Yaxin Ma, Fauziah Md Taib and Nusirat Ojuolape Gold
This study aims to merge the world’s proven ways of housing finance, including musharakah mutanaqisah, housing cooperatives and real estate crowdfunding, to present an alternative…
Abstract
Purpose
This study aims to merge the world’s proven ways of housing finance, including musharakah mutanaqisah, housing cooperatives and real estate crowdfunding, to present an alternative housing unaffordability solution based on the Islamic finance principle. It is intended to reduce the burden of funding for both sides (consumers and developers) and create win–win chances for all stakeholders, including intermediaries. By moving away from debt financing and merging the features of crowdfunding and cooperative, it is hopeful that the burden of home ownership will no longer be the case.
Design/methodology/approach
This paper presents the opinions of potential Chinese homebuyers (minority Muslims and most non-Muslims) and a few industry experts toward the proposed model via a mixed research method.
Findings
According to the findings, the majority of respondents agreed with the proposed paradigm. Just concerned that China’s lack of community culture and trust could pose a major threat to implementation. However, this paper argues that Chinese local governments may perform pilot testing in places where Islamic culture is prevalent. Their unique community culture and fundamental understanding of Shariah law may affect the viability of the proposed model.
Originality/value
The proposed model would increase the applicability of Islamic finance as a way of protecting the social order of communities in the spirit of upholding justice and fairness. A new type of housing loan based on musharakah mutanaqisah may squeeze out the real estate bubble and provide stakeholders with a multidimensional investment channel. In particular, the study identifies the impact of Chinese Islamic financing on government and cultural needs. It presents possible challenges for implementing the proposed model in reality and helps bridge the gap between theory and practice.
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This study aims to propose a new housing affordability solution by combining the Islamic finance concept of Musharakah Mutanaqisah (diminishing partnership) with a cooperative and…
Abstract
Purpose
This study aims to propose a new housing affordability solution by combining the Islamic finance concept of Musharakah Mutanaqisah (diminishing partnership) with a cooperative and crowdfunding model. The proposed alternative housing loan model is presented to experts in financing and real estate business, whose views and comments were solicited to evaluate the applicability of the proposed model in real world.
Design/methodology/approach
This is a qualitative study that uses semi-structured interviews to determine the initial thoughts of various stakeholders regarding the adoption and implementation of the proposed model.
Findings
The majority of experts (interviewees) agreed with and appreciated the model’s original ideas but expressed concern over the absence of community culture and trust in China, which could represent a serious threat to the model’s viability. It is anticipated that the suggested model will be implemented as pilot projects by the local government in places where Islamic culture and faith are more widespread, hence possibly impacting the model’s effective implementation.
Research limitations/implications
As there are insufficient Islamic financial specialists in China, the limitation of this qualitative study is the small sample size. If certain policymakers could participate, the outcomes would be more hierarchical and trustworthy.
Originality/value
This is, to the best of the authors’ knowledge, the first study of its kind to examine the viability of this innovative Islamic cooperative housing finance scheme within the context of a specific housing issue in China.
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Nusirat Ojuolape Gold and Fauziah Md. Taib
Following the unceasing pressure on companies to adopt sustainable business practices to mitigate climate effect, this study aims to examine corporate governance (CG) attributes…
Abstract
Purpose
Following the unceasing pressure on companies to adopt sustainable business practices to mitigate climate effect, this study aims to examine corporate governance (CG) attributes and role of activist investors in influencing extensive sustainability practice for firms in the developed and emerging climes.
Design/methodology/approach
Using a panel ordered probit regression analysis for 368 companies over 2016 to 2019, the study examined CG attributes that drive extensive corporate sustainability practice. The study addressed endogeneity bias using STATA Extended panel ordered probit regression model with endogenous covariates.
Findings
The result showed CG attributes is critical for firms, and activist investors play a critical role in driving extensive sustainability practice. Findings further reveal the extent of adoption is relatively low in the emerging climes but showed sign of improvement over the years examined.
Research limitations/implications
The study focused mainly on larger firms operating in different sectors globally. Hence, findings cannot be generalized for small sized entities.
Practical implications
The study provides an insightful explanation regarding the extensive sustainability practices and the vital role assumed by activist investors.
Social implications
The increasing number of companies responding to Carbon Disclosure Project and consequent improvement in scores indicates a corporate commitment to ensuring a sustainable future.
Originality/value
This research offers significant insights to the extent discussion on attributes of CG critical for sustainability practice. The findings ascertain useful tools to aid the continued adoption of sound sustainability practices around the globe.
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Md Shamimul Islam, Noorliza Karia, Fauziah Md Taib, Husna Ara and Soroush Moeinzadeh
This study aims to propose an Ethico-Religious green supply chain management (GSCM) view grounded in Islamic teachings design to govern human beings working in the industries.
Abstract
Purpose
This study aims to propose an Ethico-Religious green supply chain management (GSCM) view grounded in Islamic teachings design to govern human beings working in the industries.
Design/methodology/approach
This study adopts a qualitative approach that used the semi-structured-interview method as a research instrument. Three experts researching various aspects of Islam were consulted to identify Islamic teachings related to green supply chain practices.
Findings
This study identifies several verses of the Holy Quran and the hadiths (a collection of traditions containing the sayings of the Prophet Muhammad) related to GSCM. It proposes these teachings as pro-environmental ethical codes.
Research limitations/implications
The proposed model has not been tested empirically. Future studies can consider an empirical test to find the possible effect of ethical codes on human behavior.
Originality/value
This study contributes to the literature in several ways. First, it presents an Ethico-Religious GSCM view that is new in the literature. Second, it extends the key premise of the natural resource-based view theory for achieving superior competitive advantage. Finally, it proposes a human governance approach useful for achieving firms’ environmental goals. This paper is helpful for managers who will find a human governance model supported by the Ethico-Religious GSCM view.
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Fauziah, Taib and Mansor Isa
This paper seeks to focus on examining unit trust performance in Malaysia over the period 1991‐2001.
Abstract
Purpose
This paper seeks to focus on examining unit trust performance in Malaysia over the period 1991‐2001.
Design/methodology/approach
The broad based study covers full economic cycles using 7 different performance measures: raw return, market adjusted return, Jensen's alpha, adjusted Jensen's alpha, Sharpe Index, adjusted Sharpe Index, and Treynor Index.
Findings
The results show that on average the performance of Malaysian unit trust falls below market portfolio and risk free returns. However, the variance of unit trust monthly returns is less than the market. Performance by type of funds indicates that bond funds show relatively superior performance, over and above the market and equity unit trusts. This is due to the high interest rate kept during the crisis period. Findings also suggest that there is no persistency in performance as there is no significant inter‐temporal correlation between past and current performance.
Research limitations/implications
The issue of inferior performance needs further investigations to adjust for great importance placed on maintaining consistent dividend distribution. In addition, ill‐managed funds must be separately analysed to see if limited budget, less qualified managers, use of limited information and less sophisticated software could explain the poor performance.
Practical implications
A very useful source of information for potential investors and portfolio management companies looking for opportunities to invest.
Originality/value
The paper contributes to the present body of knowledge by offering broad based performance evidence from an emerging market with strong government back up for unit trusts investment.
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Fauziah, Taib, T. Ramayah and Dzuljastri Abdul Razak
The purpose of this study is to examine the acceptance level of a new Islamic home financing concept, diminishing partnership (DP), by consumers in Malaysia using the theory of…
Abstract
Purpose
The purpose of this study is to examine the acceptance level of a new Islamic home financing concept, diminishing partnership (DP), by consumers in Malaysia using the theory of reasoned action as the guiding principle.
Design/methodology/approach
Cross sectional data were collected through a survey and analysed by means of factor analysis, correlation and regression analysis.
Findings
Positive attitude or degree of favorableness towards the DP concept and religious and social influence are jointly responsible in determining the intention to engage in DP though the former commands greater influence.
Research limitations/implications
The use of convenience sampling and postgraduate students may not sufficiently capture the variations that could potentially exist in the market.
Practical implications
Introducing a leading Islamic finance product requires more than just a mere Shariah Board approval as customers are far more critical than has often been assumed. Demand for the home diminishing product has clearly been substantiated. It is a challenge for bankers to devise products that use the spirit of the concept very closely without compromising its salient features. Marketing strategies to consumers with different religious backgrounds have also been identified.
Originality/value
This study examines customers' acceptance level of a new Islamic home financing concept among multi ethnic/religion consumers with growing interest and consciousness about Islamic financial products.
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Nik Maheran Nik Muhammad, Muhamad Jantan, Fauziah and Taib
Previous studies on scanning behavior have focused mainly on decisions relating to the choice of corporate strategies, leaving strategic investment decisions largely understudied…
Abstract
Purpose
Previous studies on scanning behavior have focused mainly on decisions relating to the choice of corporate strategies, leaving strategic investment decisions largely understudied. This paper aims to bridge the gap not just by examining strategic investment decisions but also by investigating the role of information processing capacity in enhancing the relationship between the extent of scanning behavior and the quality of the investment decision.
Design/methodology/approach
Cross‐sectional data are collected through a survey and analyzed by means of factor analysis and hierarchical regression analysis.
Findings
Quality of decision is positively and significantly related to the extent of economic and competition information and the formality of method used to scan competition information. However, the extent of scanning for technology is contingent upon information processing capacity in order to affect the quality of the investment decision. Similarly, the method of scanning for economy, technology and competition information would depend on the information processing capacity to bring about a quality decision.
Research limitations/implications
Use of convenience sampling may restrict the generalizability of the findings.
Practical implications
As more economy and competition data are scanned, this would improve the quality of decision making, but for technology scanning the data have to be processed further before they can bring about changes in decision quality. For technology‐related matters, firms should be investing in the information processing capacity to produce quality decisions.
Originality/value
This study uses the decision as its unit of analysis to avoid having to average out the effects of making good and bad decisions often associated with a decision maker.
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Dzuljastri Abdul Razak, Fauziah and Taib
The purpose of this paper is to examine customers' perception on two modes of home financing namely Bai Bithaman Ajil (BBA), debt‐based financing, and diminishing partnership…
Abstract
Purpose
The purpose of this paper is to examine customers' perception on two modes of home financing namely Bai Bithaman Ajil (BBA), debt‐based financing, and diminishing partnership (DP), an equity‐based financing, focusing on the concepts used, methods of computation and pricing, Shariah compliant, justice and equality, societal well being and equitable distribution of wealth and income and preference for the products.
Design/methodology/approach
The perception of respondents towards BBA and DP home financing were obtained by distributing a self‐administered survey questionnaire to a sample of 320 postgraduate students from three universities. Postgraduate students are considered suitable samples for this study because they are educated and own a house or intended to own one in the future.
Findings
Customers are dissatisfied with the prevailing mode of BBA financing as the bank's profit is computed upfront resulting in high pricing, injustice and a burden to individuals and society. On the other hand, the DP home financing mode is more preferred as profit and risk is shared between the customer and bank resulting in greater fairness, justice and equity. Its features also meet the purpose of the Shariah (Maqasid al Shariah).
Research limitations/implications
The use of convenience sampling and postgraduate students may not sufficiently capture the variations that could potentially exist in the market.
Practical implications
There is a need for Islamic banks to move away from their dependence on debt mode of financing such as Murabahah and BBA to equity financing. The latter mode provides them with greater flexibility and innovation which can be used to fulfill customers' needs and wants.
Originality/value
The paper provides empirical evidence on the viability of home ownership based on equity financing which reduces customers' debt over a long period. This is due to the flexibility of purchasing the bank's share to own the house earlier. The DP model can also be used for the purchase of equipment and vehicles. It can also be applied to joint ventures and private equity arrangements.
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Kumaran Rajandran and Fauziah Taib
– The purpose of this paper is to examine how Malaysian CEO Statements represent corporate social responsibility (CSR).
Abstract
Purpose
The purpose of this paper is to examine how Malaysian CEO Statements represent corporate social responsibility (CSR).
Design/methodology/approach
A corpus of 27 CEO Statements was analyzed using Fairclough's three-dimensional critical discourse analysis (CDA) model, which proposes analyzing text, discourse practice and social practice. The analysis emphasized image and language features in text while it explored intertextuality in discourse practice and ideology in social practice.
Findings
The analysis revealed that selected image and language features contribute to six themes about CSR, namely achievement, identification, aspiration, disclosure, recognition and appreciation. The analysis also revealed that policies, standards and studies are often cited to reduce a credibility gap. These analyses indicate that CEO Statements represent CSR as a corporation's philanthropic initiatives for stakeholders. This representation reflects the ideology of CEO Statements. It establishes corporations as an agent of positive change in society, which helps to improve the social legitimacy of corporations.
Research limitations/implications
Since the corpus was limited to ten corporations in three years, the findings might not be representative of the genre of CEO Statements. The corpus could be extended to include CEO Statements from other years, countries and languages and it can launch a productive enterprise in intercultural studies.
Originality/value
This paper demonstrates CDA as an approach to understand CEO Statements. It may be useful to people practicing and teaching corporate communication because it encourages them to consider the meaning implied by image and language features, which can influence the meaning of CEO Statements.
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Soo‐Jin Cheah, Amirul Shah, Shahbudin, Fauziah and Taib
The purpose of this paper is to present a report on the implementation of a quality cost program in a continuous‐process manufacturing company, with particular emphasis on the…
Abstract
Purpose
The purpose of this paper is to present a report on the implementation of a quality cost program in a continuous‐process manufacturing company, with particular emphasis on the unearthing of hidden quality costs, as well as gaining a closer understanding of the resistance against implementation.
Design/methodology/approach
Using an action research approach, the researchers participated – directly and indirectly – in the implementation of quality costing at the case company. The research process comprises iterative cycles of gathering data through documentary reviews, observations of company operations, discussions with operatives, analyzing data, undertaking actions and evaluating results. Following Sandoval‐Chavez and Beruvides, the poor quality cost analysis includes an additional category to the conventional prevention‐appraisal‐failure model to reflect the cost of lost opportunities.
Findings
The study unearthed a significant portion of hidden quality costs which may be termed an “opportunity loss”. The findings indicate that the company's total quality costs actually far exceed its current profit margin, and that the company could improve its competitive position if it focused on the elimination of these quality costs.
Research limitations/implications
This paper focuses on uncovering hidden quality costs. However, the measuring of quality costs only serves to identify opportunities for improvement. It is follow‐up corrective actions that will lead to organizational effectiveness. The research findings support the contention that tracking of poor quality costs is an important step in the quality management process.
Originality/value
This paper presents a proactive way of tracking hidden quality costs.