Mohd Ariff Kasim, Siti Rosmaini Mohd Hanafi and Norazah Mohd Suki
This study aims to examine what factors shape Muslim business operators’ attitudes towards pre- and post-value-added tax (VAT) implementation in the United Arab Emirates (UAE).
Abstract
Purpose
This study aims to examine what factors shape Muslim business operators’ attitudes towards pre- and post-value-added tax (VAT) implementation in the United Arab Emirates (UAE).
Design/methodology/approach
A longitudinal approach is employed to collect data from a total of 200 respondents, during both the pre-VAT implementation period and the post-VAT implementation period. A partial least squares structural equation modelling approach was performed to analyse the research.
Findings
Empirical findings revealed that challenges in implementing the VAT system were the primary predictors of Muslim business operators’ attitudes regarding the pre-VAT implementation period in the UAE because they were aware that the penalties associated with non-compliance would outweigh the costs incurred in preparing for the VAT. During the post-VAT implementation period, awareness was the strongest influence on Muslim business operators’ attitude because there are no income taxes imposed on businesses and individuals in the UAE.
Practical implications
The introduction of VAT in the UAE ignited great controversy on the part of Muslim business operators, who viewed the new tax system as a significant challenge or risk to their careers, especially when they realised that they would have to play a significant role in tax collection. VAT registration should be required for all businesses regardless of size since they are going to be the tax agents for the government. Indeed, the government should finalize policies and procedures on the penalties for non-compliance since such legalities could greatly contribute towards the acceptance of VAT.
Originality/value
Challenges prompted Muslim business operators to become more knowledgeable about VAT, whereas also developing a greater awareness and sense of preparedness regarding the implications of the system on their businesses. This discovery has advanced the theoretical understanding of the topic and its managerial implications.
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Mohd Ariff Kasim, Siti Rosmaini Mohd Hanafi, Syed Zamberi Bin Ahmad and Norbaini Abdul Halim
Islamic Accounting, Auditing, Strategic Management and Accounting Theory.
Abstract
Subject area
Islamic Accounting, Auditing, Strategic Management and Accounting Theory.
Study level/applicability
The case is suitable for graduate and postgraduate business students, particularly those on courses such as Islamic Accounting, Auditing, Strategic Management and Accounting Theory. The case is based on secondary data collection and all the facts are real.
Case overview
In the early 2000s, the Tabung Haji (TH) faced financial difficulty, particularly regarding its returns from investments and, with the intention of helping to improve this situation, the General Manager (GM) of Finance and the GM of Investment decided to accept an investment proposal presented by an investment company. The proposal involved initial and subsequent investment portfolios of RM50 million and RM150 million, respectively. The proposal was presented in a board meeting and was approved by the board. Indeed, the two GMs were delighted to receive a return of RM12.5 million from their RM50 million initial investment – i.e. 25 per cent return. In the process of approving the subsequent investment of RM150 million, the two GMs were informed that their investments were partly for the FOREX market (Foreign Exchange Market/Currency Market). At that time, there was no conclusive decision on the status of investment in the FOREX market regarding whether it complied with Sharia principles. The two GMs contemplated whether they should accept this second investment proposal. The issue was whether they should reveal in the board meeting that this investment was partly in FOREX. What if the board failed to accept the idea of investing in FOREX and rejected the proposal? Indeed, they were dropping an opportunity for lucrative returns. Should the GMs seek technical advice on the status of FOREX investment in Islam and present it to the board?
Expected learning outcomes:
The case should help students to: understand the concept of Sharia and Sharia financial principles; understand the process involved in TH investment decisions; analyze the issues involved in decision-making and apply the relevant theories to describe the actions; and recommend various alternative course of actions in a given situation.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request Teaching Notes.
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Nor Syamaliah Ngah, Nor Liza Abdullah, Norazah Mohd Suki and Mohd Ariff Kasim
This study examines the relationships between servant leadership and organisational citizenship behaviour (OCB) of young volunteers in non-profit organisations (NPOs) and…
Abstract
Purpose
This study examines the relationships between servant leadership and organisational citizenship behaviour (OCB) of young volunteers in non-profit organisations (NPOs) and investigates the mediating role of affective commitment and the moderating role of role identity in this relationship.
Design/methodology/approach
Self-administered questionnaires were distributed to 400 young volunteers from NPOs in Malaysia. Data were analysed using the partial least squares-structural equation modelling (PLS-SEM) approach.
Findings
The results reveal that affective commitment significantly mediates the relationship between servant leadership and OCB of young volunteers in NPOs. The role of identity was found to moderate the relationship between servant leadership and affective commitment of young volunteers in NPOs.
Research limitations/implications
This study utilised servant leadership theory and examined the direct effect between servant leadership and OCB of young volunteers in NPOs, the mediating effect of affective commitment, and the moderating effect of role identity in this relationship simultaneously within a unified research framework.
Practical implications
NPOs should recruit more servant leaders and provide effective volunteer training and leadership development to current leaders to increase affective commitment and develop better service behaviours in dealing with volunteers.
Originality/value
This study is unique in that it highlights the partially mediated effects of affective commitment on the relationships between servant leadership and OCB of young volunteers in NPOs, as well as the fact that role identity significantly moderates the relationship between servant leadership and affective commitment of young volunteers in NPOs.
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Mohd Ariff Mohd Daud, Saiful Azhar Rosly and Zulkarnain Muhamad Sori
The purpose of this study is to explore potential fund-raising option that can be developed to attract investment in affordable housing initiatives in Malaysia. In doing so, the…
Abstract
Purpose
The purpose of this study is to explore potential fund-raising option that can be developed to attract investment in affordable housing initiatives in Malaysia. In doing so, the study undertakes to discuss the viability of the property trust fund structure as an investment vehicle.
Design/methodology/approach
The study uses a qualitative design that involves the use of semi-structured questionnaires as a data collection strategy. A total number of ten experts were selected for the interview using critical case sampling scheme based on the purposive sampling strategy.
Findings
The study discovers that a dynamic fund structure – one that allows for the fund to evolve with changing circumstances and needs – can be adopted. This fund structure comprises a fund that can be initially established as a closed-ended fund. Then, with sufficient track record, the fund can be transformed into a public real estate investment trust, with the prospect of tapping into capital market via issuance of sukuk in the future. The fund can also adopt mezzanine structure of funding, which may reduce investors’ risks with minimal government intervention.
Research limitations/implications
The findings of this study illustrate the potential of fund-raising options from the perspective of institutional investors and regulators. Future research could explore government’s view and focus on the policy options.
Practical implications
The findings may provide valuable insight into alternative fund-raising options for affordable housing projects for policymakers and investment banks.
Social implications
The fund-raising options incorporate minimal government participation yet pose low risks to investors, creating a low-risk asset suitable for social investment.
Originality/value
This study outlines the mechanism to increase affordable housing supply in the market, by attracting institutional investors to invest in this dynamic fund structure initiative. As there are limited discussions on attracting funding for affordable housing developments, it is hoped that this paper will spark further debate and discussion among the academicians and policymakers.
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The purpose of this paper is to report how banking competition has fared ex post a major consolidation exercise completed during 2002-2004, which led to a complete restructuring…
Abstract
Purpose
The purpose of this paper is to report how banking competition has fared ex post a major consolidation exercise completed during 2002-2004, which led to a complete restructuring of the sector in Malaysia. Nothing is known about the competitiveness of banking system ex post a major consolidation of banks in any country including Malaysia, a middle-income economy.
Design/methodology/approach
The authors apply two models, the Panzar and Rosse (1997) and the Lerner index (1934). The two competitiveness measures are quite refined, well received by researchers, but has yet been applied to measure banking sector competitiveness of a middle-income country to characterize post-merger behavior using post-global-crisis data set. The data were complemented by documentary analysis, including brand documents, descriptions of internal processes and copies of employee magazine articles.
Findings
The results indicate that, after 11 years of consolidation, the banking sector is not operating under perfect or monopolistic competition. Malaysia’s banking industry continues to benefit the charter holders at increasingly lower level because a cartel-like environment still provides trade-off of competition costs before 2002/2004 with the costs from a cartel-like industry structures now. There is only a weak evidence that, in recent years, the banking sector is moving toward more competition.
Research limitations/implications
The chosen area of research is to test the response of the banking sector ex post consolidation after a crisis. It enables researcher to compare results with those of other countries and may not be generalizable.
Practical implications
The findings reported in this study using corroborating measures for the first time, appear to suggest increasing concentration from consolidation may lead to the undesirable cartel-like industry structure where the exercise of market power in the name of stability may not be welfare promoting.
Originality/value
This paper fulfills an identified need to study how the banking sector has performed ex post consolidation after a crisis.
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Zaimah Abdullah, Hasnah Shaari, Sitraselvi Chandren and Arifatul Husna Mohd Ariff
The teaching case is designed to be used by students in higher education institutions at the undergraduate level. This case may also be relevant for staff at the bursary…
Abstract
Study level/applicability
The teaching case is designed to be used by students in higher education institutions at the undergraduate level. This case may also be relevant for staff at the bursary departments of any public universities or public organizations that have biological assets.
Case overview
This case provides a study on agricultural activity at Universiti Pengurusan Malaysia (UNIPM). The purpose of this case is to create greater awareness for case users on the accounting framework and on methods recommended for recording specific assets in agricultural activity, i.e., biological assets. This case provides users with experience in explaining the nature of an organization’s agricultural activities and accounting for biological assets as recommended in the Malaysian accounting framework. In addition, users are exposed to some current issues in accounting standards, such as ethical issues. In this case, Fakhrul, an accountant at UNIPM and a leader of the Asset Unit, was responsible for reporting the value of all UNIPM’s assets, including biological assets. He was instructed to accurately recognize, measure, and disclose the value of biological assets according to the appropriate accounting standard. Furthermore, UNIPM had been urged to replace the existing accounting standard of the Malaysian Private Entity Reporting Standard (MPERS) with the Malaysian Public Sector Accounting Standard (MPSAS). Fakhrul was considering how to account for and report biological assets according to the new MPSAS. This case is a decision making or ‘unfinished’ case which is suitable for financial accounting and reporting courses. The names of the people and the university are fictitious, but the details were based on actual events. A series of interviews were conducted with the key players to gather the data. Other useful documents such as the university’s annual report, university’s website and the deer reports were also referred.
Expected learning outcomes
The primary objective of this teaching case is to provide an opportunity for case users to understand both the accounting framework and the methods recommended for recording specific assets in agricultural activity. More specifically, the teaching objectives of this case are to achieve the following learning outcomes: to identify the relevant accounting standard for recognizing, measuring, reporting, and disclosing biological assets by public universities in Malaysia, to apply the appropriate accounting treatment in recognizing, measuring, reporting, and disclosing biological assets in accordance with the appropriate accounting standard for public universities in Malaysia and to understand the ethical issues involved in deer valuation methods.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and finance.
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Zaimah Abdullah, Mohd Hisham Mohd Sharif, Ram Al Jaffri Saad, Arifatul Husna Mohd Ariff, Md Hairi Md Hussain and Mohd Herry Mohd Nasir
This paper aims to explore the factors of social media adoption by zakat institutions.
Abstract
Purpose
This paper aims to explore the factors of social media adoption by zakat institutions.
Design/methodology/approach
This study uses qualitative data as the main source of evidence. Data were collected using semi-structured face-to-face interviews. Ten respondents from eight zakat institutions across Malaysia were interviewed. Judgement sampling and snowballing techniques were used to select respondents. Data analysis was done in three phases, namely, data reduction, data display and conclusion confirmation.
Findings
The findings of this study found perceived benefits, ease of use, accessibility, formalization, training, management push and indirect public push to be the determinant factors that contribute to the adoption of a social media application in zakat institutions. They are discussed and organized into a few groups under four categories, namely, technological, organizational and environmental contexts based on the TOE framework.
Research limitations/implications
This study contributes to the existing body of knowledge in technology adoption understanding with the engagement of a range of Technology Organization Environment (TOE) framework. However, for future research, quantitative data involving the zakat payers should be anticipated to further understand the issue.
Practical implications
Output from this study may be useful to the adoption champions within zakat institutions, such as decision-makers and marketing officers. These people can help to provide guidelines and steer managers to focus on the identified factors in this study when adopting social media.
Social implications
The finding from this study may help to increase the efficiency of two-way communication between zakat institutions and the community. It was found that the adoption of social media improved communication activities with the public and better handling of negative perceptions towards zakat institutions. The findings proved that using social media applications in zakat institutions can help create a better organizational image for the public by publishing instant and continuous news feeds on activities that specifically cater to the need of the asnaf. This can alleviate negative perceptions that zakat institutions are only good in collecting money, but not effective in helping the poor.
Originality/value
Previous zakat literature has focussed on different issues such as the determinants of zakat compliance behaviors, zakat fund management, distribution of funds, zakat information system and digital marketing; however, little is known about how and why zakat institutions adopt social media applications as a communication tool with the public. Thus, this research makes a difference by focussing on a new aspect of study in the zakat environment, which aims to explore the factors of social media adoption by zakat institutions. This study also proposes the new appropriate TOE framework to understand the adoption behaviour by the zakat institution towards social media application.
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Abdallah A.S. Fayad, Arifatul Husna Binti Mohd Ariff, Sue Chern Ooi, Ali H.I. Aljadba and Khaldoon Albitar
This paper aims to explore the role of ownership structure on integrated reporting quality (IRQ) in an emerging market.
Abstract
Purpose
This paper aims to explore the role of ownership structure on integrated reporting quality (IRQ) in an emerging market.
Design/methodology/approach
This study includes a sample consisting of 64 firms from Bursa Malaysia, with 173 firm-year observations from 2017 to 2020. Feasible Generalised Least Square model has been used to test the hypotheses.
Findings
The findings show that government ownership has a positive effect on IRQ and that the integrated reports and <IR> framework are well aligned. Foreign ownership influences IRQ positively. However, the results did not support the effect of family ownership on IRQ as hypothesised.
Practical implications
The findings of this research hold practical implications for companies and regulators in Malaysia. The results demonstrate to investors that both government and foreign ownership have a positive impact on IRQ. Therefore, investors can make well-informed investment decisions regarding companies with a high level of government or foreign ownership.
Originality/value
To the best of the authors’ knowledge, this is the first paper to explore the effect of ownership structure on IRQ in the Malaysian context.
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Irum Saba, Mohamed Ariff and Eskandar Shah Mohd Rasid
Shari’ah provides the basic tenets of the Islamic finance industry and advocates banks to share their profits and losses with investors. But what it means for a firm to be…
Abstract
Purpose
Shari’ah provides the basic tenets of the Islamic finance industry and advocates banks to share their profits and losses with investors. But what it means for a firm to be “Shari’ah-compliant” and what form of connections it can have, even in theory, to either the firm’s value or profitability is still an untapped question. This study tries to answer this question. This study aims to find the impact of Shari’ah compliance on firm performance. The results obtained would be useful in helping investors, regulators, companies, government, academicians and practitioners in their decision-making process as to ensure better economic and business gains, both locally and globally.
Design/methodology/approach
Panel data on 634 Shari’ah-compliant firms have been used in this study for the period of 2000–2014.
Findings
The results indicate that Shari’ah compliance adds to the value of firms as firms perform transactions according to Shari’ah while avoiding non-permissible activities.
Originality/value
This study adds value to the existing literature by showing the statistical results for the impact of Shari’ah compliance on the performance of the listed firms on Bursa Malaysia.
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Abdallah A.S. Fayad, Arifatul Husna Binti Mohd Ariff, Sue Chern Ooi, Aidi Ahmi and Saleh F.A. Khatib
This paper aims to systematically analyse the publications in the field of integrated reporting (IR) and to present an overview of the current publication trends in IR based on…
Abstract
Purpose
This paper aims to systematically analyse the publications in the field of integrated reporting (IR) and to present an overview of the current publication trends in IR based on the data obtained from the Scopus database.
Design/methodology/approach
Selected bibliometric indicators and bibliometrix R-packages are used in examining metrics like annual publication trends, authors with the most produced work, papers that are often cited, top productive countries, top productive affiliations, frequently mentioned journals, frequently mentioned keywords, analysis of co-citation, analysis of collaboration and analysis of co-word.
Findings
The findings from the bibliometric review indicated that the trend of IR literature had increased from 2017 to 2020, specifically from 2017 to 2019. The findings also indicated that several publications on IR entailed several authors’ collaboration and were published in various languages. Moreover, around 148 institution-affiliated researchers from 40 institutions in 20 countries contributed to the IR publication.
Research limitations/implications
This paper offers a comprehensive overview of the current development in IR. It is useful to help emerging scholars identify and understand current trends in IR based on different countries, authors and languages.
Originality/value
This paper contributes to the literature on IR by highlighting the trends of IR publications from the Scopus database using bibliometric analysis.