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Article
Publication date: 2 January 2018

Asim Ehsan Wahla, Hamid Hasan and M. Ishaq Bhatti

The main aim of this paper is to measure customers’ perception of car Ijarah financing transactions services provided by the Islamic banks and financial institutions in Pakistan.

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Abstract

Purpose

The main aim of this paper is to measure customers’ perception of car Ijarah financing transactions services provided by the Islamic banks and financial institutions in Pakistan.

Design/methodology/approach

The paper uses two research methodologies: Kruskal–Wallis and Mann–Whitney test (non-parametric) and logit regression model (parametric). Both methods are then applied to a real data set of 300 respondents from various cities of Pakistan in the car Ijarah financing industry. The demographic effects are also investigated to see the perception about the degree of Shari’ah compliance and the quality of service of transaction offered by banks.

Findings

Main finds of the paper reveal that the customers who used the car Ijarah facility from Islamic banks have positive attitude toward this sort of transaction. In addition, gender, income, marital status affect the perception about the quality of Shari’ah compliance, and the quality of service of transaction issues are very important to selected clients in the industry.

Research limitations/implications

These findings are limited to the car Ijarah financing industry and may not be applicable in other banking products in Pakistan and elsewhere.

Practical implications

Based on the results of this study, potential Islamic bank customers may find it helpful choose products or make product decisions conveniently. The findings of the paper also support Islamic banks in improving the Ijarah facility to increase their customer base in the geo-political locality with similar characteristics as Pakistan.

Social implications

Shari’ah compliance in the Islamic finance industry is a sensitive issue in Pakistan, and hence, car Ijarah’s Shari’ah compliance can affect banks’ reputation and sensitivity.

Originality/value

The work reported in this paper is original, unpublished and the paper is not submitted elsewhere for publication.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 1 March 2017

Tengku Adil Tengku Izhar, Torab Torabi and M. Ishaq Bhatti

This paper is about gathering the measurement data and making an effectiveness results to assist decision-making process to evaluate the level of the organizational goals…

Abstract

This paper is about gathering the measurement data and making an effectiveness results to assist decision-making process to evaluate the level of the organizational goals achievement. In order to achieve this aim, we designed GOAL framework as a platform represents five steps for domain experts and entrepreneurs to identify the relevant organizational data to assist decision-making process in relation to the organizational goals. The aim of this paper concentrates on the design of this framework. GOAL framework associated with the organizational goals ontology aim to identify the dependency relationship between organizational goals and dependency relationship between organizational data and organizational goals. Metrics is defined for this dependency to identify which organizational data is relevant to the organizational goals. The framework is flexible to change without affecting things around because the framework is applicable in any organizational data with different organizational goals.

Details

International Journal of Organization Theory & Behavior, vol. 20 no. 2
Type: Research Article
ISSN: 1093-4537

Article
Publication date: 3 April 2019

Fadillah Mansor, Naseem Al Rahahleh and M. Ishaq Bhatti

The purpose of this paper is to compare the return performance and persistence of ethical and conventional mutual funds during two extreme events, the Asian and the global…

Abstract

Purpose

The purpose of this paper is to compare the return performance and persistence of ethical and conventional mutual funds during two extreme events, the Asian and the global financial crises under Shariah constraints.

Design/methodology/approach

The overall sample comprises of 129 Islamic mutual funds (IMFs) and 350 conventional mutual funds (CMFs) in Malaysia, and the average monthly data cover two periods of market cycles, before and during a financial crisis. The net of all expenses data is obtained from the Morningstar Database. This study employs various market risk-adjusted performance measures (ratios) to estimate the funds’ overall performance during the crises, and then it uses CAPM model to estimate the parameters via panel data approach. Moreover, paper employs the two persistence performance measures on IMFs and CMFs through contingency tables. It tests for the performance persistence effects for IMFs, CMFs using repeat winner and the cross-product ratio (CPR) tests proposed by Malkiel (1995) and Brown and Goetzmann (1995), respectively.

Findings

The main findings of the paper are: on average, both funds IMF and the CMF outperform the market return during the entire sample period; none of the funds is better than the “others” during the financial crises and the pre-crisis periods; the ethical fund – IMF outperforms the CMF over the study period. This outcome also indicates that ethical funds are more persistent especially during and the pre-crisis AFC and the GFC periods.

Research limitations/implications

The finding of this study is limited to only Malaysian data because the objective was to guideline investors and market players in Malaysia to prefer investing in Islamic ethical funds to diversify their investment portfolio.

Practical implications

Cautions to use existing ratio measures and CAPM model rather persistence measures may be used with existing methodologies in light of extreme events which influenced investor decision making for better returns at lower risks.

Social implications

A class of ethical funds consists of religious sustainable, socially responsible and impact-investing (SRI) funds but Shariah implications of halal investment must be observed to avoid prohibited practices within the class of SRI funds.

Originality/value

The work done in this paper are original in the sense that the authors employed various ratios to measure fund performance in conjunction with CAPM model and then tested for two persistence performance measures; the repeat winner and CPR tests.

Details

International Journal of Managerial Finance, vol. 15 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 1 August 2004

Zakir Hossain, M. Ishaq Bhatti and Zulficar Ali

Recently, Bhatti and Khan considered various functional forms to see their suitability in terms of efficiency and competency in assessing production process based on…

1316

Abstract

Recently, Bhatti and Khan considered various functional forms to see their suitability in terms of efficiency and competency in assessing production process based on agricultural data. This paper reviews some models recently used in the literature and selects the most suitable one for measuring the production process of 21 major manufacturing industries in Bangladesh. In particular, the paper estimates and tests the coefficients of the production inputs for each of the selected manufacturing industries using Bangladesh Bureau of Statistics annual data over the period 1982‐1983 through 1991‐1992.

Details

Managerial Auditing Journal, vol. 19 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Content available

Abstract

Details

Managerial Finance, vol. 44 no. 5
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 1 August 2003

Zakir Hossain and M. Ishaq Bhatti

This paper briefly introduces the concept of model selection, reviews recent development in the area of econometric analysis of model selection and addresses some of the…

Abstract

This paper briefly introduces the concept of model selection, reviews recent development in the area of econometric analysis of model selection and addresses some of the crucial issues that are being faced by researchers in their routine research problems. The paper emphasizes on the importance of model selection, particularly the information criteria and penalty functions based model selection procedures which are useful for economists and finance researchers.

Details

Managerial Finance, vol. 29 no. 7
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 11 April 2018

Walid Mansour and M. Ishaq Bhatti

The purpose of this paper is to examine the new paradigm of Islamic corporate governance (ICG) in an emerging area of Islamic finance.

Abstract

Purpose

The purpose of this paper is to examine the new paradigm of Islamic corporate governance (ICG) in an emerging area of Islamic finance.

Design/methodology/approach

The paper adopts an analytical approach to investigate the new executive and managerial roles that ICG is expected to play in the process of corporate financial decision making.

Findings

The authors argue that ICG is no longer expected to play the traditional supervisory and regulatory role within Islamic financial institutions. Indeed, the acuteness of competition, the observed failures of the Islamic finance industry, the unprecedented challenges, and the required ethical considerations levy as a new approach that improve the growth of the Islamic finance industry sustain its survival in the global financial world, and enhance the welfare of 25 percent of the world population who survived beyond all level of poverties.

Originality/value

The authors claim that ICG must be endowed with a multi-faceted, new paradigm for the purpose of improving the stakeholders’ interests and reaching the best business practices of the Islamic finance industry to cater investors’ need and the social well-being of the homeless and disadvantaged communities.

Details

Managerial Finance, vol. 44 no. 5
Type: Research Article
ISSN: 0307-4358

Keywords

Content available
Article
Publication date: 1 August 2008

M. Ishaq Bhatti and M. Mansoor Khan

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Abstract

Details

Managerial Finance, vol. 34 no. 9
Type: Research Article
ISSN: 0307-4358

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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