Authors:Ahmad Abbas, Neks Triani, Wa Ode Rayyani, Maha Radwan Abstract: Managers are responsible for the decision-making related to financial information. They make financial reporting incentives to manage financial data, including the earnings. Banks under Islamic principles seem to affect the probability of problematic managerial behavior in determining earnings. This study determines whether Islamic banking managers' discretion in reporting earnings is efficient or opportunistic. The sample of this study was Islamic commercial banks in Indonesia. The data was obtained from Bank Indonesia and Financial Services Authority. Their financial statements from 2010 to 2016 were analyzed using Moderated Regression Analysis. As reported by the analysis results, managers in Islamic banking are efficient in their discretion while reporting their earnings. Managers tend to level down their earnings when the profitability is exceptionally high at the current earning and movie it to the future earning making the profitability of Islamic banks seem stable. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.9053 Issue No:Vol. 12, No. 2 (2021)
Authors:Nikmatul Masruroh, Ahmad Raziqi, Al Furqon Dono Hariyanto Abstract: The Muslim community has grown to be the world’s largest population. Muslims have become a priority for business people and manufacturers who understand Muslim life patterns. Nowadays, manufacturers do not hesitate to use the halal label to reap huge revenues from Muslims. According to the GIE report for 2019 to 2020, Muslim expenditure on the purchase of goods and services in six industries of food, finance, medicine, cosmetics, fashion, and travel and tourism has reached 2.2 trillion with 5.2% YoY growth from 1.8 billion Muslims worldwide. This draws a rosy picture of the development of the halal industry that Muslims have turned into a potential market. Products adhering to Islamic law are what manufacturers must consider having their goods sold well. The sharia trend has become a new lifestyle, particularly for millennials. The rise of Islamophobia is one of the reasons for the ascending trend of sharia-compliant lifestyles in the modern age. This paper highlights the sharia modes of consumption practiced by Muslims by employing literature review as a research methodology. Referring to the Marshallian demand function, the higher the demand, the higher the satisfaction, yet, even if it is labeled halal, the additional satisfaction decreases. This is in stark contrast to Ibn Taymiyah asserting that market demand depends on shifting preferences. Muslims are increasingly focused on the halal lifestyle due to ever-changing tastes based on economic reasoning. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.6838 Issue No:Vol. 12, No. 2 (2021)
Authors:Popon Srisusilawati, Cecep Soleh Kurniawan, Irma Yulita Silviany, Rita Mustika, Imelda Putri, Anggelia Nurfitria Abstract: MSMEs have long promoted a major contribution to the national economy. However, the Covid-19 pandemic has caused MSME to suffer a decline resulting in a direct effect on the economy in Indonesia. This study analyzes the influence of self-efficacy and Sharia financial literacy on MSMEs performance. The inclusion of a variable of self-efficacy is a novelty of this study. This study highlights self-efficacy and Sharia financial literacy as independent variables and business performance as the dependent variable, with the focus of research on MSMEs. The research method used is quantitative associative. Respondents from 100 MSMEs were selected using saturation sampling. Multiple linear regression was performed using IBM SPSS Statistic software. The results prove that self-efficacy and Sharia financial literacy have a simultaneous and partial positive effect on MSMEs performance. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.6937 Issue No:Vol. 12, No. 2 (2021)
Authors:Ro'fah Setyowati, Darwanto Darwanto, Adityawarman Adityawarman, Hantoro Ksaid Notolegowo Abstract: The emergence of Sharia microfinance institutions (S-MFIs) BMT has become a hope for micro, small and medium enterprises (MSMEs) pertaining to the improvement of access to capital loans, business, and welfare of MSME entrepreneurs. This study delves deeper into ex-ante and ex-post transaction costs of the BMT financing scheme at MSMEs from the BMT side and formulates strategies for optimizing BMT financing schemes for MSMEs. Constituting the largest contributor to the overall transaction costs at MSMEs, In a bid to reinforce the financing process, the efficiency of ex-ante transaction costs for drafting and ex-post transaction costs for designing and implementing the BMT’s governance is required. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.9142 Issue No:Vol. 12, No. 2 (2021)
Authors:Mohammad Irfan, Shah Saeed Hassan Chowdhury, Sylva Alif Rusmita Abstract: Despite India, having the second largest Muslim population in the world, Islamic finance is in its nascent stage. It is important from the perspective of investor to understand the concept of Islamic Finance. The aim of this study is focused on factors affecting the acceptance of Islamic Finance in India. This study concentrated on the primary data collected from 354 investors from cities across India, using structured questionnaire through snowball sampling technique. Demographic profiles of respondents were compiled by using descriptive statistics. The factor analysis was done by using SPSS. Findings of the study reveal that the high degree of reliability and validity of the data as reflected by Crobach’s Alfa (α) at 0.86. Kaiser-Mayer- Olkin Measure of Sampling Adequacy (KMO) is .776, which is statistically significant. Factor analysis extracted highly loaded (Eigen value > 1) six factors using 29 items in a structured questionnaire. Together these six factors explained total variance of 76.24%. These factors are namely viz., Awareness of Shariah indices, Religious motive, Social responsiveness, Understanding of Shariah screening, Ethical investment and Socio-economic reasons. Therefore, Islamic Finance and Shariah investment product planner should consider such factors seriously in designing their product & marketing strategies. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.8798 Issue No:Vol. 12, No. 2 (2021)
Authors:Nisa Rahma Fadila, Rifqi Muhammad, Titin Subekti, Peni Nugraheni, Nor Farizal Mohammed Abstract: The development of Islamic banking, especially in Indonesia and Malaysia, has made the two developing countries experience an increase in assets and financing disbursed. This fact provides good news regarding the growth of the Islamic banking sector in both countries, as well as challenges in implementing good governance to maintain compliance with sharia principles. This study aims to measure the level of Sharia disclosure with seven indicators developed from previous research. The objects in this study are Islamic banks in Indonesia and Malaysia in the 2016-2018 period. The results show that Islamic banks in both countries have not met the perfect aspects of Sharia disclosure by getting an index of less than 1, namely 0.76 for Islamic banks in Indonesia, and 0.57 for Islamic banks in Malaysia. The results of this study are expected to be a means of improvement for the management of Islamic banks in both countries to be more comprehensive in the disclosure of Sharia in the annual report. The novelty of this research is the combination of sharia disclosure indicators from previous studies. PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.7435 Issue No:Vol. 12, No. 2 (2021)
Authors:Sefti Nur Cahya Putri, Havid Risyanto, Asep Dadan Suganda, En. Muhamad Husni Abstract: This research aimed to analyze the health level of Islamic banking both in Indonesia and Malaysia by using the REC approach; Risk Profile, Earning, and Capital. Furthermore, this research used the quantitative descriptive method, with collected data from the official websites such as Bank Indonesia, the Financial Service Authority, and Bank Negara Malaysia. In the determination of the sample, the researchers used a purposive sampling technique with convenience sampling it was 12 Islamic Commercial Banks both in Indonesia and Malaysia. The finding of this research partially through three approaches, namely the risk profile approach which is represented by the FDR ratio, the results show that there are significant differences in the soundness of Islamic banking in Indonesia and Malaysia. Then, through the earning approach represented by the ROA ratio, the results showed that there was no significant difference in the soundness of Islamic banking in Indonesia and Malaysia. Likewise, for the capital approach represented by the CAR ratio, the results show that there is no significant difference in the soundness of Islamic banking in Indonesia and Malaysia. Simultaneously, the REC approach proves that there is no significant difference in the soundness of Islamic banking in Indonesia and Malaysia PubDate: 2021-12-29 DOI: 10.21580/economica.2021.12.2.9371 Issue No:Vol. 12, No. 2 (2021)
Open Access journal
