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Journal of Islamic Accounting and Business Research
Journal Prestige (SJR): 0.232  Citation Impact (citeScore): 1 Number of Followers: 5  Hybrid journal (It can contain Open Access articles)ISSN (Print) 1759-0817 - ISSN (Online) 1759-0825 Published by Emerald  [360 journals]
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- How much can Saudi corporations benefit from cause-related marketing'
Insights from exploring the charitable incentives of Saudi consumers-
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Authors: Fadye Al-Fayad
Abstract: This study aims to explain the impact of donations to a charity, company-cause fitting, corporate reputation, corporate philanthropic involvement and message content on Saudi consumers who purchase products that are promoted using cause-related marketing (CrM) campaigns. Structural equation modelling partial least square is used to analyse the responses of 293 Saudi respondents. Using Smart-PLS, the results show that donation size is positively related to the Saudi consumer’s purchase intention. However, differences in the donation amount did not affect the purchase intention. Regardless of the cause that motivates firms to donate money to philanthropic organisations, Saudi customers do not generally pay attention to the company-cause fit association. Retail corporate reputation, corporate philanthropic involvement and message content positively influence the purchase of products sold using CrM campaigns. This study explores the psychological and social attitudes Saudi customers demonstrate towards CrM campaigns. Regardless of corporation motives, Saudi customers care about charitable deeds. Moreover, positive message framing is effective when the content is emotive, comprehensive and persuasive. This study explores the psychological and social attitudes Saudi customers pay towards CrM campaigns. The message content relied significantly upon the cause fit and the magnitude of the donated money. Marketing research would benefit from investigating the role of applying efficient persuasive tactics to convey and frame public messages.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-05-16
DOI: 10.1108/JIABR-03-2021-0093
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Effects of demographic factors on women’s participation in the Islamic
microfinance scheme: an analysis using the theory of bounded rationality-
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Authors: Mohammad Ali Ashraf
Abstract: The purpose of this paper is to identify the factors that influence the individual bounded rationality of the rural poor toward participation in borrowing from rural development scheme (RDS). Specifically, how do respondents’ demographic variables such as gender, age, education, income and religion affect their attitude, subjective norms (SNs) and perceived behavioral control (PBC) to influence bounded rationality toward actual participation in borrowing the Islamic funds from RDS' To answer these questions, the theory of bounded rational planned behavior as its basis was established. Data (n = 375) were collected from rural women clients of RDS based on snow-balling sampling technique. Data were analyzed following the procedure of structural equation modeling. The results indicate that all the demographic variables except education influence attitudes, SNs and PBC in turn influence the individual respondents’ bounded rational intention toward participation in RDS. The sample was not randomly drawn to represent a population to which findings could be generalized. Instead, it was a snow-balling sample, and as such, the ability to generalize the findings very far beyond the sample is limited. This paper implies that respondents’ socioeconomic characteristics are important to consider changing individual subjective rationality of human being toward performing actual behavior. Social implications refer that rural women in Bangladesh are positively and subjectively motivated toward bounded rational intention and participation in RDS. This research is based on the primary data collected from the participants in an Islamic microfinance institute called RDS. This paper draws on several insights about the participation behavior of the rural poor in Bangladesh.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-05-16
DOI: 10.1108/JIABR-09-2020-0275
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Technology readiness and data analytics competencies of the Muslim and
non-Muslim external auditors: a comparative analysis-
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Authors: Nahariah Jaffar , Abdul Aziz Aziz Ahmad , Noor Adwa Sulaiman
Abstract: The purpose of this study was to investigate the level of technology readiness (TR) of the Muslim and non-Muslim external auditors and its effect on their data analytics competencies (DACs). Literature is insufficient in addressing the comparative analysis of these constructs among these auditing professionals. A survey was conducted on 201 external auditors. Questionnaire was developed based on TR and DAC literature. Pilot testing was conducted on 50 respondents, who were drawn from the sample. Non-Muslim external auditors were found to be more technology ready than Muslim external auditors. The optimum dimension of TR was significantly different between Muslim and non-Muslim external auditors. Significant mean difference was found only for personal capabilities dimension of DAC between Muslim and non-Muslim external auditors. TR had a significant effect on Muslim external auditors’ personal capabilities dimension of DAC; however, there was insignificant effect on all DAC dimensions for non-Muslim external auditors. The highest DAC score of the external auditors were only at the beginner level for technical skills and technologies and tools expertise dimensions. Using students as proxies for external auditors could lead to concerns with generalisability. Nonetheless, these students were competent to act as proxies as they had completed a six-month internship at an accounting firm. The findings manifested the need for Muslim external auditors to be more technology ready. External auditors need to enhance their DAC to meet digital economic needs. This study advocated the importance for auditing professionals to acknowledge the new data analytics challenges.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-05-09
DOI: 10.1108/JIABR-11-2020-0341
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Religiosity versus profit-loss sharing: how Islamic banks brand fidelity
influence the Muslim consumers’ commitment-
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Authors: Junaidi Junaidi
Abstract: The purpose of study examine the relationship between religiosity, consumers’ materialism, brand fidelity, attitude and consumers’ commitment to Islamic banking products using evidence from Indonesia. The sample consists of 658 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses. The empirical results indicate that religiosity has significant and positive effects on consumers’ materialism, brand fidelity and attitude, also mediating variables. Furthermore, the mediator variables partially mediate religiosity and consumers’ commitment based on consumers’ culture theory. This study is validated by Indonesian Muslims; therefore, future study is required to analyze across the culture and region. It can help Islamic bank managers and scholars to observe the correlation between religion, Islamic banks products and Muslims’ commitment. The current study enlightened the consumers’ Islamic bank principle operation from marketing and religiosity. The government and the shariah supervisory board need to enhance the control and promote to make sure that Islamic banking operations have compliant with Islamic law. The result of this study provided the Muslim decision-making process by developing and testing a model of religious determinants toward Islamic bank products.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-05-03
DOI: 10.1108/JIABR-07-2021-0188
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Related party disclosures in financial reporting for Islamic banks
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Authors: Abdul Rafay
Abstract: The purpose of this study is to determine the impacts of related party transactions on the performance of Islamic banks in Pakistan. In addition, this study aims to determine whether corporate governance mechanisms enhance company performance and mitigate agency problems associated with related party transactions in the Islamic banks. Sample includes all Islamic banks domiciled in Pakistan from 2017 to 2021. To run the regression models, the regression assumptions about normality, heteroskedasticity, autocorrelation and multicollinearity are determined. This study finds that institutional ownership has a significant impact on mitigating agency problems associated with tunneling. Related party borrowings indicate expropriation and conflict of interest, whereas related party revenues indicate propping and efficient transactions. This study uses data from all Islamic banks and specialized Islamic branches working in Pakistan. In the future, data of other institutions offering Islamic finance in Pakistan and in other emerging economies can be used to determine the role of related party transactions. A thorough understanding of related party interrelationships in the Islamic banking system is essential, as these transactions can result in either the creation of wealth or the destruction of wealth. It is also necessary to determine the type of transactions that ultimately benefit Islamic investors. The impacts of different related party transactions (in terms of cash inflows and outflows) of Islamic banks are investigated. Prior studies generally look at the impact of related party transactions on firm performance in totality.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-28
DOI: 10.1108/JIABR-03-2020-0066
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Are participation and conventional banks operating under the same roof
really different' Evidence from Turkish bank clients-
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Authors: Tamer Baran
Abstract: This paper aims to reveal whether there is a difference in perception of banking clients toward participation banks (PBs) and conventional banks (CBs) operated by the same bank. The data were gathered with an online questionnaire from 254 participants. Questionnaire consisted of the Chaouch (2017) bank perception scale and the Koenig and Büssing (2010) religiosity scale. The data of the study were analyzed using the paired samples t-test and regression analysis. The findings exhibit that Turkish bank clients, as a secular society, differently perceive financial activities of PBs and CBs that operate under the same roof in terms of compliance with Islamic laws. The findings also reveal that perceptions of the Turkish bank clients toward PBs' activities to compliance with the Islamic rules differs by the religiosity level. On the other hand, findings show that there is no difference in the perceptions of the CB's activities regarding compliance with Islamic rules by the clients’ religiosity level. This study uses quantitative data. These type of data both can miss sometimes certain knowledge and restricts of participants thoughts on the study phenomena. Based on the results of the study’s findings, beneficial suggestions are made for researchers and banking sector managers. While many studies have been on Islamic banking, this study extends the role theory to compare perceptions of bank clients between PBs and CBs and provides an empirical evidence for bank clients' perceptions to dual banking in a developing and a secular country like Turkey.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-28
DOI: 10.1108/JIABR-03-2021-0083
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Measuring the effect of GST towards performances of Malaysian takaful
operators-
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Authors: Marhanum Che Mohd Salleh , Mohammad Abdul Matin Chowdhury , Eko Fajar Cahyono , Tika Widiastuti
Abstract: The main purpose of this study is to evaluate the performance of takaful operators in Malaysia. The study applied the data envelopment analysis (DEA) technique and the ratio analysis, using secondary data available on Malaysian Takaful operators’ annual reports. The study period for the analysis ranged from 2013 to 2016. Based on both analyses, the performance of Takaful operators was affected due to the additional cost imposed by the goods and services tax (GST) implementation. Results showed a decline in average technical efficiency for takaful operators upon GST implementation. The data were taken from the annual audited reports for selected firms that were available on the firm’s website only, which was limited. The data were taken till 2016, even though the GST is omitted from Malaysia on 1 June 2018. This study has applied Ratio analysis and DEA constant returns to scale (CRS) technique; the future study may adopt both DEA CRS and DEA carrying returns to scale model to evaluate along with other methods to identify the specific factors. These findings may associate policymakers in identifying the shortcomings of GST or new tax implementation in a new and emerging industry. So, the policymakers and central banks may adopt necessary initiatives to support the industry. Because the Malaysian government is trying to push the takaful industry along with Islamic banking and finance in the competitive market, takaful operators may be exempted from the current sales and service tax (SST). In addition, takaful operators may use these findings to enhance their operational activities efficiently to improve performance. This paper might help the researchers and practitioners to learn the impact of GST. Even though GST seems not relevant anymore as the government has replaced it with SST, the trick is still the same as it is a kind of tax or costs incurred by the Takaful operators in running their business. Takaful managers may identify their efficient level in managerial aspects as well as the optimal scale of resources by the findings of this study. To the best of the authors’ knowledge, this research is original in terms of data that is gathered directly from the annual report of the company during the GST period.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-27
DOI: 10.1108/JIABR-06-2020-0193
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- The drivers of financial vulnerability and profitability: evidence from
conventional and Islamic banks in Islamic finance-oriented countries-
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Authors: Indira Parmankulova , Parida Issakhova , Zhanar Zhanabayeva , Alimshan Faizulayev , Kulzira Orazymbetova
Abstract: This study aims to investigate the determinants of banking stability in the case of QISMUT + 3 countries (Qatar, Indonesia, Malaysia, United Arab Emirates, Turkey, Pakistan, Kuwait and Bahrain). Both profitability of banks and non-performing loans were treated as dependent variables. Three variations are examined, the sample as a whole and separated to conventional banks (CBs) and Islamic banks (IBs). Data from 208 banks, both IBs and CBs, were used from 2011 to 2018, after global financial crisis period. Two-step system generalized methods of moments and both feasible least squares and panel-corrected standard error models were used to ensure test the data. Results suggest that both financial vulnerability and profitability affect each other in both banking systems. In addition, capital adequacy has a positive link with both dependent variables. Corruption varied and followed expectations but for the case of CBs alone with an unexpected negative relationship with profitability. The findings are expected to help bankers, investors, academics and policymakers gain a better understanding of Islamic banking. The findings would be useful in developing policy for the development of the banking industries in these countries. This study contributes to existing literature in three ways. First, this study investigates the factors influencing banking non-performing loans for a new class of countries – QISMUT + 3 within 2011–2018 period. Second, only a few studies use such a period, which is after the global financial crisis period. Finally, new indicators are used to determine the non-performing loans and profitability of both types of banks, such as Muslim Share and Share of IBs.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-27
DOI: 10.1108/JIABR-06-2021-0155
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Burdening effect of Shariah knowledge and sales performance in Islamic
financial institutions: does female salesforce perform better'-
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Authors: Shinaj Valangattil Shamsudheen , Ziyaad Mahomed
Abstract: The purpose of this paper is to examine the burdening effect of Shariah knowledge on the sales performance of salesforce in Islamic financial institutions with special reference to gender heterogeneity. A total of 324 responses were collected from salesforce in Islamic financial institutions of Malaysia, and empirical assessment was conducted with the measures of model fit and bootstrapping techniques using partial least square multi-group analysis. Empirical findings indicate that burdening effect is evident among salesforce, and the intensity of burdening effect is relatively lesser in female salesforce compared to male salesforce. Empirical findings suggest that respective authorities of Islamic financial institutions to intensify capacity building for their salesforce, particularly in the area where the Shariah knowledge and nature of underlying Islamic contracts are employed in the financial products. There is a significant competitive advantage in preferring more female salesforce to improve the slow growth of the industry that results from burdening effect of Shariah knowledge. Not least of all, it is highly recommended for Islamic financial institutions to provide more training for the male salesforce to overcome the issue of information overload in sales performance. While there is ample literature documented that examines the gender effect in conventional sales and marketing discipline, little emphasis has been given to the salesforce in the Islamic finance industry. Further, the findings of this study provide vital implications for the management in formulating crucial policies with respect to the salesforce preference and capacity building in dealing with the burdening effect of peculiar features of the Shariah knowledge in the light of the ongoing slow growth of the Islamic finance industry.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-27
DOI: 10.1108/JIABR-12-2021-0319
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- The impact of basic values on consumer purchase intention of takaful with
moderating role of similarity of competitors-
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Authors: Amer Sarfraz , Asif Khurshid , Wisal Ahmad
Abstract: This study aims to determine the impact of basic human values on consumer purchase intention of takaful. The core purpose of this study is to establish the moderation of similarity of competitors between the proposed relationship of tradition value, conformity value and consumer purchase intention of takaful. This study supports the positivist philosophical paradigm and follows quantitative research methods, cross-sectional approach and close-ended questionnaire technique for data collection. The IBM SPSS and AMOS programs were used to perform data analysis. The finding reveals that tradition value produces positive effect and stimulation value produces negative effect on consumer purchase intention of takaful. Meanwhile, the similarity of competitors moderates the proposed relationship of tradition value, conformity value and consumer purchase intention of takaful. The scope of this study is limited to measure the role of tradition value, conformity value, stimulation value and self-direction value. However, future studies should investigate the role of hedonism value, achievement value and universalism value in consumer purchase intention of takaful. Further, the data collection from three major cities of Pakistan is considered as a main limitation of this study including scarcity of time and resources. Future studies should enhance the geographical scope of research by including large and small cities, town and rural areas to enhance the generalization of the study. The present study highlights leading challenges faced by takaful industry including the perception of similarity of competitors that create confusion in the mind of consumers. This study also introduces the role of basic human values in activating consumer’s intention to purchase takaful services.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-25
DOI: 10.1108/JIABR-02-2021-0050
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- The effect of intellectual capital on firm performance: the mediating role
of family management-
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Authors: Hanady Bataineh , Sinan Suleiman Abbadi , Enas Alabood , Amneh Alkurdi
Abstract: This study aims to investigate the effect of intellectual capital components on firms’ performance, and also examines the influence of the mediating role of family management on such a relationship. The hypotheses are tested using structural equation modeling for a sample of 46 Jordanian service listed firms during 2014–2019. The results indicate that intellectual capital efficiency is a key factor that enables firms to achieve higher financial performance and higher market value. Human capital efficiency has a significant positive effect on firms’ profitability as measured by return on assets and earnings per share. No evidence is shown to support that family management has a mediating role on the relationship between intellectual capital and firms’ performance. The results indicate strong evidence of the important role of intellectual capital on firm performance. Accordingly, this study recommends that the managers of service firms should continue to enhance and improve the components of intellectual capital, especially investing more in the competencies and capabilities of employees, including their skills, education and training programs to achieve competitive advantage and ensure continued success in the future, and investors to pay special attention to the components of intellectual capital to predict the performance of the firm and be able to choose the best investment opportunities. This study provides additional insights into the literature of both intellectual capital and family businesses by analyzing data from an emerging market.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-25
DOI: 10.1108/JIABR-02-2022-0032
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- The COVID-19 pandemic and herding behaviour among investors in
Shariah-compliant stocks-
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Authors: Khemaies Bougatef , Imen Nejah
Abstract: This paper aims to investigate whether the COVID-19 pandemic leads to the formation of herding behaviour among investors in Shariah-compliant stocks. This study uses a sample of the stocks that constitute the Dow Jones Islamic Market Malaysia Titans 25 Index, over the period from 6 December 2017 to 12 March 2021. This paper provides robust evidence on the contribution of the COVID-19 pandemic to the formation of herding behaviour in Shariah-compliant stocks. The findings also reveal that herding behaviour occurs only during falling market. The findings provide useful implications for policymakers and portfolio managers seeking to understand the behaviour of investors in Shariah-compliant stocks during turbulent periods. The presence of herding behaviour begs the question on the market efficiency and limits its potential to offer diversification benefits to investors. The findings suggest that policymakers and investors should mitigate misvaluations that occurred during the COVID-19 outbreak because the herding behaviour can drive stock prices away from their equilibrium values. Thus, regulators should adopt appropriate policies to enable the market to reach a more efficient level by monitoring and improving the quality of information and facilitate their transmission to the market. The misevaluation opportunity enables market timers to sell overpriced stocks and purchase underpriced stocks. The findings also imply that investors should implement effective hedging strategies to mitigate the downside risk. In addition, the results suggest that investors should devise their trading strategies in falling and rising markets during the COVID-19 pandemic. There is meagre literature on the effect of the COVID-19 outbreak on the formation of herding behaviour among investors. Studies conducted on herd behaviour are widely focused on Shariah non-compliant stocks, only a few ones deal with Shariah-compliant stocks. The novelty of this paper consists in addressing this gap in the literature through examining the presence of herding behaviour on the part of investors in Shariah-compliant stocks in Malaysia before and after the COVID-19 outbreak.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-25
DOI: 10.1108/JIABR-08-2021-0237
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Islamic equity indices: a focus group discussion
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Authors: Waqar Haider Hashmi , Nazima Ellahi , Saima Ehsan , Ajmal Waheed
Abstract: The purpose of this study is to highlight key issues pertaining to making use of Islamic equity indices and proposing possible solutions to address the problems faced in advancement of the concept of Shariah investing (SI) with the aim to advance the discourse on the subject. Online focus group discussion (FGD) was carried out in which ten Islamic finance researchers and analysts belonging to institutions considered as authority on the subject matter participated to share their viewpoints on Islamic equity indices. Content analysis on the collected data of FGD was carried out which has revealed six key themes. Six broader themes were identified based on the analysis of FGD, which includes criteria for constructing Islamic equity indices, utilization of Islamic equity indices for comparison with conventional stock indices, stock market efficiency perspectives, reason for integration of different equity markets, investors’ awareness of SI and future directions of Islamic equity indices. Results of the study indicate that Islamic finance researchers and analysts opined that there is a need for revising the criteria for construction of Islamic equity indices. There are conflicting viewpoints regarding performance and efficiency of Islamic indices in comparison with conventional indices and main reasons for stock market integration are trade liberalization, globalization and other factors. Moreover, there is a need for making investors and other market players aware about the attractiveness of Islamic indices from investing point of view. Based on this extensive literature review and as highlighted by Masih et al. (2018) in their recap of literature on Islamic equity indices indicating that there are bulk of empirical studies carried in the past in the domain, however, there is a dearth of theoretical and qualitative studies. Hence, this preliminary qualitative study not only makes theoretical contribution but also deploys FGD, which is rarely used in the similar context, and offers candid views of the participants on key issues pertaining to Islamic equity indices. This lends novelty to this study.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-25
DOI: 10.1108/JIABR-09-2021-0241
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Communicated ethical identity disclosure (CEID) of Islamic banks under the
AAOIFI and IFRS accounting regimes: a global evidence-
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Authors: Mohamed Anouar Gadhoum , Zulkarnain Bin Muhamad Sori , Shamsher Ramadilli , Ziyaad Mahomed
Abstract: This paper aims to assess the ethical disclosure of Islamic banks (IBs) under different accounting regimes and to ascertain whether the adoption of an Islamic accounting standards (Auditing Organization for Islamic Financial Institutions [AAOIFI]) promotes the practice of ethical disclosure. An ethical identity disclosure index was developed to serve as a benchmark to assess the level of the communicated ethical identity disclosure (CEID) of 47 IBs over 18 countries using annual reports. The findings suggest that, overall, there is poor ethical disclosure practices and even banks that had some initiatives towards disclosures had no proper reference to benchmark for effective implementation of ethical reporting standards and had no plans for ethical and socially responsible schemes. There was no evidence to suggest that IBs that adapted the religious-based accounting regime (AAOIFI) had better levels of ethical disclosure. Though poor practices of CEID are expected to increase reputational risks and the likelihood of loss of religious conscious customers and investors’ confidence and therefore market share and performance in the long-term, the current practice does not concur with this expectation. Furthermore, since there is no evidence to support the notion that the adoption of AAOIFI standards would support greater initiatives towards level of ethical identity disclosures, a mandatory requirement for effective disclosure through enforcement of AAOIFI’s financial reporting standards, specifically with regard to ethics and social and environmental commitment is needed. In addition to introducing commonly accepted regulatory and supervisory guidelines and best practices that cater for the specificities of Islamic banking could significantly improve the level of CEID of IBs. In addition, the standardization of ethical (non-financial) reporting practices of IBs through guidelines and key performance indicators will facilitate CEID practices of IBs. This paper contends that for Islamic bankers, ethics is an entrenched part of the business practice and should mitigate unethical behaviour, more so with the additional filter of Sharīʿah supervisory boards. Even if there are such practices due to ineffectiveness of Sharīʿah committees, management pressure to meet performance expectations and competitive pressures from peers in the conventional banking sector, it will not be in the interest of the banks to report them.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-19
DOI: 10.1108/JIABR-01-2021-0013
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Shariah auditing: analyzing the past to prepare for the future
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Authors: Saleh F.A. Khatib , Dewi Fariha Abdullah , Hamzeh Al Amosh , Ayman Hassan Bazhair , Ali Shariff Kabara
Abstract: This study aims to present a detailed investigation of Shariah audit research based on a systematic literature review. A total of 53 studies were collected from the Scopus and Web of Science databases following a systematic methodology. These studies were analyzed and evaluated based on the theoretical perspective, geographical distribution, research settings and themes background. The findings indicate an increase in the literature on Shariah auditing over time, especially in the Malaysian context, with a dearth of research in other contexts and institutions (Takaful). It has been also revealed that the existing literature is still unclear about the effectiveness and consequences of effective Shariah auditing, pointing the need for more work on these areas. The authors outline opportunities for future Shariah auditing research. The synthesized findings are helpful for policymakers and managers to understand better how research in Shariah auditing is developing and how to translate research findings into practice. To the best of the authors’ knowledge, this is the first research to comprehensively synthesize the literature on this topic and identify the potential opportunities for future research directions.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-04
DOI: 10.1108/JIABR-11-2021-0291
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Actuarial model for takaful contributions via optimal retakaful
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Authors: Abderrahim El Attar , Mostafa El Hachloufi
Abstract: This paper aims to present an actuarial model of takaful to cover death and permanent total deficit of contributors benefiting from Mourabaha financing for real estate, taking into account modern takaful systems around the world. The main goal of this paper is to design an optimization program that helps to obtain a marketable and profitable takaful product by using the retakaful as a safety and technical support tool. The study adopts an actuarial approach for determining takaful contributions and optimal choice of an adequate form of retakaful to maximize the technical surplus of a takaful company. A resolution method based on genetic algorithms is also developed to solve the optimization program. This actuarial model allows to provide high added-value support to takaful and Islamic finance and also reassures clients of purchasing real estate through the Mourabaha product. It should be noted that the choice of an effective Islamic borrower insurance product (takaful borrower) obviously depends on the strategy adopted by the takaful operator (type of takaful, pricing, experience and statistics observed, etc.), the form of retakaful, the behavior of the participants and the nature of the portfolio. Moreover, the program developed in this paper is suitably affordable and is closely linked to the hypotheses. The strong point of the present program relies on the case where the reinsurer establishes itself as a partner of choice and to enrich the takaful fund. In addition, the actuarial tools used in agreement with genetic algorithms have made it possible to optimize with efficiency and ease of calculation.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-04-01
DOI: 10.1108/JIABR-11-2020-0339
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Stakeholder expectations of the accountability of Malaysian State Islamic
Religious Councils (SIRCS): to whom and for what'-
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Authors: Rosnia Masruki , Khaled Hussainey , Doaa Aly
Abstract: This paper aims to examine stakeholders’ expectations of accountability in non-profit organisations (NPOs) in general, and State Islamic Religious Councils (SIRCs) in particular. An online survey was used to collect data, which was then analysed descriptively. Furthermore, the differences between stakeholder groups were evaluated using the Mann–Whitney and Kruskal–Wallis tests. The findings indicate that NPOs generally and SIRCs specifically need to clarify the meaning of accountability to meet the expectations of their stakeholders, especially the public, and to address accountability inquiries. The research method was a limitation of this study. The data was collected using a survey. Generally, surveys contain restricted numbers and types of questions that the authors have outlined. Consequently, respondents might be constrained in their choice of how they perceive accountability. So, surveys used to collect respondents’ opinions may have an adverse effect on their responses. In addition, a number of respondents may also give superficial answers, particularly if they are required to answer a number of questions over a long period of time. Finally, the data collected using surveys might show what respondents think about accountability, but they do not show the actual practice. Owing the highest accountability to the Board of Directors is akin to the practices of corporations. The findings of this study could assist their top officials to understand the accountability chain within SIRCs. This is consistent with the findings regarding accountability within SIRCs, whereby they perceived that they are responsible to their board for performance. Therefore, this should encourage the reporting of performance to both internal and external stakeholders. Overall, perceptions on accountability are an ongoing debate, and they depend on the role of the organisation and expectations of stakeholders. Identifying a clear accountability chain is essential to develop the best reporting practices for SIRCs. The paper contributes to the literature by addressing two questions on accountability for NPOs: to whom and for what.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-03-18
DOI: 10.1108/JIABR-04-2021-0130
Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
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- Acceptance model for predicting adoption of Zakat, Infaq, and Sodaqoh
(ZIS) digital payments in Generation Z-
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Authors: Tri Wahyu Oktavendi , Immanuel Mu'ammal
Abstract: This study aims to explore the factors that can encourage Generation Z to continue using Zakat, Infaq and Sodaqoh (ZIS) digital payments. The factors used to determine the behavioral intention (BI) of Generation Z are adoption readiness (AR), perceived risk (PR), trust (TR) and personal innovativeness (PI). AR (reflected by facilitating condition, social influence, ease of use and usefulness), PR (security risk and privacy risk), PI, TR and BI were tested using structural equation model (with smart PLS analysis tool). AR and BI are influenced by PI. In addition, BI is also influenced by TR, where TR will increase if risk can be minimized. This study was not able to prove the role of risk on BI. This result focuses on Generation Z, so future research can compare results between generations. In addition, regulations between countries can affect the results of similar research, and factors that have not been used in this study can be used for future research. The results show that several reflective models of AR and PR. By adding the TR factor, this study can be used to understand the attributes of the acceptance of the ZIS digital payment model. On the other hand, this research has practical implications for the success of cashless ZIS payment transactions. The model in this study develops an existing acceptance model and uses this model in the ZIS digital payment for Generation Z.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-03-14
DOI: 10.1108/JIABR-09-2021-0267
Issue No: Vol. 13 , No. 4 (2022)
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- Performance of Islamic banks based on al-sharīʿah: a systematic review
of current research-
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Authors: Wan A'tirah Mahyudin , Romzie Rosman
Abstract: This study aims to systematically explore the approaches used by previous studies in measuring the performance of Islamic banks based on maqāṣid al-Sharīʿah. The data obtained in this study were derived from a review of empirical literature based on 15 articles published between 2012 and 2019. The sample articles on the performance of Islamic banks based on maqāṣid al-Sharīʿah were located by searching keywords in the most relevant social science research databases such as Scopus, Web of Science and EBSCOhost. The emerging trend in measuring the performance of Islamic banks from the maqāṣid perspective highlighted that there is insufficient research on the determinants of Islamic bank performance. The reviews undertaken in this paper will resolve the literature gaps in the area of maqāṣid al-Sharīʿah and Islamic banks, as this study serves as a reference for scholars, academicians and interested researchers in Islamic banking and finance studies to pursue more research in this area. Performance measurement based on maqāṣid al-Sharīʿah enhances society’s confidence in supporting Islamic banking practices, particularly among the Muslim community. Islamic banks can also be exemplary financial intermediaries supporting fair and equitable financial systems for the entire community. This paper is original in its nature, considering that understanding the relationship between maqāṣid al-Sharīʿah and the performance of Islamic banks is limited. This paper reveals a literature gap that can be explored by future studies theoretically and practically.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-03-04
DOI: 10.1108/JIABR-10-2020-0337
Issue No: Vol. 13 , No. 4 (2022)
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- Determinants of Islamic banking adoption among non-Muslim customers in a
Muslim zone-
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Authors: Precious Chikezie Ezeh , Anayo D. Nkamnebe
Abstract: The purpose of this study is to establish the relationship between relative advantage, social influence, trust, compatibility, knowledge and adoption of Islamic banking among non-Muslim bank customers in a Muslim zone of Nigeria. Usable questionnaires were received from 350 participants. Structural equation modeling is used to assess the relationships between latent unobserved constructs. Composite reliability and average variance extracted were used to test the reliability and validity of the instrument. This study uses the correlational research design to test the hypotheses. The findings indicate that relative advantage, social influence, trust and compatibility significantly influence adoption of Islamic banking among non-Muslim customers in a Muslim zone of Nigeria. However, knowledge of Islamic banking operations does not significantly influence adoption of Islamic banking. The existing literature focuses on factors that influence the adoption of Islamic banking, without due emphasis on non-Muslims. The religious divides of Nigeria compel this research to determine the factors that influence the adoption of Islamic banking among non-Muslim customers. Hence, this research seeks to bridge the gap in the existing literature by embarking on an investigation using innovation diffusion theory to identify factors influencing the adoption of Islamic banking among non-Muslim customers in the Nigerian context.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-03-02
DOI: 10.1108/JIABR-10-2021-0280
Issue No: Vol. 13 , No. 4 (2022)
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- Antecedents of customer loyalty in Islamic banking: evidence from Tanzania
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Authors: Amani Gration Tegambwage , Pendo Shukrani Kasoga
Abstract: This study aims to examine the association between relationship quality, service quality, customer satisfaction, switching barriers and Islamic banking customer loyalty using evidence from Tanzania. This study used correlational research design to test the hypotheses. Completed questionnaires were received from 572 Islamic bank customers in three major cities of Tanzania (Dar es Salaam, Dodoma and Zanzibar). There is a significant positive relationship between relationship quality, service quality, customer satisfaction and customer loyalty. Switching barriers have an insignificant effect on customer loyalty. Further, the four antecedents contribute differentially to customer loyalty, with service quality having the most significant contribution. The findings of the study can help managers of Islamic banks build and maintain customer loyalty through high service quality, high customer satisfaction and high-quality bank–customer relationships and attain a competitive advantage that would enable Islamic banks to grow and succeed in a competitive banking environment. This study provides new insights on Islamic banking consumer loyalty by comparing the levels of contributions of the customer loyalty antecedents in a single study. This knowledge would enable Islamic banks to identify antecedents that have the highest contribution to customer loyalty and where best to target marketing attention and limited corporate resources.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-03-01
DOI: 10.1108/JIABR-10-2021-0288
Issue No: Vol. 13 , No. 4 (2022)
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- Examining new measure of asnaf muslimpreneur success model: a Maqasid
perspective-
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Authors: Hanudin Amin
Abstract: This study aims to investigate mustahiq business success using a newly developed index called asnaf muslimpreneur success index (AMSi). Following Abu Zaharah theory of al-Maqasid al-Shariah, the authors developed the AMSi through literature analyses and expert judges involving three Shariah scholars for improved extensions and applications. Subsequently, the authors conducted the actual survey, which included 17 mustahiq who had been assisted by the zakat institution in running their small and halal businesses in Sabah, Malaysia. Using the AMSi, the success of asnaf businesses was in the moderate index, implying the success meets the index score of more than 50%. All indexes capturing asnafs’ business experience, asnafs’ business justice, asnafs’ well-being and asnafs’ financial wisdom were greater than the threshold value of 0.5 or 50%, implying that the interaction of the battery items involved in those variables resulted in satisfactory results, indicating that they are relevant and essential in gauging the asnafs’ success level in the development business programme. The results obtained were at the exploratory level, and for that, more studies related are expected to be conducted in the future, where the coverage of the respondents used is larger to extend the findings, at least. The results obtained can become a yardstick to gauge the success of asnaf muslimpreneurs in Sabah, East Malaysia. This study introduces new measures of asnaf muslimpreneur success model, where mustahiq business is brought into play.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-02-10
DOI: 10.1108/JIABR-04-2021-0116
Issue No: Vol. 13 , No. 4 (2022)
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- Linking corporate governance with organisational growth: evidence from
Indonesian Islamic banks-
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Authors: Ros Aniza Mohd. Shariff , Muhammad Bahrul Ilmi , Muslim Har Sani Mohamad
Abstract: This study aims to investigate the link between corporate governance (CG) and organisational growth in Indonesian Islamic banks. Moreover, this research exposes the root causes of stagnancy in Indonesian Islamic banks from a governance perspective. This study used quantitative data such as secondary and primary data. This study used panel data analysis and examined managers’ perspectives of CG elements to show Islamic banking growth in Indonesia. The panel data set was extracted from 24 Indonesian Islamic banks’ annual reports from 2016 to 2018. This study found that the number of Sharia supervisory boards, board commissioners’ meetings, board quality, incentive and compensation significantly and positively affected Islamic banks’ growth in Indonesia. Meanwhile, board independence was significant but negatively impacted Indonesian Islamic banks’ growth. This study contributes to enhancing the growth of Islamic banks in Indonesia and helps find the solution to Islamic banks’ problems. Hence, this study contributes to Islamic banks’ literature and banking policies, stakeholders, regulators and government. Most studies have examined the growth of Islamic banking only from the financial and economic perspectives, while studies undertaken from the perspective of organisational growth and governance are still limited.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-02-08
DOI: 10.1108/JIABR-05-2021-0153
Issue No: Vol. 13 , No. 4 (2022)
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- Productivity analysis of family takaful in Indonesia and Malaysia:
Malmquist productivity index approach-
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Authors: Puji Sucia Sukmaningrum , Achsania Hendratmi , Sylva Alif Rusmita , Syadiyah Abdul Shukor
Abstract: This study aims to investigate the productivity level of family takaful in Malaysia and Indonesia from 2014 to 2019. Productivity can support corporate sustainability, which is one of the company’s goals. The measurement of the productivity level in this study involved applying the Malmquist Productivity Index (MPI) method. The input variables used consisted of equity, total expenses and total investment. The output variables consisted of total profit and investment income. In addition, this research used the orientation of the output and intermediation. Throughout the study period, the Indonesian family takaful had an average total factor productivity change (TFPCH) of about 0.945. In other words, it did not reach optimal productivity. It is more due to the low value of technological change (TECHCH). On the contrary, family takaful companies in Malaysia had called productivity, showing a TFPCH of about 1.041. Again, this is mainly due to an increase in TECHCH and efficiency change, but it is still low in pure technical efficiency change. This study focuses on factors that exist in internal takaful companies. Neither micro- nor macroeconomic variables that can affect productivity levels have been measured. In addition, this study only analyzed two countries out of the 11 countries in the Southeast Asian region. Family takaful companies can use the productivity index as one of the bases of evaluation in managing their resources to enhance optimal output. Furthermore, the management of family takaful companies in Indonesia needs to focus more on technological innovation and delivery of services to increase productivity. Meanwhile, family takaful companies in Malaysia can maintain their technology usage and efficiency to operate productively. The government in both countries is expected to actively accelerate the growth of family takaful companies by producing regulatory products that strengthen the industry. Specifically, the government in Indonesia needs to make regulations that support technology improvement. There is still not much research that examines family takaful’s productivity level using the MPI. The MPI is an appropriate tool to evaluate the productivity of family takaful companies. Thus, family takaful companies can improve their quality by assessing the productivity index value.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-02-08
DOI: 10.1108/JIABR-03-2021-0097
Issue No: Vol. 13 , No. 4 (2022)
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- Financial risks and performance of conventional and Islamic banks: do
reputational risk matters'-
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Authors: Mahnoor Anjum Butt , Huma Ayub , Bilal Latif , Fawad Asif , Malik Shahzad Shabbir , Ammar Aftab Raja
Abstract: The purpose of this paper is to shed light on the reputational risk, which is elusive and difficult to measure due to the lack of its conclusive definition. Literature supports the notion that financial risks may translate into reputational risks that pose threat to bank performance. However, empirical investigations in this context are still at their nascent stage. This study has used a panel dataset for the sample of 24 conventional and Islamic banks regarding the period 2007–2017 by using a structural equation model. The results of this study show that reputational risk partially mediates the relationship between financial risks and the performance of conventional banks. However, for Islamic banks, the reputational risk remains insignificant as a mediator. This study provides significant implications to risk managers in banks, regulators and academics to understand the role of reputational risk linked to financial risks for the improvement of bank performance. This study aims to add to the literature by measuring reputational risk through the shareholders reputational score index, which is used as a mediator to determine whether financial risks of banks affect the performance of conventional and Islamic banks in Pakistan.
Citation: Journal of Islamic Accounting and Business Research
PubDate: 2022-01-25
DOI: 10.1108/JIABR-10-2020-0336
Issue No: Vol. 13 , No. 4 (2022)
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- Journal of Islamic Accounting and Business Research
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