International Journal of Economics, Management and Accounting
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The Neglected Approach to Poverty Alleviation
Full text linkAccording to different studies the world is suffering from chronic poverty, with around 3 billion of its population living below 10 (Shah, 2014). The effects of poverty indiscriminately cut across race, nationality and religion. Governments, non-governmental organizations and international bodies have tried numerous methods to at least remove hardcore and extreme poverty if not eradicate poverty completely. Unfortunately, regardless of the immense financial and human resources dedicated to this effort it has failed except for a few instances. The key cause of this failure is the dichotomy created between SharÄ«Ê¿ah and worldly knowledge. This has led to abandonment of the methodology used by the early generations such as the era of Ê¿Umar ibn Ê¿Abd Al-Ê¿AzÄ«z (raḥimahullÄh), who fully depended on the QurʾÄn and Sunnah in his administration to tackle the issue. In Islam poverty is described as a disease affecting the heart hence requiring a spiritual cure. Therefore, Islam recognizes spiritual and physical poverty. This is contrary to the popular secular view that poverty is merely a material deficiency. This is evidence of the disparity between Islam’s position on poverty as a trial and the secular view that it is a situation to be resolved only physically. This paper addresses poverty alleviation through the IslÄmic Spiritual Approach and the IslÄmic Material Approach which are based on crystal clear divinely guided injunctions from QurʾÄn and Sunnah
Developing Leadership Potential in Students Using SūRah Yasin: A Growth-Mindset Perspective
Full text linkThis study attempts to build the Islamic leadership potential of groups of students by getting them to watch videos related to SuÌ„rah Yasin throughout the semester. Based on the work of Argyris, it is argued that developing leaders requires double-loop learning. Delahaye called this questioning “paradynamic assumptionsâ€. In this study, internalising the paradynamic assumptions of the Qur’aÌ„n is called Qur’aÌ„nic thinking. To develop Muslim leaders, it is assumed that by studying SuÌ„rah Yasin, one can develop Qur’aÌ„nic thinking. This will lead to a growth-mindset, new assumptions about the knowledge of leadership and a new behaviour. To test this assumption, an action research approach was used with two groups of students at the International Islamic University Malaysia. Participants were asked to watch videos related to SuÌ„rah Yasin throughout the semester. SuÌ„rah Yasin was used because it encapsulates Qur’aÌ„nic thinking. These two experiments seemed successful and the lessons related to the experiments are explored.  
Determinants of Capital Structure in Companies Listed in The Jakarta Islamic Index
Full text linkCapital structure is permanent financing consisting of long-term debt, preferred stock, and shareholder capital. Therefore, it is necessary to examine whether internal factors including company size, liquidity, ROA (Return on Assets) and sales growth affect the capital structure of companies listed in the Jakarta Islamic Index. This study aims at examining the effect of company size, liquidity, ROA and sales growth on the capital structure. The analysis used in this study was a multiple linear regression analysis. The results showed that company size, liquidity, ROA and sales growth have a significant influence on the capital structure of companies listed in the Jakarta Islamic Index, while the rest was explained by other factors not included in this study
Operationalizing Distributive Justice from the Perspective of Islamic Economics
Full text linkThe idea of distributive justice is an important subject matter immensely debated in studies of philosophy, political, behavioral and social sciences; it has yet to be thoroughly analyzed in economics. Despite its relevance, works in the formulation of models of distributive justice in Islamic Economics are lacking relative to those available in Western scholarship. The existing scholarly products deal mainly with limited applied aspects of distributive justice. Alternatively, the current conceptual paper is an inaugural analysis of the notion of distributive justice from the sources of Islamic heritage (Turath). The effort is aimed at guiding practitioners and policymakers to find solutions to economic distributional problems in the Muslim world in particular. This research attempts to critically review accessible Islamic Economic literature written on distributive justice and propose a model of distributive justice using the operationalization method introduced by Sekaran and Bougie (2010). It begins with a brief survey of related works by exploring justice and distribution separately. Next the concept of distributive justice is translated into principles and observable dimensions found in the sources of revealed knowledge. Lastly the findings are presented in the form of the proposed model of distributive justice based solely on evidence in the Holy QurʾÄn and ḤadÄ«th. Recommendations are made for expanding the model to fit the special needs of different Islamic economies battling severe distributive injustices stemming from the reliance on conventional theories. Empirical analysis to further defend the viability of the proposed model of distributive justice is highly valued
Impact Analysis of Islamic Finance on Financial Inclusion and Economic Growth in Selected Muslim Countries: Lessons for Nigeria
Full text linkThis study makes an impact analysis of Islamic Finance (IF) on economic growth and financial inclusion in selected Muslim countries, designated as the nine core markets of IF. This is in view of the prominence and enabling environment IF enjoys in the sampled countries. The core markets of investigation are: Saudi Arabia, Malaysia, UAE, Kuwait, Qatar, Turkey, Indonesia, Bahrain, and Pakistan. This study draws lessons from the experiences of the sampled countries on how Nigeria, with her enormous resources, can efficiently utilize Islamic Banking and Finance (IBF) for financial inclusion and economic growth. In this connection, the study adopts Simultaneous Equations Model (SEM) approach with panel data from 2011 to 2014. Basically, the major findings indicate that positive and significant impacts exist between IF and economic growth. Also, financial inclusion is positively impacted upon by IF but not significant. This study therefore recommends that governments of the sampled countries should continue to strengthen the growth of IF for more developmental opportunities and gains, especially for more inclusive economic growth. The Nigerian government should provide concrete supports to IBF operations through a robust institutional framework and enduring political backing. This is to also enable Nigeria benefit from IBF, especially in economic growth and financial inclusion, which are germane to economic growth and developmentof developing economies and the sampled countries, which are known as the nine core markets of IF
A Structural Equation Model of the Halal Certification and its Business Performance Impact on Food Companies
Full text linkDespite the overwhelming popularity of halal certification, there is considerable confusion surrounding its role and business value as well as its relation to business performance. Thus, the aim of this study is to gain better understanding of the relationship between halal certification and the business performance of halal certified food companies in the Philippines. The study was based on a survey and the time horizon was cross-sectional. The survey was carried out using stratified sampling on halal certified food companies operating in the Philippines. Through a self-administered questionnaire, 141 usable responses were acquired from the responding companies. The theorized relationship of halal certification and business performance was tested using confirmatory factor analysis and structural equation modeling (SEM). The findings of this study revealed that halal certification significantly affect business performance of halal certified food companies in terms of innovative and financial performance. It was also revealed that innovative performance fully mediates the relationship between halal certification and financial performance
The Impacts of Internal Control Practices on Financial Accountability in Islamic Non-Profit Organizations in Malaysia
Full text linkThis study aims at examining the impacts of internal control practices on financial accountability in Islamic non-profit organizations (NPOs) in Malaysia. Thus, this study applies an explanatory case study method to analyze intervention of life events which form the internal control practices. For data collection, this study used a shorter case study interview with interview protocol questions developed from the literature review. For reporting, this study adopted a multiple-case study format combining all three cases into a single report. As a result, this study identified significant interrelation impacts between internal control practices and financial accountability by Islamic NPOs in Malaysia under three aspects: (i) financial accountability ‘for what’ – internal control as part of financial accountability process; (ii) financial accountability ‘on how’ – internal control discharged financial accountability through financial disclosure; and (iii) financial accountability ‘to whom’ – internal control supports Islamic NPOs to gain both power (khilÄfah) and trust (amÄnah) from stakeholders. Therefore, this study is among the few studies that examine the internal control practices especially their impacts on financial accountability of Islamic NPOs in Malaysia
Feasibility of a Monetary Union in Organization of Islamic Cooperation Countries: New Evidence From Competitiveness Differentials
No full textThe purpose of this study is to assess the feasibility of forming a common currency area in Organization of Islamic Cooperation countries (OIC). Based on the experience of Euro area in recent crises, this article emphasizes economic competitiveness differentials as a benchmark Optimum Currency Area criterion. In order to detect competitiveness differentials, this study relies on panel co integration techniques and uses the Pooled Mean Group method. Then the exchange rate misalignments in these countries are calculated and the co-moved pattern of misalignments and the sigma convergence of exchange rate misalignments are analyzed. The results indicate that most of Islamic regions experience diminishing competitiveness differentials and there is an obvious convergence in economic competitiveness levels in Islamic regions. In addition, the countries of Arab Economic Unity (AEU) are experiencing the lowest exchange rate misalignment; hence, it seems this is the most appropriate region satisfying the preliminaries of forming a common currency area
Factors Influencing the Use of M-Commerce: An Extended Technology Acceptance Model Perspective
Full text linkThe application of m-commerce activities among smartphone users in Malaysia has become one of the major challenges for companies involved in m-commerce. The present study aims at identifying the factors influencing m-commerce use in Malaysia. An extended Technology Acceptance Model (TAM) is employed. A total of 350 questionnaires were distributed among smartphone users in the Klang Valley area of Malaysia. Two-stage Structural Equation Modelling (SEM) was employed to test the model of the study. The findings of the study reveal that behavioral intention has a significant positive influence on m-commerce use. The findings further reveal that perceived usefulness, perceived enjoyment, and privacy and security have significant positive influence on behavioral intention. These findings will benefit stakeholders involved in m-commerce activities such as providers, retailers, brands, and consumers. In addition, academicians and students can also benefit from this study in the context of m-commerce use in Malaysia
ZakÄt Administration: An Analysis of the Past Approach
No full textZakÄt is one of the five pillars of IslÄm and even though it is a system designed by AllÄh the Almighty, it has faced many challenges across the centuries in its implementation. The main objectives of zakÄt were well achieved during the early generations, from the time of the Prophet to the time of the Rightly Guided Caliphs. This success was a result of strict adherence to the text of SharÄ«Ê¿ah which is supposed to be understood literally in this matter. However, this is not the case in our contemporary era where mismanagement of zakÄt occurs due to interference by those in authority and inappropriate ijtihad which have become obstacles that hinder achievement of the zakÄt system objectives. The system is divinely revealed by AllÄh and this is proof of its perfection and accuracy and thus needs no modification or change. The paper focuses on certain key issues of concern in managing the collection, preservation and distribution of zakÄt. Unless these points are managed as prescribed by the SharÄ«Ê¿ah, the zakÄt objectives cannot be achieved