Shirkah: Journal of Economics and Business
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Concentration and Specialization of Economic Activities in the Kingdom of Saudi Arabia
Full text linkThis study presents several indicators for understanding the structure of economic activities in terms of concentration and specialization in the Kingdom of Saudi Arabia. Subsequently, the theoretical description of the different notions of concentration and specialization relating to geographical or sectors aspect is applied to understand the equality in the distribution of wages and employment levels across the country. Thus, the authors have estimated the most important indexes used in a large part of the academic literature and which are most representative of concentration and distribution, such as the Gini, Herfindahl, Theil, Aigiur, and Krugman indexes for the Kingdom of Saudi Arabia during the year of 2017. The sample used in this study consists of four different kinds of firms (very small, small, medium, and large) of twelve sectors of activities and the wages perceived by employees in thirteen administrative areas in the Kingdom of Saudi Arabia. The data are in the forms of annual reports in the year of 2017 obtained from the General Authority for Statistics of Saudi Arabia. The results obtained certainly facilitate the comprehension of the type of income distribution to the active population by sectors and by administrative areas. As for the implication, this study’s results contribute to enrich statistical data and bring added-value to the knowledge that eventually leads to understanding socioeconomic context of the country
What Drives Muzakki to Pay Zakat at Baitul Mal?
Full text linkThe present study empirically explores the factors influencing the decision of Muzakki (zakat payers) to pay zakat at an official institution, i.e. Baitul Mal Banda Aceh, Indonesia. The factors comprise faith, altruism, service quality, role of the zakat economy, and role of Ulama (Islamic scholars). To gather the data, 140 questionnaires were disseminated to the participants who were selected based on the purposive sampling technique. The data were further analyzed by employing a binary logistic regression. The results of this study revealed that faith, altruism, service quality, role of the zakat economy, and role of Ulama significantly and positively affected the decision of Muzakki to pay zakat at Baitul Mal. These findings imply that to attract Muzakki to pay zakat at a Baitul Mal, it not only needs to enhance relevant knowledge about the obligation to pay zakat and its benefits, but it also needs to improve the quality of services provided by the Baitul Mal. All in all, Ulama also has an important role in influencing Muzakki to pay zakat at the Baitul Mal institution
Islamic Social Reporting Disclosure of Sharia Commercial Banks in Indonesia: A Form of Social Responsibility
Full text linkSharia industry development encourages experts to design Corporate Social Responsibility (CSR) disclosure index that is more compatible with the characteristics of sharia-based corporate. However, studies examining CSR disclosure using Islamic Social Reporting (ISR) index that focuses on detailed results of content analysis from time to time still remains a paucity of evidence. Hence, this study aims to examine the practice of Islamic Social Reporting disclosure of sharia commercial banks in Indonesia. Drawing on the data obtained from CSR reports established by sharia banks in Indonesia, the results of content analysis disclosed that the ISR disclosure showed a fluctuating trend. It was also revealed that the six themes of ISR index have not been optimally disclosed. ISR disclosures of sharia banks in Indonesia were categorized as good since the average disclosure reached 50% in 2015 up to 2017, especially the corporate governance disclosure. This study’s results imply that it is necessary to increase the disclosures that can be strengthened by regulations from financial regulators and Islamic banking associations to increase public trust and value-added of sharia commercial banks. This study contributes to the development of sharia banks as fruitful insights on policy recommendations for Islamic banks' top management
Impact of Transparency and Accountability on Trust and Intention to Donate Cash Waqf in Islamic Microfinance Institutions
Full text linkResearch examining the intention of cash waqf in Islamic Microfinance institutions remain more paucity of evidence. To the best of the authors' knowledge, previous studies have still been silent on exploring the intention of cash waqf in the context of Baitul Maal wat Tamwil (BMT). Dealing with this issue, this study examines the impact of transparency and accountability perception on trust and intention to donate cash waqf in Islamic Microfinance Institutions. This study employed a survey in the form of a questionnaire to obtain the required data from 303 waqif (people who donate cash waqf) both at BMT and another nazhir waqf around the island of Java, Indonesia. Furthermore, the data were analyzed using Structural Equation Model-Partial Least Square (SEM-PLS) in two stages, i.e., measurement models and structural models. The results of data analysis portrayed that the perception of transparency provided a significant impact on trust and intention to donate cash waqf in Islamic finance institutions. It was also depicted that the level of trust positively influenced the intention to give cash waqf in Islamic finance institutions. These results offer significant contributions as fruitful insights to strengthen the transparency and accountability of Islamic microfinance institutions, particularly Baitul Maal wat Tamwil (BMT) in Indonesia
Education Level, Spiritual Intelligence, and Love of Money: Do They Correlate to Ethical Perception?
Full text linkThe aim of this study is to shed some light on the impact of education level, spiritual intelligence, and love of money on ethical perception of accounting students which still remains unexplored thus far. The data were taken from 100 accounting students of several universities in Semarang Indonesia as the respondents. The data were further analyzed by employing PLS (Partian Least Square). The data analyses revealed several compelling results. First, there was no significant impact of education level on ethical perception of accounting students. Second, spiritual intelligence positively influenced the students’ ethical perception. Third, the education level was found to have no significant effect on love of money. Fourth, the spiritual intelligence negatively correlated to love of money. Fifth, the love of money did not provide a significant impact on students’ ethical perceptions. These results contribute to providing positive insights for academic stakeholders in solving ethical problems of accounting students who are going to be professional accountants and auditors. Additionally, the results of this study should be considered as ‘a wake-up call’ for accounting professionals to be more alert toward the threat of ethical violations that could potentially endanger their credibility
Institutional Quality and Sukuk Development: A Study of Five OIC Countries
Full text linkThe objective of this study is to shed some light on the effect of institutional quality on the development of the global sukuk market. Specifically, this study examines the impacts of the institutional quality that adopts three dimensions of the Worldwide Governance Indicators (WGI), i.e., Rule of Law (RL), Regulatory Quality (RQ), and Government effectiveness (GE) on the global sukuk development of the top-five countries of sukuk issuance, i.e., Malaysia, Kingdom of Saudi Arabia, United Arab Emirates, Indonesia, and Bahrain. Drawing on a quantitative study with the data in the forms of global sukuk issuance from 2002 to 2017, panel-data regression (OLS) and General Method of Moment (GMM) were applied. This study showed that RL and GE have a significantly positive effect on sukuk issuance; however, RQ did not influence the development of the global sukuk market. These results imply that a country that is capable to maintain the institutional quality, especially in terms of rule of law and government effectiveness, will most likely be the country that can successfully develop the sukuk market. These results play a crucial role in filling a research gap among previous studies and provide an empirical evidence of the government’s role and its influence on the sukuk development
A Critical Review of the Market Efficiency Concept
Full text linkThe market efficiency hypothesis has attracted a notable number of economists to conduct investigations in this field. It could be considered as an effective method of driving investors towards the right direction while trading in the security market. A large number of researches believe that the market is efficient in some of its forms, while others take a different view. Drawing on previous theoretical and empirical studies investigating market efficiency and its three forms, this paper critically examines the concept of market efficiency through a critical review from different points of views. Moreover, it highlights a number of empirical tests and their results with regard to the three forms of market efficiency. It also focuses on the influence of market efficiency on the security prices. This paper concludes that the market seems to be more efficient in regards to its weak form instead of the strong and semi- strong forms, as a result, it is difficult to predict future security prices and obtain abnormal profits by only analyzing historical records
Consumer Behavior toward the Use of Credit Cards: The Empirical Evidence from Iraq
No full textCredit card is a payment tool in the modern world and it is being called the plastic money. In Iraq and especially in Kurdistan region, the credit card utilization now is appealing to be more attractive. To address this issue, the present study sheds some light on the impact of credit cards on the consumer behavior and the benefits of credit cards for people of Kurdistan, Iraq. The data were obtained from 40 participants consisting of academicians in the related field, managers of banks, and credit card users by means of questionnaires. A range of variables that agreed to demographic information, such as level of education, gender, and income, were also considered. Drawing on chi-square and modeling analysis, the results portrayed a positive relationship between the costumer information and their behavior in using credit cards. The results of this study further suggest that since people in Kurdistan region of Iraq would like to apply credit cards in all aspects of life, the financial institutions should provide accessible information and valuable services. All in all, from this study it is implied that the “plastic money†makes a revolution in banking industry across the world and nowadays electronic banking becomes familiar to the world
Determinants of Underpricing in Islamic and Non-Islamic Shares on IPO
Full text linkThis study aims at investigating the factors affecting the share’s underpricing in service companies of the Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX) covering the period from 2011 to 2017. Compared to the precedent studies, this study provides an empirical comparison between Islamic and non-Islamic shares on 22 underpricing stock samples from 44 IPOs in Islamic service shares and 21 underpricing samples from 32 IPOs in non-Islamic service shares. This study adopts a multiple linear regression analysis and an independent sample t-test method. It is revealed that the underwriter's reputation and auditor's reputation have a significant effect on the underpricing of IPO on IDX, both in Islamic and non-Islamic service companies. The result of independent samples t-test indicates that Islamic service shares companies have better financial performance compared to non-Islamic service shares companies. Predicated upon the results, this study implicatively insinuates that companies based on Shariah compliance could anticipate the underpricing level more expeditiously since the Shariah principles are in line with the decreasing level of underpricing
Indonesian Consumers’ Intention of Adopting Islamic Financial Technology Services
Full text linkWith the rise of Halal Lifestyle in the digital era, Islamic Financial Technology (henceforth FinTech) has increasingly become impactful to economic growth. Islamic FinTech companies are in a dire need to figure out factors that influence the adoption and acceptance of the technology to promote their business. Addressing the issue, this study examines consumers’ intention of using Islamic Fintech services. An online survey was employed to elicit the required data from 75 Indonesian consumers of Islamic FinTech services. The results of data analysis by means of SEM-PLS depicted that perceived usefulness and interpersonal influence were two key factors driving the consumers to use Islamic FinTech services. The results further revealed that compatibility positively influenced perceived usefulness and perceived ease of use, which in turn, affected the consumers’ attitude. Moreover, it was also noted that attitude and internet self-efficacy as perceived behavioral control in decomposition of theory of planned behavior had no significant impact on consumers’ intention. The results of this study theoretically provide a basic model of consumers’ intention in the context of Islamic FinTech. At the same time, FinTech industry users can use the results of the present study as references to come up with appropriate strategy to deal with the market needs