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1 – 10 of 11Abderahman Rejeb, Karim Rejeb and Suhaiza Zailani
This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.
Abstract
Purpose
This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.
Design/methodology/approach
The study introduces a unique approach using the combined methodologies of co-word analysis and main path analysis (MPA) by examining a broad collection of IF research articles.
Findings
The investigation identifies dominant themes and foundational works that have influenced the IF discipline. The data reveals prominent areas such as Shariah governance, financial resilience, ethical dimensions and customer-centric frameworks. The MPA offers detailed insights, narrating a journey from the foundational principles of IF to its current challenges and opportunities. This journey covers harmonizing religious beliefs with contemporary financial models, changes in regulatory landscapes and the continuous effort to align with broader socioeconomic aspirations. Emerging areas of interest include using new technologies in IF, standardizing global Islamic banking and assessing its socioeconomic effects on broader populations.
Originality/value
This study represents a pioneering effort to map out and deepen the understanding of the IF field, highlighting its dynamic evolution and suggesting potential avenues for future academic exploration.
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Wassim Ben Ayed and Rim Ben Hassen
This research aims to evaluate the accuracy of several Value-at-Risk (VaR) approaches for determining the Minimum Capital Requirement (MCR) for Islamic stock markets during the…
Abstract
Purpose
This research aims to evaluate the accuracy of several Value-at-Risk (VaR) approaches for determining the Minimum Capital Requirement (MCR) for Islamic stock markets during the pandemic health crisis.
Design/methodology/approach
This research evaluates the performance of numerous VaR models for computing the MCR for market risk in compliance with the Basel II and Basel II.5 guidelines for ten Islamic indices. Five models were applied—namely the RiskMetrics, Generalized Autoregressive Conditional Heteroskedasticity, denoted (GARCH), fractional integrated GARCH, denoted (FIGARCH), and SPLINE-GARCH approaches—under three innovations (normal (N), Student (St) and skewed-Student (Sk-t) and the extreme value theory (EVT).
Findings
The main findings of this empirical study reveal that (1) extreme value theory performs better for most indices during the market crisis and (2) VaR models under a normal distribution provide quite poor performance than models with fat-tailed innovations in terms of risk estimation.
Research limitations/implications
Since the world is now undergoing the third wave of the COVID-19 pandemic, this study will not be able to assess performance of VaR models during the fourth wave of COVID-19.
Practical implications
The results suggest that the Islamic Financial Services Board (IFSB) should enhance market discipline mechanisms, while central banks and national authorities should harmonize their regulatory frameworks in line with Basel/IFSB reform agenda.
Originality/value
Previous studies focused on evaluating market risk models using non-Islamic indexes. However, this research uses the Islamic indexes to analyze the VaR forecasting models. Besides, they tested the accuracy of VaR models based on traditional GARCH models, whereas the authors introduce the Spline GARCH developed by Engle and Rangel (2008). Finally, most studies have focus on the period of 2007–2008 financial crisis, while the authors investigate the issue of market risk quantification for several Islamic market equity during the sanitary crisis of COVID-19.
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The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of…
Abstract
Purpose
The literature review stated that financial inclusion (FI) influences economic growth through different channels. Hence, this paper aims to investigate the underlying process of FI in Egypt theoretically, and to derive some policy implications for promoting the process and achieving more improvement in different financial and economic aspects, that is basically through discussing the opinions of FI's main stockholders in Egypt.
Design/methodology/approach
The analysis used secondary data from the Global Findex and FAS Database, namely, automated teller machines, outstanding deposits and loans with commercial banks, debit and credit cards ownership. The research particularly used scientific methods as method of deduction, methods of graphical and tabular representation of data, comparative analysis and synthesis of partial knowledge. The paper is also based on a descriptive approach in addition to in-depth interviews with the main stakeholders of the financial inclusion process in Egypt.
Findings
The analyzed results of interviews revealed that new FI vision should have a deep understanding of the financial lives of the poor and low-income groups, including how they acquire, manage and use their money. However, the impact is becoming more prominent for the efficiency of the banking system and hence economic growth rather a regulatory and sound institutional framework enhances it. This finding supported the fact that Egypt can design an appropriate FI strategy, but the main challenge is how to implement it with the required speed and outreach capacity, especially in underprivileged communities.
Research limitations/implications
The result of this study has interesting implications for Egypt's ability to attain effective FI initiatives that promote sound financial choices and behavior which in turn help to stimulate financial and economic growth.
Originality/value
The study contributes to the literature by assessing the FI level in Egypt, its implications and how it should be enhanced for better performance and results in the future. It addresses the deep fact of this process through inclusive surveys and interviews that help in determining the road ahead.
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Etikah Karyani, Ira Geraldina, Marissa Grace Haque and Ahmad Zahir
Halal certification is an acknowledgment of the halalness of a product or service issued by a halal regulator based on Islamic law. This study aims to investigate the intentions…
Abstract
Purpose
Halal certification is an acknowledgment of the halalness of a product or service issued by a halal regulator based on Islamic law. This study aims to investigate the intentions of consumers and regulators toward blockchain-based halal certification. Blockchain is useful for storing and verifying halal certificates, thereby increasing trust in products or services because the public cannot change or access data once it is stored.
Design/methodology/approach
This study uses a triangulation approach by distributing online questionnaires to consumers as a research instrument of a quantitative approach processed with smart partial least squares. Meanwhile, the qualitative approach is carried out through observation, in-depth interviews with the Ministry of Religion’s Halal Product Assurance Organizing Agency (BPJPH) and Halal Examination Agency (LPH), and forum group discussions (FGDs) with several related parties.
Findings
The observation results show that most consumers expect the government to provide an easy-to-use application to check halal food products and restaurants. Consumers’ intention to use this technology is influenced directly by attitudes and indirectly by their beliefs. Furthermore, the results of interviews and FGDs reported that LPH was not ready to apply blockchain technology, while BPJPH strongly supported adopting blockchain technology in the certification process.
Practical implications
This finding recommends that the Indonesian government apply blockchain technology to gain transparency and accountability regarding the halal product process.
Originality/value
This study fills the research gap by observing three perspectives from different stakeholders and using a triangulation approach to analyze the need for adoption of blockchain-based halal certification of halal food products.
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Ahmad Alrazni Alshammari, Othman Altwijry and Andul-Hamid Abdul-Wahab
From 1979 to 2023, the takaful structure has been adopted in many jurisdictions, making the documenting of its early days of establishment relatively difficult and somewhat…
Abstract
Purpose
From 1979 to 2023, the takaful structure has been adopted in many jurisdictions, making the documenting of its early days of establishment relatively difficult and somewhat unreliable. This is unlike conventional insurance, where the history and legislation are well documented and archived in various research (Hellwege, 2016; Marano and Siri, 2017). The purpose of this paper is to provide a chronology for the establishment and development of takaful via the takaful establishment in each jurisdiction, documenting its first takaful operator and first takaful regulation.
Design/methodology/approach
This paper has used a qualitative method in the form of reviewing literature and available data such as journals, books and official resources. The data is thoroughly analysed in order to build the chronology for takaful. It adopted an exploratory research design, which is deemed suitable in situations where few works of literature have examined the subject (Neuman, 2014). The paper explores the establishment and non-establishment of takaful in 57 countries. The paper categorises the countries into seven regions starting with the GCC, Levant, Asia, Central Asia, Africa, Europe and Others.
Findings
The takaful chronology presented in this paper shows that takaful operations exist in 47 jurisdictions, starting from Sudan and the UAE in 1979, with the most recent adopters being Morocco and Iran in December 2021. It is found that 22 jurisdictions do not have takaful regulations, and the Takaful Act 1984, issued in Malaysia, is considered the first takaful regulation that sets the basis for other regulations that follow.
Originality/value
The paper contributes to the literature by providing a comprehensive chronology of takaful, especially as the few existing timelines have been found to be incomplete and consist of contradictory information.
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This paper aims to examine the Islamic accounting research. In particular, the paper extensively investigates the literature on Islamic accounting to understand the issues…
Abstract
Purpose
This paper aims to examine the Islamic accounting research. In particular, the paper extensively investigates the literature on Islamic accounting to understand the issues, contexts, methods and theoretical paradigms thereof.
Design/methodology/approach
The study has adopted a literature review approach. It has examined the key journal publications for 30 years in accounting discipline and systematically identified the Islamic accounting papers during 1990–2020. In total, 95 papers were identified until June 2020, and they were thoroughly reviewed to identify the relevant issues, contexts, methods and theoretical paradigms.
Findings
The study has found that Islamic accounting papers covered issues of both Islamic organizations (e.g. Islamic financial institutions) and of Muslim countries. The key issues include the regulation and regulatory compliance, annual report disclosures, corporate and Islamic governance, accounting profession, gender, accountability matters, management accounting and control, waqf accounting and zakat management. The study has also observed various normative guidelines from the academics on how the teaching of Islam is enacted in accounting, accountability and governance matters to attain the maqasid al-shari'a, i.e. human welfare, social justice and equity.
Research limitations/implications
The study is not empirical. Hence, the limitations of literature review papers are applicable in this case. Moreover, it is possible that this study could not identify some of the important literature on Islamic accounting (such as the papers published in Arabic by the academicians and professionals of Arab world).
Practical implications
The study enables both Islamic accounting academics and practitioners to identify the main Islamic accounting issues and realize the importance of Islamic accounting.
Social implications
When the author considers Islamic accounting as a social construction and tries to understand the phenomenon through social theories, the author acknowledges the relevance of Islamic accounting in the society in which it operates. It can be noticed from the discussion that Islamic accounting emphasizes on social welfare, balance, equity and providing relevant information to follow the commandments of God.
Originality/value
To the best of the author’s knowledge, this study is the first to provide a synoptic view on the issues, context, methods and theoretical paradigms of Islamic accounting, while covering major accounting journals in 30 years.
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Emmanuel Asafo-Adjei, Anokye M. Adam, Peterson Owusu Junior, Clement Lamboi Arthur and Baba Adibura Seidu
This study investigates information flow of market constituents and global indices at multi-frequencies.
Abstract
Purpose
This study investigates information flow of market constituents and global indices at multi-frequencies.
Design/methodology/approach
The study’s findings were obtained using the Improved Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (I-CEEMDAN)-based cluster analysis executed for Rényi effective transfer entropy (RETE).
Findings
The authors find that significant negative information flows among sustainability equities (SEs) and conventional equities (CEs) at most multi-frequencies, which exacerbates diversification benefits. The information flows are mostly bi-directional, highlighting the importance of stock markets' constituents and their global indices in portfolio construction.
Research limitations/implications
The authors advocate that both SE and CE markets are mostly heterogeneous, revealing some levels of markets inefficiencies.
Originality/value
The empirical literature on CEs is replete with several dynamics, revealing their returns behaviour for diversification purposes, leaving very little to know about the returns behaviour of SE. Wherein, an avalanche of several initiatives on Corporate Social Responsibility (CSR) enjoin firms to operate socially responsible, but investors need to have a clear reason to remain sustainable into the foreseeable future period. Accordingly, the humble desire of investors is the formation of a well-diversified portfolio and would highly demand stocks to the extent that they form a reliable portfolio, especially, amid SEs and/or CEs.
研究目的
本研究擬審查多頻率的及為市場成份的信息流和全球指數。
研究設計/方法/理念
研究人員使用基於改良完全集合經驗模態分解自適應噪聲(Improved Complete Ensemble Empirical Mode Decomposition with Adaptive Noise)的聚類分析法,取得Rényi有效轉移熵,藉此得到研究結果。
研究結果
我們發現、於大部份多頻率,在持續性股票和傳統股票間有顯著的負信息流動,這會增加多樣化的益處。這些信息流大部份是雙向的,這強調了股票市場成份及其全球指數在構建投資組合上的重要性。
研究的局限/啟示
我們認為持續性股票市場和傳統股票市場大多為異質市場,這顯示了市場的低效率,而且這低效率的程度頗大。
研究的原創性/價值
關於傳統股票的實證性文獻裡是充滿了變革動力的,這顯示了它們以多樣化為目的的回報行為。這使我們對關於持續性股票的回報行為、認識變得實在太少了。於此,大量的企業社會責任的新措施不斷提醒各公司、要本著企業社會責任的理念去營運;但投資者需清晰明白他們為何需在可見的將來保持可持續性。因此,他們卑微的願望是一個較好的多樣化投資組合得以形成,故此他們高度要求股票要有組成可靠投資組合的性質和能力,特別是在持續性股票和/或傳統股票當中。
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Aris Nur Hermawan, Ilyas Masudin, Fien Zulfikarijah, Dian Palupi Restuputri and S. Sarifah Radiah Shariff
The study aims to determine the impact of sustainable manufacturing on environmental performance through government regulation and eco-innovation in Indonesian small and…
Abstract
Purpose
The study aims to determine the impact of sustainable manufacturing on environmental performance through government regulation and eco-innovation in Indonesian small and medium-sized enterprises (SMEs).
Findings
The results indicate sustainable manufacturing plays a significant role in SMEs' environmental performance and regulations, and eco-innovation can moderate it. It also reveals that government regulation has a positive and significant effect on environmental performance. Moreover, eco-innovation has a positive and significant effect on environmental performance.
Practical implications
The findings of this study indicate that SMEs can embrace sustainable manufacturing practices and achieve their long-term sustainability goals by adhering to regulations, collaborating with stakeholders and implementing eco-friendly innovations.
Originality/value
This research uncovers ground-breaking perspectives on the evolution of scientific knowledge about the impact of eco-innovation, regulatory measures and sustainable manufacturing practices on the environmental performance of SMEs.
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Mohamed Syazwan Ab Talib and Mohd Hafiz Zulfakar
There is limited knowledge of the sustainable halal food supply management in Brunei Darussalam (Brunei), although it is reputable in the halal economy and advocates the United…
Abstract
Purpose
There is limited knowledge of the sustainable halal food supply management in Brunei Darussalam (Brunei), although it is reputable in the halal economy and advocates the United Nations (UN) Sustainable Development Goals (SDGs). Therefore, this paper highlights issues faced in a small, rentier halal market and proposes sustainable supply chain management (SSCM) initiatives for halal-certified food companies in Brunei.
Design/methodology/approach
This paper draws data from published academic research and employs a normative and narrative assessment of SSCM and halal supply chain literature.
Findings
Four normative SSCM initiatives and propositions that could be implemented by Brunei halal-certified food businesses in achieving the SDGs are highlighted: responsible sourcing, environmental purchasing, sustainable packaging and green transportation.
Practical implications
This viewpoint paper provides a basis for achieving the “Brunei Vision 2035” through a sustainable supply chain lens that may increase well-being and develop a productive and sustainable economy. It also lays a foundation for realising the SDGs, specifically Goal 12 of Sustainable Consumption and Production.
Originality/value
The dedicated attention to smaller halal markets, such as Brunei, would enrich the literature, reveal unforeseen issues or address gaps in the domains of SSCM and halal food supply chains.
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The aim of this study is to study the relationship between halal certification and small and medium entreprise (SME) performance in a turbulent environment such as the Palestinian…
Abstract
Purpose
The aim of this study is to study the relationship between halal certification and small and medium entreprise (SME) performance in a turbulent environment such as the Palestinian environment.
Design/methodology/approach
In this study quantitative cross-sectional research design using questionnaires distributed over 51 certified SME’s used, and analysis was performed using partial least squares-structural equational modeling.
Findings
The current study revealed that there is a positive relationship between certification and business performance of SME’s in terms of financial and operational performance, and operational performance can mediate the effect between certification and financial performance. It is recommended to conduct further research with larger sample sizes and conduct research using different research designs, such as the longitudinal research design.
Practical implications
Certification of Halal also has a positive relationship with performance, even in a turbulent environment like Palestine. Accordingly, Palestinian food manufacturing firms are called to implement food safety standards like the Halal certificate to gain beside the good gained image the good financial performance.
Originality/value
This study was conducted in one of the most turbulent environments, as well as in developing countries, enriching the literature with results from emerging/turbulence and developing countries.
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