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This paper aims to study the structural dynamic behaviour of the depositors, banks and investors and the role of banks in the business cycles. The authors test the hypothesis: do banks’ behaviour make oscillations in the economy via interest rate?

The authors dichotomized banking activities into two markets: deposit and loan. The first market forms deposit interest rate, and the second market forms credit interest rate. The authors show that these two types of interest rates have non-synchronized structures, and that is why money sector fluctuation starts. As a result, the fluctuation is transferred to the real economy through saving and investment functions.

The empirical results show that in the USA, the banking system creates fluctuations in money and real economy, as well as through interest rates. Short-term interest rates had complex roots in their characteristic, while medium and long-term interest rates, though they were second-order difference equations, had real characteristic roots. However, short-term interest rates are the source of oscillation and form the business cycles.

The authors tested the hypothesis for USA economy, while it needs to be tested for other economies as well.

The results show that though the source of fluctuations in the real economy comes from short-term interest rates, medium- and long-term interest rates dampen real economy fluctuations and also work as economic stabilisers.

Regarding the applied method, the topic is new.

This study aims to investigate and point out the variations of agency theory in the context of Sharīʿah governance in Islamic banking operations in the Kingdom of Saudi Arabia (KSA).

The study followed the approach of quantitative Corporate Governance Index (CGI) by computing the Gov-index (Gompers et al., 2003) and the Gov-score (Brown and Caylor, 2004; Saffieddine, 2009) to examine corporate governance (CG) issues using primary as well as secondary data. The primary data was generated from three full-fledged Islamic banks (IBs) and nine traditional banks with Islamic banking wings, all operating in the KSA. The approach was to provide an insight into the agency structure in the context of Islamic banking, which may lead to a trade-off between the conformity of Sharīʿah (Islamic law) rules and processes followed in safeguarding the rights of investors.

The majority of the Islamic banking services that are surveyed in this study acknowledge the significance of Sharīʿah governance and have implemented the fundamental methods, in conformity with this system. Certain flaws in Sharīʿah governance principles pertaining to audit, control and transparency are reported.

The research outcomes will be invaluable to IBs aiming to improve existing SG practices. It also has implications for IB managers to design strategies while complying with regulations and to protect the interests of all investors without breaching the ethics of Sharīʿah.

This paper adds original value to the body of knowledge on agency relationship by analysing the dynamics of agency theory in the unique and complex context of Sharīʿah governance of IBs or those offering Islamic products in the KSA. The results can be used as a valuable feedback for improvement of Sharīʿah governance in the banking system in the KSA and the Gulf region at large.

The purpose of this study is to update the investment literature by providing latest evidence of performance of Islamic mutual funds by using global sample mutual funds data to support with empirical facts.

This study analyzes the comparative performance of Islamic and conventional mutual funds by using capital asset pricing model, Fama & French’s three-factor model and Carhart’s four-factor model. Further, the study tested the coskenwness effect by using data envelopment analysis approach.

The authors find evidence that when size of the funds is controlled, Islamic investment underperform the conventional mutual funds in four out of six models. The size of underperformance varies from model to model: from 32 basis points in the Carhart’s four-factor model with the skewness factor to two basis points at the Fama and French’s three-factor model. Also the study finds that alpha(s) are only insignificant for conventional mutual funds when the skewness factor is included in the regression. While comparing the loading on Islamic mutual funds, results show that Islamic mutual funds are less risky than conventional mutual funds when they are controlled for skewness.

This study uses the different factor models of performance evolution which help in overcoming weakness of measuring the Islamic mutual funds’ performance.

The main purpose of this study is two-fold: first, it aims to confirm or disapprove a positive relationship between Islamic microfinance and the socio-economic welfare of women and, second, it aims to explore the perspective in which Islamic microfinance packages function in Bangladesh and the system of their performance can be enhanced.

Based on structured questionnaires’ survey, this study addressed two research questions: What should be anticipated from the programmes of Islamic microfinance on the well-being of beneficiaries and under what circumstances would such programmes be more useful?

The main result of this study shows that growth in women’s revenue and resources played an important role in improving women’s financial freedom and sense of self-possession. A significant policy endorsement in this study is that it is essential to redirect Islamic microfinance to spread in the developmental activities which will drive to contribute towards the well-being of the recipients in the long run.

Examination of the Rural Development Scheme of Islami Bank Bangladesh is undertaken, aiming to critically review their Islamic microfinance programme in the matter of fighting poverty in Bangladesh and to suggest to diversify the Islamic microfinance scheme to spread in the developmental activities which will drive to contribute towards the well-being of the recipients in the long run.

This paper aims to examine the level of transparency of the electronic procurement (e-procurement) system in Malaysia.

Using the content analysis method, 23 transparency disclosure items from the Website Attribute Evaluation System (WAES) checklist were used to evaluate the transparency level of the e-procurement system. The data gathered from the WAES were analysed using frequency and percentage based on the various categories of transparency.

The study reveals that the e-procurement system disclosed 17 out of the 23 WAES transparency disclosure items, which represents a transparency disclosure level of 73.91%. Of the five categories of disclosure, i.e. ownership, contact information, organizational information, citizen consequences and freshness, the detailed results show that the items are fully disclosed for only two categories, and for three categories, i.e. ownership, contact information and organizational information, the items are not fully disclosed.

The findings of the present research offer a positive indication that the government is moving in the right direction, particularly in efforts to reduce the corruption level in procurement activities and to improve the accountability level of the government.

The present study is among the few studies that attempts to address a fundamental issue of transparency in the public procurement system that has an important relationship with the occurrence of corruption in procurement activities.

The objectives of this paper are twofold. Firstly, to examine the importance of Malaysian public procurement objectives and secondly, to investigate the extent to which government suppliers adhere to public procurement principles.

For achieving the objectives, a questionnaire survey was used. A total of 250 questionnaires were distributed to government suppliers involved in the government tendering process. In return, a total of 107 useable questionnaires were received, representing a response rate of 42.8%. Descriptive statistics of the means score, standard deviation and mean score ranking were used to analyse the data.

The results revealed that the most important public procurement objective is “to ensure a continuous supply of material and services to meet the government needs from the best and reliable sources”. On the other hand, the objectives “to expand the local industrial sector by means of transfer of technology and expertise to suit the nation's needs” and “to promote alternative and multiple sourcing through supplier development according to the aspirations and vision of the government” are perceived as not important by the government suppliers. The findings also discovered a moderate level of adherence to Malaysia's public procurement principles, which consist of public accountability, transparency, open and fair competition, fair dealing and value for money. Amongst these principles, the most adhered to is the open and fair competition principle and the least adhered to is the transparency principle.

This study is one of the few studies that assess the government suppliers' perceptions of public procurement in Malaysia. More importantly, this study may give some ideas to various parties concerning the areas in which improvement is required to ensure that equal importance is given to the public procurement objectives and better adherence to the public procurement principles in Malaysia.

The purpose of this paper is to explore whether any discrepancy exists between the corporate social activities disclosed in the annual reports of Islamic banks and the corporate social responsibility (CSR) disclosure index which has been developed based on the Islamic business ethics framework.

This paper reports on a survey of annual reports of seven Islamic banks using the method of content analysis to measure the volume of CSR disclosure.

The results show the overall mean CSR disclosure index of one Islamic bank out of seven to be above average and the issues of CSR are not of major concern for most Islamic banks.

CSR disclosure in the Islamic banks is experimental and could be explored in greater depth in future studies.

The findings have important implications for academics and researchers, as they pave the ways for further investigation. The results also have important implication for Accounting and Auditing Organisation for Islamic Financial Institutions in developing a CSR reporting standard if Islamic banks are to enhance their image and reputation globally, as well as to remain competitive.

The paper contributes to the growing debate on CSR in ethical perspective and key underlying issues associated with the emergence of new disclosure practices for Islamic financial institutions. Through this paper, new visibilities explored, and competing dilemmas opened up.

The objective of this paper is to assess the degree to which Islamic banks in Brunei Darussalam use risk management practices (RMPs) and techniques in dealing with different types of risk.

The researcher developed a questionnaire which covers six aspects in the first part: understanding risk and risk management, risk assessment and analysis (RAA), risk identification (RI), risk monitoring, credit risk analysis and RMPs. The second part consists of two questions based on an ordinal scale dealing with two topics: methods of RI and risk facing the sample banks.

This study found that that the three most important types of risk that the Islamic banks in Brunei Darussalam facing are foreign‐exchange risk, followed by credit risk and then operating risk. It also found that the Islamic banks are somewhat reasonably efficient in managing risk where RI and RAA are the most influencing variables in RMPs.

The paper's findings are limited to the RMPs of Islamic banks in Brunei Darussalam.

The paper explores the RMPs of the Islamic banks in Brunei Darussalam. The results can be used as a valuable feed back for improvement of RMPs in the Islamic banks in Brunei and will be of value to those people who are interested in the Islamic banking system.

This chapter highlights the variations of agency theory in the unique and complex context of Islamic banks in Saudi Arabia. The results provide an insight into agency structures in the context of Islamic banking that may lead to trade-offs between shari'ah compliance and mechanisms for protecting the rights of investors. This empirical study finds that most of the surveyed Islamic banks appear to recognize the value of governance and have implemented some basic mechanisms. Certain flaws in governance pertaining to audit, control, and transparency were also noted. The situation gets worse in cases where the investment account holders do not have any representation on the board or any voice for control or monetary rights. Other peculiar models balancing the two key requirements may be effective regarding agency dynamics. This study should motivate the policy makers to tailor the regulations to safeguard the interests of all investors without violating the principles of shari'ah.

As per Islamic business ethics, corporate social responsibility (CSR) of the business organizations and Islamic financial institutions (IFIs) should be seen as a benefit rather than a cost. The intense commitment of Islam to justice and brotherhood demands that business organization should take care of some of the needs of the community, Therefore, there is needed that the IFIs should create a congenial atmosphere of strategic linkage between Islamic charity organizations and business companies. The main purpose of this paper is to study the current practices of CSR of the business organizations as well as IFIs and to explore further scope of optimizing charity value.

The study evaluates the CSR of the businesses and IFIs based on secondary sources information and develops a model which creates a strategic link between Islamic charity organizations and business companies.

A collective approach of businesses, IFIs and awqaf/charitable foundations would increase the flow of corporate resources into the social sector.

In order to fulfill the role of CSR and to optimize charity value, the businesses should build up non‐profit infrastructure to achieve their objectives more cost‐effectively. On the other hand, the Islamic charities can also get benefits by using the commercial infrastructure of the business organizations and to make contributions more effectively in the social sector. There is no inherent contradiction between improving competitive context of business and making a sincere commitment to bettering society.