Mohd Zaidi Md Zabri and Mustafa Omar Mohammed
The purpose of this paper is to investigate the Malaysian homeowners’ intention to participate in the Cash Waqf-Financial Cooperative-Musharakah Mutanaqisah (CWFCMM) home…
Abstract
Purpose
The purpose of this paper is to investigate the Malaysian homeowners’ intention to participate in the Cash Waqf-Financial Cooperative-Musharakah Mutanaqisah (CWFCMM) home financing model using rigorous scale validation procedures.
Design/methodology/approach
An adapted questionnaire with 26 items was administered to 382 academic and supporting staffs, postgraduate and undergraduate students in three states in Malaysia. The data were analyzed using exploratory factor analysis and confirmatory factor analysis with SPSS 21 and AMOS 21, respectively.
Findings
The results further support the parsimonious nature theory of planned behavior (TPB) with its three original construct of attitude, subjective norm, and perceived behavioral control and an additional construct of perceived cost advantages of the CWFCMM Model. A validated TPB scale with 24 items measured can be proposed to be used as an evaluative tool to assess the level to which the homeowners are interested to participate in the CWFCMM Model.
Research limitations/implications
The modified TPB scale would also facilitate the identifications of factors that influence homeowners’ intention to opt for Islamic home financing (IHF) by non-bank Islamic financial institutions such as financial cooperative.
Practical implications
The CWFCMM Model aims to harness the potential synergy between third-sector economy players such as waqf and financial cooperatives in offering affordable IHF solution to potential homeowners.
Social implications
The CWFCMM Model may enable the Malaysian homeowners to enjoy a more affordable IHF solution, thereby, among others, reducing the purchase and monthly repayment affordability of Malaysians.
Originality/value
There is a dearth of Islamic financial services selection studies, especially within the non-banking, Islamic financial services milieu. The CWFCMM Model, which has been developed by the authors, enriches the limited literature on this subject matter. It will also add value to understand how the customers would react to an alternative IHF provider.
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Hanudin Amin, Abdul Rahim Abdul Rahman, Dzuljastri Abdul Razak and Hamid Rizal
The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage…
Abstract
Purpose
The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage sector in Malaysia. The present study also examines the effect of attitudinal-behaviour on consumer preference towards preference of Islamic mortgage selection.
Design/methodology/approach
The study is based on questionnaire survey. Data are collected using sample from customers of Islamic banks in Malaysia. The study collects 351 respondents. Data are analysed using partial least squares (PLS).
Findings
The results indicate that service quality, product choice and Islamic debt policy significantly influence consumer attitude, in turn, affecting the Islamic home financing preference. Consumer attitude also mediates the effects of service quality, product choice and Islamic debt policy on the Islamic home financing preference.
Research limitations/implications
Several limitations warrant future research. First, this study considers only a specific user group in one public university. Second, this study does not consider attitude as a moderator. Third, this study suffers from the limited number of factors used. These limitations, however, provide directions for future research.
Practical implications
Our results will add value to the consumer preference topic for Islamic home financing literature. The present study provides bank managers with valuable insights into better planning of Islamic home financing services in Malaysia.
Originality/value
This study is a pioneering effort at exploring consumer attitude and preference from the context of Islamic mortgage sector in Malaysia. The use of PLS analysis provides another important contribution to the literature in this area.
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The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses…
Abstract
Purpose
The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses the Islamic perspectives on minimum wage and examines contemporary challenges and intricacies in its application.
Design/methodology/approach
This study uses thematic analysis to create the conceptual framework, drawing upon a review of pertinent literature such as academic papers, books and articles published up to 2023.
Findings
The framework encompasses various categories, namely, employee characteristics, job characteristics, market factors, compensation practices and Islamic principles. Each category consists of multiple variables. The resulting framework offers a holistic and ethically grounded methodology for wage determination, aligning with both Islamic and conventional perspectives. This study notes the absence of a universally agreed-upon minimum wage. Islamic economics faces challenges due to the unclear application of principles, limited awareness, legal constraints and a lack of empirical evidence on wage systems, along with complexities in their implementation.
Research limitations/implications
The paper’s limited scope focuses solely on the Islamic perspective on wage determination, without comparing it to the conventional viewpoint. This may have implications for future research.
Practical implications
The insights on Islamic principles and wage determination guide scholars and policymakers interested in promoting just and equitable wages.
Originality/value
This study is distinct in its integration of various factors to propose an all-encompassing framework for wage determination, rooted in the Quran and principles, while also reinforcing the framework with conventional theories. Additionally, it adds to the growing body of literature by investigating the Quran’s stance and
principles on minimum wage, as well as discusses the challenges involved in implementing an Islamic approach to wage determination, which has received limited attention in Islamic literature.
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This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a…
Abstract
Purpose
This paper aims to fill the noticeably fragmented zakat literature repertoire by empirically exploring stakeholders’ views toward zakat management performance issues based on a selected zakat institution (ZI) operating on a corporatized platform with corporate administrative style.
Design/methodology/approach
A quantitative approach using a questionnaire survey distributed to Muslims in the State which ZI is operating was adopted. A total of 448 usable responses are used in the analysis covering descriptive and mean difference.
Findings
The results indicate that managerial reform configuration in terms of corporatization has been viewed positively by stakeholders, translated into a comforting agreement score toward ZI’s improved management performance (collection, disbursement and reporting). Such perceptions are, however, observably sensitive to demographic factors of gender and employment type. The survey also document evidence that the corporatization exercise itself had improved respondents’ confidence toward ZI being the zakat administrator in the State.
Originality/value
The research contributes to the public policy debate with respect to corporatized ZI’s management performance from the stakeholders’ perspective. The results are arguably informative at various levels, forming a basis for reality check and policy inputs for various stakeholders, including (but not limited to) the ZI itself, zakat payers and asnafs, particularly in designing relevant and necessary administrative strategies and relevant policy formulation in addressing the performance and accountability issues in ZIs.
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Aisyah Abdul-Rahman and A.M. Hafizi
The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework.
Abstract
Subjectarea
The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework.
Studylevel/applicability
The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions.
Case overview
This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2.
Expectedlearning outcomes
The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not.
Supplementarymaterials
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Hanif Abdul Rahman, Wegdan Bani Issa, Mohammad Rababa, Deeni Rudita Idris, Khadizah H. Abdul-Mumin and Lin Naing
The purpose of this paper is to introduce a new tool called the elderly caregiver questionnaire for COVID-19 (ECQC-24) that helps to assess caregiver attributes toward best…
Abstract
Purpose
The purpose of this paper is to introduce a new tool called the elderly caregiver questionnaire for COVID-19 (ECQC-24) that helps to assess caregiver attributes toward best possible care for elderly during this pandemic.
Design/methodology/approach
ECQC-24 was developed based on international team of experts and draw upon latest advice from reliable governing bodies such as World Health Organization and the US Centre of Disease Control. Psychometric analysis was applied to ensure the newly developed ECQC-24 is valid and reliable.
Findings
Cronbach’s alpha ranged from 0.72 to 0.87, and construct validity by exploratory factor analysis was acceptable. The results provide good estimates for the reliability and validity of ECQC-24.
Originality/value
More evidence is urgently needed to better inform clinicians, health and social policymakers and related stakeholders and organizations involved in caring for the elderly. ECQC-24, the manual to use and analyzing tools are freely available for download and use at https://sites.google.com/view/the-elderly-caregiver-covid19/home.
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Rahayu Abdul Rahman, Normah Hj Omar, Asheq Rahman and Ruhaini Muda
This paper aims to study the roles of Muslim CEO, Muslim Chairman and Muslim board of directors in mitigating earnings management via real activities manipulation.
Abstract
Purpose
This paper aims to study the roles of Muslim CEO, Muslim Chairman and Muslim board of directors in mitigating earnings management via real activities manipulation.
Design/methodology/approach
In total, 656 firm year-observations from 2007 to 2014 of Malaysian Top 100 firms listed on Bursa Malaysia is used to examine the relationship between real earnings management (REM) and the religious ethical values of Muslim top leadership of the firms.
Findings
The study provides evidence that there was no significant relationship between ethical values and REM measures among Muslim top corporate leaders. However, through additional analysis on sub-sample firms, this study finds that Muslim CEO and Muslim Chairman have a significant and negative association with proxies of REM: RCFO and RPC.
Research limitations/implications
The results show that Muslim CEO and Muslim Chairman are the actors that contribute more control in limiting REM especially in family-owned firms in Malaysia.
Originality/value
This is the first published paper that focuses on Islamic ethical values of corporate top leadership and REM in Malaysia, as previous studies have focused more on accruals earnings management.
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Hanudin Amin, Abdul-Rahim Abdul-Rahman and Dzuljastri Abdul-Razak
The purpose of this paper is to understand consumers’ willingness to choose Islamic mortgage products as a way to help Islamic banks tap into the Islamic mortgage sector in…
Abstract
Purpose
The purpose of this paper is to understand consumers’ willingness to choose Islamic mortgage products as a way to help Islamic banks tap into the Islamic mortgage sector in Malaysia.
Design/methodology/approach
Using the Theory of Interpersonal Behaviour as a point of departure, this study proposes a framework that examines factors influencing consumers’ willingness to choose Islamic mortgage products. A total of 282 usable surveys are obtained from customers of Islamic banks and the data were analysed using partial least squares.
Findings
The results indicate that affect, social factors, and facilitating conditions influence willingness to choose Islamic mortgages. Besides these factors, the added factors, namely, perceived risk and perceived financial benefit, significantly influence consumers’ willingness to choose Islamic mortgages.
Research limitations/implications
This study is confined to two public universities in Malaysia. Further testing of the proposed model across different population groups is necessary to determine the generalisability of this study’s findings. This study applies consumer factors such as affect, social factors, facilitating conditions, perceived risk and perceived financial benefit. Further testing on other factors is needed to expand the findings in this area.
Practical implications
The results could help bank managers make improved decisions about the factors which they need to effectively market Islamic mortgage products. This study provides insights and guidance for bank managers to manage Islamic mortgage products.
Originality/value
The main contribution of this paper is a proposed framework of consumers’ willingness to choose Islamic mortgage products which takes into account the key factors necessary to predict consumers’ demand.
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Rashid Ameer and Siti Sakinah Azizan
This chapter investigates the short-run and long-run economic implications of the shareholder activism in family-controlled firms in Malaysia.
Abstract
Purpose
This chapter investigates the short-run and long-run economic implications of the shareholder activism in family-controlled firms in Malaysia.
Design/methodology/approach
In order to investigate the impact of MSWG activism on RPT, we collected related party transactions data (sales and purchases) and inter-segment sales from the annual reports of the firms. We use standard event study methodology to calculate abnormal returns for the sample and control firms.
Findings
We do not find significant effect on the share performance in the short-run after MSWG engagement with the targeted firms. However in the long-run, our results show significant improvement in the MSWG targeted family-controlled firms’ performance compared to non-targeted family firms. We also examine the changes in the level of related party transactions. We do not find significant changes in the level of such sales and purchase transactions except for inter-segment sales.
Research limitations/implications
We argue that market is not strong form efficient because market did not react to the MSWG engagement with the management of these companies. We propose that future research should focus on the investors perception of the MSWG involvement so that a clear picture of its significance can be observable to other firms in the market.
Practical implications
Even though the activism practices are still less aggressive in Malaysia than those found in the developed countries such as the United Kingdom and the United States, however our results show that shareholder activism led by MSWG have impact on the family-owned firms performance in the long-run.
Originality/value
We argue that it is the first study to examine MSWG engagements with the family-controlled firms in Malaysia.