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Article
Publication date: 8 May 2018

Muhammad Tariq Majeed and Abida Zainab

Islamic banks provide an alternative financial system based on Sharia’h (Islamic law). However, critics argue that operation at Islamic banks is violating Sharia’h

Abstract

Purpose

Islamic banks provide an alternative financial system based on Sharia’h (Islamic law). However, critics argue that operation at Islamic banks is violating Sharia’h particularly in terms of provision of interest free services, risk sharing and legal contract. The purpose of this paper is to empirically evaluate the Sharia’h practice at Islamic banks in Pakistan by considering some basic principles of Sharia’h.

Design/methodology/approach

Primary data are collected from 63 branches of Islamic banks in Pakistan. Questionnaire is used as an instrument. The study uses structural equation modeling that includes confirmatory factor analysis and regression analysis. Data are codified and analyzed using SPSS and Amos.

Findings

This study finds that Islamic banks are providing interest free services, ensuring that transactions and contracts offered by Islamic banks are legal and offering conflict-free environment to customers. In contrast, estimated results expose that Islamic banks are not sharing risk and Sharia’h supervisory board is not performing its role perfectly. Similarly, it is found that organization and distribution of zakat and qard-ul-hassan are weak at Islamic banks.

Research limitations/implications

Data are collected from Islamabad federal capital of Pakistan that hold just 5 per cent share of Islamic banking industry. This small share may not provide true picture of Islamic banking sector.

Practical implications

To ensure risk sharing, Islamic banking industry must consider the development of new modes of financing and innovation of more products based on Sharia’h. State Bank of Pakistan should ensure separate regulatory framework that enable Islamic banks to provide qard-ul-hassan, organize and allocate zakat.

Originality/value

This paper discusses the perception of bankers, who are actually the executors, about Shariah’s practices at Islamic banks in Pakistan. There are not many discussions on this topic that could be found, and hence this could be considered as a significant contribution by this paper to the existing literature of Islamic finance.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Content available
Article
Publication date: 29 July 2021

Muhammad Tariq Majeed and Abida Zainab

In recent years, the fast growth of Islamic banks (IBs) has generated debates among policymakers and economists about the sustainability and performance of these…

Abstract

Purpose

In recent years, the fast growth of Islamic banks (IBs) has generated debates among policymakers and economists about the sustainability and performance of these institutions. This paper aims to undertake a comparative analysis of the financial performance of IBs and conventional banks (CBs) in Pakistan over the period 2008–2019 to evaluate how IBs are faring compared to their conventional peers.

Design/methodology/approach

This paper considers financial ratio analysis (FRA) to analyze and compare the performance of the top-10 IBs and CBs operating in Pakistan. The sample includes five full-fledged IBs and five CBs which offer Islamic windows in Pakistan. We have selected the top-5 best performing CBs offering Islamic windows. This study offers a comparative analysis of Islamic v/s conventional banks.

Findings

The results show that Islamic banks are better capitalized, less risky and have higher liquidity. In contrast, the profit of Islamic banks is found lower than CBs. The logical reasoning behind these performance indicators has been discussed in detail.

Research limitations/implications

The study has provided an analysis of financial performance only for Pakistan. A cross-country analysis could be more representative of the performance of Islamic Banks.

Practical implications

The size of Islamic banking industry should be enhanced by opening new branches and promoting Islamic finance literacy.

Originality/value

The study assists investors, borrowers and managers in making better decisions. It also provides the latest valuable information to regulators and policymakers in making rules and policies for the financial industry in Pakistan.

Details

ISRA International Journal of Islamic Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0128-1976

Keywords

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Article
Publication date: 23 September 2019

Muhammad Tariq Majeed

The research on causes of economic performance has largely focused on economic factors. However, a simple focus on economic indicators cannot cause sustained equilibrium…

Abstract

Purpose

The research on causes of economic performance has largely focused on economic factors. However, a simple focus on economic indicators cannot cause sustained equilibrium of economic performance. Social solidarity is of central importance in the fall or rise of a civilization. This study aims to analytically explore and empirically test the relationship of social capital with economic performance of the Muslim world using Islamic perspectives and an inclusive development approach.

Design/methodology/approach

This study uses a new index of “interpersonal safety and trust” to measure social capital. The empirical analysis is based on both cross-sectional and panel data methods of estimations.

Findings

The empirical findings of the study show that social capital is an important cause of economic performance in the Muslim world. The findings of the study are shown to be robust to different specifications, additional controls, econometric techniques and outliers.

Originality/value

To the best of the authors’ knowledge, this is first study of its kindly that analytically explores and empirically tests the relationship of social solidarity with economic performance of the Muslim world using Islamic perspectives.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 12 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

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Article
Publication date: 12 October 2017

Muhammad Tariq Majeed and Abida Zainab

Increasing popularity of Islamic banks in the wake of recent global financial crisis of 2008 has generated debate among researcher about practicality of Islamic banks…

Abstract

Purpose

Increasing popularity of Islamic banks in the wake of recent global financial crisis of 2008 has generated debate among researcher about practicality of Islamic banks. Critics argue that Islamic banks are not working according true spirits of Sharia’h. This paper aims to empirically address the question that how Islamic is Islamic banking in the case of Pakistan.

Design/methodology/approach

The target population in this paper is staff at the Islamic banks who are employees and managers. Data are also collected from customers to analyze their views. Sample comprises 63 branches of five full-fledge Islamic banks and five Islamic branches of conventional banks in Islamabad. For analysis purpose, the study uses exploratory factor analysis.

Findings

Findings indicate that Islamic banks are following Sharia’h excluding the provision of profit loss sharing contracts and provision of qard-ul-hassan. Moreover, it is found that customers are less agreed and more neutral about Sharia’h-based operations at Islamic banks.

Originality/value

Findings will help regulators to introduce wide range of Islamic financial contracts that involve profit loss sharing and consider the expansion of emerging industry. Moreover, findings suggest to consider promotional techniques to create awareness of Islamic banking among the customers.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 10 no. 4
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 15 December 2020

Muhammad Tariq Majeed and Isma Samreen

The purpose of this paper is to explore the impact of social capital on happiness. The previous literature generally measures social capital using “generalized trust”…

Abstract

Purpose

The purpose of this paper is to explore the impact of social capital on happiness. The previous literature generally measures social capital using “generalized trust”, which is a narrow dimension of social capital. In this study, social capital is measured as a multidimensional concept consisting of generalized trust, institutional trust and trust on family, neighborhood and strangers.

Design/methodology/approach

This study explores the relationship between social capital and average happiness using a panel data of 89 countries from 1980 to 2017. The empirical analysis is done by employing pooled OLS (POLS), fixed effects method (FEM), random effects method (REM) and system generalized method of moments.

Findings

The findings demonstrate that all measures of social capital are positively associated with happiness while comparatively institutional trust and generalized trust appear more significant for happiness. The findings are robust to different robustness checks. The findings document the importance of social capital for average happiness.

Research limitations/implications

The research has certain limitations. First, the objective of study was to cover global sample of countries, however, the data series were not available for all countries. Second, the empirical is restricted to global evidence instead of exploring separate estimates for developed and developing world.

Originality/value

The findings document the importance of social capital for average happiness. The awareness of the importance of social capital needs to be increased. Government can develop such organizations or institutions that are conducive for social capital development.

Details

International Journal of Social Economics, vol. 48 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

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Article
Publication date: 5 September 2016

Muhammad Tariq Majeed

The purpose of this study is to analytically explore and empirically test the relationships between economic growth, inequality and trade using a panel data set of 65…

Abstract

Purpose

The purpose of this study is to analytically explore and empirically test the relationships between economic growth, inequality and trade using a panel data set of 65 developing economies from 1965 to 2010.

Design/methodology/approach

This study sets a theoretical framework to explain the growth-trade nexus differentials in the developing economies. The study uses different econometric methods such as General Method of Moments to address the relationship of trade with growth in the presence of high inequalities.

Findings

The study determines the positive effect of trade on growth both in the short-run and in the long-run. However, the growth effect of trade is substantially influenced by the domestic context in terms of the prevalence of high initial inequalities. The study identifies high initial inequalities in developing countries as the likely reason for a negative relationship between trade and economic growth. The trade-growth nexus is significantly negative for the unequal group but strongly significantly positive for the less unequal one.

Practical implications

Those developing economic which mange to ameliorate inequalities are in a better position to compete in an open economy.

Originality/value

The study contributes in the existing literature by answering the question why growth effects of trade are not definitely positive or negative. The findings of the studies may help the policy-makers of developing economies to take the advantage of increasing international trade.

Details

International Journal of Development Issues, vol. 15 no. 3
Type: Research Article
ISSN: 1446-8956

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Article
Publication date: 8 February 2016

Muhammad Tariq Majeed and Abida Zanib

– This paper aims to empirically analyze the efficiency of full-fledged Islamic banks, Islamic branches of conventional banks and conventional banks in Pakistan.

Abstract

Purpose

This paper aims to empirically analyze the efficiency of full-fledged Islamic banks, Islamic branches of conventional banks and conventional banks in Pakistan.

Design/methodology/approach

The paper uses data envelopment analysis to measure and compare the efficiency of banks. Three measures of efficiencies such as total technical efficiency, pure technical efficiency and scale efficiency are computed to achieve the objective of the paper.

Findings

Overall, full-fledged Islamic banks are less efficient in terms of total technical efficiency and pure technical efficiency than conventional banks. However, Islamic branches of conventional banks are highly scale-efficient than their counterparts.

Research limitations/implications

The findings need to be supported by considering production function and risk exposure factors.

Originality/value

This paper evaluates and compares the efficiency of Islamic and conventional banks by utilizing the largest available data set during 2007-2014.

Details

Humanomics, vol. 32 no. 1
Type: Research Article
ISSN: 0828-8666

Keywords

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Article
Publication date: 26 July 2021

Talat Islam, Muhammad Ali, Saqib Jamil and Hafiz Fawad Ali

This study aims to investigate individual-related consequences of workplace bullying among the health-care section. Specifically, this study examined the mediating role of…

Abstract

Purpose

This study aims to investigate individual-related consequences of workplace bullying among the health-care section. Specifically, this study examined the mediating role of burnout between workplace bullying and nurses’ well-being. Moreover, passive avoidant leadership is examined as a conditional variable between workplace bullying and burnout.

Design/methodology/approach

This study collected data from 314 nurses working in various hospitals through a questionnaire-based survey using Google Form in two waves.

Findings

Structural equation modeling confirmed the negative effect of workplace bullying on nurses’ well-being, whereas burnout mediates this relationship. In addition, passive avoidant leadership was identified as a conditional variable that strengthens the positive association between workplace bullying and burnout.

Research limitations/implications

Although data for the study were collected in two waves, still cross-sectional design limits causality.

Practical implications

This study suggests management to focus on developing and implementing counter-bullying rules to avoid the adverse consequences of workplace bullying (e.g. capital loss, recruitment costs, burnout, well-being, etc.). In addition, leaders/supervisors must be trained to fulfill their responsibilities to reduce negative consequences.

Originality/value

Studies on workplace bullying in high-power distance cultures are scant. Therefore, drawing upon conservation of resource theory, to the best of the authors’ knowledge, this is the first study that has investigated the moderating role of passive avoidant leadership on the association between workplace bullying and burnout.

Details

International Journal of Human Rights in Healthcare, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2056-4902

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Article
Publication date: 14 May 2020

Muhammad Sabbir Rahman, Fadi Abdel Muniem Abdel Fattah, Hasliza Hassan and Tayeenul Haque

The purpose of this study is to examine the underlying functions of sense of spirituality (SS), emotional intelligence (EI) and perceived work environment (PWE) towards…

Abstract

Purpose

The purpose of this study is to examine the underlying functions of sense of spirituality (SS), emotional intelligence (EI) and perceived work environment (PWE) towards knowledge sharing behaviour (KSB) among the academic staff of higher learning institutions (HLIs) through a comparative investigation. This study extends the investigation by examining the relationship between SS and KSB through the mediating role of EI. The moderating role of PWE between SS and KSB was also tested.

Design/methodology/approach

The sample comprised 300 responses from 150 Bangladeshi and 150 Malaysian academic staff of public and private HLIs. Convenient sampling tools were used. Structural equation modelling (SEM) was used to analyse the proposed model and hypotheses. The study explains the differences and similarities in KSB practices concerning SS, EI and PWE of the academic staff from the two countries’ HLIs.

Findings

The results support the direct positive effects of SS on KSB. The two data sets also support the indirect effects of SS on KSB through the mediation of EI. However, the results indicate that SS only promoted KSB among individuals with high levels of PWE in their respective institutions. For individuals with low levels of PWE, SS did not affect KSB.

Practical implications

The management of HLIs should engage their experiences and those of newly hired academic staff in the KSB process. However, in facilitating KSB culture among the academic staff, HLIs need to foster the staff’s SS, which ultimately improvises the EI to strongly influence KSB. The management of HLIs understands that SS may be inefficient in promoting KSB among employees with low PWE. Authorities of HLIs need to facilitate a quality work environment to enhance the association between SS and KSB.

Originality/value

This study is one of the initial attempts to investigate KSB by considering SS, EI and PWE in the context of Bangladesh and Malaysia HLIs. The findings of the study can serve as inputs to HLIs in developing best practices across KSB dimensions and improving academic staff performance.

Details

Global Knowledge, Memory and Communication, vol. 70 no. 1/2
Type: Research Article
ISSN: 2514-9342

Keywords

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Article
Publication date: 21 September 2021

Umair Saeed Bhutta, Aws AlHares, Yasir Shahab and Adeel Tariq

This study aims to investigate two important research questions. First, this research examines the impact of real earnings management on investment inefficiency of the…

Abstract

Purpose

This study aims to investigate two important research questions. First, this research examines the impact of real earnings management on investment inefficiency of the non-financial listed firms in Pakistan. Second, this research further explores the moderating role of short-term debt on the nexus between real earnings management and investment inefficiency. This study attempts to highlight an important research problem i.e. the jinx of real earnings management from the context of an emerging economy.

Design/methodology/approach

This study employs the data from non-financial listed firms in Pakistan over the period from 2008 to 2018. The study uses panel data methodologies with firm and year fixed-effects to examine the proposed hypotheses. The results are robust to the use of sensitivity analysis, different estimation techniques and endogeneity issues (using two-stage least squares (2SLS) and generalized method of moments (GMM) techniques).

Findings

The results of the research are twofold. First, consistent with the theoretical arguments, the findings reveal that real earnings management increases investment inefficiency and results in over-investments by the firms. Second, short-term debt attenuates the relationship between real earnings management and investment inefficiency. It implies that a higher level of short-term debt weakens the adverse effects of real earnings management on the investment efficiency of the firm.

Originality/value

This study offers original findings on the issues pertaining to the quality of accounting and financial reporting in an emerging economy like Pakistan, where the implementation of regulations is weak in the corporate world and management frequently exploits shareholders' wealth for the short-term benefits.

Details

Journal of Accounting in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2042-1168

Keywords

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