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1 – 10 of 51Kaouther Toumi and Amal Hamrouni
The study aims to investigate the Shari’ah governance quality effectiveness, at the bank and national levels, on the value relevance of Islamic banks’ (IBs’) earning per share and…
Abstract
Purpose
The study aims to investigate the Shari’ah governance quality effectiveness, at the bank and national levels, on the value relevance of Islamic banks’ (IBs’) earning per share and book value per share.
Design/methodology/approach
Quantitative analyses are conducted using a panel of 40 listed IBs from 12 countries during 2012–2019. Data were retrieved from the Refinitiv Eikon database and banks’ annual reports.
Findings
The findings suggest that Shari’ah supervisory boards’ attributes negatively influence the value relevance of accounting information while the internal procedures positively impact it. The results also provide evidence of a complementary effect between Shari’ah governance mechanisms at the bank and national levels on the value relevance of accounting information.
Practical implications
IBs’ boards and managers need to be more aware of the role of Shari’ah governance and its impact on value relevance. The observed complementarity between Shari’ah governance systems at the bank and national levels may incite regulators to include comprehensive Shari’ah governance regulations in their best practices. Strengthening collaboration between regulators and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is also required to create an enabling environment for investors to rely on the AAOIFI accounting standards in their investment decision-making process.
Originality/value
Existing studies tend to ignore the effectiveness of Shari’ah governance quality at the bank level on value relevance. There is a similar lack of empirical research on the effectiveness of the centralized Shari’ah governance scheme on accounting issues.
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Muhammad Farooq, Qadri Al-Jabri, Muhammad Tahir Khan, Asad Afzal Humayon and Saif Ullah
This study aims to investigate the relationship between corporate governance characteristics and the financial performance of both Islamic and conventional banks in the context of…
Abstract
Purpose
This study aims to investigate the relationship between corporate governance characteristics and the financial performance of both Islamic and conventional banks in the context of an emerging market, i.e. Malaysia.
Design/methodology/approach
This study includes 300 bank-year observations from Islamic and conventional banks over the period 2010–2021. The dynamic panel model (generalized method of moments [GMM]) was considered the primary estimation model that solves simultaneity, endogeneity and omitted variable problems as most governance variables are endogenous by nature. Hence, static models are considered biased after conducting the DWH test of endogeneity, and considering dynamic panel GMM is valid proven by Sargan and Hensen and first-order (ARI) and second-order (ARII) tests.
Findings
Based on the regression results, the authors discovered that board size, female participation in the board and director remuneration have a significant positive impact on bank performance, whereas board meetings have a significant negative impact. Furthermore, the board governance structure of commercial banks is found to be more passive than that of Islamic banks.
Practical implications
The study’s findings added a new dimension to governance research, which could be a valuable source of knowledge for policymakers, investors and regulators looking to improve existing governance mechanisms for better performance of conventional and Islamic banks.
Originality/value
The goal of this study is to add to the existing literature by focusing on the impact of female board participation and other board governance mechanisms in both conventional and Islamic banks on bank performance.
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Imran Mehboob Shaikh, Hanudin Amin and Nurul Ashiqin
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Abstract
Purpose
The purpose of this paper is to look into millennials’ acceptance of Qard al-hasan using the Islamic theory of consumer behaviour (iTCB) in Malaysia.
Design/methodology/approach
For this study, convenience sampling was used and 203 usable questionnaires were received from the respondents who are millennials and university students. The questionnaire link was distributed via social media platforms to the millennials.
Findings
The findings of this study reveal that there exists a strong and positive relationship between the role of iman and Maqasid consumer index in determining the millennial acceptance of Qard al-hasan. On the contrary, Islamic altruism does not turn out to be the factor of Qard al-hasan acceptance. Resultantly, these results suggest that millennials in Malaysia accept Qard al-hasan and based on those educational institutions may consider offering zero-interest benevolent loans to alleviate the financial burden of unprivileged students.
Research limitations/implications
Although this study provides positive results, a minimum of two research constraints may direct future efforts in this area. This study initially focuses on a specific ecosystem of Islamic financial products in Malaysia, with a particular emphasis on Qard al-hasan. As a result, subsequent research ought to strive to encompass a larger perspective on Qard al-hasan. Secondly, this research uses a theory that is still in the applicability phase, which has led to some productive discussions for further improvements.
Originality/value
To the best of the authors’ knowledge, this work is one of the few studies conducted on an empirical basis using the iTCB in the milieu of Qard al-hasan in Malaysia.
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Ayman Abdalmajeed Alsmadi, Najed Aalrawashdeh, Anwar Al-Gasaymeh, Amer Moh'd Al_hazimeh and Loai Alhawamdeh
This study aims to provide a better comprehension of the behavioural intentions that influence the adoption of Islamic financial technology (Fintech) in Malaysia for two kinds of…
Abstract
Purpose
This study aims to provide a better comprehension of the behavioural intentions that influence the adoption of Islamic financial technology (Fintech) in Malaysia for two kinds of Islamic lending Fintech services, which are crowdfunding and peer-to-peer (P2P) lending.
Design/methodology/approach
From May to July 2022 the primary data were collected by using a questionnaire distributed online to survey 437 Islamic Fintech clients in Malaysia. Structural equation modelling has been used to analyse the data based on using the partial least squares approach.
Findings
The findings of this paper shows that planned behaviour, acceptance model and technology's use models are positively impacting factors that influence customers' opinions on adapting Islamic Fintech services in lending. The acceptance model was found to exert a negative impact on the intention to adopt Islamic lending P2P Fintech service. In addition, technology's use has a negative impact on the intention to adopt Islamic lending crowdfunding Fintech service.
Research limitations/implications
First, the study is limited to Islamic Fintech customers in Malaysia only, second, the study adopted an online survey but there is no guarantee that the geography area was fully covered. Another limitation is that the study covers only Islamic Fintech services in lending, thus the study did not attend to variables such as religiosity and the authors believe that this will provide useful insights for future research.
Originality/value
Despite the importance of this topic, there has been a lack of empirical evidence until now. In this paper, the authors take stock of the empirical evidence in the literature through the importance of the adoption Fintech. This study provides a broad view of the market potentials for Fintech providers from the demand side on a wide range of Islamic Fintech services rather than focussing only on payment, transfer, etc. as presented in previous studies.
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Gary John Rangel, Jason Wei Jian Ng., Thangarajah Thiyagarajan Murugasu and Wai Ching Poon
The purpose of this study is to use a lifetime income measure to evaluate the long-run housing affordability for an understudied cohort of households in the literature – the…
Abstract
Purpose
The purpose of this study is to use a lifetime income measure to evaluate the long-run housing affordability for an understudied cohort of households in the literature – the millennials. The authors do this in the context of Malaysia, measuring long-run affordability for four housing types across geographic locations and income distributions.
Design/methodology/approach
This study calculates a long-run housing affordability index (HAI) using data on house prices and household incomes. Essentially a ratio of predicted lifetime incomes to house prices, the HAI is computed for four common housing types in Malaysia from 2005 to 2016 and for six states in the country. The HAI is also compared across four income percentiles.
Findings
The analysis reveals varying patterns of housing affordability among different states in Malaysia. Housing affordability has declined since 2010, with most housing types being unaffordable for millennial-led households with the lowest income. Housing is most affordable for those in the highest income bracket, although even here, there are pockets of unaffordable housing as well.
Practical implications
Based on the findings, this study proposes three targeted interventions to improve housing affordability for Malaysian millennials.
Originality/value
This study fills a gap in the literature by examining the long-run housing affordability of Malaysian millennial-led households based on both geographic location and income distribution. The millennial population is understudied in the housing affordability literature, making this study a valuable contribution to the field.
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Imran Mehboob Shaikh and Hanudin Amin
This paper aims to examine the determinants that influence acceptance towards e-wallet apps by extending the technology acceptance model (TAM) among (asnaf), a term used for…
Abstract
Purpose
This paper aims to examine the determinants that influence acceptance towards e-wallet apps by extending the technology acceptance model (TAM) among (asnaf), a term used for charity or gift receivers from alms tax distribution institutions also known as donee.
Design/methodology/approach
The review of literature and structural equation modelling approach using judgemental sampling on extended TAM and determinants of e-wallet apps’ acceptance related to asnaf (donee) were conducted in a bid to contribute to the factors that are instrumental in determining acceptance of e-wallet services among asnaf.
Findings
The findings indicate that the e-wallet app’s service acceptance is determined not only by perceived usefulness, consumer maqasid index and consumer innovativeness but also by subjective norms. On the contrary, consumer maqasid index and perceived ease of use do not lend themselves to be the factor of asnafs’ e-wallet acceptance. The authors extend the TAM model to determine the factors that may be influential in predicting the e-wallet app acceptance by asnaf.
Research limitations/implications
In assessing future outcomes when different sampling techniques are opted for and geographic coverage is expanded, this study should be considered in terms of the limited scope.
Practical implications
This study is intended to serve as a reference for making a significant contribution related to user acceptance factors related to alms tax-based e-wallet apps in asnafs’ context in Malaysia in terms of both theory and practice.
Originality/value
TAM is extended in the context of e-wallet app acceptance among asnafs’. A variable, namely, consumer innovativeness, is tested using the extended TAM model. To the best of the authors’ knowledge, consumer innovativeness in the context of asnafs’ acceptance of e-wallet apps is yet to be tested. Therefore, this paper will be a useful reference for policymakers, technologists, academicians and future researchers.
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Adel Omar, Alaa Al-shari, Syed Haider Ali Shah, Gül Erkol Bayram, Eman Zameer Rahman and Marco Valeri
Drawing on the resource-based view, ecological modernization theory and upper-echelon theory, this study aims to explore how green manufacturing practices (GMGP) affect the…
Abstract
Purpose
Drawing on the resource-based view, ecological modernization theory and upper-echelon theory, this study aims to explore how green manufacturing practices (GMGP) affect the sustainable performance of small and medium enterprises (SMEs).
Design/methodology/approach
It also examines the mediating role of green innovation (GIN) and the moderating role of managerial discretion (MD). To test the hypothesized model, the data was collected from 394 manufacturing SMEs though survey and analyzed using SPSS and AMOS (SEM).
Findings
The results provide evidence for the positive relationship between GMGP and corporate sustainable performance (CSPR), mediated by GIN. Furthermore, the presence of MD enhances the positive effect of GMGP on CSPR through GIN. Thus, this study enhances the understanding of the relationship between GMGP and CSPR, including its underlying mechanism and conditional effects.
Research limitations/implications
This study collected sample from SMEs located in Punjab province of Pakistan which represents majority of the SMEs; however, future research can take data from other province and with large sample size.
Practical implications
The findings highlight the significance of GMGP and GIN in the manufacturing sector for attaining CSPR goals. GMGP guides business leaders to be more inclined toward the energy and resource consumption as well as waste generation within their organizations which lead to improved CSPR outcomes.
Originality/value
The findings of this study make significant contributions to the existing literature, shedding light on the dynamics between GMGP and CSPR. Moreover, the study offers managerial implications for organizations aiming to enhance their sustainable performance by implementing effective GMGP.
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Abi Huraira Rifas, Asmak Ab Rahman, Ahmad Hidayat Buang and Muzalwana Abdul Talib
Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is…
Abstract
Purpose
Takaful is a social security approach that guarantees business risks in light of shari’ah, thus playing a crucial role in human life and the economy. The purpose of this study is to examine the factors that influence the behavioural intention of micro, small and medium-sized enterprises (MSMEs) entrepreneurs to participate in takaful in Sri Lanka.
Design/methodology/approach
This study is designed quantitatively with deductive approach using the theory of planned behaviour. A total of 432 MSMEs in Sri Lanka were surveyed using convenience sampling to measure the intention to participate in takaful as a risk mitigation. The collected data were analysed through partial least square-structural equational modelling.
Findings
Attitude, subjective norm and perceived behavioural control variables positively influenced the intention, with t-values of 3.216, 3.813 and 3.859, respectively. The influence of these variables exhibits not much difference.
Research limitations/implications
This study only focuses on MSMEs and a general takaful scheme. Future researchers may consider family takaful involvement among Sri Lankan business entrepreneurs.
Practical implications
Takaful practitioners should gain from the entrepreneurs’ intention to participate in takaful. Findings from this study could help marketing managers to revamp their strategies to further attract the entrepreneurs and make them to understand risk they are facing and, subsequently, participate in the takaful scheme.
Originality/value
This paper focuses on the context of Muslim minority among pluralism, where there is no regulation for Islamic financial products and services, and under the Islamic financial market crisis. This unleashes how business owners feel about takaful system on different dimensions.
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Novi Puspitasari, Iman Harymawan and Norazlin Ab Aziz
This study aims to analyze the relationship between Islamic governance (IG) and leverage and examine the interaction of corporate social responsibility disclosure (CSRD) in the…
Abstract
Purpose
This study aims to analyze the relationship between Islamic governance (IG) and leverage and examine the interaction of corporate social responsibility disclosure (CSRD) in the relationship between IG and leverage.
Design/methodology/approach
This study used 444 observational data comprising Asian, European and African Islamic banks (IBs) and analyzed using the regression analysis method to answer the research hypothesis.
Findings
This study finds that IG had a significant positive effect on leverage, indicating that it can increase the leverage of IBs. In other words, IG boosts the public confidence to entrust their funds to IBs through current accounts and savings. However, this study shows that CSRD weakens the relationship between IG and leverage. In addition, this study includes the control variables of board size, Islamic supervisory board size and company size, where all three variables showed their effect on leverage. These results were obtained through additional analysis by categorizing our sample based on CSRD.
Research limitations/implications
The results of this study show that IG significantly positively affects IB leverage globally. This can be used as a basis for policymakers to include the ICG variable in analyzing IBs leverage. The weakness of this study is the use of IG variables based on disclosure so that IG components that affect leverage cannot be analyzed accurately. Future research can use the IG variable by using specific IG component values such as the number of meetings, member attendance and remuneration of SSB members in analyzing IB leverage globally.
Originality/value
To the best of the authors’ knowledge, this research is the first study to discuss the interaction of CSRD with IG on leverage in Islamic banking in Asia, Europe and Africa, thus adding to the existing literature on Islamic banking.
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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.
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