This study aims to investigate how investment opportunity sets (IOs) and free cash-flow (FCF) surpluses affect aggressive tax planning (ATP). This research focuses on examining…
Abstract
Purpose
This study aims to investigate how investment opportunity sets (IOs) and free cash-flow (FCF) surpluses affect aggressive tax planning (ATP). This research focuses on examining the correlation between these factors and delves into how ATP, perceived as a tool for exploiting legal loopholes, plays a central role.
Design/methodology/approach
This study uses panel data analysis techniques on a sample of 1,248 firm-observations gathered from nonfinancial enterprises in Jordan that are listed in the Amman Stock Exchange (ASE) between the years 2008 and 2019. The Driscoll–Kraay regression model (fixed effect) is enlisted to avoid the inconsistency of the slope across individual units and time period.
Findings
The findings indicate that the IOs does not affect ATP. However, there is a significant negative effect of FCF surplus on ATP. Furthermore, consistent with positive accounting theory the data reveal that all of these control variables exert a substantial positive influence on ATP.
Research limitations/implications
This study concentrates on nonfinancial firms listed in the ASE, thereby constraining the applicability of the results to alternative contexts. Nevertheless, the findings of this study enhance comprehension regarding the extent of ATP and bear policy implications for policymakers regarding the structuring of future tax systems aimed at reducing the prevalence of tax avoidance behaviors. Thus, future research should conduct longitudinal studies to capture temporal dynamics.
Originality/value
This study contributes to the existing literature on ATP by focusing on using the Wilson tax-shelter model as a precise proxy. It fills gaps in prior research by exploring connections between IOs, FCF and ATP. The findings offer novel insights into the dynamics of tax planning strategies and contribute to the broader understanding of tax management practices.
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Sri Herianingrum, Tika Widiastuti, Meri Indri Hapsari, Ririn Tri Ratnasari, Firmansyah Firmansyah, Shahir Akram Hassan, Annisa Rahma Febriyanti, Rachmi Cahya Amalia and Luthfi Akmal Muzakki
This study aims to examine how muzakki (zakat donator) and mustahik (zakat recipients) collaborated to strengthen the fundraising capability in Islamic social finance institutions…
Abstract
Purpose
This study aims to examine how muzakki (zakat donator) and mustahik (zakat recipients) collaborated to strengthen the fundraising capability in Islamic social finance institutions (ISFIs) during the COVID-19.
Design/methodology/approach
This study uses a descriptive qualitative method in conjunction with interview techniques. Interviews with muzakki of various professions were conducted, as well as data from field documentation, to develop a collaborative model of muzakki and mustahik in strengthening the fundraising capacity of ISFIs.
Findings
The findings indicate that muzakki employed as civil servants, BUMN (state-owned enterprises) employees and entrepreneurs continue to pay zakat through ISFIs and support mustahik, whereas muzakki affected by the COVID-19 pandemic reduce their zakat spending. Consequently, with the collaboration of mustahik and muzakki, a framework can be developed to strengthen the strategy for raising funds for ISFIs. By empowering mustahik with businesses, ISFIs can increase the collection of zakat funds.
Research limitations/implications
The collaboration model would strengthen ISFI's ability to raise Islamic philanthropic funds and optimize their management. The basis for the regulation is contained in Law No. 23 of 2011 which allows collaboration between institutions and other stakeholders. In addition, the role of ISFIs does not end with the collection and distribution of funds, they also maintain the muzakki and mustahik's cooperation, so a significant role is required in involving muzakki and mustahik for them to collaborate and synergize, as well as improving the quality of human resource from Amil (zakat collector) to implement the strategy.
Originality/value
Few studies have been conducted in collaboration with Muzakki and Mustahik to develop models or frameworks for strengthening fundraising capabilities in ISFIs. Most of these studies are illustrative. Through collaboration between Muzakki and Mustahik, this research establishes a new model for enhancing the strategy of Islamic social finance fund raising to establish a sustainable system for ISFIs.
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Basuki Antariksa, Adhityo Nugraha Barsei, Addin Maulana, Rizatus Shofiyati, Asmadi Adnan, Nurhuda Firmansyah and Nabiella Aulia
This paper aims to show the opportunities and challenges of implementing slow tourism through a slow city concept, particularly concerning preserving paddy fields.
Abstract
Purpose
This paper aims to show the opportunities and challenges of implementing slow tourism through a slow city concept, particularly concerning preserving paddy fields.
Design/methodology/approach
A qualitative approach using FGD, in-depth interviews and questionnaires with open questions.
Findings
Paddy field preservation can be achieved through the slow city concept if there is a strong commitment from the government and influential local wisdom.
Research limitations/implications
This research is conducted in five areas (cities and regencies). Hence, there should be similar research in other areas to find whether it can be implemented in other areas. Furthermore, other aspects have not been explored, such as how to convince policymakers to implement a slow city concept, integrate urban infrastructures and paddy fields or encourage and protect local residents who develop a slow city concept.
Practical implications
This research will give insight for policymakers to establish a policy that can realize livable cities for local residents and tourists, particularly in terms of food resiliency through tourism.
Social implications
This research will give new information about the importance of slow tourism to improve the quality of life in a city and to maintain food resilience.
Originality/value
This research shows the implementation and challenges of realizing slow city and slow tourism in some regions in Indonesia, particularly related to paddy fields preservation.
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Sri Herianingrum, Muhammad Alan Nur, Sulistya Rusgianto, Meri Indri Hapsari, Ergun Huseyin, Firmansyah Firmansyah and Annisa Rahma Febriyanti
This study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand…
Abstract
Purpose
This study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand the factors that affect Indonesia’s potential for halal seafood exports, and attempts to validate Linder’s hypothesis, which might occur as part of the determinants of Indonesia’s seafood exports, as well as one of the variables that can affect Indonesia’s potency of halal seafood exports based on economic scale similarities and relative factor endowments.
Design/methodology/approach
Using Poisson regression by pseudo maximum likelihood, this study applies the theory of trade gravity and Linder’s hypothesis of Indonesia’s seafood exports to OIC countries and its halal market potency over the 30 years observation period from 1992 to 2021, with 47 countries importing Indonesia’s seafood products during the observation period based on United Nations Comtrade statistics.
Findings
The variables that drive Indonesia’s seafood exports are the situation of the economy between Indonesia and its trading partners, the population of importing countries and the common understanding of language. On the other hand, the adjusted-Muslim GDP of importing countries, the adjusted-Muslim GDP of Indonesia and the number of Muslim inhabitants of importer countries are the factors that affect Indonesia’s potential for halal seafood exports. The study also validates the presence of Linder’s hypothesis in Indonesia’s seafood export and could hint Indonesia’s potential for halal seafood exports
Research limitations/implications
Owing to the absence of an Harmonized System code that explicitly accommodates trade in halal commodities, especially in halal seafood exports, it will be more accurate if data are available in the future as material for further studies. Future studies may also consider per capita consumption of seafood, food safety standards and the level of food security from OIC countries as variables that might also influence Indonesia’s seafood exports in an approach analysis using the gravity theory of trade.
Practical implications
This study is part of the authors’ efforts to encourage a greater contribution of the fisheries sector to Indonesia’s GDP by identifying the factors that drive seafood exports, which have so far only been around 2%–3% and have never reached more than 4% in the past two decades. While Indonesia is blessed with extraordinary marine biodiversity and hopes of being the leader of the halal food industry, the fisheries sector is expected to contribute.
Originality/value
Unlike previous studies that used the approach of the gravity model of trade on food exports, this study is specifically in the field of seafood exports, takes Indonesia as the main object of research and also examines Linder’s hypothesis as part of the analysis to identify what drives Indonesia’s seafood exports in the OIC countries market and fill the scant of studies highlighting the factors that could drive halal food exports, specifically in seafood.
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Keywords
Budi Harsanto, Mahir Pradana, Akhmad Yunani, Egi Arvian Firmansyah, Ardi Apriliadi, Joval Ifghaniyafi Farras and Farizka Shafa Nabila
This study aims to provide a comprehensive review of published research on the halal value chain (HVC) that is accessible through the Scopus database.
Abstract
Purpose
This study aims to provide a comprehensive review of published research on the halal value chain (HVC) that is accessible through the Scopus database.
Design/methodology/approach
A corpus of 120 research papers that were indexed by Scopus underwent an extensive investigation. The authors used the bibliometrix program and the VOSviewer software to analyze and visualize the exported data.
Findings
The results suggest a rise in scholarly investigations carried out in this specific domain, with “food supply,” “decision-making” and “supply chain management” as the most frequent emerging terms. This study contributes to the existing study by clarifying the connections between the supply chain and the HVC and setting future research directions.
Originality/value
This study makes a substantial contribution by defining a new area of academic study and establishing a previously unidentified link between the literature of halal logistics, halal supply chain and the HVC.
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Egi Arvian Firmansyah, Masairol Masri, Muhammad Anshari and Mohd Hairul Azrin Besar
Islamic financial technology (fintech), primarily peer-to-peer (P2P) lending, plays a substantial role in funding the unbanked population and small and medium enterprises (SMEs…
Abstract
Purpose
Islamic financial technology (fintech), primarily peer-to-peer (P2P) lending, plays a substantial role in funding the unbanked population and small and medium enterprises (SMEs) by offering streamlined financial services through online digital technology. In addition, Islamic fintech lending offers a promising return rate for individual and institutional investors, and therefore, it is considered a worthy investment alternative for diversification. This study aims to examine the determinants of project returns of SMEs on Islamic fintech lending platforms, taking the case study of one Islamic fintech lending platform registered at the Financial Service Authority in Indonesia.
Design/methodology/approach
Project return information and other information, such as the name of the SME raising fund, project duration, location, contract (aqad) and value (amount of money) to be raised, were extracted from the Islamic fintech lending platform. Furthermore, a regression analysis was performed using the completed projects as sample data (n = 122) on the platform.
Findings
The results show that the rate of return is significantly affected by project duration and type of Sharia-compliant contract. Location and project value are, however, found to be statistically insignificant. This study’s overall results align with the Signaling theory, indicating the importance of information for decision-making.
Research limitations/implications
Due to limited access to the data, our study uses data from one of seven Islamic fintech lending platforms; thus, the study results may not be generalized to the general population.
Practical implications
The results suggest that investors aspiring to invest their funds in SME projects on Islamic fintech lending platforms should consider the project duration and contractual agreement since these factors significantly influence the return. Additionally, society may consider the Islamic fintech lending platform a viable investment instrument since its return rate follows the risk-return principle in classical and established finance theories. That is why Islamic fintech lending platforms are competitive compared to the more established ones, such as the Islamic stock market.
Originality/value
To the best of the authors’ knowledge, this study is the first study using an empirical approach to reveal the project return determinants of SMEs on Islamic fintech lending platform.
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Egi Arvian Firmansyah, Masairol Masri, Muhammad Anshari and Mohd Hairul Azrin Besar
Finance continuously evolves as the technological innovation progresses in the society. Numerous prior studies have discussed emerging financial services due to this innovation…
Abstract
Purpose
Finance continuously evolves as the technological innovation progresses in the society. Numerous prior studies have discussed emerging financial services due to this innovation. However, limited scholarly work has evaluated the trends and state of the art of financial innovation. Therefore, this study aims to review recent literature on financial innovation by using a bibliometric and content-analysis approach.
Design/methodology/approach
Documents for this study are sampled from financial innovation, a journal focusing on recent innovations in finance. A total of 354 peer-reviewed articles published in eight years (2015–2022) are first examined and mapped using the bibliometrix package in RStudio software. Furthermore, content analysis was performed to investigate the adopted research methods and types, and produce directions for future studies.
Findings
The trend of financial innovation research kept increasing, with China as the leader in publication quantity, affiliation productivity and paper citation acquisition. Topics related to “FinTech,” “Bitcoin” and “Covid-19” have been the most discussed topics by financial innovation researchers. FinTech and Bitcoin studies are expected to grow in emerging countries like China, India and Pakistan. The study also indicates that most financial innovation studies use quantitative research methods and are categorized as empirical papers.
Originality/value
This study contributes to the finance literature by comprehensively evaluating current research on financial innovation using one specific journal in the field. Also, this study examines financial innovation literature using different approaches from previous bibliometric financial innovation studies.
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Ahmad R. Pratama and Firman M. Firmansyah
In this study, the authors seek to understand factors that naturally influence users to adopt two-factor authentication (2FA) without even trying to intervene by investigating…
Abstract
Purpose
In this study, the authors seek to understand factors that naturally influence users to adopt two-factor authentication (2FA) without even trying to intervene by investigating factors within individuals that may influence their decision to adopt 2FA by themselves.
Design/methodology/approach
A total of 1,852 individuals from all 34 provinces in Indonesia participated in this study by filling out online questionnaires. The authors discussed the results from statistical analysis further through the lens of the loss aversion theory.
Findings
The authors found that loss aversion, represented by higher income that translates to greater potential pain caused by losing things to be the most significant demographic factor behind 2FA adoption. On the contrary, those with a low-income background, even if they have some college degree, are more likely to skip 2FA despite their awareness of this technology. The authors also found that the older generation, particularly females, to be among the most vulnerable groups when it comes to authentication-based cyber threats as they are much less likely to adopt 2FA, or even to be aware of its existence in the first place.
Originality/value
Authentication is one of the most important topics in cybersecurity that is related to human-computer interaction. While 2FA increases the security level of authentication methods, it also requires extra efforts that can translate to some level of inconvenience on the user's end. By identifying the associated factors from the user's ends, a necessary intervention can be made so that more users are willing to jump on the 2FA adopters' train.
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Tika Widiastuti, Eko Fajar Cahyono, Siti Zulaikha, Imron Mawardi and Muhammad Ubaidillah Al Mustofa
This study aims to formulate a strategy for optimizing zakat governance in zakat institutions in East Java Province by identifying priority problems, creating solutions and…
Abstract
Purpose
This study aims to formulate a strategy for optimizing zakat governance in zakat institutions in East Java Province by identifying priority problems, creating solutions and developing strategies.
Design/methodology/approach
This qualitative research uses the analytical network process method. Ten respondents representing practitioners, academics, associations and regulators were selected for their expertise in zakat governance. The data were processed using Super Decision software program and Excel.
Findings
Priority issues in optimizing zakat governance found in this study are lack of information on Mustahik’s needs and development to Muzakki and the low motivation and ability of Mustahik to develop. Improving the quality and capacity of Amil’s, especially in the technological aspect, is a priority solution. The priority strategy considers intensification (by developing Amil’s ability to use technology) and extensification (by increasing Amil’s numbers who master technology).
Practical implications
The results highlight the urgency of increasing Amil’s capacity and capability in technology-based zakat management. Zakat institutions need to prepare for management’s transformation toward zakat technology as one of the priorities in optimizing zakat governance.
Originality/value
Problems, solutions and strategies for optimizing zakat governance are collected by connecting it to the Zakat Core Principles, namely, the ninth principle of collection management and the tenth principle of distribution management. Further, for identifying problems, solutions and strategies, four aspects must be considered of Amil, Muzakki, Mustahiq and other supporting elements to present better policies to optimize zakat governance.
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Ahmad R. Pratama and Firman M. Firmansyah
The purpose of this study is to investigate if and how government intervention can nudge students to become ebook readers.
Abstract
Purpose
The purpose of this study is to investigate if and how government intervention can nudge students to become ebook readers.
Design/methodology/approach
A cross-sectional survey research design was adopted for this study. A total of 1,144 students from four middle and high schools in urban and rural areas of Indonesia participated in this study. The results from statistical analyses were further discussed through the lens of the nudge theory.
Findings
This paper founds evidence that government intervention in the form of the Buku Sekolah Elektronik (BSE) policy that has been providing free electronic textbooks for more than a decade can help nudge students to become ebook readers. After controlling for student’s demographic information, this paper founds that their awareness of such a policy is significantly associated with a stronger preference toward ebooks while having no significant effect on their preferences toward printed book format. This paper also founds that mobile device adoption plays an important role where early adopters tend to prefer ebook format, whereas laggards are more associated with printed book format.
Originality/value
Many have studied the benefits of using ebooks in learning, but the literature also shows that most students still prefer reading printed books over ebooks. This is true not only in developing countries where problems with infrastructures can hamper the adoption of ebooks in general but also in developed countries where ebooks are much more prevalent, even among the general population. This paper showed how government interventions have the potency to help tip the scales and nudge students to become ebook readers.