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Article
Publication date: 21 January 2022

Naseem Al Rahahleh and M. Ishaq Bhatti

This paper investigates the performance of locally focused equity mutual funds (LFEFs) in Saudi Arabia as compared with the performance of benchmark funds. More specifically, the…

Abstract

Purpose

This paper investigates the performance of locally focused equity mutual funds (LFEFs) in Saudi Arabia as compared with the performance of benchmark funds. More specifically, the focal question pertains to whether Shariah-compliant mutual funds (SMFs) and conventional mutual funds (CMFs) outperform their respective benchmarks. Undertaken in the context of Saudi Arabia's economic planning under Vision 2030, the study offers a foundation for determining whether and the extent to which Shariah-compliant investment strategies are competitive—a matter of considerable importance across 57 Muslim countries.

Design/methodology/approach

The Carhart four-factor model is applied to a sample of 39 Saudi Arabian mutual funds (MFs) using the monthly net asset value (NAV) per share. The sample period, April 2007 to October 2016, is considered in its entirety and as three sub-periods, i.e. low-, medium- and high-volatility.

Findings

The results show that the locally focused equity mutual funds (LFEFs) significantly outperformed their benchmark, i.e. the Tadawul All Share Index (TASI), during the full sample period and the low-volatility period. According to the empirical comparison, the CMFs also outperformed their TASI benchmark for the full sample period and the low-volatility period. However, the SMFs neither outperformed nor underperformed their S&P Saudi Arabia Domestic Shariah Index benchmark. That is, for each of the SMFs included in the sample, the Jensen's alpha was insignificant for both the full sample and all three volatility sub-periods.

Research limitations/implications

In this paper, the four-factor model is used in the context of a single country. The results, therefore, may not be generalizable to the multi-country level in the Gulf Council Cooperation (GCC) region given differences between the member countries in terms of financial structure and economic focus.

Practical implications

The results reported constitute a useful guide for policymakers and faith-based-sensitive investors concerned about the Shariah compliancy of their portfolios given that there is very little difference between how CMFs and SMFs performed in the focal period. This research can be extended to include other Islamic countries in the GCC region as a basis for identifying optimal investment vehicles, i.e. those most likely to produce high returns at low risk.

Originality/value

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

Details

International Journal of Emerging Markets, vol. 18 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 1 March 2022

Ken-Yien Leong, Mohamed Ariff, Zarei Alireza and M. Ishaq Bhatti

The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most…

Abstract

Purpose

The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most commonly used theories which are then tested using 19-year banking-firm market data. The usefulness of these models demonstrates with promising results.

Design/methodology/approach

This paper conducts a multi-country study using the multi-model testing approach to evaluate validity of theories and forecast accuracy of banking firms. It employs four methodology models used in finance literature; (1) P/E multiples model, (2) accounting-information-based clean surplus model, (3) theoretical model based on Gordon and Shapiro (1956) method and (4) the Damodaran-Kottler Free Cash Flow or FCF theory based on discounting model.

Findings

The tests show that the four theories under tests have a significant fit with actual price formation. The explained variation ranges from 72 to 92%, so the explanatory power of the theories accounting for variations in bank prices over 19-year period is substantial. The models fit suggest that the P/E model has superior predictive power followed by the RIM, DDM and FCFE. These findings shed new lights on the relative performance of valuation models.

Research limitations/implications

The study is limited in terms of the sample period size for 1999–2019. The availability of essential financial data prior to 2000 is very limited, so one can understand interpretation of statistical results under certain assumptions.

Practical implications

The paper suggests that one-factor model is better than the two-factor model.

Originality/value

The work done in this paper is unpublished and original contribution to banking and finance literature and also not under consideration for publication in any other journal.

Details

International Journal of Managerial Finance, vol. 19 no. 2
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 15 August 2023

Hasan Dinçer, Serhat Yuksel, Muhammad Ishaq M. Bhatti and Alexey Mikhaylov

The aim is to analyze the European eco-management because the global warming has become a topical issue impacting the whole world. Individual countries are trying to minimize all…

Abstract

Purpose

The aim is to analyze the European eco-management because the global warming has become a topical issue impacting the whole world. Individual countries are trying to minimize all the catalysts of global warming, such as carbon emissions. This paper addresses this issue and analyzes the performance of European eco-management for the purpose of future energy investments being environmentally.

Design/methodology/approach

This paper develops a fuzzy decision-making model to study the performance indicators of selected countries based on EMAS III standard. It employs interval type-2 fuzzy DEMATEL to evaluate the performance factors and TOPSIS methodology to assess five selected European countries' performance in relation to eco-friendly, emission and renewable energy.

Findings

Eco-friendly energy plays the most critical role in this respect followed by emissions and renewable energy which constitute significant factors. The novelty of this study is identifying significant criteria regarding environmental and energy efficiency of investments and making performance assessments of European countries with a new fuzzy decision-making model. Both expert opinions and datasets are used for the analysis. This paper supports previous research about energy efficiency investments in Europe.

Research limitations/implications

The innovative feature of this study is identifying significant criteria regarding environmental and energy efficiency of investments and assessing the performance of European countries with a new fuzzy decision-making model. The fact that the analysis only concerns the European region is an important limitation. In future analyses, other groups of countries can be examined. Innovations can be made regarding the method applied. In this context, analyses can be done utilizing different fuzzy numbers. Finally, the importance of the criteria can be calculated with other methods such as SWARA.

Practical implications

The paper fills the gap in performance analysis of European eco-management for environmentally friendly and efficient energy investments is done in this manuscript.

Originality/value

Analysis of European eco-management performance was done for environmentally friendly and efficient energy investments. A fuzzy decision-making model is constructed. The paper fills the gap in performance analysis of European eco-management for environmentally friendly and efficient energy investments.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 8 February 2024

Muneer Ahmad, Muhammad Bilal Zafar and Abida Perveen

This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.

Abstract

Purpose

This study aims to investigate the comparative importance of factors influencing the customer shift behavior from conventional to Islamic banking for consumer finance in Pakistan.

Design/methodology/approach

First, a comprehensive analysis of the existing literature was conducted to identify a broad range of factors related to customer shift behavior. Through an expert sampling, 14 essential factors were chosen for further investigation. Second, a questionnaire was developed using the analytical hierarchy process (AHP). This questionnaire was then distributed among customers who had previously been using conventional banking services but had made a shift toward Islamic banking. The purpose of this questionnaire was to gather data and insights regarding their motivations and decision-making process behind the shift, and a sample 215 customers are taken in the study.

Findings

The results of AHP depicts that the religiosity is a most important factor influencing customers to shift from conventional to Islamic banking, and the second most important factor is pricing. The other subsequent important factors are reputation of the bank, marketing and promotion, service quality, behavior of banks staff, Shariah compliance, management, convenience, fastness and charges/fees. Whereas documentation, ambiance and recommendation are found least important factors to patronize Islamic banking.

Practical implications

The study recommends Islamic banks to create awareness, concentrating on religious factor to have a greater impact on growth of Islamic banking and shrinking of conventional banking. Further, it suggests Islamic banks to apply Shariah-recommended approach of doing business, to help community in best possible way and to launch differentiated marketing techniques to attract customers. It also proposes regulatory authorities to provide facilitation to Islamic banking business by providing level playing field similar to conventional banking, tax equality and conversion of public financing from conventional banking to Islamic banking.

Originality/value

The originality of this study lies in its comprehensive analysis of factors influencing consumer shift behavior from conventional to Islamic banking in the context of consumer finance in Pakistan. By using the AHP, the study provides a structured approach to understanding the relative importance of these factors. This is the uniqueness of the paper that it applies the AHP for the analysis. Furthermore, the study offers practical implications for Islamic banks and regulatory authorities to effectively address and capitalize on this consumer shift trend.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 30 November 2021

Bianca Bindi, Romeo Bandinelli, Virginia Fani and Margherita Emma Paola Pero

The purpose of this paper was to investigate what types of supply chain strategies (SCS) are implemented within luxury fashion companies, according to the drivers that regulate…

10467

Abstract

Purpose

The purpose of this paper was to investigate what types of supply chain strategies (SCS) are implemented within luxury fashion companies, according to the drivers that regulate competitiveness in this sector (brand positioning, distribution channel, type and line of product). Moreover, the objective was to define which key performance indicators (KPIs) should be measured according to the chosen strategy, and finally to evaluate the alignment of luxury fashion companies with the proposed indicators.

Design/methodology/approach

The literature review was the first step performed. Thereafter, a case study was conducted and the sample, composed of six companies, was selected, a questionnaire was then developed to guide the interviews, after which the data were collected. From the data, a primary case analysis was conducted, from which cross-case patterns were also researched.

Findings

From the results obtained, it was possible to state that companies involved in the case study adopted different SCS within the same company according to the drivers that regulate the sector competitiveness. As a result, the product line was shown to be the only driver that affected both the alignment between the expected and implemented SCS, respectively, and the alignment with the selected KPIs.

Originality/value

The paper provides valuable insights to companies that are trying to align SCS and KPIs. The close link between these aspects had not yet been explored previously. In particular, there were no indications about the KPIs that have to be measured for a specific SCS.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 9 February 2024

Muhammad Wajid Raza

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…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.”

Research limitations/implications

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

Originality/value

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

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 23 June 2023

Ayman Wael Al-Khatib

Sustainable management has become a strategic and popular requirement for stakeholders, as the ability to create competitive advantages in the current dynamic business environment…

Abstract

Purpose

Sustainable management has become a strategic and popular requirement for stakeholders, as the ability to create competitive advantages in the current dynamic business environment and the pressures of digital transformation need to be increased attention in achieving the highest level of sustainable performance. The main objective of this paper is to explore the direct effects of the industrial Internet of things and supply chain visibility on sustainable performance (economic performance, environmental performance and social performance), in addition to evaluating the indirect effects that supply chain visibility plays in these relationships.

Design/methodology/approach

To achieve the purposes and objectives of this work, a conceptual model was developed by referring to the current works in the literature, and the theoretical model was developed, and then data were collected through the questionnaire and by the snowball sampling method, as 380 questionnaires were used. In the data analysis, the multivariate analysis technique was used via Covariance-based Structural Equation Modeling (CB-SEM), as hypothesized relationships were evaluated through confirmatory factor analysis (CFA), and then the hypotheses were tested through a structural model.

Findings

The results reached the acceptance of all hypotheses, and this means that all hypothesized relationships were positive, as the impact of the industrial Internet of things was positive on each of the supply chain visibility and economic performance, environmental performance and social performance, and also the supply chain visibility mediated the relationship between each of the industrial Internet of things and economic performance, environmental performance and social performance.

Originality/value

The current paper reported a range of theoretical and practical contributions, as this study is the first to examine these hypothesized relationships together in this way and thus helped this study to develop new perceptions about Industry 4.0 technologies and their potential impacts on supply chain and sustainable performance. Also, this study had a variety of management recommendations that allow managers of pharmaceutical manufacturing companies operating in Jordan to develop their technological capabilities and use them to enhance sustainable performance.

Details

Business Process Management Journal, vol. 29 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 5 August 2022

Hussain Mohi-Ud-Din Qadri, Hassnian Ali, Ahmad Jafar, Atta Ul Mustafa Tahir and Muhammad Azhar Abbasi

Islamic Insurance (Takaful) played a dynamic role in Islamic Social Finance (ISF). The popularity of the Takaful concept is being increased with each passing day. To describe the…

Abstract

Purpose

Islamic Insurance (Takaful) played a dynamic role in Islamic Social Finance (ISF). The popularity of the Takaful concept is being increased with each passing day. To describe the process, it is important to understand past areas of research, research differences, areas of unknown Takaful research, as well as the existing data. However, the purpose of the paper is to provide a comprehensive analysis of the development of qualitative research by carefully examining the nature of science and aspects of social relations in ISF.

Design/methodology/approach

Field, concerns with analysing and measuring the scholarly literature, quantitative characteristics of sciences and scientific technologies are known as scient metrics. This research includes queries such as “Islamic Insurance”, “Takaful” and “Shariah Insurance” as a reference in “Article title, Abstract and Keywords” based on Scopus from 2002 to 2022. This analysis was conducted in February 2022. The Bibliometrics, R-Studio, VOSviewer and Excel software are used to analyse the collected data and apply the bibliometric analysis.

Findings

The gist of the results and findings is that there are clear research gaps in the existing literature on Takaful. The available research on this subject does cover historical background, concept and models of Takaful and customer satisfaction towards Takaful model. Very important areas such as use of technology for bringing innovation in Takaful products and Shariah issues in existing practice and their solutions were not found in the present literature on Takaful.

Originality/value

This is the comprehensive research article to examine current literature on Takaful with bibliometric analysis. Results and potential areas of this research could be much helpful for scholars and researchers to create more dynamic improvements in the scientific development of Takaful in ISF.

Details

Journal of Islamic Accounting and Business Research, vol. 15 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 September 2023

Yunice Karina Tumewang, Indri Supriani, Herlina Rahmawati Dewi and Md. Kausar Alam

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

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Originality/value

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.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 3 January 2023

Karim Ullah, Muhammad Ashfaque, Muhammad Atiq, Muhammad Khan and Arif Hussain

The purpose of this paper is to explore the types of Shariah capabilities of Islamic banks, which provide bases for the types of Shariah value propositions, offered by the…

Abstract

Purpose

The purpose of this paper is to explore the types of Shariah capabilities of Islamic banks, which provide bases for the types of Shariah value propositions, offered by the relationship managers in their front-line service experiences with the customers.

Design/methodology/approach

A resource-based view of Shariah capabilities and a service-dominant logic view of value propositions are adopted. Fifteen relationship managers from multiple Islamic banks in Pakistan are interviewed to find a typology of Shariah capabilities and a resultant typology of value propositions for Islamic banks.

Findings

The findings suggest that Islamic banks claim to possess five types of Shariah capabilities, namely, Shariah governance capability (SGC), Shariah compliance capability (SCC), Shariah monitoring capability (SMC), Shariah structuring (product) capability (SSC) and Shariah learning capability (SLC). These capabilities lead to four types of values propositions, namely, Shariah identity value (SIV), Riba-free value (RFV), Shariah disclosure value (SDV) and Tangibility value (TV) of the real assets in transactions.

Research limitations/implications

The study has relied on the front-line experiences of relationship managers who are connected to the Islamic banks’ capabilities inside the banks and the value propositions that they offer to show relationships with customers in front-line service experiences. Other stakeholders may have different perspectives on both capabilities and value propositions.

Originality/value

This paper contributes to Islamic finance theory by theoretically and empirically showing two typologies for the Islamic banks' capabilities and value propositions, respectively.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

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