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The purpose of this paper is to describe the application of the Islamic financing method based on direct musharakah to the conventional capital asset pricing model yielding several interesting hypotheses.

Theoretical methodology, with maximin criteria, and rational economic optimization.

There are four major findings. First, an Islamic financing partnership based on complementary capital is proven to necessarily yield a lower beta‐risk of investments than that compared to the market. Second, in order for the above conclusion to hold, capital lenders (such as banks) must abide by a maximum partnership share inversely proportional to project risk and increasing with opportunity cost of capital. Third, the sum of lender's share and relative risk level balances to unity at equilibrium. Hence, tradeoffs exist in risk‐shares and not in risk‐returns. Fourth, without accounting for inflation, and in contrast to predetermined fixed interest, a maximin strategy of financing partnerships (maximum return with minimum risk) imply an existence of an optimum zero risk‐free rate.

The paper's findings are limited to a Direct Musharakah Partnership.

A comparison between Islamic risks and returns to conventional risk management is deduced. Several implications on the conduct of Islamic financing are discussed.

Heritage buildings are significant for their historical and architectural value. Due to the lack of rating systems designed specifically for heritage buildings, it is essential to develop and validate a heritage building assessment tool that considers its specific characteristics. The purpose of this study is to provide an extensive review of research on Sustainability of Heritage Buildings (SHBs).

This review highlights methodologies applied in SHBs research and analyzes major global rating systems in order to identify their deficiencies for SHBs assessment. A systematic review was employed and articles from the top 10 high impact factor journals were studied. Twelve major global rating systems and their assessment criteria were identified.

Significant variability was observed among the assessment tools since each tool assesses several criteria, factors and indicators that fit its local context. Part of this variability can also be seen in the rating scales, threshold values and accreditation titles. As a result, the final sustainability ranking for a given building cannot be compared among the 12 rating systems. Most importantly, these systems fail to analyze some factors such as energy that are considered important with respect to heritage building assessment.

Since no specific rating system could be identified in this review as the most appropriate for heritage buildings, a new sustainability assessment tool that is specific to heritage buildings should be developed. Such a tool will enable facility managers to evaluate and improve the sustainability of their heritage buildings while preserving them.

The purpose of this study is to examine the effect of Islamic financing (IF) and labor relationship development (LRD) toward nonperforming financing (NPF) in Islamic banks. This research aims to identify the connection between IF products and the practice of loan officers building a relationship with loan customers (also known as LRD) and its influence on NPF.

This study uses a quantitative field research that emphasizes upon analysis of numerical data which are processed with statistical methods. Furthermore, the source is secondary data from financial statements of Islamic banks such as annual reports or financial disclosures. These sources of data are used to examine NPF facilities from 2008 to 2012. Moreover, primary data collected via questionnaire are used to investigate IF and LRD. The banks where the study was conducted are: Bank Muamalat Indonesia and Bank Danamon Shari’ah in Surakarta, Indonesia. The population in this study is 15 employees who work as account officers in Bank Muamalat Indonesia and Bank Danamon Shari’ah. The techniques of data collection in this study are documentation, questionnaires and literary study. In this study, the data analysis technique was multiple regression analysis and examination using SPSS version 21. These methods were used for analyzing the effect of IF and LRD toward NPF.

IF has a significant effect on NPF. In contrast, the LRD has no effect on NPF in Islamic banks. In addition, both IF and LRD simultaneously had an effect on NPF in Islamic banks.

This study does not cover all Islamic banks in Surakarta because of limited data; thus, in future research, the sample size could be increased by including all Islamic banks in Surakarta, Indonesia. Furthermore, this study does not take into consideration the fact that IF includes product financing. For future studies, the population and samples should be improved and take into consideration that product financing does exist in Islamic banks; moreover, future studies could provide other variables which are appropriate for current studies.

The results support the recommendation for Islamic banks in Surakarta to enhance the capability of employees to develop their knowledge in IF. Because the performance of a bank does not only depict financial performance but also nonfinancial performance such as services, knowledge and employees’ performance.