Saeed Akbar, Shehzad Khan, Zahoor Ul Haq and Muhammad Yusuf Amin
The purpose of this study is to comparatively analyze the effect of dividend policy on shareholders’ wealth in Shariah-compliant (SC) and noncompliant (NC) nonfinancial firms in…
Abstract
Purpose
The purpose of this study is to comparatively analyze the effect of dividend policy on shareholders’ wealth in Shariah-compliant (SC) and noncompliant (NC) nonfinancial firms in Pakistan.
Design/methodology/approach
All the nonfinancial firms listed on the Pakistan stock exchange have been taken as a sample for 2016–2021. The Karachi Meezan index screening criteria were applied to screen SC firms. Based on the BPLM and Hausman test results, the authors used the fixed-effect and pooled OLS model for SC and NC firms, respectively. The F-test was used to compare the effect of each dividend policy variable on shareholders’ wealth for both firm types.
Findings
The findings reveal that the dividend policy does affect the shareholders’ wealth in both firm types. Dividend per share (DPS), dividend yield (DY) and earnings per share significantly affect the shareholders’ wealth in SC firms. For NC firms, the dividend payout, DPS and DY are critical. Moreover, the F-test results show that the DPS, DY and leverage effect on the shareholders’ wealth significantly differ for both firm types.
Research limitations/implications
This study fills the research gap in the Pakistani context specifically as well as globally by providing important insights into the relationship between a firm’s dividend policy and shareholders’ wealth for SC and NC firms. In addition, this study comprehensively compares the results for both firm types, which is also lacking in the existing literature. Because this study is based in Pakistan, the generalizability of the results would be limited.
Practical implications
The findings of this study are helpful for the management of SC and NC firms in devising their dividend policies that can maximize their shareholders’ wealth. This study also provides guidance and knowledge to investors in choosing companies for their investments that can maximize their wealth.
Originality/value
To the best of the authors’ knowledge, this is the first study that analyzes the relationship between dividend policy and shareholders’ wealth for SC firms in Pakistan. It is also the first study that comprehensively compares the dividend policy relationship with shareholders’ wealth for SC and NC firms. In addition, using the F-test for joint hypotheses to compare the specific effect of each dividend policy variable is a methodological contribution of the study.
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Hanudin Amin, Nor Syakina Jam and Patrick J. Ring
This study examined Muslim civil officers’ cash waqf giving decisions in Malaysia.
Abstract
Purpose
This study examined Muslim civil officers’ cash waqf giving decisions in Malaysia.
Design/methodology/approach
Using the theory of planned behaviour (TPB), the effects of the said factors on the decisions were examined using logistic analysis. A total of 583 Muslim civil officers were involved in this work. The discrete dependent variable measures whether a civil officer is a donor or non-donor cash waqf.
Findings
Results obtained indicate significant influences of attitude, subjective norm, perceived behavioural control and some demographic items on cash waqf giving decisions in Malaysia.
Research limitations/implications
The findings attained were narrowed in terms of chosen geographical settings and the theory used.
Practical implications
This study provides a theoretical benchmark to enhance cash waqf giving decisions, which in turn can affect the waqf collection by the waqf institutions in Malaysia.
Originality/value
This study uniquely develops Muslim civil officers’ cash waqf giving decisions framework (CAGDEF) in measuring cash waqf giving decisions in Malaysia.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0964.
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Mohammed Sani Abdullahi, Adams Adieza, Marina Arnaut, Muhammad Shaheer Nuhu, Waqas Ali and Zainab Lawal Gwadabe
The goal of this paper is to investigate the antecedent of employee performance (EP) through perceived organizational support (POS), as well as the moderating role of job…
Abstract
Purpose
The goal of this paper is to investigate the antecedent of employee performance (EP) through perceived organizational support (POS), as well as the moderating role of job satisfaction (JS) on the connection between POS and EP among employees of small and medium enterprises (SMEs) in Northwest Nigeria, using social exchange theory (SET) and organizational support theory (OST).
Design/methodology/approach
This research employed a survey design, using SMEs employees in Northwest Nigeria as the research unit of analysis. Purposive sampling was used in this research, with standardized questionnaires used to obtain data from 1750 employees of the targeted SMEs within the region. This study’s hypotheses were tested using partial least square–structural equation modeling (PLS-SEM).
Findings
The findings of this research stated that POS has a substantial effect on EP, while JS moderates the association between POS and EP.
Practical implications
The study offers practical insights for SMEs in Northwest Nigeria, aiding in resolving employee issues and providing actionable strategies for management. Understanding the dynamics of perceived organizational support, job satisfaction and employee performance enables proactive measures to improve organizational effectiveness, fostering a positive work environment and enhancing competitive edge.
Originality/value
This study innovates existing literature by exploring how perceived organizational support affects employee performance in small and medium-sized enterprises in an emerging economy. It introduces PLS-SEM, emphasizing job satisfaction’s pivotal role as a moderator. This provides valuable guidance for SMEs to boost employee performance and formulate effective HR strategies, advancing organizational behavior and management research.
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Muhammad Anwar Fathoni, Ahmad Rodoni, Mohammad Nur Rianto Al Arif and Nur Hidayah
The fact that Islamic banking in Indonesia held only a 7% market share in 2023 is ironic, considering that Indonesia has the largest Muslim population in the world. Beyond…
Abstract
Purpose
The fact that Islamic banking in Indonesia held only a 7% market share in 2023 is ironic, considering that Indonesia has the largest Muslim population in the world. Beyond differences in ethnicity, race and religious understanding, Indonesia’s sociopolitical diversity also presents an intriguing study area about consumer decisions to use financial services. This study aims to investigate the influence of sociopolitical identity on attitudes and intentions to participate in Islamic banking in Indonesia using the theory of reasoned action as a basis.
Design/methodology/approach
This study used SEM-PLS to investigate the intention to participate in Islamic banking among Muslim communities in Indonesia. Its focus on prediction and theory building aligns perfectly with the objectives of this study, making it the most appropriate methodological choice. The sample used in this study comprised 343 respondents. The structural model was used to test the relationship between intention to participate in Islamic banking and religiosity, subjective norms, attitudes and sociopolitical identity, with reputation as mediation.
Findings
This study found that three variables significantly affect the intention to participate in Islamic banks: attitude (AT), reputation (RP) and subjective norms (SN). Sociopolitical identity (SP) and religiosity (RE) do not have a direct effect. However, sociopolitical identity (SP), attitudes (AT) and religiosity (RE) have been proven to have an indirect impact through reputation (RP) as mediation, and only subjective norms (SN) have not.
Practical implications
This study implies that Islamic banking needs to consider non-marketing aspects because, based on its findings, non-marketing factors such as sociopolitical identity and religiosity have been proven to influence the intention to participate in Islamic banking in Indonesia.
Originality/value
This study’s respondents were two Muslim communities in Indonesia with the largest mass and assets, namely, Nahdhatul Ulama and Muhammadiyah. The inclusion of non-marketing aspects, such as sociopolitical identity, in the research model added value, which is still rarely researched.
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Muhammad Usman, Anwar Allah Pitchay, Zubir Azhar, Muhammad Shabir Shaharudin and Yuvaraj Ganesan
Islamic banking is a financial institution that is concerned with the regulation of the Shariah guidelines. Several full-fledged and Windows-based Islamic banks in Pakistan have…
Abstract
Purpose
Islamic banking is a financial institution that is concerned with the regulation of the Shariah guidelines. Several full-fledged and Windows-based Islamic banks in Pakistan have reported non-Shariah-compliant income (NSCI) due to various operational investment activities. Hence, this issue has attracted this study to examine the impact of NSCI, especially from the perspective of Islamic bank (IB) customers’ trust and commitment.
Design/methodology/approach
This study used trust-commitment theory as the underlying theory to examine customers’ trust and commitment. A total of 341 questionnaires have been distributed, and the data is analysed using the structural equation modelling (SEM) method.
Findings
The results show the commitment of IB customers has a significant relationship with the benevolence, trust and shared values of the top management of IBs. Meanwhile, the other two constructs, the ability and integrity of the top management, are found to be insignificant.
Research limitations/implications
The gender diversity among banks’ customers in Pakistan is the main limitation in this study. There were difficulties in selecting a more representative sample due to gender domination issues in the country. Thus the data revealed that 62.8% were male respondents, which confirms the prior research on the gender disparity.
Originality/value
This study provides interesting insights into the context of Pakistan’s Islamic banking sector as it examines top management’s ability, integrity, benevolence and shared values to affect trust and commitment, and the role of trust as a mediator.
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Pratibha Bhardwaj, Himani Sharma and Ubba Savita
The purpose of this paper is to determine the relationship between employee empowerment (structural empowerment [SE] and psychological empowerment [PE]), employee commitment (EC…
Abstract
Purpose
The purpose of this paper is to determine the relationship between employee empowerment (structural empowerment [SE] and psychological empowerment [PE]), employee commitment (EC) and organizational citizenship behavior (OCB) within the unique context of a learning organization in the Indian retail sector.
Design/methodology/approach
The investigation was conducted using a survey-based questionnaire approach. Data were gathered from 222 frontline employees working in different retail stores in India. The researcher used AMOS 22.0 version and SPSS 22.0 version for the data analysis.
Findings
This study concluded that SE and PE have a positive and significant influence on OCB and EC. In addition, EC is a mediator between employee empowerment (SE and PE) and OCB.
Research limitations/implications
This research is built on cross-sectional data with a limited sample size, that is, 222 sample size. This study also offers some practical insights to managers of retail stores.
Originality/value
To the best of authors’ knowledge, this study is the first to empirically investigate the mediating role of EC between SE and OCB. By focusing on the interplay of these variables within a learning organization, this study sheds light on the mechanisms driving employee behavior and organizational dynamics in this rapidly evolving retail sector.
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Saheed Afolabi Ashafa, Lukman Raimi and Nurudeen Babatunde Bamiro
The contributions of Islam to human civilization, spanning theology, philosophy, politics, economy, sociology and science, find ample documentation in several historical records…
Abstract
Purpose
The contributions of Islam to human civilization, spanning theology, philosophy, politics, economy, sociology and science, find ample documentation in several historical records. This paper aims to critically examine the catalytic role played by Islam’s social well-being and economic justice in advancing peaceful coexistence.
Design/methodology/approach
This exploration is carried out through a systematic literature review using the PRISMA framework. The paper addresses three core thematic research questions, with the intent of offering a comprehensive contribution to both the theory and application of Islamic Studies. To acquire essential data, a qualitative research approach focused on documentation, particularly the collection of non-numerical data from secondary sources, including the Qur’an, Hadith and scholarly articles, was used.
Findings
The systematic literature review led to three notable insights. Firstly, the promotion of social well-being by Islam contributes positively to peaceful coexistence across various global regions. Secondly, Islam’s emphasis on economic justice also plays a constructive role in nurturing peaceful coexistence in diverse geographical areas. Thirdly, the alignment between Islam’s promotion of social well-being and economic justice, following the principles of Maqasid al-Shari’ah and the five international principles of peaceful coexistence, lays the groundwork for prospective theoretical inquiries.
Originality/value
This study provides a pioneering perspective by systematically integrating Islamic principles with international frameworks for peaceful coexistence through the Preferred Reporting Items for Systematic Reviews and Meta Analysis (PRISMA) methodology. It offers a unique contribution by presenting how Islam’s intrinsic values of social well-being and economic justice using Maqasidul Shari’ah indicators serve as catalysts for promoting global harmony and social stability. By bridging religious tenets with universal coexistence principles, the study sets a foundational framework for interdisciplinary and policy-driven discourse on achieving sustainable peace through faith-based social and economic structures.
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Dg Nooremah Ag Said, Rose Irnawaty Ibrahim, Azman Ab Rahman and Hafidzi Hamdan
This paper aims to view the tradition of the Prophet in zakat payment, especially the attributed measurements, and adapt these measures to current zakat measurement practices.
Abstract
Purpose
This paper aims to view the tradition of the Prophet in zakat payment, especially the attributed measurements, and adapt these measures to current zakat measurement practices.
Design/methodology/approach
This study is designed with an exploratory sequential mixed method where qualitative data were collected from historical archives and also from the measurement of available ṣāʿ صاع and mud_ مد. These standard measures were collected from Malaysia and other Muslim countries and calibrated at the National Measurement Standards Laboratory (currently carried out by the National Metrology Institute of Malaysia). The volume of the ṣāʿ were tabulated, charted, analyzed and determined.
Findings
Prophet Muḥammad ordered for zakat al-fiṭr زكاة الفطر to measure the crops using ṣāʿ (gallon: volume measure), not raṭl رطل (pound: standard weight). This paper recommends a reference volume for the ṣāʿ, and from this value, the volume for the smaller measure mud and much larger measure wasq وسق were calculated. The agricultural niṣāb
(5 wasq) is one of the key parameters in ṣāʿ volume analysis.
Research limitations/implications
This study covers standard measures acquired from Malaysia, Saudi Arabia and the United Kingdom (traceable to India). Several empirical data are attained from previous studies from Saudi Arabia and North Africa. Also, some theoretical data are obtained from kitab tafsir, hadith and kitab turath (books and records written by early scholars). A concern in this study is the ratio of de-husked grains currently approximated at half of un-hulled grains. This might not necessarily be accurate and may differ by different types of grains.
Practical implications
After the introduction of the modern measurement system known as the International System of Units (SI) in 1971, ṣāʿ became obsolete, leaving each state in Malaysia to define and convert ṣāʿ to SI units variously. This paper contributes to standardizing the conversion to one value with an appropriate SI unit, that has traceability to the Prophet’s ṣāʿ. This national reference standard ṣāʿ is essential for zakat al-fiṭr measurement, important for zakat centers and impacting every Muslim in Malaysia. Often overlooked, ṣāʿ is more crucial as a basis in determining and standardizing the seasonal crops niṣāb, unfolding the reasons why the poor are paying the paddy zakat in Malaysia.
Social implications
The Prophet’s tradition for ablution is to use water not more than one mud, this is aligned with the 12th Sustainable Development Goals by the United Nations which promoted the responsible consumption of water. Considering half (adults) of the 1.9 billion Muslims in the world, multiplied by 5 times of prayer, the Muslims will at least use 4.75 billion muds of water for ablution alone in 1 day. This is approximately 3.5 billion liters of water daily, and if they limit their water usage to 1 mud for each ablution, they collectively will save at least four times more water (about 14 billion liters) daily than performing ablution from a running tap. Though for ablution, accuracy is not an issue, the mud impact on all Muslims is vital on a daily basis, literally by volume.
Originality/value
Ṣāʿ is essential in measuring food for the annually obligated zakat al-fiṭr and more crucial as a basis in determining the seasonal crops niṣāb. This paper contributes to the development of a national reference standard ṣāʿ for Malaysia that has traceability to the Prophet’s ṣāʿ.
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Muhammad Bilal Zafar, Mohd Fauzi Abu-Hussin and Hassnian Ali
This review paper aims to provide a comprehensive retrospective analysis of the research landscape in the Halal industry through a threefold approach, including bibliometric…
Abstract
Purpose
This review paper aims to provide a comprehensive retrospective analysis of the research landscape in the Halal industry through a threefold approach, including bibliometric analysis, latent theme identification and examination of driving factors of research citations.
Design/methodology/approach
A total of 2,510 research documents, identified from the Scopus through a systematic search, were considered for review. The review methods included bibliometric analysis of the domain, application of the machine learning structural topic modeling (STM) to identify latent themes and negative binomial regression to estimate the impact of paper, author and geographical characteristics on citation rates.
Findings
In addition to bibliometric insights, the STM uncovered 10 key topics within the Halal industry literature, including certification processes, dietary practices, consumer behavior, ethical considerations, supply chain management, market dynamics, Halal tourism, verification methods, regulatory frameworks and Halal food production and marketing. Positive associations with citation rates were found for abstract length, number of keywords, paper age, number of references, funding, number of authors and international collaboration, while a negative association was observed for authorship from Malaysia.
Originality/value
This paper, besides providing insights into research dynamics and citation patterns, also guides future research avenues in the Halal industry.
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Pantri Heriyati, Krisna Nugraha, Neeraj Yadav and Aryo Bismo
Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer…
Abstract
Purpose
Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer resistance brought on by attempts to divert them, or it might have been a direct consequence of the diverting effect. This study aims to examine the direct relationship between the diverting effects and the decision to not adopt digital Islamic banking, as well as the mediating role of consumer resistance.
Design/methodology/approach
The partial least squares-based structural equation modelling (PLS-SEM) technique is used to analyse relationships among diverting effects, consumer resistance and non-adoption decisions. A total of 517 middle- and upper-class Indonesian consumers were involved as a sample, with several criteria such as being a conventional bank customer for at least 5 years and using digital services with a minimum of 5 transactions per month but not yet being an Islamic bank customer.
Findings
It is found that the direct relationship between the diverting effects and the non-adoption decisions is not statistically significant (β = 0.045, p = 0.15). However, it is found that the diverting effects trigger consumer resistance in a statistically significant manner (β = 0.192, p < 0.1). This consumer resistance is found to be influencing non-adoption decisions directly (β = 0.694, p < 0.1), as well as a mediating factor between diverting effects and the non-adoption decisions (β = 0.133, p < 0.1).
Originality/value
The paper deals with an emerging industry and offers actionable insights for its growth. In practice, this study suggests several possible strategies for the Islamic banking industry to grow under circumstances where digital banking is considered sine-qua-non of modern banking. Several related theories are also evaluated in this study.