaNisful LailaSulaeman SulaemanJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-2210.1108/JIABR-10-2022-0255https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0255/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Does being Shariah-compliant affect capital structure decision: evidence from emerging marketshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0259/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the relationship between Shariah compliance and corporate capital structure decisions. This study explores the variation of capital structure speed of adjustment. The authors’ sample includes a sample of the largest 200 nonfinancial firms trading in the Malaysian and Pakistan stock markets. This study uses ordinary least squares and dynamic two-step system generalized method of moments to test the hypotheses of the study. The results show that Shariah-compliant firms use a lower level of leverage than the noncomplaint firms. Moreover, while both types of firms have optimal capital structures, the speed of adjustment toward the targets is slower for Shariah-complaint firms than non-Shariah-compliant firms. This variation can be seen through the different levels of market imperfection experienced by the two types of firms. Shariah-compliant firms follow Islamic rules that restrict the type and degree of leverage, thus affecting the availability of external funding to Shariah-compliant firms. The findings call for more development and innovation of financing instruments that comply with Shariah rules that will increase of supply of external funds for Shariah-compliant firms and, thus, reduce market imperfections that are faced by Shariah-compliant firms. The study contributes to the limited number of studies that examine the nexus between conventional corporate theories and Islamic corporate finance.Does being Shariah-compliant affect capital structure decision: evidence from emerging markets
Abdullah Bugshan, Walid Bakry
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the relationship between Shariah compliance and corporate capital structure decisions. This study explores the variation of capital structure speed of adjustment.

The authors’ sample includes a sample of the largest 200 nonfinancial firms trading in the Malaysian and Pakistan stock markets. This study uses ordinary least squares and dynamic two-step system generalized method of moments to test the hypotheses of the study.

The results show that Shariah-compliant firms use a lower level of leverage than the noncomplaint firms. Moreover, while both types of firms have optimal capital structures, the speed of adjustment toward the targets is slower for Shariah-complaint firms than non-Shariah-compliant firms. This variation can be seen through the different levels of market imperfection experienced by the two types of firms. Shariah-compliant firms follow Islamic rules that restrict the type and degree of leverage, thus affecting the availability of external funding to Shariah-compliant firms.

The findings call for more development and innovation of financing instruments that comply with Shariah rules that will increase of supply of external funds for Shariah-compliant firms and, thus, reduce market imperfections that are faced by Shariah-compliant firms.

The study contributes to the limited number of studies that examine the nexus between conventional corporate theories and Islamic corporate finance.

]]>
Does being Shariah-compliant affect capital structure decision: evidence from emerging markets10.1108/JIABR-10-2022-0259Journal of Islamic Accounting and Business Research2023-08-10© 2023 Emerald Publishing LimitedAbdullah BugshanWalid BakryJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-08-1010.1108/JIABR-10-2022-0259https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0259/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
On improving the adoption of by Islamic banks of Pakistan: an interpretive phenomenological analysishttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0261/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe ailing agriculture sector in Pakistan demands a supportive financial sector. The low adoption of Salam financing by Islamic banks does not match the potential demand. Empirical studies identified demand-led issues that led to a low proportion of Salam financing, but the exploration of supply-side constraints is overlooked. This study has applied Interpretive Phenomenological Analyses on 20 interviews with the experts in the Islamic banking industry who play a role in decisions on Salam financing to the agriculture sector. The purpose of the study is to explore the determinants of low adoption of Salam financing by Islamic banks. The experiences led to the major reasons for the low adoption of Salam financing categorized as intentions, attitudes and behavior control which corresponds to the theory of planned behavior. This study is instrumental in exploring the supply-side constraints to Salam financing and helps find aligning theory to intervene via Islamic banking regulations.On improving the adoption of by Islamic banks of Pakistan: an interpretive phenomenological analysis
Tahir Mahmood, Noman Arshed
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The ailing agriculture sector in Pakistan demands a supportive financial sector. The low adoption of Salam financing by Islamic banks does not match the potential demand. Empirical studies identified demand-led issues that led to a low proportion of Salam financing, but the exploration of supply-side constraints is overlooked.

This study has applied Interpretive Phenomenological Analyses on 20 interviews with the experts in the Islamic banking industry who play a role in decisions on Salam financing to the agriculture sector. The purpose of the study is to explore the determinants of low adoption of Salam financing by Islamic banks.

The experiences led to the major reasons for the low adoption of Salam financing categorized as intentions, attitudes and behavior control which corresponds to the theory of planned behavior.

This study is instrumental in exploring the supply-side constraints to Salam financing and helps find aligning theory to intervene via Islamic banking regulations.

]]>
On improving the adoption of by Islamic banks of Pakistan: an interpretive phenomenological analysis10.1108/JIABR-10-2022-0261Journal of Islamic Accounting and Business Research2023-06-08© 2023 Emerald Publishing LimitedTahir MahmoodNoman ArshedJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-0810.1108/JIABR-10-2022-0261https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0261/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Digital risks and Islamic FinTech: a road map to social justice and financial inclusionhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0262/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to map the digital risks for the Islamic finance industry. Since 2010, the financial space has largely shifted from being banking-centric to the entrepreneurship spectrum, benefiting from groundbreaking innovations in computer technology. The problem of Islamic Finance is that it is still within its banking-centric moment that is risk averse leading to financial exclusion. As with all innovations, there are associated risks that require careful consideration to ensure the reaping of the benefits of these technologies while controlling the risks at its lowest. In this context, the aim of this study is to highlight the risks associated with financial technologies (FinTech) to prepare the Islamic finance sector to serve the economic ideals of Maqāṣid al-Shariah in financial inclusion and profit and loss sharing. The main research question is as follows: What do Islamic Finance industry need to do to manage the digital risks for financial inclusion? This study uses narrative review method in analysing the discourse of financial technology literature using qualitative data collected from the literature on the topic. It aimed to problematise associated digital risks from the Shariah compliance and Maqā¸ṣid al-Shariah critical viewpoints. Considering the nature of this conceptual study, it adopts a qualitative methodology by using discourse and thematic analysis of the literature that can lay the foundation for future empirical testing on the topic. The study found that managing risks faced by the Islamic financial sector while adapting to the digital era can be divided into two main clusters: risk mitigation for Shariah-compliant FinTech and risk avoidance for Shariah non-compliant innovations. The high level of gharar associated with current practices in both cryptocurrencies and smart contracts needs additional regulation and simulation before they can be reconsidered for market-wide application. Cloud computing, crowdfunding and big data have promising applications that can address the limitations of the Islamic finance industry, particularly in terms of reducing transactional costs. This conceptual article offers some insights into the subject; nevertheless, it does not attempt to establish causation or generalise the results. Additional statistical testing is required prior to generalising the results. Due to the difficulties experienced since its inception, the Islamic financial industry is in urgent need of the cutting-edge solutions required to gain a competitive edge in the market and get over the limits that came with its late entry into the financial sector. Mapping digital risks is imperative for the development of comprehensive prudential risk management strategies for the Islamic finance industry that can fix its problems and enable it to deliver the more favourable Shariah-based solutions, rather than remaining in the lower bands of Shariah compliance. Findings of the study lay the foundation for empirical testing the volatility of FinTech innovations for the Islamic finance industry to reduce uncertainties and generate reliable forecasts. Scholarship on managing digital risks for Islamic financial institutions is still developing due to the covid global lockdown and the looming recession, and this study will help enhance theorisation necessary that can aspire economic recovery after current challenges.Digital risks and Islamic FinTech: a road map to social justice and financial inclusion
Mohammad Alsaghir
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to map the digital risks for the Islamic finance industry. Since 2010, the financial space has largely shifted from being banking-centric to the entrepreneurship spectrum, benefiting from groundbreaking innovations in computer technology. The problem of Islamic Finance is that it is still within its banking-centric moment that is risk averse leading to financial exclusion. As with all innovations, there are associated risks that require careful consideration to ensure the reaping of the benefits of these technologies while controlling the risks at its lowest. In this context, the aim of this study is to highlight the risks associated with financial technologies (FinTech) to prepare the Islamic finance sector to serve the economic ideals of Maqāṣid al-Shariah in financial inclusion and profit and loss sharing. The main research question is as follows: What do Islamic Finance industry need to do to manage the digital risks for financial inclusion?

This study uses narrative review method in analysing the discourse of financial technology literature using qualitative data collected from the literature on the topic. It aimed to problematise associated digital risks from the Shariah compliance and Maqā¸ṣid al-Shariah critical viewpoints. Considering the nature of this conceptual study, it adopts a qualitative methodology by using discourse and thematic analysis of the literature that can lay the foundation for future empirical testing on the topic.

The study found that managing risks faced by the Islamic financial sector while adapting to the digital era can be divided into two main clusters: risk mitigation for Shariah-compliant FinTech and risk avoidance for Shariah non-compliant innovations. The high level of gharar associated with current practices in both cryptocurrencies and smart contracts needs additional regulation and simulation before they can be reconsidered for market-wide application. Cloud computing, crowdfunding and big data have promising applications that can address the limitations of the Islamic finance industry, particularly in terms of reducing transactional costs.

This conceptual article offers some insights into the subject; nevertheless, it does not attempt to establish causation or generalise the results. Additional statistical testing is required prior to generalising the results.

Due to the difficulties experienced since its inception, the Islamic financial industry is in urgent need of the cutting-edge solutions required to gain a competitive edge in the market and get over the limits that came with its late entry into the financial sector. Mapping digital risks is imperative for the development of comprehensive prudential risk management strategies for the Islamic finance industry that can fix its problems and enable it to deliver the more favourable Shariah-based solutions, rather than remaining in the lower bands of Shariah compliance.

Findings of the study lay the foundation for empirical testing the volatility of FinTech innovations for the Islamic finance industry to reduce uncertainties and generate reliable forecasts. Scholarship on managing digital risks for Islamic financial institutions is still developing due to the covid global lockdown and the looming recession, and this study will help enhance theorisation necessary that can aspire economic recovery after current challenges.

]]>
Digital risks and Islamic FinTech: a road map to social justice and financial inclusion10.1108/JIABR-10-2022-0262Journal of Islamic Accounting and Business Research2023-12-26© 2023 Emerald Publishing LimitedMohammad AlsaghirJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-2610.1108/JIABR-10-2022-0262https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0262/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
World-class good governance ethics: a key solution to tackle criminal acts in Malaysian public-listed companieshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0277/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to propose a world-class good governance ethics framework that leads to better corporate performance. ethics among managers, executives and members of the board of directors working in public-listed companies brings grave concern because of the increasing number of criminal acts reported by the Security Commission of Malaysia. This study introduces a world-class good governance ethics framework for curbing criminal acts in public-listed companies in Malaysia. This study used a mixed method to gather data, and the methods used are appropriate for answering the research questions based on the World-Class Good Governance Ethics framework. The finding of this study reveals high expectations for a corporate organization to improve individual and team performance while undertaking their corporate responsibilities, and a matter of choice, to adopt world-class good governance ethics in their policies and practices. This study could be a reference for corporate management to regulate policies monitoring management's and employees' conduct at the workplace. This study's theoretical and practical significance would guide the stakeholders in corporate management to regulate governance policies based on the right ethical values and promote personalities with high integrity in management conduct. This study promotes a world-class good governance ethics framework in curbing criminal acts for better corporate performance. This new framework is formulated based on the concept of a caliph and other essential elements envisaged by the Quranic verses.World-class good governance ethics: a key solution to tackle criminal acts in Malaysian public-listed companies
Wan Ahmad Fauzi Wan Husain, Mohamad Reeduan Mustapha, Yudi Fernando, Siti Aisyah Ahmad Zailani
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to propose a world-class good governance ethics framework that leads to better corporate performance. ethics among managers, executives and members of the board of directors working in public-listed companies brings grave concern because of the increasing number of criminal acts reported by the Security Commission of Malaysia.

This study introduces a world-class good governance ethics framework for curbing criminal acts in public-listed companies in Malaysia. This study used a mixed method to gather data, and the methods used are appropriate for answering the research questions based on the World-Class Good Governance Ethics framework.

The finding of this study reveals high expectations for a corporate organization to improve individual and team performance while undertaking their corporate responsibilities, and a matter of choice, to adopt world-class good governance ethics in their policies and practices.

This study could be a reference for corporate management to regulate policies monitoring management's and employees' conduct at the workplace. This study's theoretical and practical significance would guide the stakeholders in corporate management to regulate governance policies based on the right ethical values and promote personalities with high integrity in management conduct.

This study promotes a world-class good governance ethics framework in curbing criminal acts for better corporate performance. This new framework is formulated based on the concept of a caliph and other essential elements envisaged by the Quranic verses.

]]>
World-class good governance ethics: a key solution to tackle criminal acts in Malaysian public-listed companies10.1108/JIABR-10-2022-0277Journal of Islamic Accounting and Business Research2023-12-01© 2023 Emerald Publishing LimitedWan Ahmad Fauzi Wan HusainMohamad Reeduan MustaphaYudi FernandoSiti Aisyah Ahmad ZailaniJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-0110.1108/JIABR-10-2022-0277https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0277/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Policy approach adopted for issuance of Green Sukuk: is priority given to priority needed areas?https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0279/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestGreen Sukuk (GS) is a recent innovation that has the potential to serve humankind in sustainable development. However, its potential can only be achieved if the proceeds of GS are used for the priority areas needed. Therefore, the purpose of this study is to find out, using selected GS issued to determine whether the proceeds of GS are actually given to the needed areas. This is qualitative research utilizing case studies where the “priorities given” areas are observed through information collected from the library that consists of primary and secondary sources, such as statutes, books, articles and internet sources, while “priorities needed to issue GS” areas are determined through information collected from Al-Quran and Hadiths to derive conclusions. The outcome of this study reveals some untouched areas that needed immediate attention where GS can be implemented. This study recommends implementing GS for the plant, agriculture, forests, road, water, animal and others. One example in this regard is to create “forest sukuk,” which is a tool for financing forest preservation. It is anticipated that, via the outcome of this research, GS issuance frameworks can be enhanced, especially in revising the areas in which Sukuk proceeds can be used, and it will provide guidance to the potential GS issuers to choose financing projects.Policy approach adopted for issuance of Green Sukuk: is priority given to priority needed areas?
Abdur Rahman, Abu Umar Faruq Ahmad, Saeed Awadh Bin-Nashwan, Aishath Muneeza, Asma Hakimah Abdul Halim, Ruzian Markom
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

Green Sukuk (GS) is a recent innovation that has the potential to serve humankind in sustainable development. However, its potential can only be achieved if the proceeds of GS are used for the priority areas needed. Therefore, the purpose of this study is to find out, using selected GS issued to determine whether the proceeds of GS are actually given to the needed areas.

This is qualitative research utilizing case studies where the “priorities given” areas are observed through information collected from the library that consists of primary and secondary sources, such as statutes, books, articles and internet sources, while “priorities needed to issue GS” areas are determined through information collected from Al-Quran and Hadiths to derive conclusions.

The outcome of this study reveals some untouched areas that needed immediate attention where GS can be implemented. This study recommends implementing GS for the plant, agriculture, forests, road, water, animal and others. One example in this regard is to create “forest sukuk,” which is a tool for financing forest preservation.

It is anticipated that, via the outcome of this research, GS issuance frameworks can be enhanced, especially in revising the areas in which Sukuk proceeds can be used, and it will provide guidance to the potential GS issuers to choose financing projects.

]]>
Policy approach adopted for issuance of Green Sukuk: is priority given to priority needed areas?10.1108/JIABR-10-2022-0279Journal of Islamic Accounting and Business Research2023-05-31© 2023 Emerald Publishing LimitedAbdur RahmanAbu Umar Faruq AhmadSaeed Awadh Bin-NashwanAishath MuneezaAsma Hakimah Abdul HalimRuzian MarkomJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-05-3110.1108/JIABR-10-2022-0279https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0279/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Intellectual capital disclosures (ICD) of Islamic banks under IFRS versus AAOIFI regimes: an international evidencehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0284/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to examine and compare the trend of intellectual capital disclosures (ICD) of Islamic banks under the International Financial Reporting Standards (IFRS) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) regimes over a seven-year period (2012–2018). A self-developed checklist was developed to measure the extent of ICD practices of Islamic banks in both regimes. The results revealed a moderate increase in ICD practices over the period of the study. However, there is no significant difference in ICD between the two financial reporting regimes i.e. IFRS and AAOIFI-based banks. In fact, most of the IFRS-based banks have better ICD than AAOIFI-based banks throughout the analysis period. This study contributed to the ICD literature by introducing Shariah capital as a new category of information to disclose besides the common disclosure on human capital, relational and structural related information by the Islamic banks. It is important for Islamic banks to distinguish themselves from conventional banks and ICD can be a conduit to show their uniqueness. The introduction of Shariah capital in this study reflects the main objective of Islamic bank’s existence, and it should become an important element in ICD. In fact, some form of guidelines or policy by regulating agencies could facilitate the ICD by Islamic banks and reflect the truth about their ability to capitalize on Intellectual capital and disclose about these practices to their stakeholders. The introduction of Shariah capital as a new component to the existing components (i.e. human capital, structural capital and relational capital) of intellectual capital brings a new perspective to the research on ICD of Islamic banks. This paper further contributes to the scarce evidence of ICD of Islamic banks globally.Intellectual capital disclosures (ICD) of Islamic banks under IFRS versus AAOIFI regimes: an international evidence
Syaima Binti Adznan, Zulkarnain Bin Muhamad Sori, Shamsher Mohamad
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to examine and compare the trend of intellectual capital disclosures (ICD) of Islamic banks under the International Financial Reporting Standards (IFRS) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) regimes over a seven-year period (2012–2018).

A self-developed checklist was developed to measure the extent of ICD practices of Islamic banks in both regimes.

The results revealed a moderate increase in ICD practices over the period of the study. However, there is no significant difference in ICD between the two financial reporting regimes i.e. IFRS and AAOIFI-based banks. In fact, most of the IFRS-based banks have better ICD than AAOIFI-based banks throughout the analysis period. This study contributed to the ICD literature by introducing Shariah capital as a new category of information to disclose besides the common disclosure on human capital, relational and structural related information by the Islamic banks.

It is important for Islamic banks to distinguish themselves from conventional banks and ICD can be a conduit to show their uniqueness. The introduction of Shariah capital in this study reflects the main objective of Islamic bank’s existence, and it should become an important element in ICD. In fact, some form of guidelines or policy by regulating agencies could facilitate the ICD by Islamic banks and reflect the truth about their ability to capitalize on Intellectual capital and disclose about these practices to their stakeholders.

The introduction of Shariah capital as a new component to the existing components (i.e. human capital, structural capital and relational capital) of intellectual capital brings a new perspective to the research on ICD of Islamic banks. This paper further contributes to the scarce evidence of ICD of Islamic banks globally.

]]>
Intellectual capital disclosures (ICD) of Islamic banks under IFRS versus AAOIFI regimes: an international evidence10.1108/JIABR-10-2022-0284Journal of Islamic Accounting and Business Research2023-10-05© 2023 Emerald Publishing LimitedSyaima Binti AdznanZulkarnain Bin Muhamad SoriShamsher MohamadJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-0510.1108/JIABR-10-2022-0284https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0284/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Modeling dependence structure between green sukuk spread in Malaysia and the uncertainty factors before and during the COVID-19 pandemichttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0285/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to analyze the dependence structure between the Green Sukuk Spread in Malaysia and uncertainty factors from January 1, 2017, to May 23, 2023, covering two main periods: the pre-COVID-19 and the COVID-19 periods. This study contributes to the current literature by explicitly modeling nonlinear dependencies using the Regular vine copula approach to capture asymmetric characteristics of the tail dependence distribution. This study used the Archimedean copula models: Student’s-t, Gumbel, Gaussian, Clayton, Frank and Joe, which exhibit different tail dependence structures. The empirical results suggest that Green Sukuk and various uncertainty variables have the strongest co-dependency before and during the COVID-19 crisis. Due to external uncertainties (COVID-19), the results reveal that global factors, such as the Infect-EMV-index and the higher financial stress index, significantly affect the spread of Green Sukuk. Interestingly, in times of COVID-19, its dependence on Green Sukuk and the news sentiment seems to be a symmetric tail dependence with a Student’s-t copula. This result is relevant for hedging strategies, as investors can enhance the performance of their portfolio during the COVID-19 crash period. This study contributes to a better understanding of the dependency structure between Green Sukuk and uncertainty factors. It is relevant for market participants seeking to improve their risk management for Green Sukuk.Modeling dependence structure between green sukuk spread in Malaysia and the uncertainty factors before and during the COVID-19 pandemic
Fatma Hariz, Taicir Mezghani, Mouna Boujelbène Abbes
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to analyze the dependence structure between the Green Sukuk Spread in Malaysia and uncertainty factors from January 1, 2017, to May 23, 2023, covering two main periods: the pre-COVID-19 and the COVID-19 periods.

This study contributes to the current literature by explicitly modeling nonlinear dependencies using the Regular vine copula approach to capture asymmetric characteristics of the tail dependence distribution. This study used the Archimedean copula models: Student’s-t, Gumbel, Gaussian, Clayton, Frank and Joe, which exhibit different tail dependence structures.

The empirical results suggest that Green Sukuk and various uncertainty variables have the strongest co-dependency before and during the COVID-19 crisis. Due to external uncertainties (COVID-19), the results reveal that global factors, such as the Infect-EMV-index and the higher financial stress index, significantly affect the spread of Green Sukuk. Interestingly, in times of COVID-19, its dependence on Green Sukuk and the news sentiment seems to be a symmetric tail dependence with a Student’s-t copula. This result is relevant for hedging strategies, as investors can enhance the performance of their portfolio during the COVID-19 crash period.

This study contributes to a better understanding of the dependency structure between Green Sukuk and uncertainty factors. It is relevant for market participants seeking to improve their risk management for Green Sukuk.

]]>
Modeling dependence structure between green sukuk spread in Malaysia and the uncertainty factors before and during the COVID-19 pandemic10.1108/JIABR-10-2022-0285Journal of Islamic Accounting and Business Research2023-11-06© 2023 Emerald Publishing LimitedFatma HarizTaicir MezghaniMouna Boujelbène AbbesJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-0610.1108/JIABR-10-2022-0285https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0285/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Islamic rationality of Muslim consumers: new insight from text analytics and Al-Ghazali’s thoughthttps://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0291/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to review 69 studies related to Muslim consumer behavior and determine the relationship between these topics and Islamic rationality. In addition, this paper elaborates on Al-Ghazali’s Islamic rationality model. A text analytics approach is used to map 69 studies on Muslim consumer behavior. In addition, the historical-critical and inductive approach is used to identify Muslim scholars’ concepts and opinions regarding Islamic rationality, especially Al-Ghazali. This study confirms that Muslim consumer behavior is in line with the concept of Islamic rationality proposed by Al-Ghazali. This is evidenced by a strong awareness of Islamic morals and values, which fosters a high commitment to halal products. The findings of this study will provide essential benefits in the development of Islamic rationality theory, which can then be used as an alternative in explaining Muslim consumer behavior and also can be used as a reference for stakeholders in the industry to mainstream halalfication on products offered in the Muslim market. The value of originality in this study lies in identifying the relation between Islamic rationality and Muslim consumer behavior, and this effort was confirmed through 69 selected studies related to Muslim consumer behavior.Islamic rationality of Muslim consumers: new insight from text analytics and Al-Ghazali’s thought
Muhammad Sholihin
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to review 69 studies related to Muslim consumer behavior and determine the relationship between these topics and Islamic rationality. In addition, this paper elaborates on Al-Ghazali’s Islamic rationality model.

A text analytics approach is used to map 69 studies on Muslim consumer behavior. In addition, the historical-critical and inductive approach is used to identify Muslim scholars’ concepts and opinions regarding Islamic rationality, especially Al-Ghazali.

This study confirms that Muslim consumer behavior is in line with the concept of Islamic rationality proposed by Al-Ghazali. This is evidenced by a strong awareness of Islamic morals and values, which fosters a high commitment to halal products.

The findings of this study will provide essential benefits in the development of Islamic rationality theory, which can then be used as an alternative in explaining Muslim consumer behavior and also can be used as a reference for stakeholders in the industry to mainstream halalfication on products offered in the Muslim market.

The value of originality in this study lies in identifying the relation between Islamic rationality and Muslim consumer behavior, and this effort was confirmed through 69 selected studies related to Muslim consumer behavior.

]]>
Islamic rationality of Muslim consumers: new insight from text analytics and Al-Ghazali’s thought10.1108/JIABR-10-2022-0291Journal of Islamic Accounting and Business Research2023-06-13© 2023 Emerald Publishing LimitedMuhammad SholihinJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-1310.1108/JIABR-10-2022-0291https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2022-0291/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Rejuvenating the practice of Mahr for Muslim women’s financial empowerment through an interest-free savings-based finance modelhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0298/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to propose a model to elevate the financial empowerment of Muslim women by rejuvenating the practice of Mahr in society and facilitating the affordability of men to pay that Mahr amount. The approach of this study is to offer a model through the interest-free savings-based finance concept. The model comprises four stages; each stage of the model is mathematically formulated and graphically explained to ensure clarity and coherence. To further investigate the issue, the authors use a convenient sampling method to ask a small sample size of respondents (women) from different countries about their financial contribution and empowerment in the family. This model enables women to turn their exclusive financial right into a source of earning without borrowing from any source or paying interest on the principal amount. Besides, it encourages accelerating men’s obligation to pay the Mahr to the women immediately during the marriage ceremony by facilitating men’s affordability. Almost 45% of respondents state that a woman’s financial contribution exalts her decision-making power and strengthens her financial position in the family. The authors attempt to revitalize Mahr practice in Muslim society to accelerate the process of receiving a woman’s exclusive financial right and empower a family as a whole through the Mahr model. Considering the model’s uniqueness, the developed and proposed Mahr model in this research is novel; to the best of the authors’ knowledge, no other study has been conducted and developed such a model using the Mahr concept.Rejuvenating the practice of Mahr for Muslim women’s financial empowerment through an interest-free savings-based finance model
Rashed Jahangir, Mehmet Bulut
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to propose a model to elevate the financial empowerment of Muslim women by rejuvenating the practice of Mahr in society and facilitating the affordability of men to pay that Mahr amount.

The approach of this study is to offer a model through the interest-free savings-based finance concept. The model comprises four stages; each stage of the model is mathematically formulated and graphically explained to ensure clarity and coherence. To further investigate the issue, the authors use a convenient sampling method to ask a small sample size of respondents (women) from different countries about their financial contribution and empowerment in the family.

This model enables women to turn their exclusive financial right into a source of earning without borrowing from any source or paying interest on the principal amount. Besides, it encourages accelerating men’s obligation to pay the Mahr to the women immediately during the marriage ceremony by facilitating men’s affordability. Almost 45% of respondents state that a woman’s financial contribution exalts her decision-making power and strengthens her financial position in the family.

The authors attempt to revitalize Mahr practice in Muslim society to accelerate the process of receiving a woman’s exclusive financial right and empower a family as a whole through the Mahr model.

Considering the model’s uniqueness, the developed and proposed Mahr model in this research is novel; to the best of the authors’ knowledge, no other study has been conducted and developed such a model using the Mahr concept.

]]>
Rejuvenating the practice of Mahr for Muslim women’s financial empowerment through an interest-free savings-based finance model10.1108/JIABR-11-2022-0298Journal of Islamic Accounting and Business Research2023-09-27© 2023 Emerald Publishing LimitedRashed JahangirMehmet BulutJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-2710.1108/JIABR-11-2022-0298https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0298/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An Islamic cultural analysis of managerial decision-makinghttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this paper is to review and analyze assumptions and the appropriateness of the most dominant strategic decision-making theories within the Islamic cultural context as an attempt to develop an Islamic decision-making framework. This paper adopted the integrative literature review approach as a research method (Torraco, 2005). This method allows the researcher to evaluate and syndicate the relevant literature to, critically, review and expand on the theoretical foundation of the topic and, hence, develop new theoretical perspectives and views. Based on the critical review of the decision-making theories from an Islamic perspective, Islamic culture confirms the behavioural decision theory as the most appropriate approach to make strategic decisions in organizations. In addition, the study reveals that mutual consultation and consultative decision-making (Shura), based on knowledge and Islamic ethics, is the principal Islamic approach to strategic decision-making. The developed Islamic decision-making framework will, significantly, assist management practitioners, managers and policy makers in both private and governmental organizations to improve their decision-making skills through adopting the Shura approach in decision-making. The paper expands the boundaries of knowledge in managerial decision-making through developing an Islamic decision-making framework. This theoretical framework brings new insights and open new opportunities of thinking on Islamic decision-making among business scholars and represents fundamental grounds for future research in cross-cultural management in the area of managerial decision-making from an Islamic perspective, which is rare among scholars of management.An Islamic cultural analysis of managerial decision-making
Marwan N. Al Qur’an
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this paper is to review and analyze assumptions and the appropriateness of the most dominant strategic decision-making theories within the Islamic cultural context as an attempt to develop an Islamic decision-making framework.

This paper adopted the integrative literature review approach as a research method (Torraco, 2005). This method allows the researcher to evaluate and syndicate the relevant literature to, critically, review and expand on the theoretical foundation of the topic and, hence, develop new theoretical perspectives and views.

Based on the critical review of the decision-making theories from an Islamic perspective, Islamic culture confirms the behavioural decision theory as the most appropriate approach to make strategic decisions in organizations. In addition, the study reveals that mutual consultation and consultative decision-making (Shura), based on knowledge and Islamic ethics, is the principal Islamic approach to strategic decision-making.

The developed Islamic decision-making framework will, significantly, assist management practitioners, managers and policy makers in both private and governmental organizations to improve their decision-making skills through adopting the Shura approach in decision-making.

The paper expands the boundaries of knowledge in managerial decision-making through developing an Islamic decision-making framework. This theoretical framework brings new insights and open new opportunities of thinking on Islamic decision-making among business scholars and represents fundamental grounds for future research in cross-cultural management in the area of managerial decision-making from an Islamic perspective, which is rare among scholars of management.

]]>
An Islamic cultural analysis of managerial decision-making10.1108/JIABR-11-2022-0307Journal of Islamic Accounting and Business Research2023-11-01© 2023 Emerald Publishing LimitedMarwan N. Al Qur’anJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-0110.1108/JIABR-11-2022-0307https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0307/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Three-way interaction moderation model of legal origin in strengthening the role of firm characteristics in choice of sukuk typehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0308/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to learn how a three-way interaction moderation model is used to analyse the role of country-specific characteristics, in the form of the implementation of Sharia law and legal origin in a particular country, in the choice of sukuk type. The firm profitability and firm leverages of sukuk issuer are used as the firm characteristics that can influence the choice of sukuk type between Mudharaba sukuk, Ijara sukuk and Murabaha sukuk. The research sample of 545 global sukuk issuances, obtained from the IIFS database, includes the issuance of Mudharaba sukuk, Ijara sukuk and Murabaha sukuk from ten sukuk issuer countries all over the world. The research results show that the probability of choosing Mudharaba and Ijara sukuk is found in issuers sukuk with a high firm leverage, while the probability of choosing Murabaha sukuk is found in issuers sukuk with a high firm profitability. A three-way interaction moderation model is used in this research to explain that sukuk issuers in countries that implement Sharia law and adopt a legal origin common law system will have a higher choice of Mudharabah and Ijarah sukuk types if the firm’s leverage is high. If the firms’ profitability is high, then the sukuk issuer prefers Murabaha sukuk. The use of firm’s characteristic variables is based solely on trade-off theory and pecking order theory. Also, limitations on the implementation of Sharia law in countries that do not provide opportunities for countries that apply a mixed law system. The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk. Legal certainty for Islamic financial institutions is created in the context of ease of investing in sukuk. Flexibility in the structure is also one of the factors that encourage the development of market acceptance of sukuk. The right structure of the sukuk can be used for specific target markets. There has been no study carried out on a three-way interaction moderation model used to analyse the role of country-specific characteristics. The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk.Three-way interaction moderation model of legal origin in strengthening the role of firm characteristics in choice of sukuk type
Datien Eriska Utami
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to learn how a three-way interaction moderation model is used to analyse the role of country-specific characteristics, in the form of the implementation of Sharia law and legal origin in a particular country, in the choice of sukuk type.

The firm profitability and firm leverages of sukuk issuer are used as the firm characteristics that can influence the choice of sukuk type between Mudharaba sukuk, Ijara sukuk and Murabaha sukuk. The research sample of 545 global sukuk issuances, obtained from the IIFS database, includes the issuance of Mudharaba sukuk, Ijara sukuk and Murabaha sukuk from ten sukuk issuer countries all over the world.

The research results show that the probability of choosing Mudharaba and Ijara sukuk is found in issuers sukuk with a high firm leverage, while the probability of choosing Murabaha sukuk is found in issuers sukuk with a high firm profitability. A three-way interaction moderation model is used in this research to explain that sukuk issuers in countries that implement Sharia law and adopt a legal origin common law system will have a higher choice of Mudharabah and Ijarah sukuk types if the firm’s leverage is high. If the firms’ profitability is high, then the sukuk issuer prefers Murabaha sukuk.

The use of firm’s characteristic variables is based solely on trade-off theory and pecking order theory. Also, limitations on the implementation of Sharia law in countries that do not provide opportunities for countries that apply a mixed law system.

The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk.

Legal certainty for Islamic financial institutions is created in the context of ease of investing in sukuk. Flexibility in the structure is also one of the factors that encourage the development of market acceptance of sukuk. The right structure of the sukuk can be used for specific target markets.

There has been no study carried out on a three-way interaction moderation model used to analyse the role of country-specific characteristics. The role of Sharia law and common law legal origin is proven, through a three-way interaction model, to strengthen the interaction of the firm leverage and choice of Mudharaba sukuk.

]]>
Three-way interaction moderation model of legal origin in strengthening the role of firm characteristics in choice of sukuk type10.1108/JIABR-11-2022-0308Journal of Islamic Accounting and Business Research2023-10-13© 2023 Emerald Publishing LimitedDatien Eriska UtamiJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-10-1310.1108/JIABR-11-2022-0308https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0308/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
The impact of market competitiveness on investment efficiency: the role of ownership and regulatory structureshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0309/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to investigate the impact of market competitiveness on investment efficiency, and the moderating role of ownership and regulatory structures. In this study, the Herfindahl–Hirschman Index (HHI), Lerner Index (LI) and industry-adjusted Lerner Index (LIIA) were used to measure market competitiveness. The research population consisted of companies listed on Tehran Stock Exchange (TSE). Using a systematic elimination, 199 companies were selected within eight years during 2014–2021. The results showed that market competitiveness (based on the LI, LIIA and HHI) positively affected investment efficiency. Moreover, institutional ownership and managerial ownership affected the relationship between market competitiveness (based on all proxies of market competitiveness) and investment efficiency. Blockholders’ ownership also moderated the relationship between market competitiveness (based on LIIA and HHI) and investment efficiency. The hypothesis testing had robustness based on additional analyses. In recent years, competitive environment and the ownership structure of companies have changed to a certain degree, paving the way for the private sector to enter many areas of activity especially in emerging Asian markets. Moreover, investment drivers and investment efficiency in developed markets may not be generalized to emerging Asian markets. Therefore, the present findings can show the significance of this research to fill the existing gap in the literature and provide insights into ownership and regulatory structures as a governance mechanism in market competitiveness and investment efficiency.The impact of market competitiveness on investment efficiency: the role of ownership and regulatory structures
Arash Arianpoor
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to investigate the impact of market competitiveness on investment efficiency, and the moderating role of ownership and regulatory structures.

In this study, the Herfindahl–Hirschman Index (HHI), Lerner Index (LI) and industry-adjusted Lerner Index (LIIA) were used to measure market competitiveness. The research population consisted of companies listed on Tehran Stock Exchange (TSE). Using a systematic elimination, 199 companies were selected within eight years during 2014–2021.

The results showed that market competitiveness (based on the LI, LIIA and HHI) positively affected investment efficiency. Moreover, institutional ownership and managerial ownership affected the relationship between market competitiveness (based on all proxies of market competitiveness) and investment efficiency. Blockholders’ ownership also moderated the relationship between market competitiveness (based on LIIA and HHI) and investment efficiency. The hypothesis testing had robustness based on additional analyses.

In recent years, competitive environment and the ownership structure of companies have changed to a certain degree, paving the way for the private sector to enter many areas of activity especially in emerging Asian markets. Moreover, investment drivers and investment efficiency in developed markets may not be generalized to emerging Asian markets. Therefore, the present findings can show the significance of this research to fill the existing gap in the literature and provide insights into ownership and regulatory structures as a governance mechanism in market competitiveness and investment efficiency.

]]>
The impact of market competitiveness on investment efficiency: the role of ownership and regulatory structures10.1108/JIABR-11-2022-0309Journal of Islamic Accounting and Business Research2023-09-01© 2023 Emerald Publishing LimitedArash ArianpoorJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-0110.1108/JIABR-11-2022-0309https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0309/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Effects of oil price uncertainty on corporate investment of Islamic stocks: evidence from the extreme event of Covid-19 pandemichttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0318/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis paper aims to examine the effects of oil price uncertainty on corporate investment of Islamic stocks during the COVID-19 pandemic. The study uses a panel data set that covers 398 listed Islamic stocks from seven major Asia Pacific countries over the period of five years from 2017 to 2021, yielding 1,990 observations. Specifically, this paper investigates the said association by combining the real options theory regarding investment and the panel data-based econometric method that captures the dynamic relationship, the generalized method of moments estimators. The findings show that the relationship between the oil price volatility and corporate investment of Islamic stocks is significant and nonlinear in nature, suggesting the presence of both the growth options and the waiting options. Overall, the results reveal that corporate investment of Islamic stocks is hindered during the unprecedented corona crash, when oil price increases at exponential rates. The findings suggest that considering the information caused by unprecedented events like the COVID-19 pandemic is crucial for investment decisions of Islamic stocks. Therefore, policymakers and regulators should incorporate the impact of oil price uncertainties caused by unprecedented events like the COVID-19 pandemic on firm’s investment expansion and diversification strategies. To the best of the authors’ knowledge, this paper is the first to examine the relationship between the investment of Islamic stocks and the oil price uncertainty under compound options theory in top Asian oil-importing countries.Effects of oil price uncertainty on corporate investment of Islamic stocks: evidence from the extreme event of Covid-19 pandemic
Muhammad Tariq Khan, Abdul Rashid, Mushtaq Hussain Khan, Asif Zaman, Shahid Ali
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This paper aims to examine the effects of oil price uncertainty on corporate investment of Islamic stocks during the COVID-19 pandemic.

The study uses a panel data set that covers 398 listed Islamic stocks from seven major Asia Pacific countries over the period of five years from 2017 to 2021, yielding 1,990 observations. Specifically, this paper investigates the said association by combining the real options theory regarding investment and the panel data-based econometric method that captures the dynamic relationship, the generalized method of moments estimators.

The findings show that the relationship between the oil price volatility and corporate investment of Islamic stocks is significant and nonlinear in nature, suggesting the presence of both the growth options and the waiting options. Overall, the results reveal that corporate investment of Islamic stocks is hindered during the unprecedented corona crash, when oil price increases at exponential rates.

The findings suggest that considering the information caused by unprecedented events like the COVID-19 pandemic is crucial for investment decisions of Islamic stocks. Therefore, policymakers and regulators should incorporate the impact of oil price uncertainties caused by unprecedented events like the COVID-19 pandemic on firm’s investment expansion and diversification strategies.

To the best of the authors’ knowledge, this paper is the first to examine the relationship between the investment of Islamic stocks and the oil price uncertainty under compound options theory in top Asian oil-importing countries.

]]>
Effects of oil price uncertainty on corporate investment of Islamic stocks: evidence from the extreme event of Covid-19 pandemic10.1108/JIABR-11-2022-0318Journal of Islamic Accounting and Business Research2023-11-28© 2023 Emerald Publishing LimitedMuhammad Tariq KhanAbdul RashidMushtaq Hussain KhanAsif ZamanShahid AliJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2810.1108/JIABR-11-2022-0318https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0318/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
An extended review on Sharia governance studies from 1985 to 2022https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0319/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to identify the significant scientific actors, reveal the intellectual structure and explore essential features for future research direction in Sharia governance studies. The study applies a hybrid review combining bibliometric analysis and content analysis. It uses Rstudio (biblioshiny), VOSviewer and Microsoft Excel to analyze 457 articles published in 206 journals indexed by Scopus and/or Web of Science during the period of 1985 until the end of 2022. The paper discovered four distinct streams of Sharia governance studies: structure of Sharia governance, Sharia governance and risk management, Sharia governance and sustainability and the effect of Sharia governance toward firm’s financial performance. Furthermore, it derives and summarizes 26 main research questions for future studies. In terms of theoretical implications, the finding contributes to the general literature on Sharia governance by conducting bibliometric analysis and content analysis. In terms of practical implications, this study suggests that Sharia governance should be strengthened by the management of Islamic banks and other Islamic-based businesses. To the best of the authors’ knowledge, this study is among the early studies using a hybrid review on the topic of Sharia governance, allowing future researchers in this field to capture the trends and progress of current literature as well as the research gaps to be filled in by future researchers.An extended review on Sharia governance studies from 1985 to 2022
Yunice Karina Tumewang, Indri Supriani, Herlina Rahmawati Dewi, Md. Kausar Alam
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to identify the significant scientific actors, reveal the intellectual structure and explore essential features for future research direction in Sharia governance studies.

The study applies a hybrid review combining bibliometric analysis and content analysis. It uses Rstudio (biblioshiny), VOSviewer and Microsoft Excel to analyze 457 articles published in 206 journals indexed by Scopus and/or Web of Science during the period of 1985 until the end of 2022.

The paper discovered four distinct streams of Sharia governance studies: structure of Sharia governance, Sharia governance and risk management, Sharia governance and sustainability and the effect of Sharia governance toward firm’s financial performance. Furthermore, it derives and summarizes 26 main research questions for future studies.

In terms of theoretical implications, the finding contributes to the general literature on Sharia governance by conducting bibliometric analysis and content analysis. In terms of practical implications, this study suggests that Sharia governance should be strengthened by the management of Islamic banks and other Islamic-based businesses.

To the best of the authors’ knowledge, this study is among the early studies using a hybrid review on the topic of Sharia governance, allowing future researchers in this field to capture the trends and progress of current literature as well as the research gaps to be filled in by future researchers.

]]>
An extended review on Sharia governance studies from 1985 to 202210.1108/JIABR-11-2022-0319Journal of Islamic Accounting and Business Research2023-09-01© 2023 Emerald Publishing LimitedYunice Karina TumewangIndri SuprianiHerlina Rahmawati DewiMd. Kausar AlamJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-09-0110.1108/JIABR-11-2022-0319https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0319/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Is industry fulfilling ? The proposition of a new evaluation model using analytic hierarchy processhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0321/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe Takāful (Islamic insurance) industry operates on the principles of Maqāṣid al-Sharī’ah, and of late, the industry has witnessed significant market growth. The purpose of this study is to develop a performance measurement model based on Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms. A mixed-method research approach was adopted to conduct the present study. Priorities were assigned to various dimensions of the Maqāṣid model using analytic hierarchy process and by taking inputs from 18 Takāful experts. On the contrary, six experts were involved in identifying the elements and measures for the operationalization of the Maqāṣid dimensions. Maṣlaḥa (0.359) was found to possess the highest priority, followed by Justice (0.345) and Educating Individuals (0.295). Furthermore, under Necessity, protection of religion (0.398) and protection of life (0.388) are assigned almost similar priorities. These two are followed by the protection of progeny (0.107), protection of wealth (0.058) and protection of intellect (0.047). The final outcome of this study is a hierarchical model for the evaluation of performance of Takāful firms. The application of the performance evaluation model will provide information to the management of Takāful firms on where they stand in terms of fulfilling Maqāṣid al-Sharī’ah principles. If any firms are found to have a deficiency in a certain part of Maqāṣid components, then proper and adequate measures can be taken to ameliorate the situation. It is necessary to have a performance evaluation model based upon Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms as these firms operate on the principles of Maqāṣid al-Sharī’ah. Because there does not exist any such model, this study fills up this gap. Details of the measures that can be used to evaluate the performance of Takāful firms are also provided.Is industry fulfilling ? The proposition of a new evaluation model using analytic hierarchy process
Rafikul Islam, Kazi Md. Tarique, Siti Salwani Razali
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The Takāful (Islamic insurance) industry operates on the principles of Maqāṣid al-Sharī’ah, and of late, the industry has witnessed significant market growth. The purpose of this study is to develop a performance measurement model based on Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms.

A mixed-method research approach was adopted to conduct the present study. Priorities were assigned to various dimensions of the Maqāṣid model using analytic hierarchy process and by taking inputs from 18 Takāful experts. On the contrary, six experts were involved in identifying the elements and measures for the operationalization of the Maqāṣid dimensions.

Maṣlaḥa (0.359) was found to possess the highest priority, followed by Justice (0.345) and Educating Individuals (0.295). Furthermore, under Necessity, protection of religion (0.398) and protection of life (0.388) are assigned almost similar priorities. These two are followed by the protection of progeny (0.107), protection of wealth (0.058) and protection of intellect (0.047). The final outcome of this study is a hierarchical model for the evaluation of performance of Takāful firms.

The application of the performance evaluation model will provide information to the management of Takāful firms on where they stand in terms of fulfilling Maqāṣid al-Sharī’ah principles. If any firms are found to have a deficiency in a certain part of Maqāṣid components, then proper and adequate measures can be taken to ameliorate the situation.

It is necessary to have a performance evaluation model based upon Maqāṣid al-Sharī’ah to evaluate the performance of Takāful firms as these firms operate on the principles of Maqāṣid al-Sharī’ah. Because there does not exist any such model, this study fills up this gap. Details of the measures that can be used to evaluate the performance of Takāful firms are also provided.

]]>
Is industry fulfilling ? The proposition of a new evaluation model using analytic hierarchy process10.1108/JIABR-11-2022-0321Journal of Islamic Accounting and Business Research2024-02-05© 2024 Emerald Publishing LimitedRafikul IslamKazi Md. TariqueSiti Salwani RazaliJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-0510.1108/JIABR-11-2022-0321https://www.emerald.com/insight/content/doi/10.1108/JIABR-11-2022-0321/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited
Analyzing the linkage between Islamic financial literacy and Islamic banking services adoption: evidence from Turkeyhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2021-0324/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study examines the determinants of customer adoption of Islamic banking in Turkey. This study gathered sample data from 409 participants determined using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM) is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally, this study performed both descriptive and inferential analysis to understand customer literacy about Islamic banking and their adoption behavior of Islamic banking. The results obtained from descriptive assessment indicate that Turkish customers of Islamic banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management, Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial system. This study focuses only on the level of knowledge and perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and financial institutions. Previous studies on Islamic banking are mostly studies that investigate customers’ perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies examining the relationship between individuals’ Islamic financial literacy level and Islamic banking preferences are limited. This study is considered to be an original study as it investigates the relationship between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in Turkey.Analyzing the linkage between Islamic financial literacy and Islamic banking services adoption: evidence from Turkey
Fahrettin Pala, Aylin Erdoğdu, Muhammad Ali, Faisal Alnori, Abdulkadir Barut
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is twofold. First, this research explores the level of Islamic financial literacy of customers in the context of Islamic banking. Second, this study examines the determinants of customer adoption of Islamic banking in Turkey.

This study gathered sample data from 409 participants determined using the purposive sampling method. In the study, first, the reflective measurement model is used to examine the reliability, validity and multicollinearity problems of the variables. Then, AMOS structural equation model (SEM) is used to reveal the relationship between Islamic financial literacy and Islamic banking services. Additionally, this study performed both descriptive and inferential analysis to understand customer literacy about Islamic banking and their adoption behavior of Islamic banking.

The results obtained from descriptive assessment indicate that Turkish customers of Islamic banking possess sufficient literacy about Islamic banking. Moreover, the results from SEM indicate that the adoption of Islamic banking by customers is significantly predicted by the role of Sharia Board management, Islamic banking and purpose of financial institution, religious factor and legitimacy of Islamic financial system.

This study focuses only on the level of knowledge and perceptions of customers who have accounts in Islamic banks or financial institutions in Turkey. It does not focus on the level of knowledge and perception of Muslims who do not have accounts in Islamic banks and financial institutions.

Previous studies on Islamic banking are mostly studies that investigate customers’ perceptions of the Islamic banking system and why individuals prefer Islamic banks. In particular, studies examining the relationship between individuals’ Islamic financial literacy level and Islamic banking preferences are limited. This study is considered to be an original study as it investigates the relationship between the Islamic financial literacy level of individuals and their adoption of Islamic banking services in Turkey.

]]>
Analyzing the linkage between Islamic financial literacy and Islamic banking services adoption: evidence from Turkey10.1108/JIABR-12-2021-0324Journal of Islamic Accounting and Business Research2023-06-06© 2023 Emerald Publishing LimitedFahrettin PalaAylin ErdoğduMuhammad AliFaisal AlnoriAbdulkadir BarutJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-06-0610.1108/JIABR-12-2021-0324https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2021-0324/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Board characteristics and takaful performance: the moderating role of ownership concentrationhttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2021-0327/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of this study is to examine the impact of board characteristics (board size, board independence and duality) on the performance of takaful insurance providers with distinguishable muamalah contracts (wakalah and hybrid) moderated by ownership concentration. The sample consists of 30 takaful insurances. The authors divided it into two subsamples: 18 insurance companies using wakalah contracts provided by Southeast Asia and 12 insurance companies using hybrid contracts provided by the Gulf Cooperation Council over the period 2010–2020. For data analysis, the authors used the partial least squares path modeling method. The results show that the larger the board of directors and the higher the number of independent directors, the greater the takaful performance in both the wakalah and hybrid subsamples. Nondual functions improve the takaful performance in both the wakalah and hybrid subsamples. The results also reveal that a highly concentrated ownership structure positively (negatively) moderates the relationship between board size and takaful performance in the wakalah (hybrid) subsamples. Moreover, highly concentrated ownership insignificantly (negatively) moderates the relationship between independent directors and takaful’s performance in the hybrid (wakalah) subsample. Furthermore, a highly concentrated ownership structure insignificantly (negatively) moderates the relationship between the nondual structure and takaful performance in the wakalah (hybrid) subsample. This study contributes to the understanding of the moderating role of a highly concentrated ownership structure between the characteristics of the board of directors and the performance of takaful insurance, which applies wakalah and hybrid contracts. In addition, this study contributes to takaful insurance by determining the appropriate board characteristics that must be adopted to achieve oversight and improve performance. Regulators should appreciate this contribution to the formulation of suitable approaches for efficiently supervising takaful insurance activities.Board characteristics and takaful performance: the moderating role of ownership concentration
Nourhen Sallemi, Ghazi Zouari
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of this study is to examine the impact of board characteristics (board size, board independence and duality) on the performance of takaful insurance providers with distinguishable muamalah contracts (wakalah and hybrid) moderated by ownership concentration.

The sample consists of 30 takaful insurances. The authors divided it into two subsamples: 18 insurance companies using wakalah contracts provided by Southeast Asia and 12 insurance companies using hybrid contracts provided by the Gulf Cooperation Council over the period 2010–2020. For data analysis, the authors used the partial least squares path modeling method.

The results show that the larger the board of directors and the higher the number of independent directors, the greater the takaful performance in both the wakalah and hybrid subsamples. Nondual functions improve the takaful performance in both the wakalah and hybrid subsamples. The results also reveal that a highly concentrated ownership structure positively (negatively) moderates the relationship between board size and takaful performance in the wakalah (hybrid) subsamples. Moreover, highly concentrated ownership insignificantly (negatively) moderates the relationship between independent directors and takaful’s performance in the hybrid (wakalah) subsample. Furthermore, a highly concentrated ownership structure insignificantly (negatively) moderates the relationship between the nondual structure and takaful performance in the wakalah (hybrid) subsample.

This study contributes to the understanding of the moderating role of a highly concentrated ownership structure between the characteristics of the board of directors and the performance of takaful insurance, which applies wakalah and hybrid contracts. In addition, this study contributes to takaful insurance by determining the appropriate board characteristics that must be adopted to achieve oversight and improve performance. Regulators should appreciate this contribution to the formulation of suitable approaches for efficiently supervising takaful insurance activities.

]]>
Board characteristics and takaful performance: the moderating role of ownership concentration10.1108/JIABR-12-2021-0327Journal of Islamic Accounting and Business Research2024-01-05© 2023 Emerald Publishing LimitedNourhen SallemiGhazi ZouariJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-01-0510.1108/JIABR-12-2021-0327https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2021-0327/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Mataram mosques management: intention to place mosque funds in Islamic bankshttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0330/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to examine idle funds in mosques in Mataram City and analyze the intentions of the mosque chairman to place mosque funds in Sharia banks. Six variables are used to analyze the intention; attitudes, subjective norms, behavioral control, sharia financial literacy, sharia banking knowledge and the responsibility of the management for the trust of the society. This research consists of two studies; descriptive research examining idle funds of mosques and correlational research analyzing the intentions of mosque directors to place mosque funds in Sharia banks. Intentions will be analyzed using the theory of planned behavior approach, developed through the PLS-SEM method, and the data obtained from questionnaires through surveys were processed using the SmartPLS 3 application. This study found that the average surplus between income and expenditure reaches IDR2.7m monthly. Also, 75% of mosques have placed their funds in Islamic banks. This study shows a positive relationship between the level of Islamic financial literacy, knowledge of Islamic banking, responsibility for public trust, attitudes toward Islamic banking, subjective norms and behavioral control in influencing the intentions to place mosque funds in Islamic banks. However, only behavioral control is accepted as it significantly influences intentions. Behavioral control means that to maximize intentions, Islamic banks need to make it easier for mosque administrators to place funds. This research signifies a pioneering effort in examining idle funds within mosques, particularly those equipped with comprehensive financial reports within Mataram City. Furthermore, it spearheads an inquiry into the intentions of mosques to channel their funds into Sharia banks, underpinned by rigorous quantitative methodologies.Mataram mosques management: intention to place mosque funds in Islamic banks
Lalu Rizky Adriansyah, Aisyah As-Salafiyah
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to examine idle funds in mosques in Mataram City and analyze the intentions of the mosque chairman to place mosque funds in Sharia banks. Six variables are used to analyze the intention; attitudes, subjective norms, behavioral control, sharia financial literacy, sharia banking knowledge and the responsibility of the management for the trust of the society.

This research consists of two studies; descriptive research examining idle funds of mosques and correlational research analyzing the intentions of mosque directors to place mosque funds in Sharia banks. Intentions will be analyzed using the theory of planned behavior approach, developed through the PLS-SEM method, and the data obtained from questionnaires through surveys were processed using the SmartPLS 3 application.

This study found that the average surplus between income and expenditure reaches IDR2.7m monthly. Also, 75% of mosques have placed their funds in Islamic banks. This study shows a positive relationship between the level of Islamic financial literacy, knowledge of Islamic banking, responsibility for public trust, attitudes toward Islamic banking, subjective norms and behavioral control in influencing the intentions to place mosque funds in Islamic banks. However, only behavioral control is accepted as it significantly influences intentions. Behavioral control means that to maximize intentions, Islamic banks need to make it easier for mosque administrators to place funds.

This research signifies a pioneering effort in examining idle funds within mosques, particularly those equipped with comprehensive financial reports within Mataram City. Furthermore, it spearheads an inquiry into the intentions of mosques to channel their funds into Sharia banks, underpinned by rigorous quantitative methodologies.

]]>
Mataram mosques management: intention to place mosque funds in Islamic banks10.1108/JIABR-12-2022-0330Journal of Islamic Accounting and Business Research2023-11-03© 2023 Emerald Publishing LimitedLalu Rizky AdriansyahAisyah As-SalafiyahJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-0310.1108/JIABR-12-2022-0330https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0330/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Motivational factors to paying zakat through institutions: a multigroup analysis of urban and suburban muzakki based on digital payment schemehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0333/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to empirically explore several factors that encourage muzakki (zakat payers) to pay their zakat through institutions by elaborating on their extrinsic and intrinsic motivations as the composite factors regarding the attitude and intention improvement of muzakki. This study specifically studies zakat payment via digital means and categorizes the muzakki groups into two (urban and suburban) to be considered in the results. Overall, this study gathers the data from 298 muzakki using a partial least squares technique the multigroup analysis to compare the analysis. This study found that different sociodemographic aspects will result in varied performances of motivation in using technology between the two groups. Furthermore, positive preference aspects, such as muzakki’s attitude, can be a catalyst in improving their motivation to pay zakat through institutions. The findings of this study can be used as a foundation to improve the technology-based services that will be more accessible and reachable. Provision of technical follow-ups regarding the utilization of technology, including community-based digital platform socializations, availability of online customer service that will respond to muzakki’s needs and synergy between stakeholders, are the primary obligations that a zakat institution must fulfill. As far as the researchers are concerned, the studies focusing on the motivational factors and attitude of muzakki as an intervention in paying zakat via institutions are limited in numbers, especially studies on digital payment. In this study, however, classifying the groups into two will help gain a deeper understanding of this topic.Motivational factors to paying zakat through institutions: a multigroup analysis of urban and suburban muzakki based on digital payment scheme
Sunarsih Sunarsih, Lukman Hamdani, Achmad Rizal, Rizaldi Yusfiarto
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to empirically explore several factors that encourage muzakki (zakat payers) to pay their zakat through institutions by elaborating on their extrinsic and intrinsic motivations as the composite factors regarding the attitude and intention improvement of muzakki. This study specifically studies zakat payment via digital means and categorizes the muzakki groups into two (urban and suburban) to be considered in the results.

Overall, this study gathers the data from 298 muzakki using a partial least squares technique the multigroup analysis to compare the analysis.

This study found that different sociodemographic aspects will result in varied performances of motivation in using technology between the two groups. Furthermore, positive preference aspects, such as muzakki’s attitude, can be a catalyst in improving their motivation to pay zakat through institutions.

The findings of this study can be used as a foundation to improve the technology-based services that will be more accessible and reachable. Provision of technical follow-ups regarding the utilization of technology, including community-based digital platform socializations, availability of online customer service that will respond to muzakki’s needs and synergy between stakeholders, are the primary obligations that a zakat institution must fulfill.

As far as the researchers are concerned, the studies focusing on the motivational factors and attitude of muzakki as an intervention in paying zakat via institutions are limited in numbers, especially studies on digital payment. In this study, however, classifying the groups into two will help gain a deeper understanding of this topic.

]]>
Motivational factors to paying zakat through institutions: a multigroup analysis of urban and suburban muzakki based on digital payment scheme10.1108/JIABR-12-2022-0333Journal of Islamic Accounting and Business Research2023-12-04© 2023 Emerald Publishing LimitedSunarsih SunarsihLukman HamdaniAchmad RizalRizaldi YusfiartoJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-0410.1108/JIABR-12-2022-0333https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0333/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Islamic governance and leverage: the interacting role of corporate social responsibility disclosurehttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0335/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to analyze the relationship between Islamic governance (IG) and leverage and examine the interaction of corporate social responsibility disclosure (CSRD) in the relationship between IG and leverage. This study used 444 observational data comprising Asian, European and African Islamic banks (IBs) and analyzed using the regression analysis method to answer the research hypothesis. This study finds that IG had a significant positive effect on leverage, indicating that it can increase the leverage of IBs. In other words, IG boosts the public confidence to entrust their funds to IBs through current accounts and savings. However, this study shows that CSRD weakens the relationship between IG and leverage. In addition, this study includes the control variables of board size, Islamic supervisory board size and company size, where all three variables showed their effect on leverage. These results were obtained through additional analysis by categorizing our sample based on CSRD. The results of this study show that IG significantly positively affects IB leverage globally. This can be used as a basis for policymakers to include the ICG variable in analyzing IBs leverage. The weakness of this study is the use of IG variables based on disclosure so that IG components that affect leverage cannot be analyzed accurately. Future research can use the IG variable by using specific IG component values such as the number of meetings, member attendance and remuneration of SSB members in analyzing IB leverage globally. To the best of the authors’ knowledge, this research is the first study to discuss the interaction of CSRD with IG on leverage in Islamic banking in Asia, Europe and Africa, thus adding to the existing literature on Islamic banking.Islamic governance and leverage: the interacting role of corporate social responsibility disclosure
Novi Puspitasari, Iman Harymawan, Norazlin Ab Aziz
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to analyze the relationship between Islamic governance (IG) and leverage and examine the interaction of corporate social responsibility disclosure (CSRD) in the relationship between IG and leverage.

This study used 444 observational data comprising Asian, European and African Islamic banks (IBs) and analyzed using the regression analysis method to answer the research hypothesis.

This study finds that IG had a significant positive effect on leverage, indicating that it can increase the leverage of IBs. In other words, IG boosts the public confidence to entrust their funds to IBs through current accounts and savings. However, this study shows that CSRD weakens the relationship between IG and leverage. In addition, this study includes the control variables of board size, Islamic supervisory board size and company size, where all three variables showed their effect on leverage. These results were obtained through additional analysis by categorizing our sample based on CSRD.

The results of this study show that IG significantly positively affects IB leverage globally. This can be used as a basis for policymakers to include the ICG variable in analyzing IBs leverage. The weakness of this study is the use of IG variables based on disclosure so that IG components that affect leverage cannot be analyzed accurately. Future research can use the IG variable by using specific IG component values such as the number of meetings, member attendance and remuneration of SSB members in analyzing IB leverage globally.

To the best of the authors’ knowledge, this research is the first study to discuss the interaction of CSRD with IG on leverage in Islamic banking in Asia, Europe and Africa, thus adding to the existing literature on Islamic banking.

]]>
Islamic governance and leverage: the interacting role of corporate social responsibility disclosure10.1108/JIABR-12-2022-0335Journal of Islamic Accounting and Business Research2023-11-29© 2023 Emerald Publishing LimitedNovi PuspitasariIman HarymawanNorazlin Ab AzizJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-11-2910.1108/JIABR-12-2022-0335https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0335/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Factors influencing intention to invest in Shariah-compliant social impact bonds in Malaysiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0340/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThe purpose of the paper is twofold. Firstly, this study aims to investigate the factors influencing stakeholders’ intention to invest in Shariah-compliant social impact bonds (SC SIBs) in Malaysia. Secondly, this study compares the differences in the perception of different stakeholders on the importance of the factors. Using the extended theory of planned behaviour, the study undertakes a questionnaire survey on licensed capital market investors and individuals involved in the development of the financial market (developers). A total of 260 complete and valid responses were obtained from the survey. Multiple regression and Mann–Whitney tests were carried out to achieve the two objectives, respectively. The results reveal that attitude (β = 0.447, p < 0.01), subjective norm (SN) (β = 0.255, p < 0.01) and moral norm (MN) (β = 0.163, p < 0.01) are significantly positive predictors of intention to invest in SC SIBs. In terms of the differences in the perceptions of the two parties, the results show that the factors have more effect towards developers than investors. The empirical evidence from this study on the factors that influence stakeholders’ participation in SC SIBs is useful to the policymakers and interested parties in taking the next steps to develop, implement and promote SC SIBs to stakeholders in Malaysia. Fund managers can use the study’s insights to promote positive attitudes, SNs and MNs towards SC SIBs, especially targeting developers who are more influenced by these factors. More importantly, the results indicate a need for different strategies to influence the stakeholder investment behaviour of SC SIB in Malaysia to ensure that it is sustainable and viable in the long run.Factors influencing intention to invest in Shariah-compliant social impact bonds in Malaysia
Syed Marwan, Suhaiza Ismail, Engku Rabiah Adawiah Engku Ali, Mohamed Aslam Mohamed Haneef
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

The purpose of the paper is twofold. Firstly, this study aims to investigate the factors influencing stakeholders’ intention to invest in Shariah-compliant social impact bonds (SC SIBs) in Malaysia. Secondly, this study compares the differences in the perception of different stakeholders on the importance of the factors.

Using the extended theory of planned behaviour, the study undertakes a questionnaire survey on licensed capital market investors and individuals involved in the development of the financial market (developers). A total of 260 complete and valid responses were obtained from the survey. Multiple regression and Mann–Whitney tests were carried out to achieve the two objectives, respectively.

The results reveal that attitude (β = 0.447, p < 0.01), subjective norm (SN) (β = 0.255, p < 0.01) and moral norm (MN) (β = 0.163, p < 0.01) are significantly positive predictors of intention to invest in SC SIBs. In terms of the differences in the perceptions of the two parties, the results show that the factors have more effect towards developers than investors.

The empirical evidence from this study on the factors that influence stakeholders’ participation in SC SIBs is useful to the policymakers and interested parties in taking the next steps to develop, implement and promote SC SIBs to stakeholders in Malaysia. Fund managers can use the study’s insights to promote positive attitudes, SNs and MNs towards SC SIBs, especially targeting developers who are more influenced by these factors. More importantly, the results indicate a need for different strategies to influence the stakeholder investment behaviour of SC SIB in Malaysia to ensure that it is sustainable and viable in the long run.

]]>
Factors influencing intention to invest in Shariah-compliant social impact bonds in Malaysia10.1108/JIABR-12-2022-0340Journal of Islamic Accounting and Business Research2023-12-26© 2023 Emerald Publishing LimitedSyed MarwanSuhaiza IsmailEngku Rabiah Adawiah Engku AliMohamed Aslam Mohamed HaneefJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-2610.1108/JIABR-12-2022-0340https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0340/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
How is the halal certification policy implemented? Perspective analysis of small and medium enterprises (SMEs) in Indonesiahttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0342/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to explore small and medium enterprises (SMEs) acceptance of the halal certification policy in Indonesia, aiming to understand their perspectives and characteristics, as well as the primary considerations of business actors in implementing the policy. This study seeks to provide a comprehensive understanding of SME actors’ views toward halal certification policies, which is crucial for strengthening the government’s efforts in building a robust halal system and creating awareness in the community. This study uses a mixed method. This study uses a random sampling technique on SMEs in Bandung, Indonesia. A total of 400 respondents participated in filling out the study questionnaire. Meanwhile, five SME actors were interviewed to gain deeper insight into the topic of this study. The data analysis technique used descriptive analysis and verification with confirmatory factor analysis. The results of the study indicate that the halal certification policy is generally accepted by business actors, but there are criticisms regarding knowledge and information about halal certification. Halal awareness and perceived effectivity have the highest acceptance scores, while halal knowledge and information, religious behavior, individual background, and personal and social aims have the lowest scores. All acceptance indicators meet the criteria of a good fit model, with system indicators having a greater impact. Acceptance is based not only on theological–religious considerations but also on pragmatic considerations related to business operations. This study has several limitations that should be considered. First, the topics and variables studied are focused only on the dimensions of acceptance of the halal certification policy. It would be more comprehensive if integrated with other variables in correlational and implicative studies. Second, the measurement model used in this study is modified from the policy acceptance model, which focuses on normative and systemic aspects of the policy without considering theological values of the halal certification policy. A more complex model is required to measure the acceptance of a comprehensive halal certification policy that considers both normative and theological aspects. The implications of this study are as follows: First, the implementation of the halal certification policy must take into account the various indicators of policy acceptance, particularly from the business actors who are responsible for implementing the policy. Second, the implementation of the halal certification policy must also take into account the heterogeneous characteristics of the business actors. Third, the certification policy should focus on two critical indicators, namely, halal awareness and the perceived effectivity of policy implementation, which can be reinforced by other indicators. The results of this study confirm that the government must take into account the response of business actors to ensure the effectiveness of implementing the halal certification policy. The government can take an important step in this regard by conducting a survey of business actors who have participated in the halal certification program to understand the benefits and satisfaction they receive from the policy and identify the factors that hinder them from accepting the halal certification policy. This study highlights the response of SME actors regarding the acceptance of the halal certification policy. This study provides a new perspective regarding the acceptance of SMEs toward halal certification policies that are important for future implementation.How is the halal certification policy implemented? Perspective analysis of small and medium enterprises (SMEs) in Indonesia
Wahyudin Darmalaksana
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to explore small and medium enterprises (SMEs) acceptance of the halal certification policy in Indonesia, aiming to understand their perspectives and characteristics, as well as the primary considerations of business actors in implementing the policy. This study seeks to provide a comprehensive understanding of SME actors’ views toward halal certification policies, which is crucial for strengthening the government’s efforts in building a robust halal system and creating awareness in the community.

This study uses a mixed method. This study uses a random sampling technique on SMEs in Bandung, Indonesia. A total of 400 respondents participated in filling out the study questionnaire. Meanwhile, five SME actors were interviewed to gain deeper insight into the topic of this study. The data analysis technique used descriptive analysis and verification with confirmatory factor analysis.

The results of the study indicate that the halal certification policy is generally accepted by business actors, but there are criticisms regarding knowledge and information about halal certification. Halal awareness and perceived effectivity have the highest acceptance scores, while halal knowledge and information, religious behavior, individual background, and personal and social aims have the lowest scores. All acceptance indicators meet the criteria of a good fit model, with system indicators having a greater impact. Acceptance is based not only on theological–religious considerations but also on pragmatic considerations related to business operations.

This study has several limitations that should be considered. First, the topics and variables studied are focused only on the dimensions of acceptance of the halal certification policy. It would be more comprehensive if integrated with other variables in correlational and implicative studies. Second, the measurement model used in this study is modified from the policy acceptance model, which focuses on normative and systemic aspects of the policy without considering theological values of the halal certification policy. A more complex model is required to measure the acceptance of a comprehensive halal certification policy that considers both normative and theological aspects.

The implications of this study are as follows: First, the implementation of the halal certification policy must take into account the various indicators of policy acceptance, particularly from the business actors who are responsible for implementing the policy. Second, the implementation of the halal certification policy must also take into account the heterogeneous characteristics of the business actors. Third, the certification policy should focus on two critical indicators, namely, halal awareness and the perceived effectivity of policy implementation, which can be reinforced by other indicators.

The results of this study confirm that the government must take into account the response of business actors to ensure the effectiveness of implementing the halal certification policy. The government can take an important step in this regard by conducting a survey of business actors who have participated in the halal certification program to understand the benefits and satisfaction they receive from the policy and identify the factors that hinder them from accepting the halal certification policy.

This study highlights the response of SME actors regarding the acceptance of the halal certification policy. This study provides a new perspective regarding the acceptance of SMEs toward halal certification policies that are important for future implementation.

]]>
How is the halal certification policy implemented? Perspective analysis of small and medium enterprises (SMEs) in Indonesia10.1108/JIABR-12-2022-0342Journal of Islamic Accounting and Business Research2023-12-14© 2023 Emerald Publishing LimitedWahyudin DarmalaksanaJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2023-12-1410.1108/JIABR-12-2022-0342https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0342/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2023 Emerald Publishing Limited
Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasinghttps://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0349/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatestThis study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16. A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions. Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements. The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles. Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange. This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasing
Amer Morshed
Journal of Islamic Accounting and Business Research, Vol. ahead-of-print, No. ahead-of-print, pp.-

This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16.

A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions.

Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements.

The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles.

Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange.

This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.

]]>
Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasing10.1108/JIABR-12-2022-0349Journal of Islamic Accounting and Business Research2024-02-14© 2024 Emerald Publishing LimitedAmer MorshedJournal of Islamic Accounting and Business Researchahead-of-printahead-of-print2024-02-1410.1108/JIABR-12-2022-0349https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2022-0349/full/html?utm_source=rss&utm_medium=feed&utm_campaign=rss_journalLatest© 2024 Emerald Publishing Limited