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Article
Publication date: 11 November 2020

Huthayfa Nabeel Jabari and Rusnah Muhamad

The purpose of this paper is to examine the influence of gender diversity among the board of directors (BOD) and Shariah supervisory board (SSB) members on the financial…

Abstract

Purpose

The purpose of this paper is to examine the influence of gender diversity among the board of directors (BOD) and Shariah supervisory board (SSB) members on the financial performance of Islamic banks in Indonesia and Malaysia.

Design/methodology/approach

Data for a sample of 19 Islamic banks for the period 2010–2018 were collected to test the research hypotheses using pooled ordinary least squares estimation method. Generalized least squares estimation method was used to confirm that the results are robust. This study lagged the explanatory variables by one period to control for potential endogeneity.

Findings

The findings suggest that Islamic banks with more gender-diverse BOD and SSB are expected to have better financial performance. In addition, this paper finds that an increase in Islamic banks’ size may undermine the positive impact of gender diversity among SSB members on Islamic banks’ financial performance.

Research limitations/implications

This study was conducted only on Islamic banks in Indonesia and Malaysia owing to data constraints; thus, the results may not be generalizable to Islamic banks in other countries.

Practical implications

Improving financial performance is crucial for banks, especially for Islamic banks, to sustain their fast-growing share globally. Therefore, the findings of this study are expected to provide insight and understanding in the selection and appointment of BOD and SSB members at Islamic banks.

Social implications

By having women represented in the BOD and SSB, Islamic banks will benefit equally from valuable abilities across demographic groups in the society. Furthermore, if the members of the BOD and SSB are properly selected, Islamic banks with more gender-diverse boards can effectively contribute to enhancing social welfare of various segments in the society.

Originality/value

This is the first study, as far as is known to the authors, that provides empirical evidence on the influence of gender diversity among BOD and SSB members on the financial performance of Islamic banks. This paper is expected to be used as a reference by the shareholders and customers of Islamic banks in ensuring that the BOD and SSB have the best optimal composition that maximizes their profits.

Details

Journal of Financial Reporting and Accounting, vol. 19 no. 3
Type: Research Article
ISSN: 1985-2517

Keywords

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Article
Publication date: 29 January 2020

Fatimah Noor Rashidah Mohd Sofian and Rusnah Muhamad

The purpose of this paper is to examine the relationship between the modified integrated Islamic CSRD index (MIICSRDi) and financial performance of Malaysian Islamic banks…

Abstract

Purpose

The purpose of this paper is to examine the relationship between the modified integrated Islamic CSRD index (MIICSRDi) and financial performance of Malaysian Islamic banks as perceived by the stakeholders.

Design/methodology/approach

This paper used survey questionnaire with a purposive sample of 343 stakeholders of Malaysian Islamic banks. A theoretical framework was developed and tested by using partial least square analysis.

Findings

The findings reveal that there is a significant positive relationship between the MIICSRDi and financial performance as perceived by the stakeholders.

Research limitations/implications

There is a lack of empirical research proposing an Islamic CSRD framework that is suitable to be applied within the context of the Malaysian environment. Hence, this paper shows that MIICSRDi in line with the stakeholder theory, Shariah principles and ‘urf principle (customary practice) can be used by Malaysian Islamic banks to increase their performance.

Practical implications

MIICSRDi can be used as one of the strategies to improve the financial performance of Islamic banks. In fact, it can be instilled in the value-based intermediation introduced by Bank Negara Malaysia for the rebranding of Islamic banks.

Originality/value

The relationship between perceived MIICSRDi and perceived financial performance is explained in light of the stakeholder theory, Shariah principles (unity, equilibrium, free will, responsibility and tazkiyah) and ‘urf principle (customary practice).

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 13 June 2016

Anna Che Azmi, Norazlin Ab Aziz, Normawati Non and Rusnah Muhamad

This paper aims to examine the reasons behind the low level of Sharia-related disclosures, particularly Sharia-compliant companies, to gain an understanding on how these…

Abstract

Purpose

This paper aims to examine the reasons behind the low level of Sharia-related disclosures, particularly Sharia-compliant companies, to gain an understanding on how these companies disclose Sharia-related information in their annual reports, and how professional users of these reports search for such disclosures.

Design/methodology/approach

The study is an exploratory research based on structured interviews with individuals involved in the preparation of annual reports of Sharia-compliant companies and professional users of annual reports.

Findings

Most Sharia-compliant companies and professional users interviewed agree that the most relevant Sharia-related information is most commonly understood as the information found in the financial statement and its notes (accounting-related disclosures). Their responses indicate that there is a disjoint between the conventional disclosure practices on corporate social responsibility items and the Sharia-related information.

Research limitations/implications

The idea of full disclosure needs to be further understood from the perspectives of Sharia. This study provides insights into the types of Sharia-related information that are important for disclosure. Future research should focus on examining a larger number of companies and interviewing more professional users from different jurisdictions to generate more knowledge about the nature of Sharia information and its disclosure.

Practical implications

Users of the Sharia screening methods, especially regulators, such as the Securities Commission Malaysia should encourage the disclosure of the required aspects of Sharia in the annual reports of Sharia-compliant companies, as professional users are interested in this type of information.

Originality/value

This study offers insights into the reasons behind low Sharia disclosures in annual reports of Sharia-compliant companies.

Details

Journal of Islamic Accounting and Business Research, vol. 7 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 7 September 2015

Rusnah Muhamad and Sharifah Alwi

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and…

Abstract

Purpose

The purpose of this paper is to discuss how the current research on the Islamic financial services industry attempts to classify its consumers and provide a fresh and critical insight into the retail Islamic banking market segmentation to harness and enhance understanding, as well as provide a guideline for a better segmentation to bank marketers.

Design/methodology/approach

This study is conceptual in nature. Based on Qur’anic verses and previous literature, the authors aim to propose an applicable model of market segmentation for the retail Islamic banking market in Malaysia. Consumer segmentation in the conventional financial service industry is analysed, and prior studies on the selection criteria of Islamic banks are evaluated.

Findings

In moving forward, taking cue from the classification of people in classical doctrinal and historical literature and the initial exploratory study conducted from the managerial perspective, the authors propose five cluster groups of consumers for the retail Islamic banking market in Malaysia, namely, religious conviction, religious and economic rationality, economic rationality, ethical observant and economic rationality and ethical observant. A discussion linking consumer segmentation to the branding in the retail Islamic banking market is discussed.

Research limitations/implications

The five cluster groups of consumers for the retail Islamic banking market in Malaysia proposed in this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for Islamic banking market in Malaysia. Future research should focus on verifying the five proposed segments by conducting empirical studies on a larger scale among the retail banking consumers in Malaysia and globally.

Practical implications

The study provides an initial bases or dimensions of consumers of the retail Islamic banking market in Malaysia. The proposed consumers segments are useful in guiding the management of Islamic bank in Malaysia in making decisions relating to the promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the Islamic banking industry, this study provides useful knowledge in strategically using market segmentation to position Islamic banking products and services in Malaysia and the global market.

Details

Asia-Pacific Journal of Business Administration, vol. 7 no. 3
Type: Research Article
ISSN: 1757-4323

Keywords

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Article
Publication date: 20 July 2012

Rusnah Muhamad, T.C. Melewar and Sharifah Faridah Syed Alwi

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand…

Abstract

Purpose

The purpose of this paper is to explore the different segments of consumers in the Islamic financial services industry (IFSI) and their relationship with product/brand positioning for Islamic financial services (IFS).

Design/methodology/approach

In‐depth interviews were conducted with individuals in managerial positions among the key market players in the IFSI to explore the segmentation of consumers and their buying motives.

Findings

Four segments of IFS consumers emerged, namely, Religious conviction group; Religious conviction and economic rationality group; Ethical observant group; and Economic rationality group. These segmentation groups were appropriately categorized through a psychographic (value)‐based approach.

Research limitations/implications

The empirical findings of this study pave the way for embarking on promising and relevant future research, which is needed to substantiate and enrich the academic understanding and managerial practice of linking market segmentation and brand positioning for IFS in the global market. Future research should focus on analysing these issues from the perspective of consumers of IFS to identify the purchase trend.

Practical implications

The study provides empirical evidence of the bases or initial dimensions of consumer segmentation for IFS. The findings are useful in guiding the management of institutions offering IFS in making decisions relating to the marketing communication and promotion strategy as well as product and brand positioning strategy.

Originality/value

For both academia and the IFSI, this study provides useful knowledge in strategically using market segmentation to position IFS in the global market.

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Article
Publication date: 29 May 2009

Belal Barhem, Hassan Younies and Rusnah Muhamad

The purpose of this paper is to examine the relationship between religiosity and the feeling of work stress, as represented by Muslim attitudes towards the religiosity scale.

Abstract

Purpose

The purpose of this paper is to examine the relationship between religiosity and the feeling of work stress, as represented by Muslim attitudes towards the religiosity scale.

Design/methodology/approach

A sample of 212 employees from the United Arab Emirates participated in the study. Frequencies, regression, ANOVA, and ratios were applied in the paper.

Findings

The major results revealed that self‐evaluation of faith level is not related significantly to any dependent variable. The majority of the respondents reported a low level of faith. Muslim females were identified to experience more work stress than males. Additional studies concerned with other religions can provide more comprehensive findings related to the relationship between religion and work stress.

Originality/value

Multinational corporation and other business organizations can derive great benefit from the results of this paper with regard to business in Islamic countries.

Details

Education, Business and Society: Contemporary Middle Eastern Issues, vol. 2 no. 2
Type: Research Article
ISSN: 1753-7983

Keywords

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Article
Publication date: 27 September 2011

Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad

The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Malaysian public listed…

Abstract

Purpose

The purpose of this paper is to examine the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) of Malaysian public listed companies (PLCs) as an emerging market setting.

Design/methodology/approach

A longitudinal data analysis with a large‐sample testing was carried out from 200 Malaysian PLCs by using panel data analysis during a seven‐years period. The statistical power with fixed effect and random effect model was utilized.

Findings

Results of earlier estimations indicate that there are positive and significant related of the CSR on CFP. Two of the CSR dimensions, namely employee relations and community involvement, were found to be positively related to financial performance. This proves that CSR practices can be considered as effort to enhance the financial performance of PLCs in Malaysia. The results also reveal that there is limited evidence of the relationship between CSR and CFP in the longterm.

Practical implications

These findings suggest that Malaysian PLCs should be involved consistently in their CSR practices because CSR has a significant impact on improving financial performance in Malaysian PLCs.

Originality/value

The majority of studies on CSR in Malaysia pertain to the analysis of such reporting and motivations of managers toward CSR practices. This study conducts a comprehensive empirical research on the relationship between CSR and CFP in Malaysian PLCs.

Details

Asia-Pacific Journal of Business Administration, vol. 3 no. 2
Type: Research Article
ISSN: 1757-4323

Keywords

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Article
Publication date: 29 June 2010

Mustaruddin Saleh, Norhayah Zulkifli and Rusnah Muhamad

The aim of this paper is to explore corporate social responsibility (CSR) disclosure and its relation to institutional ownership (IO) of Malaysian public listed companies (PLCs).

Abstract

Purpose

The aim of this paper is to explore corporate social responsibility (CSR) disclosure and its relation to institutional ownership (IO) of Malaysian public listed companies (PLCs).

Design/methodology/approach

Testing of hypotheses have been conducted by applying multivariate regression techniques utilizing longitudinal data analysis of companies' annual reports. Two well‐established models, the fixed effects model and random effects model are conducted in this paper.

Findings

Results which confirmed earlier estimations indicated that there are positive and significant relationships between CSR disclosure (CSRD) and IO. This result suggests that Malaysian PLCs are able to attract and maintain their institutional investors while they engage in social activities.

Practical implications

Companies should be encouraged to be involved in CSR activities as one of their strategies in attracting investment as well as to improve their reputation and image.

Originality/value

Most studies on CSRD in Malaysia pertain to the analysis of such reporting and motivations of managers towards CSRD. This paper conducts a comprehensive empirical research on the relationship between CSRD and IO in Malaysian PLCs.

Details

Managerial Auditing Journal, vol. 25 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Content available
Article
Publication date: 13 June 2016

Anna Che Azmi and Romzie Rosman

Abstract

Details

Journal of Islamic Accounting and Business Research, vol. 7 no. 3
Type: Research Article
ISSN: 1759-0817

Content available
Article
Publication date: 29 May 2009

James Pounder and Matthew Clarke

Abstract

Details

Education, Business and Society: Contemporary Middle Eastern Issues, vol. 2 no. 2
Type: Research Article
ISSN: 1753-7983

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