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Article
Publication date: 28 August 2024

Masrizal, Raditya Sukmana, Bayu Arie Fianto and M. Shabri Abd. Majid

This paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.

Abstract

Purpose

This paper aims to examine the profitability of Islamic banks benefits from economic freedom and its subcomponents.

Design/methodology/approach

This study uses a sample of 41 Islamic banks from the Organization of Islamic Cooperation (OIC) Countries selected from 2010–2020. It conducts an empirical approach based on the System Generalized Method of Moments (SGMM).

Findings

Overall, economic freedom has a substantial impact on the profitability of Islamic banks. We then investigate the relationship between the subcomponents of economic freedom and the profitability of Islamic banks. The study’s breakdown components suggest that financial and investment freedoms are favorable indicators, while business and monetary freedoms have a negative effect.

Practical implications

This research can serve as a guideline for Islamic bank management in terms of maintaining performance. The results of this study provide policy implications for the government to offer friendly regulations for economic actors to engage in financial transactions by looking at the economic freedom sub-component.

Originality/value

To the best of the authors' knowledge, the study of the role of economic freedom in Islamic banking performance is limited, particularly in the context of OIC Countries.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 3 July 2023

Nurshahirah Abd Majid, Mohd Mohid Rahmat and Kamran Ahmed

This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint…

Abstract

Purpose

This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint independent directors individually, not as a group. However, board members are commonly viewed collectively as a group, and evidence of the abilities of individual directors is scarce.

Design/methodology/approach

The attributes of individual independent directors include accounting literacy, length of service, audit committee membership and active participation in board and audit committee meetings. The unit of analysis is the individual independent director. The final sample consists of 1,552 observations in 2017, and RPTs are categorized as either efficient or conflicting.

Findings

The study finds that the tenure of individual independent directors and active participation in board meetings affect the firm’s engagement in RPTs. However, the financial literacy, audit committee membership and attendance of independent directors at audit committee meetings do not affect the firm’s engagement in RPTs, either efficient or conflicting. Overall, this result offers limited support for the upper-echelon theory concerning the attributes of individual independent directors and RPTs.

Research limitations/implications

This study uses cross-sectional observations for 2017, which predates the COVID-19 pandemic. Thus, this study ignores the impact of restrictions in community mobility during the pandemic on the independent director’s ability to monitor the corporation. This circumstance may have implications for practice and merit further research.

Practical implications

The findings provide information for board nominating committees, regulators and policymakers that the capability of individual independent directors to fulfill their responsibilities is limited. The firm’s nominating committee must be very selective in nominating and appointing independent directors with appropriate competencies. Investors should choose companies that have reappointed the same independent directors for an extended period, as they may benefit from the experience in protecting investors’ interests.

Originality/value

This paper contributes novel evidence to upper-echelon theory literature on the association between independent directors and RPT types from the perspective of individual independent directors.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 17 November 2023

Nik Hadiyan Nik Azman, Abdul Hadi Zulkafli, Tajul Ariffin Masron and Abdul Rahman Abdul Majid

Financial illiteracy could pose a significant challenge to micro-entrepreneurs. There is a pressing need to foster financial literacy;, therefore, the purpose of this study is to…

Abstract

Purpose

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

Design/methodology/approach

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

Findings

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

Social implications

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

Originality/value

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

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 April 2024

Rifaldi Majid

The presence of securities crowdfunding (SCF) FinTech in the Islamic financial landscape opens investment opportunities through shares and sukuk (Sharia bond) instruments. This…

Abstract

Purpose

The presence of securities crowdfunding (SCF) FinTech in the Islamic financial landscape opens investment opportunities through shares and sukuk (Sharia bond) instruments. This study aims to examine the effect of investment risk (IR), legal risk (LR), product knowledge (PK), Sharia compliance (SC) and subjective norm (SN) on investment decisions in businesses and projects run by small and medium enterprises (SMEs).

Design/methodology/approach

The questionnaires were distributed to prospective investors with prior knowledge of SCF and Islamic investment. The data collected was then examined using partial least square-structural equation modeling using SmartPLS 4.0.

Findings

The results show that LR has positive and significant implications for supporting investment through SCF, while IR has the opposite. The main findings in this study explain that PK and SC are proven to strengthen the intention to invest in SCF. Meanwhile, SN, which also strengthens intention, is the greatest influence. Therefore, it is highly recommended that SCF organizers collaborate with regulators (OJK), universities, academics and the investor community, as well as Muslim entrepreneurs, to provide education and literacy regarding SCF products and the underlying contracts, along with the consequences and uniqueness of investment vis SCF.

Practical implications

From a managerial side, Sharia expert educators can be appointed to increase investors’ literacy and confidence to support SMEs’ business expansion via SCF. In addition, to minimize investment risk, SCF organizers are also advised to issue sukuk and shares in different low-risk businesses/sectors, followed by investment amounts that are more affordable for novice investors.

Originality/value

Research on SCF as an alternative to SME financing is still scarce. To the best of the author’s knowledge, this is the first research to empirically test the relationship between risk, SC, PK and SN on potential investors’ decisions to support SMEs through the SCF mechanism.

Details

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

Keywords

Article
Publication date: 5 June 2023

Ataul Karim Patwary, Nor Rabiatul Adawiyah Nor Azam, Muhammad Umair Ashraf, Abdullah Muhamed Yusoff, Waqas Mehmood and Md Karim Rabiul

The purpose of this study is to examine the role of knowledge management practices, organisational commitment and capacity building on employee performance in the hotel industry…

Abstract

Purpose

The purpose of this study is to examine the role of knowledge management practices, organisational commitment and capacity building on employee performance in the hotel industry. This study also investigated the mediating role of organisational commitment and capacity building between knowledge management practices and employee performance.

Design/methodology/approach

A quantitative approach and questionnaire survey were used to collect data from hotel employees from Malaysia. Self-administered questionnaires were distributed to collect data from 291 participants, and partial least squares structural equation modelling was used to analyse the hypotheses.

Findings

The results of this study confirm that knowledge management practices positively and significantly affect knowledge-employee performance. Employees achieve this performance through the mediating influence of organisational commitment and capacity building culture.

Practical implications

This study offers several implications for Malaysian practitioners and policymakers regarding learning and knowledge management practices in the hospitality industry. The results suggest that organisations can manage knowledge assets and key processes of the organisational environment to create and use knowledge to improve sustainable employee performance through knowledge management practices.

Originality/value

This study sheds light on the knowledge management literature by examining the effect of knowledge management practices on organisational commitment, particularly in the hospitality industry in Malaysia.

Details

Global Knowledge, Memory and Communication, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9342

Keywords

Article
Publication date: 24 September 2024

Nurrahmani Madiah Mohamad, Amar Hisham Jaaffar, Nurshahirah Abd Majid and Aerni Isa

The purpose of this study is to examine the effect of technical skills, soft skills and social mobility skills on the perceived employability of Malaysian undergraduates in…

Abstract

Purpose

The purpose of this study is to examine the effect of technical skills, soft skills and social mobility skills on the perceived employability of Malaysian undergraduates in energy-focused universities. This study also aims to investigate the moderating effects of academic performance on such relationships.

Design/methodology/approach

To accomplish these objectives, this study employed partial least squares-structural equation modelling (PLS-SEM) to analyse data obtained from 247 Malaysian undergraduates from public and private energy-focused universities across Malaysia. The Human Capital Theory served as the overarching theoretical framework for the study.

Findings

The study reveals that even if an undergraduate has stellar grades, they will not help him/her to land a job if they lack basic technical and computing skills. This study also indicates that undergraduates’ current academic performance affects their perceived employability despite already possessing the necessary soft skills. Along with academic performance, social mobility skills can be a determining factor in how graduates see their own employability. This is because social mobility has a significant impact on graduates’ chances of finding gainful employment.

Research limitations/implications

This study provides insights into how technical skills, soft skills and social mobility skills influence the perceived employability of Malaysian undergraduates, especially in energy-focused universities, and the role of various parties involved. These parties, such as higher education institutions, are the key players that can initiate strategies to enhance specific skills and steer a public conversation towards a more methodical strategy for boosting graduates’ employability for future employment. This research also sheds light on how to better prepare for emerging job opportunities in the energy sector.

Originality/value

The study examines the effect of technical skills, soft skills and social mobility skills on the perceived employability of Malaysian undergraduates in energy-focused universities for future employment among Malaysia’s universities’ graduates. By providing a multidisciplinary viewpoint, this study paves the way for future research partnerships among experts in higher education, researchers in related fields and career researchers.

Details

Higher Education, Skills and Work-Based Learning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-3896

Keywords

Article
Publication date: 17 September 2024

Rindawati Maulina, Wawan Dhewanto, Taufik Faturohman and Imam Nur Azis

This study aims to examine the understudied topic of Islamic entrepreneurship by adapting the framework of waqf-based entrepreneurship to identify the crucial factors driving waqf

Abstract

Purpose

This study aims to examine the understudied topic of Islamic entrepreneurship by adapting the framework of waqf-based entrepreneurship to identify the crucial factors driving waqf-based entrepreneurs’ motivation.

Design/methodology/approach

A partial least squares structural equation model was used to validate the hypotheses, and in-depth interviews were conducted to gain deeper insights into the findings.

Findings

The key findings revealed that self-commitment, entrepreneurial skills and family support exert a significant and positive influence on waqfpreneurs’ motivation to engage in waqf-based entrepreneurship, with self-commitment playing a mediating role between self-actualisation and waqfpreneurial motivation. Additionally, the study proposes categorisations of waqfpreneurs based on the volume of waqf funds managed; their capacity to execute waqf-based entrepreneurship; and institutional performance metrics.

Research limitations/implications

The limited sample size restricts the generalisability of the study. Future research should use a larger sample to generate more broadly applicable results. In addition, the methodology can be replicated in other countries to identify new factors influencing waqfpreneurs’ motivation or to uncover aspects not explored in this research. Future studies could also use qualitative methodologies such as grounded theory, ethnography or case studies. This would allow for a deeper exploration of motivational factors not yet captured, directly from the lived experiences of waqfpreneurs/nazhirs.

Practical implications

The study provides evidence of the key factors that influence waqf-based entrepreneurship, contributing to the literature on entrepreneurship and waqf. It also offers valuable insights for the government and other stakeholders into strategies to motivate waqf-based entrepreneurs, ultimately fostering the development of waqf assets, value creation and sustainable waqf benefit distribution.

Originality/value

The study aims to address the lack of research on Islamic entrepreneurship by specifically modifying the framework of waqf-based entrepreneurship to investigate the key factors that influence individuals’ motivation to conduct waqf-based entrepreneurship and management activities.

Details

European Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 30 April 2024

Abderahman Rejeb, Karim Rejeb and Suhaiza Zailani

This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.

Abstract

Purpose

This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.

Design/methodology/approach

The study introduces a unique approach using the combined methodologies of co-word analysis and main path analysis (MPA) by examining a broad collection of IF research articles.

Findings

The investigation identifies dominant themes and foundational works that have influenced the IF discipline. The data reveals prominent areas such as Shariah governance, financial resilience, ethical dimensions and customer-centric frameworks. The MPA offers detailed insights, narrating a journey from the foundational principles of IF to its current challenges and opportunities. This journey covers harmonizing religious beliefs with contemporary financial models, changes in regulatory landscapes and the continuous effort to align with broader socioeconomic aspirations. Emerging areas of interest include using new technologies in IF, standardizing global Islamic banking and assessing its socioeconomic effects on broader populations.

Originality/value

This study represents a pioneering effort to map out and deepen the understanding of the IF field, highlighting its dynamic evolution and suggesting potential avenues for future academic exploration.

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: 28 February 2022

Hani El-Chaarani, Tariq H. Ismail, Zouhour El-Abiad and Mohamed Samy El-Deeb

The aim of this paper has twofold: (1) to explain and compare the financial evolution of Islamic and conventional banking sector in the Gulf Cooperative Council (GCC) countries…

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Abstract

Purpose

The aim of this paper has twofold: (1) to explain and compare the financial evolution of Islamic and conventional banking sector in the Gulf Cooperative Council (GCC) countries before and during the COVID-19 pandemic and (2) to explore the key success factors that might affect Islamic and conventional banks performance before and mainly during COVID-19 pandemic period.

Design/methodology/approach

Orbis Bank Focus database and annual financial reports are used to collect financial information of Islamic and conventional banks in GCC countries over four years: 2017, 2018, 2019 and 2020. Descriptive statistics, T-test, multiple regression, and 2SLS and GMM models are employed to analyze the financial structure and performance of Islamic and conventional banks before and during the COVID-19 pandemic period.

Findings

Results of this study reveal that (1) there is a significant difference between Islamic banks and conventional banks during the crisis of COVID-19, where the conventional banks have presented a higher level of financial performance and financial liquidity than their Islamic counterparts, (2) conventional banks have revealed higher capacity to manage their financial risk during the crisis period, and (3) a high level of non-performing loan, high inflation rate and high percentage of non-important cost have a negative impact on the financial performance of Islamic banks mainly during the pandemic period of COVID-19. However, the result indicates that a high level of liquidity risk increased the performance of Islamic banks but this impact falls sharply during the pandemic period.

Originality/value

This study provides information that supports investors, regulators and executive managers in GCC countries. A well-structured balance sheet would improve the financial performance and risk management of the banking sector in GCC countries, especially in times of crisis and pandemics.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2054-6238

Keywords

Article
Publication date: 6 August 2024

Suhanom Mohd Zaki, Saifudin Razali, Mohd Aidil Riduan Awang Kader, Mohd Zahid Laton, Maisarah Ishak and Norhapizah Mohd Burhan

Many studies have examined pre-diploma students' backgrounds and academic performance with results showing that some did not achieve the expected level of competence. This study…

Abstract

Purpose

Many studies have examined pre-diploma students' backgrounds and academic performance with results showing that some did not achieve the expected level of competence. This study aims to examine the relationship between students’ demographic characteristics and their academic achievement at the pre-diploma level using machine learning.

Design/methodology/approach

Secondary data analysis was used in this study, which involved collecting information about 1,052 pre-diploma students enrolled at Universiti Teknologi MARA (UiTM) Pahang Branch between 2017 and 2021. The research procedure was divided into two parts: data collecting and pre-processing, and building the machine learning algorithm, pre-training and testing.

Findings

Gender, family income, region and achievement in the national secondary school examination (Sijil Pelajaran Malaysia [SPM]) predict academic performance. Female students were 1.2 times more likely to succeed academically. Central region students performed better with a value of 1.26. M40-income students were more likely to excel with an odds ratio of 2.809. Students who excelled in SPM English and Mathematics had a better likelihood of succeeding in higher education.

Research limitations/implications

This research was limited to pre-diploma students from UiTM Pahang Branch. For better generalizability of the results, future research should include pre-diploma students from other UiTM branches that offer this programme.

Practical implications

This study is expected to offer insights for policymakers, particularly, the Ministry of Higher Education, in developing a comprehensive policy to improve the tertiary education system by focusing on the fourth Sustainable Development Goal.

Social implications

These pre-diploma students were found to originate mainly from low- or middle-income families; hence, the programme may help them acquire better jobs and improve their standard of living. Most students enrolling on the pre-diploma performed below excellent at the secondary school level and were therefore given the opportunity to continue studying at a higher level.

Originality/value

This predictive model contributes to guidelines on the minimum requirements for pre-diploma students to gain admission into higher education institutions by ensuring the efficient distribution of resources and equal access to higher education among all communities.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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