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Article
Publication date: 15 February 2021

Abdulsalam Ahmed Sawmar and Mustafa Omar Mohammed

This paper aims to construct a conceptual framework which explains the relationship between governance of zakat institutions and zakat payment compliance by using the…

Abstract

Purpose

This paper aims to construct a conceptual framework which explains the relationship between governance of zakat institutions and zakat payment compliance by using the organisational legitimacy theory.

Design/methodology/approach

This paper adopts content analysis and a review of multidisciplinary literature that primarily relate to zakat institutions, public governance and compliance behaviour.

Findings

The paper has developed a model, adapted from Abioye et al. (2013), concerning the influence of governance mechanisms on zakat payers’ compliance using trust as a moderator. The model comprises four governance mechanisms which influence zakat payment compliance. The four mechanisms include the board and leadership attributes, transparency and disclosure practices, stakeholder management practices and procedural justice. Trust has a moderating effect on the relationship between governance and zakat compliance.

Research limitations/implications

This model is applicable to regulated zakat systems, where the state has established zakat institutions and regulations for the collection and distribution of zakat, such as Saudi Arabia, Pakistan, Sudan and Malaysia.

Originality/value

This paper proposes a model, based on Abioye et al. (2013), to explain the influence of governance on zakat payment compliance. The novelty of the study is the addition of one new critical variable, procedural justice, to the Abioye et al.’s (2013) framework. Secondly, the model is proposed for regulated zakat jurisdictions.

Details

ISRA International Journal of Islamic Finance, vol. 13 no. 1
Type: Research Article
ISSN: 0128-1976

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Article
Publication date: 2 August 2018

Mazni Abdullah and Noor Sharoja Sapiei

The purpose of this paper is to examine the influence of religiosity, gender and Islamic educational background of Muslims on zakat compliance. It also aims to identify…

Abstract

Purpose

The purpose of this paper is to examine the influence of religiosity, gender and Islamic educational background of Muslims on zakat compliance. It also aims to identify which dimensions of religiosity are significantly related to zakat compliance.

Design/methodology/approach

The study uses a self-administered questionnaire that was distributed to working Muslims individuals in Klang Valley, Malaysia. Analysis of the data was based on 690 usable questionnaires.

Findings

The findings show that religiosity had a significant influence on zakat compliance and three dimensions of religiosity, namely obligation, virtues and vices, and optional ritual, were significantly related to zakat compliance. Gender was also significantly related to zakat compliance, but in a negative direction, suggesting that Muslim working females are less compliant to zakat obligations compared to their male counterparts. It is found that formal Islamic educational background had no significant influence on zakat compliance.

Practical implications

Given the importance of zakat collection to the growth of the economy and society, the findings of this paper might provide some insights to Muslim-majority countries and zakat institutions which areas require more attention to encourage zakat payment among Muslims.

Originality/value

Compared to prior zakat studies, the findings of this study were derived from a larger sample size of Muslim working respondents. Furthermore, this study also identifies which dimensions of religiosity are significantly related to zakat compliance. Hence this study enriches the scarce literature on zakat and religiosity.

Details

International Journal of Social Economics, vol. 45 no. 8
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 27 July 2021

Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar and Saliza Abdul Aziz

Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and…

Abstract

Purpose

Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies in most Muslim countries still suffer from the perplexing issue of low zakat collections, ascribing this to the level of compliance among zakat payers. To provide more insight into this lacuna, this study aims to examine the role of trust in zakat institution through the relationship between socio-economic determinants (i.e. religiosity, moral reasoning, peer influence and system fairness) and zakat compliance decisions.

Design/methodology/approach

From a typical Islamic country, Yemen, a random sample of 274 entrepreneurs was drawn for a self-administered survey. To estimate and analyze the compliance model, SmartPLS structural equation modeling was used.

Findings

The results show that all hypothesized direct relationships are supported. Importantly, the trust-moderated interactions of religiosity, moral reasoning and peer influence on zakat compliance are significant, although its interaction with zakat system fairness is not.

Practical implications

The results should be helpful for policymakers and responsible institutions in Muslim communities to understand how different levels of trust can play an important role in Zakat payers’ compliance to boost or erode zakat funds. This research also contributes important inferences for managers about the necessity of inculcating religious and moral values among zakat payers, formulating a fair system and embarking on sensitization programs in society.

Originality/value

The research enriches the scanty literature by validating a viable compliance model drawing on the socio-economic theory of regulatory compliance. Moreover, the model integrates the moderating role of trust in socio-economic perspectives of zakat compliance.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 20 January 2020

Ram Al Jaffri Saad, Abubakar Umar Farouk and Dzarfan Abdul Kadir

This study aims to examine the factors influencing the intention to comply with business zakat in a developing country.

Abstract

Purpose

This study aims to examine the factors influencing the intention to comply with business zakat in a developing country.

Design/methodology/approach

A sample of 700 small and medium scale businessmen was drawn using the random sampling method. A total of 524 responses was analyzed using the partial least square structural equation modeling (PLS-SEM) technique.

Findings

Results indicate attitudes toward zakat evasion, attitudes toward moral reasoning, peer influence, zakat knowledge, zakat distribution and perceived zakat board capital positively and significantly influence intention to pay zakat. Interestingly, the enforcement of zakat law was found to significantly influence intention but in a negative direction.

Practical implications

Accordingly, it was recommended for policymakers to pay more attention to policy formulation to the identified factors in line with the results so that zakat collection could be increased.

Originality/value

The study contributes generally to zakat compliance knowledge and specifically to zakat on business wealth in Muslim majority states in developing countries that are fighting against poverty. The PLS-SEM method and its application in the Islamic field study, especially on zakat payment has a limited discussion in previous studies, which is a unique contribution of this study.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 8 July 2019

Abdullah Campong Andam and Ahmad Zamri Osman

The purpose of this paper is to identify the factors influencing intention of Muslim Filipinos to give zakat on employment income.

Abstract

Purpose

The purpose of this paper is to identify the factors influencing intention of Muslim Filipinos to give zakat on employment income.

Design/methodology/approach

The study used the extended theory of planned behaviour – an extension of the theory of reasoned action – to investigate the factors influencing intention to give zakat. The theory introduces six variables (i.e. attitude, perceived behavioural control, injunctive norm, descriptive norm, moral norm and past behaviour) in predicting the intention to give zakat. Totally, 450 questionnaires were distributed to the respondents in a Muslim-majority area (i.e. Marawi City), and 384 cases were deemed usable. The data have been analysed using multiple regression analysis.

Findings

This paper finds that attitude, descriptive norm and moral norm have a positive relationship with the intention to give zakat. Meanwhile, perceived behavioural control, injunctive norm and past behaviour are found to have insignificant influence over intention. However overall, the study supports the extension of the theory of planned behaviour which accounts for 53 per cent of the variance in intention.

Originality/value

This paper provides new insights on factors influencing the intention to give zakat on a non-Muslim majority country setting where no zakat institution operates. This paper also used the extended theory of planned behaviour on zakat compliance literature.

Details

Journal of Islamic Accounting and Business Research, vol. 10 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 30 October 2018

Ram Al Jaffri Saad and Abubakar Umar Farouk

Muslims in Nigeria, like in many Muslim-majority countries, are striving to have a functional Zakat system in search of solutions to the perennial problem of poverty and…

Abstract

Purpose

Muslims in Nigeria, like in many Muslim-majority countries, are striving to have a functional Zakat system in search of solutions to the perennial problem of poverty and its damning consequences. Nevertheless, there are still unsettled concerns arising from the current and widespread implementation of dissimilar (diverse) approaches to the Zakat system in various parts of the country. The purpose of this paper is to review comprehensively what are the hindrances of a vibrant Zakat system and how far the identified impediments may affect the system in the Nigerian context.

Design/methodology/approach

The methodology adopted is the review of extant relevant literature in the field of scholarly publications.

Findings

The findings of this study revealed that the fragmented implementation of the Zakat system within the context of the Nigerian democratic system of government lead to the weak governance with respect to law, administration and management; lack of a generally accepted fatwa from the Muslims scholars (Ulamas); absence of Zakat accounting standard; and low compliance behavior are the major barriers that require the attention of government and other stakeholders such as the traditional leaders, the accounting regulatory bodies, the Ulamas, as well as the economic and accounting researchers.

Practical implications

It was recommended that the stakeholders should make concerted efforts toward ensuring success of the Zakat system for attaining salvation in the hereafter and for social security, as well as economic prosperity.

Originality/value

The paper is the first paper that comprehensively reviews previous literature in the Zakat environment on factors that become barriers to implement a comprehensive Zakat system in Nigeria.

Details

International Journal of Ethics and Systems, vol. 35 no. 1
Type: Research Article
ISSN: 0828-8666

Keywords

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Article
Publication date: 8 February 2018

Abubakar U. Farouk, Kamil Md Idris and Ram Al Jaffri Bin Saad

This paper examines the moderating effect of religiosity in the theory of reasoned action (TRA) on intention to comply with the Zakat on employment income (ZEI).

Abstract

Purpose

This paper examines the moderating effect of religiosity in the theory of reasoned action (TRA) on intention to comply with the Zakat on employment income (ZEI).

Design/methodology/approach

A survey of civil servants in Kano State, Nigeria was carried out and 474 valid observations were retrieved from the 700 distributed questionnaires. Partial least squares structural equation modeling (PLS-SEM) was used to validate the instrument that measures the variables, examined the structural model and the predictive relevance of the study’s model.

Findings

The results revealed the suitability of both the TRA and the PLS-SEM in the study of ZEI behavioral intention in a developing country. All the hypothesized direct relationships were supported on the one hand. On the other hand, one of the two indirect relationships, subjective norm and behavioral intention moderated by religiosity was supported, but the other tests for moderating effects of religiosity on the relationship between attitude and behavioral intention was not.

Practical implications

Public and private Zakat institutions in Muslim majority societies in Nigeria and in other Muslim countries may use the findings to focus their attention on the formulation of policies based on the findings of the study to strengthen eligible Zakat payers’ intention to comply to further boost their Zakat collections.

Originality/value

This study extends the TRA in the context of ZEI by proposing religiosity as a moderator in the predictive capacity of TRA on ZEI. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended TRA with religiosity as a moderating variable as well as its implications for theory and practice were also discussed.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 11 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

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Article
Publication date: 19 April 2011

Norazlina Abd. Wahab and Abdul Rahim Abdul Rahman

This paper aims to present a conceptual model on the efficiency and governance of zakat institutions that are responsible in collecting, managing and distributing zakat in…

Abstract

Purpose

This paper aims to present a conceptual model on the efficiency and governance of zakat institutions that are responsible in collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well‐to‐do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur'an. The main aim of zakat is to protect the socio‐economic welfare of the poor and the needy.

Design/methodology/approach

The paper reviews and synthesises the relevant literature on efficiency, governance and zakat. The paper then developed and proposed a conceptual model to study the efficiency and governance of zakat institutions.

Findings

The paper identifies the appropriate methods to evaluate efficiency and governance of zakat institutions. Such evaluations are crucial for the Islamic financial system to function effectively in order to achieve the noble objectives of socio‐economic justice through proper distribution of wealth.

Originality/value

This paper presents a conceptual model of efficiency and governance of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

Details

Journal of Islamic Accounting and Business Research, vol. 2 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 10 June 2021

Muneer M. Alshater, Ram Al Jaffri Saad, Norazlina Abd. Wahab and Irum Saba

This paper aims to develop a meaningful single-source reference for Islamic economics and finance scholars concerning zakat intellectual structure published in journals…

Abstract

Purpose

This paper aims to develop a meaningful single-source reference for Islamic economics and finance scholars concerning zakat intellectual structure published in journals indexed by the Scopus database.

Design/methodology/approach

The bibliometric method is used to describe and analyze the evolution of publication structure and its various co-relations such as co-citation, co-authorship and bibliographical coupling.

Findings

The authors discuss the influential and conceptual aspects of the published literature on zakat. An interesting finding is that few papers have received more than 50 citations. The analysis revealed that the Journal of Islamic Accounting and Business Research is the most cited source. Nevertheless, the list of the eight most cited papers reflects that research in this field is still dearth. Further, the authors find that zakat is discussed within the context of religion, its institutional framework, its role to eradicate poverty and distribution management of zakat. The authors also identify and present 14 research directions that will further stimulate scholarly work in the zakat field.

Research limitations/implications

The study confines on English papers and reviews published in journals indexed by the Scopus database only; hence, the study is representative of the moderate and high-quality papers published in this area of knowledge.

Practical implications

Researchers envision that this bibliometric study will complement meta-analysis and qualitative structured literature reviews as a method of reviewing and evaluating the scientific literature of this study area; thus, this may help researchers for futuristic research directions.

Originality/value

To the best of the authors’ knowledge, this paper is the first to tackle the zakat area from a bibliometric aspect. The authors believe that this will help scholars and researchers to stand on firm bases regarding the scientific development of this area of study.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 4
Type: Research Article
ISSN: 1759-0817

Keywords

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Article
Publication date: 26 October 2018

Hairul Suhaimi Nahar

This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based…

Abstract

Purpose

This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a selected zakat institution (ZI) operating on a corporatized platform with corporate administrative style.

Design/methodology/approach

A quantitative approach using a questionnaire survey distributed to Muslims in the State which ZI is operating was adopted. A total of 448 usable responses are used in the analysis covering descriptive and mean difference.

Findings

The results indicate that managerial reform configuration in terms of corporatization has been viewed positively by stakeholders, translated into a comforting agreement score toward ZI’s improved management performance (collection, disbursement and reporting). Such perceptions are, however, observably sensitive to demographic factors of gender and employment type. The survey also document evidence that the corporatization exercise itself had improved respondents’ confidence toward ZI being the zakat administrator in the State.

Originality/value

The research contributes to the public policy debate with respect to corporatized ZI’s management performance from the stakeholders’ perspective. The results are arguably informative at various levels, forming a basis for reality check and policy inputs for various stakeholders, including (but not limited to) the ZI itself, zakat payers and asnafs, particularly in designing relevant and necessary administrative strategies and relevant policy formulation in addressing the performance and accountability issues in ZIs.

Details

International Journal of Ethics and Systems, vol. 34 no. 4
Type: Research Article
ISSN: 0828-8666

Keywords

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