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Article
Publication date: 8 May 2018

Nazrul Hazizi Noordin, Siti Nurah Haron, Aznan Hasan and Rusni Hassan

The purpose of this study is to provide a critical review on how the Khazanah’s Sukuk Ihsan was structured in compliance with the requirements for issuance of Sustainable…

Abstract

Purpose

The purpose of this study is to provide a critical review on how the Khazanah’s Sukuk Ihsan was structured in compliance with the requirements for issuance of Sustainable and Responsible Investment (SRI) sukuk set by the Securities Commission (SC) Malaysia.

Design/methodology/approach

To explain the structures and features of the Sukuk Ihsan, this study extracted important information from the sukuk’s Principle Terms and Conditions and Information Memorandum and presented them in a simple and easy-to-understand way. Next, this study refers to Part D: Requirement for Issuance, Offering or Invitation to Subscribe or Purchase Sustainable and Responsible Investment Sukuk of the SC’s Guidelines on Sukuk (revised edition: 28 August 2014) to assess the compliance of the sukuk in terms of eligibility of SRI sukuk issuer and SRI projects, use of proceeds, reporting and disclosure and independent assessment on SRI programmes. In addition, this study then compares the requirements stated in the SC’s SRI Sukuk Framework with the International Capital Market Association’s Green Bond Principles (GBP) and the USA’s Social Impact Bond (SIB) Act 2014.

Findings

The present study finds that the definition of eligible SRI sukuk issuer in the Guidelines on Sukuk seems to be more stringent compared to the one provided in the GBP and the US’ SIB Act. Nevertheless, the SRI Sukuk Framework provides a more comprehensive yet precise list of eligible SRI projects, covering both environmental and social aspects, compared to the GBP (which only focuses on broad categories of environmental projects) and also the USA’s SIB Act (explicitly outlines 13 social projects which are aligned with the US Federal Government’s agenda in tackling social illnesses). Indeed, the main difference between the eligible SRI sukuk projects and its conventional counterparts lies in its compliance to Shariah principles. It is also observed that a significant emphasis has been given on SRI legislations in ensuring proper reporting and disclosure provided to the SRI sukuk stakeholders together with critical evaluation on the impacts of SRI programmes provided by an independent assessor.

Practical implications

This paper contributes towards enriching the literature on the Islamic capital market, particularly on the integration between sukuk and social impacts investing. This paper was intended to highlight the important requirements in issuing SRI sukuk to various stakeholders of the Islamic capital market.

Originality/value

The authors hope to shed some lights on the unique features and structural applications of SRI sukuk and its importance in becoming an effective instrument to raise funds for social agenda of a country by providing a real and practical example.

Details

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

Keywords

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Article
Publication date: 14 November 2016

Nazrul Hazizi Noordin, Muhammad Issyam Ismail, Muhammad Abd Hadi Abd Rahman, Siti Nurah Haron and Adam Abdullah

This paper aims to re-evaluate and thus recommends possible ways in improving the current practice of hibah trust in Malaysia.

Abstract

Purpose

This paper aims to re-evaluate and thus recommends possible ways in improving the current practice of hibah trust in Malaysia.

Design/methodology/approach

This study conducts a thorough and critical review on relevant literature on Islamic wealth management and estate distribution. Besides, the current practice and application of hibah trust by the Malaysian trustee companies such as Amanah Raya Berhad and As-Salihin Trustee Berhad is analyzed based on information gathered from their publications and direct consultation.

Findings

Based on the comparison made between hibah trust and its conventional counterpart, living trust, this study found that that the hibah trust product mirrors the conventional living trust, which provides a high degree of freedom to the benefactor to decide on the distribution of his wealth without taking into consideration the interest of the eligible heirs under farai’d. Nevertheless, it is undeniable that the practice of hibah trust would be able to expedite the lengthy and complex procedures of inheritance, reduce administrative costs and avoid legal impediments and inheritance tax.

Practical implications

This paper proposes a comprehensive framework for an improved asset distribution under hibah trust within the Malaysian Islamic wealth management industry by highlighting the significance of fara’id and wasiyyah rules. This proposed framework of hibah trust would become a useful reference for the policy makers in designing a dedicated regulation or legal provisions in the established laws that will govern the practice of hibah trust in Malaysia.

Originality/value

The novelty of this paper lies in highlighting the importance of adhering to the law of Islamic inheritance rules as ordained by Allah s.w.t in structuring contemporary Islamic estate planning instruments such as hibah trust, which is not evident in the current practice.

Details

Humanomics, vol. 32 no. 4
Type: Research Article
ISSN: 0828-8666

Keywords

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Article
Publication date: 10 July 2017

Nazrul Hazizi Noordin, Siti Nurah Haron and Salina Kassim

The purpose of this paper is to contribute to the literature on management of waqf institutions by developing a contingency framework and outlining approaches that can be…

Abstract

Purpose

The purpose of this paper is to contribute to the literature on management of waqf institutions by developing a contingency framework and outlining approaches that can be followed to instigate a comprehensive performance measurement system (PMS).

Design/methodology/approach

It conducts a thorough and critical review of the literature on relevant performance measurement literature of third sector organizations and waqf institutions.

Findings

The findings suggest that an effective PMS is undoubtedly significant in promoting good governance and ethical management of waqf institutions. However, the current practice of performance measurement in waqf institutions is less standardized and does not cover its entire aspects of performance as a religious as well as a voluntary organization. It is also found that most waqf institutions’ management and researchers primarily rely on financial reporting and economic indicators to report to the stakeholders about the performance of waqf institutions.

Practical implications

The contributions of this paper are twofold. First, the authors develop a contingency framework for assessing performance of waqf institutions. Second, the authors outline eight necessary steps that can serve as guidelines for waqf institutions in designing their own comprehensive PMS.

Originality/value

The novelty of this paper lies in highlighting the feasibility of adopting qualitative approaches by waqf institutions. This study hopes to shed light on a standard measurement system that can be adopted by the waqf institutions to ensure efficiency and sustainability of the waqf institutions, not just in Malaysia but in the Muslim world.

Details

International Journal of Social Economics, vol. 44 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

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Article
Publication date: 11 November 2019

Louisi Francis Moura, Edson Pinheiro de Lima, Fernando Deschamps, Eileen Van Aken, Sergio E. Gouvea da Costa, Fernanda Tavares Treinta and José Marcelo Almeida Prado Cestari

In the performance measurement and management research field, the applicability of performance measurement systems (PMS) in nonprofit organizations (NPOs) and public…

Abstract

Purpose

In the performance measurement and management research field, the applicability of performance measurement systems (PMS) in nonprofit organizations (NPOs) and public administration has been considered a challenge. The diversity of these organizations makes it difficult to define proper terminology and organizational characteristics. PMS evolution has not yet been able to capture all performance dimensions of a public administration and, especially for NPO considering its dynamic and multiple goals. The purpose of this paper is to provide a conceptual framework that identifies and classifies the factors that influence the design of PMSs in NPOs and public administration.

Design/methodology/approach

The study was developed through a systematic literature review (SLR). A set of 29 papers were intensely studied, and the results provide a multi-disciplinary and holistic set of factors.

Findings

A set of ten factors that influence the design of PMSs in NPO and public administration were found. They were categorized into three groups: factor related to purpose, stakeholders and management.

Originality/value

The study synthesized the literature and provided a conceptual framework of the factors that influence the design of PMSs in NPO and public administration. No individual paper collected in the SLR shows a similar organization of the factors as the present paper. The set of factors indicates the importance of this study for NPO and public administration, and how complex a PMS in an NPO and public administration can become. The conceptual model presented can further assist practitioners in developing design process observing the role that the identified factors play.

Details

International Journal of Productivity and Performance Management, vol. 68 no. 8
Type: Research Article
ISSN: 1741-0401

Keywords

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