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1 – 10 of 52Md. Abdul Kaium Masud, Mohammad Sharif Hossain, Mahfuzur Rahman, Mohammad Ashraful Ferdous Chowdhury and Mohammed Mizanur Rahman
Corporate corruption reporting (CCR) is an emerging issue of the corporation for measuring transparency, integrity and accountability to the stakeholders and society. The purpose…
Abstract
Purpose
Corporate corruption reporting (CCR) is an emerging issue of the corporation for measuring transparency, integrity and accountability to the stakeholders and society. The purpose of this paper is to examine the role of CCR and financial management responsibility regarding the issue of corruption control.
Design/methodology/approach
To explore the influences of corruption disclosure, this study considers the keywords-based content analysis of the listed financial firms of the Dhaka Stock Exchange in Bangladesh for 2012–2016. The research considers stakeholders and theoretical legitimacy lens for discussing corporate corruption disclosure. This study identified 143 self-driven keywords by classifying, analyzing and selecting the appropriate large set of keywords from the prior literature. This study examines 247 firm-year observations of all financial firms in Bangladesh using secondary data sources.
Findings
The results of the hierarchical regression analysis report that financial firms following Sharia principles have a negative and significant association with CCR, while Big4 has a positive and significant influence. Moreover, the interaction effect of Big4 on the relationship between Sharia principles and CCR is negative and insignificant. The findings reported that Islamic financial firms disclose less corruption information than conventional financial firms in Bangladesh.
Practical implications
This study findings are expected to significantly impact corporate management and policymakers of developing and highly corrupted economies to enhance corporate accountability, transparency and reputation. The regulatory body can consider the findings to promulgate anti-corruption reporting rules and regulations.
Originality/value
The authors believe the theoretical lens used to support the method and findings of this paper are unique and novel.
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Annisa Adha Minaryanti and Muhammad Iman Sastra Mihajat
The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and…
Abstract
Purpose
The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.
Design/methodology/approach
Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.
Findings
The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.
Practical implications
The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.
Originality/value
Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.
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Omar Ikbal Tawfik and Hamada Elsaid Elmaasrawy
The purpose of this study is to examine the effect of companies’ Shariah compliance (SC) debt financing decisions, financing with retained earnings (REs), cash holdings, capital…
Abstract
Purpose
The purpose of this study is to examine the effect of companies’ Shariah compliance (SC) debt financing decisions, financing with retained earnings (REs), cash holdings, capital expenditures and dividend pay-out policies.
Design/methodology/approach
The sample consisted of 1,648 firm-year observations of GCC non-financial firms from various industries. The authors scrutinised the firms over a period of eight financial years from 2012 to 2019. To analyse the research hypotheses, the authors used a panel data model using ordinary least squares and generalised method of moments, depending on historical data.
Findings
The results of this study show a negative effect of SC on debt financing decision and dividend pay-out policies but a positive effect on financing decision with REs, cash holdings and the decision on capital expenditures.
Practical implications
This study's findings provide a better understanding of the role of restrictions of financing options in SC companies on financing decisions in the GCC. Whether religious or simply interested in investing in SC companies, investors can benefit from knowing that these companies make financial decisions that may affect their short- and long-term profits for policymakers and regulators. This study may be valuable in evaluating the effect of restrictions imposed by Islamic Shariah on how firms make different financial decisions. Policymakers should encourage the issuance of Islamic financial products and prepare two financial indicators to classify SC firms.
Originality/value
The main contribution of this study is to obtain empirical evidence on the effect of SC on a set of financial decisions. To the best of the authors’ knowledge, this study is the first to focus on non-financial companies committed to Shariah. They do not depend on interest-bearing loans for their financing but are limited to financing by shares, financing with REs and financing using various Islamic financing formulas.
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Memiyanty Abdul Rahim, Nur ’Ain Syahirah Shaharuddin and Norazah Mohd Suki
The purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait…
Abstract
Purpose
The purpose of this study is to examine the level of Shariah governance disclosure among Islamic banks in Malaysia and the Gulf Cooperation Council (GCC) countries (i.e. Kuwait, Bahrain, United Arab Emirates, Qatar, Oman and Saudi Arabia). On top of that, the effect of Shariah governance disclosure on Islamic banks financial performance is investigated.
Design/methodology/approach
Data underwent quantitative content analysis and a mean comparison of the Shariah governance disclosure mechanisms as well as multiple regression analysis. Shariah governance information is obtained from the Islamic banks' official websites and the Bursa Malaysia Exchange.
Findings
The results of the content analysis revealed that the level of Shariah governance disclosure among Malaysian Islamic banks has been more pronounced than in the GCC countries. Additionally, the multiple regression analysis results specified that of the five Shariah governance disclosure mechanisms, the Shariah committee emerged as the strongest determinant in the financial performance of the Islamic banks, followed by transparency and disclosure.
Practical implications
Islamic banks should emphasise publishing Shariah governance information in annual reports to reflect superior accounting practices as assessed by certified Shariah auditors with an effective monitoring system.
Originality/value
The empirical findings are vital for serving as a guideline for Islamic banks in Malaysia and the GCC countries to disclose their practice of Shariah governance and gain empirical insights into its effect on firms’ financial performance. Following that, Islamic banks would improve their accounting practices while adhering to Shariah principles, strengthen internal controls and boost their brand reputation.
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Sabrine Cherni and Anis Ben Amar
This study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks.
Abstract
Purpose
This study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks.
Design/methodology/approach
This study uses panel data analysis of annual report disclosures over the past 10 years. The authors have selected 79 Islamic banks for the period ranging from 2012 to 2021. The criteria for SSB efficiency used in this research are disclosure of Zakat and disclosure in the SSB report.
Findings
The econometric results show that digitalization has a positive effect on improving the work efficiency of the SSB in Islamic banks. Accordingly, the authors provide evidence that the higher the bank's digital engagement, the higher the quality of the SSB.
Originality/value
The findings highlight the need to improve the current understanding of SSB structures and governance mechanisms that can better assist Islamic banks in engaging in effective compliance with recent governance and accounting reforms. Moreover, Islamic banks are the most capable and appropriate to implement and activate digitalization because they are based on a vital root calling for development if there are executives believing in it, as well as legislation supporting and serving them.
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Rayenda Khresna Brahmana and Maria Kontesa
This paper examines the impact of sharia-compliant debt financing on stock price crash risk. Unlike those previous studies that took Sukuk or sharia-compliant firms, this study…
Abstract
Purpose
This paper examines the impact of sharia-compliant debt financing on stock price crash risk. Unlike those previous studies that took Sukuk or sharia-compliant firms, this study tests the impact of the proportion reported sharia-compliant debt financing in the balance sheet on the risk of price crash of a firm.
Design/methodology/approach
Using the data from 2,752 firm-year observations of 344 Malaysian non-financial listed companies from 2012 to 2019, this article used a robust panel data estimation technique for statistical inferences. This study also employs panel GMM and quantile least squares as the robustness check.
Findings
This study established a negative relationship between sharia-compliant debt financing and stock price crash risk. The robustness checks with different estimation techniques confirm the results. It implies that firms with a more significant proportion of Sharia-compliant financing tend to have lower future stock price crash risk.
Practical implications
Consistent with the Islamic finance literature, the present study contributes to the existing literature on Islamic capital markets from the perspective of stock price crash risk because it is vital for risk management and investment decision-making as a measure of tail risk for stocks. The findings of this research will assist investors in developing portfolio strategies that incorporate firms with higher levels of sharia-compliant debt financing in their balance sheets. Additionally, the results of this study suggest that policymakers and regulatory bodies should consider revising their monitoring approaches for publicly listed firms.
Originality/value
This study is interesting and unique, as it is a pioneer in testing the impact of sharia-compliant debt financing on reducing stock price crash risk.
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Benny Hutahayan, Mohamad Fadli, Satria Amiputra Amimakmur and Reka Dewantara
This study aims to analyze the causes and implications of legal uncertainty in the issuance of conventional municipal bonds in Indonesia and to draw lessons from Vietnam’s…
Abstract
Purpose
This study aims to analyze the causes and implications of legal uncertainty in the issuance of conventional municipal bonds in Indonesia and to draw lessons from Vietnam’s approach in providing better legal certainty.
Design/methodology/approach
This study adopts a normative legal method with a legislative approach and applies a comparative approach. Data sources involve primary and secondary legal materials from both Indonesia and Vietnam.
Findings
The legal uncertainty is caused by a lack of coherence and consistency in legislation. Based on Vietnam’s experience, Indonesia can gain valuable insights related to providing strong legal certainty for parties involved in issuing or investing through conventional municipal bonds.
Research limitations/implications
This study focuses on the comparative legal analysis of conventional municipal bonds in Indonesia with Vietnam.
Practical implications
This research provides recommendations for the refinement of legislation regarding conventional municipal bonds to the government.
Social implications
This study is related to legal certainty as a strategy to attract investment through municipal bonds and to ensure the municipal bond issuance process is transparent and efficient.
Originality/value
This study provides a comparative perspective on the issuance of municipal bonds in Indonesia, with a special focus on Vietnam, emphasizing the urgency of harmonization in legal regulation and the sustainability of legal certainty.
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Today’s financial reporting inherits its origin in money, numbers and accounting dated back 7,000 years in Mesopotamia. The Italian Luca Pacioli, “first person to publish a work…
Abstract
Today’s financial reporting inherits its origin in money, numbers and accounting dated back 7,000 years in Mesopotamia. The Italian Luca Pacioli, “first person to publish a work on double-entry bookkeeping”1 is regarded as the father of accounting and bookkeeping. In USA, SEC issued its first Accounting Series Release which appeared to be Commission’s views on auditing and accounting, later, in 1982 has become known as Financial Reporting Releases. Today more than 100 countries permit publicly held companies to use International Financial Reporting Standards. This meteoric rise for use of financial reporting was due to a worldwide demand from regulators, lenders, trade partners, businesses, investors and policy makers. “The Companies Act of 1994 mandates requirement for financial reporting by all companies in Bangladesh.”2 Banks’ reporting formats and disclosures in Bangladesh based on BAS 30 is similar to the requirements of the Companies Act of 1994. The research depicts how the two banking institutions of Bangladesh – Islami Bank Bangladesh Limited (IBBL) and Grameen Bank having two philosophical objectives – uniquely present their results of operation under a uniform financial reporting system and how they differ in their financial operations.
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Manaf Al-Okaily and Ayman Abdalmajeed Alsmadi
This study aims to investigate the connections between the adoption of technology, user experience (UX), financial transparency and accountability, specifically focusing on the…
Abstract
Purpose
This study aims to investigate the connections between the adoption of technology, user experience (UX), financial transparency and accountability, specifically focusing on the moderating influence of cultural sensitivity in the Jordanian context.
Design/methodology/approach
This study gathered data from 272 participants who are working in the operational Islamic banks in Jordan. Partial least squares structural equation modeling (PLS-SEM) is used for the hypotheses testing.
Findings
The results indicate that cultural sensitivity plays a significant role in shaping the UX, consequently influencing perceptions of financial transparency and accountability in e-Islamic finance within the metaverse. This study underscores the intricate interplay between technological advancements, adherence to Sharia principles and diverse cultural expectations, forming the crux of the research.
Originality/value
This research brings a novel perspective by examining the complex connections among technology adoption, UX, financial transparency and accountability, specifically within the distinctive context of Jordan. This research study innovates by checking out how social sensitivity moderates these partnerships, specifically in the context of e-Islamic finance in the metaverse. It adds value to the academic area by shedding light on the intricate interaction between technological development, adherence to Sharia concepts and differing cultural expectations. Ultimately, this adds to a much deeper understanding of the multifaceted nature of this domain.
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Roni Andespa, Yulia Hendri Yeni, Yudi Fernando and Dessy Kurnia Sari
This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In…
Abstract
Purpose
This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In addition, it also explores the relationship model between the previously studied determining factors and the customer’s Sharia compliance behaviour.
Design/methodology/approach
This study used a bibliometric–systematic literature review analysis using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) technique by reviewing the articles published from 2013 to 2023. The PRISMA procedures involved several stages, including identification, screening, eligibility, analysis and conclusion based on the findings.
Findings
The results found that customer Sharia compliance behaviour determinants in Islamic banks are attitude, subjective norms, perceived behavioural control, Islamic financial literacy, religiosity, consumer conformity, Islamic branding and behavioural intention. Interestingly, the results indicated that such factors as consumer conformity, Islamic branding and sustainable intentions are less discussed.
Practical implications
Decision-makers in Islamic banks must use digital technology to offer better service and make operations more reachable for customers to access information, complete transactions and manage their accounts by Sharia principles. Therefore, the bank needs to continually produce innovative products and services so that customers have a greater variety of options to suit their Sharia-compliant financial needs. Theoretically, this study has contributed by finding the main critical domains influencing customers’ Sharia compliance behaviour, such as attitudes, subjective norms, perceptions of behavioural control, knowledge of Islamic finance, religiosity, consumer conformity, Islamic branding and behavioural intentions. Then, it makes a theoretical contribution by establishing a model that explains how customers make decisions based on Sharia-related factors in the context of their purchases.
Originality/value
Past studies focused on the Sharia compliance behaviour in paying Zakat for takaful customers. Therefore, this study provides critical factors of Sharia compliance behaviour on conformity, Islamic branding and sustainable intention regarding unexplored consensus on the determinants and outcomes of customer Sharia compliance behaviour of Islamic banking.
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