INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
Impact of digital technologies/ platforms on business outcomes and efficiency of takaful companies
No full textTakaful is rapidly gaining momentum, particularly in the Asia Pacific and the GCC region, owing to a large Muslim population. Muslims currently account for a fifth of the total global population and these levels are expected to further increase in the future. In 2018, the value of Takaful assets worldwide amounted to 46 billion U.S. dollars while the top 3 markets of Saudi, Iran and Malaysia had assets worth 37 billion USD. The fastest growing markets worldwide were Maldives, Pakistan and Brunei. Another major driver of the market is that, in contrast to Western countries, the majority of the world's Muslim population is young with 60% of this entire population being less than 25 years of age. Catalyzed by rising levels of affluence, this large young Muslim population has the potential to represent a customer base for a fairly long duration if it is captured early
Towards development and validation of scale for ethical decision-making model in marketing: a religious-humanistic approach with special reference to ethical philosophy in Islam
No full textThis paper aims to develop and validate scale for ethical decision-making model in marketing that confirms religious-humanistic approach with special reference to ethical philosophy in Islam. Synthesized model of Ferrell and Gresham contingency framework for ethical decision-making in marketing and Al-Ghazali's ethical philosophy are considered as theoretical background of this study. Content validity test and factor analysis are used to refine measurement items and define as well as validate the scale, respectively. A total of 362 samples were collected from Islamic banking practitioners in the United Arab Emirates. Item scale of the constructs comprised in the conceptual model defined and validated by using content validity test (CVT). Underlying theoretical dimensions of the constructs were extracted through exploratory factor analysis (EFA), and evidence of validation of scale/construct reported through CFA. The scope of this paper is limited to development and validation of scale. Future studies are suggested to use the newly validated scale/construct in descriptive model, and examine the hypotheses prescribed in the model. Further, explanations on theoretical background of this paper is limited as the main objective of this paper is to statistically validate the conceptual model adopted
Islamic fintech and financial inclusion
No full textThe modern Islamic finance as an offshoot of financial engineering is the product of permissible innovation as a manifestation of the dynamism of Islam which allows for permanence and continued relevance of Islam in any age to come. Using technology or any permissible means to bring about financial solutions in society that ease human life is an integral part of the overall objectives of Shariah. Speaking in economic terms, Sharia strives at individual prosperity as much as of the society on the ideal that prosperity of individuals that make up a society underlies the prosperity of the society. In this modern age and time, financial inclusion constitutes a fundamental component of most governmental policies and action plans aimed at ensuring prosperity of society via improved social welfare to eradicate poverty and enhance living standard. Financial inclusion constitutes a fundamental component of such policies and action plans. Accordingly, Islamic finance is said to be committed to the ideal of financial inclusion having regard to its ideal of bringing prosperity to individuals and society in such a way that will translate to and help economies grow. This is to be pursued through every permissible means now available or to be invented in future, within the confines of Islamic values of financing
Impact of COVID-19 on Islamic social finance
No full textCOVID-19 is considered by some as a 'black swan event', which is a pandemic that is unpredictable, unprepared for, and totally spontaneous (Gubler, 2020). This pandemic is different from four other recent pandemics the world has witnessed within the last 25 years (Gubler, 2020) as its impact has created not only a health crisis, but has led to an economic as well as human crisis brought due to a halt in all major economic activities in the world. The impact of COVID-19 on the sudden increase of poverty is uncontainable. By 12 March 2020, the World Health Organization (WHO) declared COVID-19 a pandemic, as, since December 2019, the disease had been spreading worldwide, putting the world population at risk. Simultaneously, the number of unemployed increased turning back the poverty clock (Kharas & Hamei, 2020). This is because as Sumner et al. (2020; p.2) state: 'global poverty could increase for the first time since 1990 and, depending on the poverty line, such increase could represent a reversal of approximately a decade in the world's progress in reducing poverty'. They also observe that in some regions, the poverty levels could be what they were exactly 30 years ago (Sumner et al., 2020) ruining the progress that has been achieved by the world so far in this regard. According to the International Labour Organization (ILO), the continuous decline in working hours globally due to COVID-19 means that 1.6 billion workers in the informal economy, which is nearly half of the global workforce, are at immediate risk of losing their livelihood (ILO, 2020)
Credit to the private sector in dual banking countries: does the presence of state-owned and foreign banks have any role?
No full textThis study extends the bank ownership database of Claessens and van Horen (2015) to investigate the role of state-owned and foreign banks in the development of private credit markets in countries with a dual banking system. The enhanced database contains state and foreign ownership information of 1,038 banks operating in 29 countries, categorised as either Islamic or non-Islamic. To begin, this study uses the database to identify the bank ownership patterns in the dual banking countries. The data reveals that the ownership structure of the Islamic banking industry changes in a different manner from that of their conventional counterpart. More specifically, it shows that, in line with financial liberalisation policies, the presence of state-owned and foreign conventional banks decreases and increases, respectively. On contrary, Islamic banks with both types of ownership become more prevalent over time. Further, the data is used to examine how state-owned and foreign bank presence affects private credit in the countries. To do so, this study employs a cross-country approach that regresses private credit to GDP ratios against the shares of total bank assets held by state-owned and foreign banks. In the regressions, the asset shares are measured both in total and by bank types (i.e., Islamic versus conventional banks). The regressions are run separately using data average over the full sample period (1995-2017), and over the three subsample periods that are divided into the pre-crisis (1995-2006), during-crisis (2007-2009), and post-crisis (2010-2017) periods. When measuring bank ownership shares in total, this study finds that the presence of state-owned banks is associated with less credit to the private sector in support of the political view. This negative relationship is, however, found to be insignificant during the crisis period. In terms of magnitude, the effect, when significant, is somewhat larger in the post-crisis period than in the pre-crisis and the full sample period. On the other hand, this study does not find significant evidence that the presence of foreign banks could adversely affect private credit markets either in the full sample period or in the subsample periods
Shariah compliance status and value of analysts' recommendation revisions: evidence from Malaysia
No full textThis study examines the effect of 1096 analyst recommendation revisions on prices of Shariah compliant and Shariah non-compliant listed securities in Bursa Malaysia over the period 2005-2016. The study finds that while stocks added-to-buy had positive abnormal returns, the stocks added-to-sell and remove-from-buy had negative abnormal returns in short- and long-term horizons. This finding shows that analysts' recommendation revisions carry valuable information. Secondly, the study examined the effect of analysts' recommendation revisions issued contemporaneously with earnings announcements and without earnings announcements on price reactions over various time horizons. The results show that earnings announcements can trigger analysts' recommendation revisions because the investors react strongly to analysts' recommendation revisions issued contemporaneously with earnings announcements. We find that performance differences of Shariah-compliant and Shariah non-compliant stocks in response to analysts' recommendation revisions are often negligible. Overall, this study provides empirical evidence that analysts' recommendation revisions for Shariah-compliant companies often do not own any additional investment value than those for Shariah non-compliant stocks
Sustainable development goals (SDGs) and digitalization
No full textThese are the slides presented by Associate Professor Dr. Aishath Muneeza entitled "Sustainable development goals (SDGs) and digitalization" at the Webinar Series in collaboration with eWorldwide Group: Building Digital Resilience to Support COVID-19 Management, Mitigation and Response: Innovative and Sustainable Inclusive Economic Recovery
Sukuk on blockchain: a legal, regulatory and Shari'ah review
No full textThis paper aims to explore issues arising from sukuk (Islamic bonds) on blockchain, including Shari'ah (Islamic law) and legal matters. A qualitative methodology is used in conducting this research where relevant literature on sukuk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of sukuk and sukuk on blockchain by discussing its legal, Shari'ah and regulatory issues. This culminates in a conceptual analysis of blockchain sukuk and its peculiar challenges. This paper reveals that digitizing sukuk issuance through blockchain remedies certain inefficiencies associated with sukuk transactions. Indeed, structuring sukuk on a blockchain platform can increase transparency of underlying sukuk assets and cash flows in addition to reducing costs and the number of intermediaries in sukuk transactions. The paper likewise brings to light legal, regulatory, Shari'ah and cyber risks associated with sukuk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Shari'ah scholars, lawyers, regulators and information technology experts. As a pioneering subject, the paper notes the prospects of blockchain sukuk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain sukuk in their respective businesses and the financial system
Legal and Shari'ah non-compliance risks in Nigerian Islamic finance industry: a review of the literature
No full textThe purpose of this paper is to review the literature on Islamic finance vis-a-vis legal and Shari'ah non-compliance risks in its transactions and judicial dispute resolution in Nigeria. This is with a view to putting forward direction for future studies on the duo of legal and Shari'ah non-compliance risks and their impact in Islamic finance. This review is designed as an exploratory study and qualitative methodology is used in examining relevant literature comprising of primary and secondary data while identifying legal risk and Shari'ah non-compliance risks of Nigeria’s Islamic finance industry. Using the doctrinal approach together with content analysis, relevant Nigerian laws and judicial precedents applicable to Islamic finance practice and related publications were examined in determining the identified risks. Undeveloped laws, the uncertainty of Shari'ah governance and enforceability issues are identified as legal gaps for Islamic finance under the Nigerian legal system. The gaps are inimical to and undermine investor confidence in Nigeria’s Islamic finance industry. The review reveals the necessity of tailor-made Shari'ah-based regulations in addition to corresponding governance and oversight for a legally safe and Shari'ah-compliant Islamic finance practice. It brings to light the imperative for mitigating the legal and Shari'ah non-compliance risks associated with Islamic finance operations as crucial for Islamic finance businesses, Islamic finance institutions and their sustainable development. Based on content analysis, the review is wholly doctrinal and does not involve empirical data. Legal safety and Shari'ah compliance are not to be compromised in Islamic finance operations. The review would assist relevant regulators and investors in Islamic financial enterprises to understand and determine the impact and potential ramifications of legal safety and Shari'ah non-compliance on Islamic Finance Institutions
Ethical investing and capital structure
No full textWe test the relevance of the trade-off, pecking order, and market timing theories of capital structure from the point of view of a stock's religious orientation. Using a unique sample of Islamic stocks, we discover the leverage speed of adjustment (SOA) to be faster compared to that in the literature on conventional stocks, consistent with trade-off theory. We hypothesize that this result is due to the risk-sharing principal of Islamic investments that substantially reduces market imperfections. The inclusion of variables belonging to other theories of capital structure does not change the SOA, implying the importance of the trade-off theory