INCEIF Knowledge Repository (INCEIF University)
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Statistical microeconomic modelling of asset prices: some perspectives from Islamic finance and economics
No full textThe theory of commodity pricing is one of the foundations of economic theory and applications. A mathematical model is proposed, from first principles and based on the formalism of statistical physics, for describing the prices of commodities. Both spot and futures prices are analyzed. The calibration and predictions of the model, based on market data, provide strong evidence in support of the model. Consider the behavior of market prices. As can be seen from Figure 8.1, the price of silver and gold appear to have a random time evolution. Furthermore, the two prices seem to be positively correlated; in contrast, the price of gold and oil seem to be negatively correlated. Market data seems to indicate that commodity prices are stochastic variables, and it is this feature of market prices that leads to its statistical modelling. Statistical microeconomics takes the commodity prices as random stochastic processes, and in particular, aims to explain the auto- and cross-correlation of commodity prices ..
Using comic to improve zakat literacy as an effort to optimitize zakat collection
No full textAs the biggest Muslims population in the world, Indonesia has big potential to solve social problem, such as poverty, using zakat due to its objectives and features. However, the gap between zakat estimation and zakat collection in Indonesia is still huge. One of the reasons is due to the lack of zakat literacy caused by the absence of innovative media to learn zakat and to market the zakat institutions' programmes. This study tries to investigate whether using comic as a media to learn zakat can improve society's zakat literacy which leads to the better society's zakat awareness and also increases zakat collection in the future. To test the hypothesis whether there is improvement between zakat literacy index scores before and after reading comic, pre-test and post-test to measure the zakat literacy index was randomly distributed to 54 Muslims in Indonesia. Zakat literacy index scores then were analysed using paired sample t-test and Cohen's effect size was used to gauge the magnitude of comic effect in improving zakat literacy. The result revealed that using comic as media can significantly improve people's zakat literacy with very large effect. Based on the result, comic can be considered as one of effectives medias to learn zakat and inform the zakat institutions' programmes to improve society's zakat literacy and awareness that is hoped can also impact to zakat collection by zakat institutions. As recommendation, this innovative media can also be used to learn other topics in Islamic finance. The using of technology (internet), for instance, e-comic can also be a booster to make this media used by wider society
Awjuh al-wifaq wa al-khilaf bayn al-daman wa al-rahn: dirasat fiqhiyyat: ta'siliat tatbiqiyyat
No full textAn abstract is written in Arabic
Managing risk in the Islamic finance sector
No full textThe nascent Islamic banking and finance sector is confronted with almost identical risks as the traditional interest-based industry. However, the Shari'ah (Islamic law) parameters for the interest-free industry introduces additional risk elements of compliance [and therefore reputational] risk and limits the use of conventional tools of risk mitigation. This section discussess the suitability of conventional risk management techniques in the Islamic banking and finance sector. The emerging risk management solutions for the sector are highlighted with some derivative options currently practiced in the Islamic finance markets
Effects of spiritual intelligence from Islamic perspective on emotional intelligence
No full textThe aim of this study is to develop a spiritual intelligence scale from an Islamic perspective. In addition, this research explores the relationship of spiritual intelligence from an Islamic perspective with emotional intelligence among the students of higher learning institutions in Malaysia. Data were collected from 250 students from different higher learning institutions in Malaysia. The findings of the study show the relationships of spiritual intelligence from an Islamic perspective and emotional intelligence. Statistically significant relationships were found between four dimensions of spiritual intelligence from an Islamic perspective (e.g. transcendental awareness, meaning of life, patience and forgiveness) and emotional intelligence. The contribution of human intelligence in the development higher learning institution is remarkable. Most research found on spiritual intelligence is from traditional and Western perspective with very limited studies found from an Islamic perspective. The purpose of the current study is to construct a spiritual intelligence from an Islamic perspective and empirically validate the items. The study also looks for relationships of spiritual intelligence from an Islamic perspective and emotional intelligence among the students of higher learning institutions
Zakat funds and moratorium in the Maldives
No full textOn the 22nd April 2020, the Ministry of Islamic Affairs of the Republic of Maldives announced that MVR1 million (US10,331 (2018). The Ministry of Gender and Family will receive the MVR1 million to help those affected. Before this, about MVR3 million (US$191,687) was spent by the Ministry of Islamic Affairs for Maldivians stranded in other countries due to lockdowns
Leverage, uncertainty and investment decisions
No full textWe explore the role of taxes on stimulating investment decisions for levered firms under cashflows and investment costs uncertainty using the adjusted present value-based real options approach developed by Myers and Read (2019). We extend their work to consider combined tax credits and uncertain investment costs. We then run a numerical analysis to quantify the impact of uncertainty, corporate tax and investment tax credit in stimulating investments
The effects of interest rate on Islamic bank financing instruments: cross-country evidence from dual-banking systems
No full textIn theory, the cornerstones of Islamic finance are interest avoidance and risk-sharing. In practice, however, Islamic banks seem to be lacking both, particularly the latter. We investigate the interest rate impact on Islamic banks' three most-widely used types of financing instruments - i.e. sale-based, lease-based and risk-sharing-by employing the system GMM estimators on a unique panel data set of 77 Islamic banks from 13 countries over the period 2003-2017. We find that sale- and lease-based financing instruments are negatively correlated with the interest rate and that their exposure is amplified in more developed Islamic banking jurisdictions. Risk-sharing instruments, however, appear to be out of the interest rate domain of influence except in less developed Islamic banking jurisdictions, where the impact is positive. Additionally, the above effects on sale-based and risk-sharing instruments hold true only in the case of full-fledged Islamic banks and Islamic bank subsidiaries, respectively; the impact on lease-based instruments hold under all specifications. The findings imply that predominant use of sale- and lease-based financing instruments in their current form undermines the interest-free and risk-sharing essence of Islamic banking and runs the risk of converging with its conventional counterpart
Prosperous year for Islamic capital market in the Maldives
No full textThe Maldives is a small island nation with a 100% Muslim population. The country witnessed the first form of Islamic finance with the incorporation of Amana Takaful Maldives in 2003 and the first fully-fledged Islamic bank was established in 2011. As the Maldives marked the 15th anniversary of Islamic finance in the country, it gave the opportunity for the citizens of the country to appreciate the industry and widen its scope to tap into the halal industry via Islamic tourism and halal certification
Why CEOs invest in corporate social responsibility initiatives: evidence on Shariah compliant firms
No full textThe aim of this article is to investigate the motivation of CEOs to invest in Corporate Social Responsibility (CSR) activities. To carry out this analysis, we assess a sample of US conventional and Shariah Compliant (SC) firms, from Dow Jones Indices. As SC firms undergo business and financial screening, they are expected to follow different managerial styles and capital structures as compared to conventional firms. This comparison is important in view of the growing size of the Islamic Financial Services Industry that has surpassed total asset values of USD 2.00 Trillion. Existing literature argues that, for conventional firms, CEOs spend on CSR either to promote their private benefits (agency view) or to reduce conflicts among shareholders (conflict resolution view). Our results provide evidence that across both types of firms, CEOs do not invest in CSR initiatives to pursue selfish motives but to resolve conflicts among stakeholders to maximize firm value. The findings are also robust across different specifications and methods in order to address endogeneity issues. This article contributes to the growing literature on managerial styles, capital structure and Islamic Finance, carrying out important implications for the investment industry and for the long-term value of the firm