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Open Access
Article
Publication date: 19 June 2018

Norbaizurah Abdul Jabar, Razli Ramli and Sazali Abidin

In Malaysia, both Islamic financial institutions (IFIs) and Islamic co-operatives (ICs) provide mushārakah mutanāqiṣah (diminishing partnership) (MM) financing. It was…

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2229

Abstract

Purpose

In Malaysia, both Islamic financial institutions (IFIs) and Islamic co-operatives (ICs) provide mushārakah mutanāqiṣah (diminishing partnership) (MM) financing. It was initially a preferred contract as it is deemed to be more Sharīʿah-compliant and free from the element of ribā (interest) in comparison to other Sharīʿah-compliant sale contracts. Nevertheless, MM is now considered less appealing to IFIs due to its existing challenges. This paper aims to emphasise on MM as practiced by ICs which will highlight approaches to default, pricing of rental rates, profit sharing method and early settlement which differ to the practice of MM by IFIs.

Design/methodology/approach

This study focuses on Koperasi Pembiayaan Syariah Angkasa (KOPSYA), an IC based in Malaysia, which the authors concurred as being an ideal organisation to study on the matter due to its strong stance in promoting Sharīʿah-compliant financing products.

Findings

The research highlights the flexibility of MM implementation in KOPSYA to provide some insights on the rationale behind MM operations in KOPSYA.

Originality/value

The authors are hopeful that this paper will aspire further interest by giving the readers better understanding on the implementation of MM in KOPSYA and how it will benefit the customers.

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

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Article
Publication date: 31 December 2021

Ehsan Poursoleyman, Gholamreza Mansourfar and Sazali Abidin

The purpose of this paper is to investigate the relation between debt structure and future external financing and investment. Furthermore, it aims to analyze the…

Abstract

Purpose

The purpose of this paper is to investigate the relation between debt structure and future external financing and investment. Furthermore, it aims to analyze the association between debt structure and future financial performance.

Design/methodology/approach

Volume, maturity, possessing collateral and having priority at the settlement date are the dimensions of debt structure that have been employed in this paper. The sample consists of 1,060 firm-year observations from Tehran Stock Exchange corporations during the period 2009–2018.

Findings

The findings reveal that greater reliance on financial leverage (debt volume) and short-term debt are associated with increases in future debt financing as well as future equity financing. Moreover, these two dimensions of debt structure are positively related to future investment. This paper also shows that the positive impact of financial leverage and short-term debt on future financing and investment can finally lead to a favorable financial performance. Regarding other dimensions of debt structure, the results suggest that although collateralized debt with the priority option at the settlement date enhances future external financing, this type of debt can ultimately lead to a reduction in future investment and financial performance. Finally, the findings indicate that uncollateralized debt exacerbates future financial performance.

Research limitations/implications

Financial performance can be affected by several factors, including available funds, investment amount, investment efficiency and managerial capability. However, this paper only considers the investment amount and external financing as the channels through which debt structure improves future financial performance. This study has the potential to contribute to one of the most important issues in finance and business fields, despite its probable trivial drawbacks.

Practical implications

Financing strategies as one of the most controversial topics have been meticulously scrutinized in this paper and practical implications are made to facilitate the process of decision-making regarding the optimal type of debt financing.

Originality/value

This study extends the literature by analyzing the direct link between debt structure and firm performance in firms domiciled in developing markets.

Details

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

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Article
Publication date: 9 July 2020

Ehsan Poursoleiman, Gholamreza Mansourfar and Sazali Abidin

This paper aims to investigate the impact of debt maturity on the relationship between financial leverage and future financing constraints. Moreover, it attempts to…

Abstract

Purpose

This paper aims to investigate the impact of debt maturity on the relationship between financial leverage and future financing constraints. Moreover, it attempts to analyze the moderating role of short-term debt and the mediating role of future financing constraints in the relationship between financial leverage and future investment.

Design/methodology/approach

To test the moderating role of debt maturity, all the observations are divided into two groups based on short-term debt to total debt ratio. Moreover, Sobel, Aroian and Goodman tests are used to analyze the mediating role of future financing constraints. The sample used in this research includes firms listed on the Tehran Stock Exchange from 2006 to 2018.

Findings

It is shown that financial leverage is inversely (positively) related to future financing constraints for firms with higher (lower) use of short-term debt and, short-term debt moderates the relation between financial leverage and future investment. The findings also indicate that future financing constraints carry the influence of financial leverage to future investment.

Originality/value

In an imperfect market where financing is not independent of investment, it is highly required to carry out some studies on the role of different financing scenarios in firms and their impacts on future financing and investment; therefore, this paper is conducted to address one of the most important issues in the capital market, which is almost the pioneer study in this field.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 13 no. 4
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 9 March 2015

Krishna Reddy, Sazali Abidin and Linjuan You

The purpose of this paper is to investigate the relationship between Chief Executive Officers’ (CEOs) compensation and corporate governance practices of publicly listed…

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1217

Abstract

Purpose

The purpose of this paper is to investigate the relationship between Chief Executive Officers’ (CEOs) compensation and corporate governance practices of publicly listed companies in New Zealand for the period 2005-2010.

Design/methodology/approach

Prior literature argues that corporate governance systems and structures are heterogeneous, that is, corporate governance mechanisms that are important tend to be specific to a country and its institutional structures. The two corporate governance mechanisms most important for monitoring CEO compensation are ownership structure and board structure. The authors use a generalised least squares regression estimation technique to examine the effect ownership structure and board structure has on CEO compensation, and examine whether ownership structure, board structure, CEO and director compensation have an effect on company performance.

Findings

After controlling for size, performance, industry and year effects, the authors report that internal features rather than external features of corporate governance practices influence CEO compensation. Companies that have their CEO on the board pay them more than those who do not sit on the board, suggesting CEOs on boards have power to influence board decisions and therefore boards become less effective in monitoring CEO compensation in the New Zealand context. Companies that pay their directors more tend to reward their CEOs more as well, thus supporting the managerial entrenchment hypothesis.

Research limitations/implications

The results confirm the findings reported in prior studies that institutional investors are ineffective in monitoring managerial decisions and their focus is on decisions that benefit them on a short-term basis.

Practical implications

The findings indicate that although the proportion of independent directors on boards does not significantly influence CEO compensation, it does indicate that outside directors are passive and are no more effective than insiders when it comes to the oversight and supervision of CEO compensation.

Originality/value

Being a small and open financial market with many small- and medium-sized listed companies, New Zealand differs from large economies such as the UK and the USA in the sense that CEOs in New Zealand tend to be closely connected to each other. As such, the relationship between pay-performance for New Zealand is found to be different from those reported for the UK and the USA. In New Zealand, the proportion of institutional and/or block shareholders is positively associated with CEO compensation and negatively associated with company performance, suggesting that it is not an effective mechanism for monitoring CEO compensation.

Details

Managerial Finance, vol. 41 no. 3
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 21 September 2012

Sazali Abidin, Krishna Reddy and Liehui Chen

Since the initiation of the share split reform by the Chinese Securities Regulatory Commission (CSRC) in 2005, the private placement has become the major source of raising…

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1383

Abstract

Purpose

Since the initiation of the share split reform by the Chinese Securities Regulatory Commission (CSRC) in 2005, the private placement has become the major source of raising equity after IPO. The purpose of this paper is to investigate why listed firms in China prefer private placements compared to other options of raising capital.

Design/methodology/approach

The ordinary least squares regression, the piecewise regression and the cross‐sectional regression analysis were undertaken to investigate the determinants and characteristics of the seasoned‐equity offerings announcement effects. Probit regression analysis was taken to estimate the probability of a firm choosing private placements.

Findings

The authors find positive significant announcement abnormal returns for private placement. The findings also indicate that operating performance deteriorates immediately after announcement and poor operating performance is more likely to be contributed by large size portfolios, which suggests size effect.

Research limitations/implications

The paper's evidence contributes to an understanding of the wider implication of the share split reform undertaken by the CSRC.

Practical implications

The paper provides insights for policy makers in China and around the world who have and wish to adopt similar practices within their jurisdictions. Similar research can be conducted in other emerging markets to enable better understanding and implications of seasoned equity offerings on firm financial performance.

Originality/value

The paper is novel in regard to the data and the wider research paradigm used.

Details

International Journal of Managerial Finance, vol. 8 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

Open Access
Article
Publication date: 19 June 2018

Ashraf Md. Hashim

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480

Abstract

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 1
Type: Research Article
ISSN: 0128-1976

Content available
Article
Publication date: 7 September 2015

S.K. Shanthi, Sanjoy Sircar and K. Srinivasa Reddy

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296

Abstract

Details

International Journal of Commerce and Management, vol. 25 no. 3
Type: Research Article
ISSN: 1056-9219

Open Access
Article
Publication date: 4 March 2021

Ariful Islam and Sazali Abd Wahab

The informal segment compared to the formal segment is developing rapidly in urban areas of many developing Muslim countries. However, matter of fact, the contribution…

Abstract

Purpose

The informal segment compared to the formal segment is developing rapidly in urban areas of many developing Muslim countries. However, matter of fact, the contribution factor of the food cart business to the economic outline of the country has been vastly overlooked or neglected. The authority, policymakers, social organisations, vendors and the customers together need to play a contributing role based on intervention tactics regarding the major focus areas related to the development of this business segment. As a result, this study aims to explore concerns or issues that are hampering future business prospects considering the philosophy of halalan tayyiba.

Design/methodology/approach

The study has organised 16 semi-structured interview procedures with relevant food cart vendors of Chittagong, Bangladesh. The study selected participants (food cart vendors) from lower- to medium-income areas occupying at least one high school, one college in relation to several commercial premises (ex-mini shopping malls, offices and small factories) considering 6 out of 41 wards of Chittagong city corporation. All meetings with reflected participants were audiotaped and transcribed verbatim and transcripts were loaded into NVivo for coding and analysis procedure.

Findings

This investigation revealed that issues with food security, weather, lack of proper legislation, lack of awareness related with halalan tayyiba and erratic policies are the major challenges for the development of the food cart business in Chittagong. This study also advances how street food security well-being and hygiene practices are a piece of the halal idea and should in this way be adjusted by the halal food segment to accomplish halalan tayyiba affirmation. The outcomes also indicate an agenda for future research in this area.

Research limitations/implications

More reflections from the different stakeholders do have both pertinence and potential for incorporation in suggestions.

Practical implications

The detected findings may help both authority and other concerned entities to identify the critical dynamics to initiate appropriate strategic activities towards local economic growth considering halalan tayyiba outlines.

Social implications

It will ensure social well-being and food security.

Originality/value

This explorative research is one of few studies in the Bangladesh context, which is investigating halalan tayyiba-oriented business development outline for micro entrepreneurs.

Details

Rajagiri Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-9968

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Article
Publication date: 23 December 2020

Safuwan Samah

The purpose of this paper is to investigate the antecedents of acceptance of change on Administrative Diplomatic Officers (ADO) from the Management and Professional Group…

Abstract

Purpose

The purpose of this paper is to investigate the antecedents of acceptance of change on Administrative Diplomatic Officers (ADO) from the Management and Professional Group in the Malaysian public service organizations.

Design/methodology/approach

A total of 400 respondents were selected from 6904 ADO who served in Malaysian public service organizations. Data for this study were collected using self-administered questionnaires to study the direct relationship of individual and environmental factors toward acceptance of change; and the impact of organizational support as mediator on the relationship of environmental factors on professionals' acceptance behavior on organizational change. The paper uses quantitative research design, and the hypotheses formulated for this study were tested using SEM AMOS.

Findings

The study revealed that organizational support, attitude toward change, subjective norms and social influences all have significantly direct effect on acceptance to change. In contrast, results showed that locus of control has no direct influence on dependent variable. The results of mediation model analysis suggested that organizational support partially mediates the relationship of subjective norms on acceptance of change.

Research limitations/implications

The population of this study was only involved ADO as middle managers in Malaysia public service organizations. The author's choice of sample limits the generalizability of the results. However, the choice made was instrumental, convinced in reaching a good and rich set of data. It is thus enabled to obtain an ample understanding of the dynamics in the case.

Practical implications

Perceived organizational support should be crucial element taken by human resource development practitioners in Malaysian public service in ensuring that Management and Professional Groups smoothly adapted to organizational changes through subjective norms and social influence.

Social implications

Present study is essential to provide empirical mapping of a hitherto unexplored acceptance of change within the predictor variables examined in this research. By providing a better understanding of public servants' acceptance of change through research variables, this may then improve their service to deliver government work plans and achieving goals.

Originality/value

The findings of this study extend the knowledge of acceptance of change behavior in the context of Management and Professional Group in Malaysia public service. The integration between selected individual and environmental variables toward acceptance of change behavior with mediating variable of perceived organizational support adds values to the body of knowledge toward understanding the process of acceptance of change behavior. The scientific contribution of this paper created an empirical evidence of unexplored area of acceptance of organizational change within the Management and Professional Group, highlighting that the middle managers in public sector organizations veritably believe they are responsible for their own success.

Details

Journal of Organizational Change Management, vol. 34 no. 2
Type: Research Article
ISSN: 0953-4814

Keywords

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