Amr Kotb, Hany Elbardan and Hussein Halabi
This paper reviews the field of internal auditing (IA) post-Enron to develop insights into how IA research has developed, offer a critique of the research to date and identify…
Abstract
Purpose
This paper reviews the field of internal auditing (IA) post-Enron to develop insights into how IA research has developed, offer a critique of the research to date and identify ways that future research can help to advance IA.
Design/methodology/approach
A structured literature review (SLR) was used to analyse 471 papers from 64 journals published between 2005 and 2018 based on a number of criteria, namely author, journal type, journal location, year, theme, theory, nature of research, research setting, regional focus, method and citations.
Findings
The IA literature has not significantly contributed to knowledge of the internal audit function (IAF), and one still knows relatively little about the factors that contribute to making the impact of IA practice effective and measurable. The IA literature is US-dominated (authors and journals), focussed on the American context (publicly listed companies), reliant on positivist analyses and largely makes no explicit reference to theory. Central regions (emerging economies) and key organisational settings (private SMEs and not-for-profit organisations) are largely absent in prior IA research. This paper evaluates and identifies avenues through which future research can help to advance IA in order to address emerging challenges in the field.
Originality/value
This is the first comprehensive review to analyse IA research in the post-Enron period (2005–2018). The findings are relevant to researchers who are looking for appropriate research outlets and emerging scholars who wish to identify their own research directions.
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Hussein Mohsen Saber Ahmed, Sherif El-Halaby and Khaldoon Albitar
This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).
Abstract
Purpose
This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL).
Design/methodology/approach
This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL.
Findings
The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator.
Research limitations/implications
This study only includes technology, telecommunications and health-care industries in the sample.
Practical implications
This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication.
Originality/value
This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.
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Muneer M. Alshater, M. Kabir Hassan, Adel Sarea and Hussein Mohammad Samhan
This study aims to explore the Islamic accounting literature and attempts to identify the worldwide research trends of accounting for Islamic financial institutions.
Abstract
Purpose
This study aims to explore the Islamic accounting literature and attempts to identify the worldwide research trends of accounting for Islamic financial institutions.
Design/methodology/approach
This study adopts a mixed review approach combining the bibliometric method with content analysis. Consulting Scopus database, the authors collect 195 documents (articles and reviews) relative to the Islamic accounting field from 1982 to 2020. VOSviewer, RStudio (biblioshiny) and Excel analysed the data.
Findings
The study revealed the influential scientific actors in the Islamic accounting field, categorising the intellectual structure into seven streams: accounting for Waqf, accounting for Zakat, Shariah auditing, corporate Shariah governance and screening, accounting for different modes of Islamic financing, education and ethics. The study further provides future research directions for researchers.
Social implications
The findings highlight the efforts of academicians, researchers and practitioners in this emerging field. This effort provides awareness to different stakeholders on Islamic accounting, which will lead to better stewardship, accountability and information-based decision in line with Islamic economic principles.
Originality/value
This study is among the first Islamic accounting bibliometric papers that would help researchers stand on a firm basis concerning the development of the literature in this scientific domain.
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Abu Umar Faruq Ahmad and M. Kabir Hassan
The purpose of this paper is to contribute to the existing body of work in the area of Islamic finance by examining the regulation of Islamic finance in Australia.
Abstract
Purpose
The purpose of this paper is to contribute to the existing body of work in the area of Islamic finance by examining the regulation of Islamic finance in Australia.
Design/methodology/approach
The method employed in this paper is a mixture of direct observation from legal and regulatory perspectives and authors' personal experience, curiosity, and association with this industry.
Findings
In Australia, where Muslims are minorities and full‐fledged Islamic banks are absent, it is expected that regulatory authorities would ensure there is a level playing field, so that neither Islamic financial services providers (IFSPs) nor conventional financial institutions are disadvantaged. They have also been expected to approve and monitor Islamic financial products, including those offered by Islamic managed funds.
Research limitations/implications
The study is undertaken through the Shari'ah, where law, finance, economics, and business form a single dimension only, even though a very significant one. No attempt is made to evaluate the economic efficiency and profitability or otherwise, of IFSPs in Australia. Also, the approach for the study is not supplemented by any empirical work (e.g. by quantitative analysis of data or by survey or other qualitative methodologies).
Practical implications
The paper practically examines: the impact of banking and financial services regulation on Islamic banking and financing practice in Australia; and what further legislative measures and changes are needed to accommodate Islamic financing practice into Australian society to make it a truly viable alternative system of financing for Muslims in Australia.
Originality/value
Examination of the issues of the study is originally undertaken through one of the authors' personal expertise and working experience with some IFSPs in Australia, aiming at developing the relevant regulations by the Australian regulatory regime to make Islamic finance a viable alternative system of financing for Muslims in Australia.
Nur Aliza Binti Ahmad and Asmak Ab Rahman
Purpose – This chapter analyses the socio-economic development of the Muslim community in Kelantan through the establishment of the Bazar Wakaf Rakyat (People’s Waqf Bazar)…
Abstract
Purpose – This chapter analyses the socio-economic development of the Muslim community in Kelantan through the establishment of the Bazar Wakaf Rakyat (People’s Waqf Bazar).
Methodology/approach – A qualitative method of data acquisition through interviews. Among the informants interviewed were the authority of waqf matter, the tenants of Bazar Wakaf Rakyat X, the tenants of Bazar Wakaf Y, the committee members of mosque X and local people in Kelantan.
Findings – The research indicates that the Bazar Wakaf Rakyat plays a role in enhancing the economic and spiritual development of the Kelantanese people. Economic development occurs through affordable rental rates, job opportunities, the construction of Bazar Wakaf Rakyat in strategic locations and the types of products being sold. The Bazar Wakaf Rakyat built inside the mosque compound also plays a part in spiritual development.
Originality/value – This chapter is the first to discuss issues relating to Bazar Wakaf Rakyat in Kelantan.
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Kok Yew Soon, Kein Huat Chua, Yun Seng Lim and Li Wang
This paper aims to propose a comprehensive methodology for setting up rural electrifications for indigenous villages with minimum budgets and the lowest possible cost of…
Abstract
Purpose
This paper aims to propose a comprehensive methodology for setting up rural electrifications for indigenous villages with minimum budgets and the lowest possible cost of electricity (COE). The electricity accessibility of rural area in Malaysia is not fully covered and the cost of extending the grid to these areas can be high as RM 2.7m per km. Lack of vigorous policies and economic attraction of the rural areas are also the main barriers to rural electrification. Electricity is an essential element of economic activities and the lack of electricity exacerbates poverty and contributes to its perpetuation. Therefore, a hybrid standalone power system can be an alternative solution for the rural electrification. A hybrid standalone power system is studied to investigate the potential of the implementation and the budget required.
Design/methodology/approach
A site survey has been carried out in a village in Peninsular Malaysia, namely, Kampung Ulu Lawin Selatan. A standalone hybrid system is modeled in HOMER Pro software and the data collected from the selected site are used to obtain the system configuration with the lowest COE. The load following and cycle charging energy dispatch methods are compared to identify the optimal system configuration that yields the lowest COE. The diesel generator-only system is chosen as a benchmark for comparisons.
Findings
The results show that the hybrid system constituted from the diesel generator, photovoltaic (PV), micro-hydro and energy storage using the load following energy dispatch method yields the lowest COE of RM 0.519 per kWh. The COE of the hybrid system is 378 per cent lower than that of the diesel generator-only system. The lead-acid energy storage system (ESS) is able to reduce 40 per cent of COE as compared to the system without ESS.
Originality/value
The results indicate that the COE of the diesel-micro hydro-PV-ESS system with load following dispatch strategy is RM 0.519 per kWh, and this value is 35 per cent higher than the average electricity price in Malaysia. However, it is important to note that the costs of extending the grid to the rural area are not taken into account. If this cost is considered into the electricity price, then the standalone hybrid power system proposed by this study is still a competitive alternative for rural electrification.
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Amani Hussein and Ghadir Nounou
This study aims to examine the impact of internet financial reporting (IFR) on companies’ performances as measured by three performance indicators, namely, stock price, stock…
Abstract
Purpose
This study aims to examine the impact of internet financial reporting (IFR) on companies’ performances as measured by three performance indicators, namely, stock price, stock returns and company value.
Design/methodology/approach
A sample of 139 non-financial companies listed in the Egyptian stock exchange is used and classified as 108 IFR companies and 31 non-IFR companies. To test the research hypotheses, an independent t-test and multiple linear regression analyses are used.
Findings
The results indicate that there are no significant differences between IFR companies and non-IFR companies for both stock price and stock return variables. Conversely, there is a significant difference between IFR companies and non-IFR companies in the company value variable. These results imply rejecting hypotheses H1 and H4 and accepting the hypothesis of H7 that the presence of IFR has an impact on company value. The multiple regression analyses results indicate a significant relation between the scope of IFR and stock price. Likewise, between the degree of IFR and company value. Both degree and scope of IFR have an insignificant impact on stock return, which infer that applying different performance measures can reveal different conclusions.
Research limitations/implications
This research is a snapshot of IFR limited to a cross-sectional study and could not study the longitudinal data of internet reporting. Second, Marston and Polei (2004) contend that “weights contain an element of subjectivity, which cannot be completely avoided in the composition of such a score” (p. 297) and a variation in the disclosure index can lead to a modification in the results (Kaur and Kaur, 2020). This research applied a weighted index to measure the degree of IFR, which may affect the results and may change it if other indexes are applied. Moreover, the scores of the degree and scope of information disclosure are assumed to be similar every year due to the lack of information regarding the variations in content and presentation in the companies’ websites. Finally, the absence of a complete data set and stock prices for some companies in the sample.
Practical implications
To enhance the quantity and quality of IFR could be implemented through setting regulations and standards to govern IFR practices companies in Egypt. Moreover, the trade-off of the requirement of the Egyptian Financial Supervisory Authority for Egyptian companies make information available online and the secrecy culture profound in the Egyptian society (Ahmed et al., 2015) involve assigning a regulatory body for monitoring the IFR practices to ensure disseminating timely and accurate information that helps investors make rational decisions.
Social implications
The researchers recommend the suggestion to have an external assurance conducted by external auditors to enhance the accuracy and credibility of the IFR information.
Originality/value
Based on prior literature, no studies in Egypt compare between IFR companies and non-IFR companies concerning stock price and company value as measured by Tobin’s Q. Moreover, few research studies in Egypt covered the degree of IFR disclosure whilst not addressing the impact on the stock price. In addition, no prior study examined the scope of IFR disclosure in Egypt. Therefore, the research findings attribute to literature.
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Muhamad Firdaus Ab Rahman, Hussein ‘Azeemi Abdullah Thaidi, Farhana Mohamad Suhaimi and Siti Farahiyah Ab Rahim
This study aims to propose a temporary waqf model for family waqf by establishing its application parameters, which may facilitate the management of family waqf in Malaysia and…
Abstract
Purpose
This study aims to propose a temporary waqf model for family waqf by establishing its application parameters, which may facilitate the management of family waqf in Malaysia and encourage new donors to establish waqf.
Design/methodology/approach
A qualitative methodology was employed to analyse the data through deductive and field research methods. For field research, this study conducted semi-structured interviews with the Waqf Corporations and Mufti's Department in the selected states within Malaysia.
Findings
Results drawn from the interview's findings are that creating family waqf in Malaysia is hindered by several obstacles, including family waqfs not serving the public interest but rather their descendants, and family waqfs have been practised in perpetuity. Besides, inefficient management of family waqf and a lack of an effective mechanism and parameter exists. Therefore, this study presented a conceptual framework for a temporary cash waqf model for family waqf along with the parameters that can be used to implement it. The temporary waqf is a strategy to develop waqf property and the interests of creators, beneficiaries and trustees. Temporary waqf merged into the family waqf yields benefits to the family waqf.
Research limitations/implications
Because of Malaysia's Waqf Regulation and Administration, this study was confined to selected states. This study has broadened the scope of temporary family waqf, including moveable, immovable property and cash waqf.
Practical implications
This study presented a temporary waqf model for family waqf as a realistic mechanism and criterion for its practical implementation in Malaysia.
Social implications
This study could encourage new donors to establish waqf.
Originality/value
This study’s novelty lies in its attempt to highlight the importance of the temporary waqf model as a practical mechanism with holistic principles for its implementation in Malaysia to benefit the donors, their families and trustees. In addition to family waqf, numerous temporary waqfs may be established, in which the income or usufruct is shared proportionally, such as charitable waqf (waqf khairi), private waqf (waqf khas) and joint waqf (waqf mushtarak).
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Umar Habibu Umar, Mustapha AbuBakar, Abubakar Jamilu Baita, Tasiu Tijjani Kademi and Md Harashid Haron
The purpose of this study is to examine the contribution of academic and professional institutions in promoting the awareness and knowledge of Islamic banking and finance in…
Abstract
Purpose
The purpose of this study is to examine the contribution of academic and professional institutions in promoting the awareness and knowledge of Islamic banking and finance in Nigeria.
Design/methodology/approach
The data were generated through a documentary research method by examining the Benchmark Minimum Academic Standards (BMAS) for Nigerian universities and Nigerian university curricula for the relevant undergraduate programs, as well as examination syllabi and training brochures for the relevant professional associations.
Findings
The study found that universities do not promote significantly the awareness and knowledge of Islamic banking and finance. Similarly, the relevant professional associations through their examinations and training programs contribute little or nothing to the promotion of awareness and knowledge.
Research limitations/implications
This study solely relied upon documentary evidence upon which the findings were based. In addition, for academic institutions, only undergraduate BMAS and curricula were examined.
Practical implications
There should be collaborations between the National University Commission of Nigeria, relevant Islamic and non-Islamic professional bodies and Nigerian Universities to ensure that courses (subjects) that could promote the awareness and knowledge of Islamic banking and finance are fully integrated into academic and professional curricula and training programs.
Social implications
The integration of an adequate number of relevant courses/topics into academic curricula and professional institution examination syllabi and their Mandatory Continuing Professional Development programs would greatly contribute to the production of competent and skillful employees to work for the growth and development of the Islamic banking and finance industry.
Originality/value
This study provides better ways of ensuring that knowledgeable and qualified employees are produced to work for the sustainability of the global Islamic banking and finance industry.
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Omar Kachkar and Mustafa K. Yilmaz
This study aims to examine diversity in the composition of Shariah supervisory boards (SSBs) of Islamic banks (IBs). It investigates diversity from two perspectives: existing…
Abstract
Purpose
This study aims to examine diversity in the composition of Shariah supervisory boards (SSBs) of Islamic banks (IBs). It investigates diversity from two perspectives: existing composition of SSBs and the regulatory frameworks and standards of selected Organisation of Islamic Cooperation countries. Diversity characteristics include education, nationality, gender and age.
Design/methodology/approach
A list of all full-fledged Islamic commercial banks (FFICBs) globally has been carefully prepared and confirmed. Conventional banks with Islamic windows, non-commercial banks, takaful companies and other Islamic financial institutions are excluded. The available profiles of 428 SSB members have been scrutinised and analysed. These board members occupy 522 SSB positions in 238 FFICBs operating in 52 countries around the globe. From the regulatory perspective, 12 national and international Shariah governance frameworks and standards have been examined.
Findings
Findings of this paper indicate various levels of diversity in SSBs of the reviewed IBs. The level of diversity in educational background and in the nationality of SSBs can be described as generally acceptable. However, a lack of diversity in gender and age among SSB members is evidently observed in IBs. While the lack of age diversity in SSBs may be relatively justified as a common trend in the composition of corporate boards, SSBs of IBs are seriously lagging behind in gender diversity. On the regulatory level, this study concluded that provisions on diversity as a requirement in SSBs are almost non-existent in the existing regulatory frameworks and standards.
Research limitations/implications
The major limitation of this study is the lack of available information on the SSB members.
Practical implications
This paper provides insights for IBs and policymakers concerned with the corporate governance of IBs and all Islamic financial institutions. First, it offers an excellent bird’s-eye view of the status of diversity in SSBs of IBs. Second, it motivates policymakers and standard-setting bodies to ensure, through the relevant regulatory frameworks, adequate levels of diversity in the composition of SSBs. Diversity in SSBs of IBs and Islamic financial institutions should be given special emphasis, not only in boards and top management positions but also in the workplace. This is of profound significance to the reputation of Islamic finance industry which has been recently under mounting pressure to translate the rhetoric about the Islamic finance industry being ethical, fair, just, equitable and inclusive into genuine implementations.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind to examine the diversity of SSB members from the regulatory as well as from the implementation perspective.