M. Adnan Kabir and Ashraf Ahmed
The purpose of this paper is to investigate the factors that are significant in contributing to the per capita income growth of countries that are experiencing or have experienced…
Abstract
Purpose
The purpose of this paper is to investigate the factors that are significant in contributing to the per capita income growth of countries that are experiencing or have experienced the lower-middle and upper-middle income traps.
Design/methodology/approach
The study comprises 85 countries over the period 1960 to 2017 spanning across three income groups: lower-middle, upper-middle and high. A panel data structure was used to run a fixed effect and random effect estimation on three models of income groups. The Hausman specification test, which was used for further statistical fitness, confirmed the appropriateness of fixed effect over the random in explaining the estimation of factor variables.
Findings
The results show that unemployment is a pervasive problem that negatively affect countries at all income levels. Foreign direct investment and population of dependents are associated with economic progression of countries that have experienced or are experiencing the lower-middle income trap. Furthermore, rising income inequality and foreign aid assistance are detrimental to countries that have experienced or are experiencing the upper-middle income trap. Moreover, income inequality, disproportionate urban population and rising dependent population are damaging for high income countries that never experienced any of the middle-income traps. Conversely, openness to trade, inflation and exchange rate volatility had limited capacity in explaining growth dynamics.
Research limitations/implications
This study could not incorporate geopolitical, demographic, geographical and other such exogenous factors, which could have episodes of influences on the economic development of countries. These were outside the study's realm of quantitative analysis.
Originality/value
This paper contributes to existing literature by providing an empirical cross-sectional comparative analysis of countries belonging to different income groups. The prevailing literature lacks such a cross-tabulated presentation of factors affecting countries that avoided the middle income trap and those that could not.
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Kamrul Hassan Sunon, Muzhtaba Tawkeer Islam and M. Adnan Kabir
Academic research on the transgenerational performance differences among family firms in Bangladesh is still in its infancy. This paper delves into this issue to answer whether…
Abstract
Purpose
Academic research on the transgenerational performance differences among family firms in Bangladesh is still in its infancy. This paper delves into this issue to answer whether the financial performance of family firms run by second-generation family members is different from their predecessors and nonfamily firms.
Design/methodology/approach
The study employs panel data analysis that attempts to conceptualize the performance difference, quantified in terms of profitability and return, between founder- and second-generation-run public companies in Bangladesh. Moreover, cross-sectional regressions extend the research paradigm to investigate and validate whether heir-controlled family firms perform differently than nonfamily firms or firms that are yet to experience ownership succession within a family.
Findings
The study indicates that family firms perform better when founding family members are in control compared to second-generation-run family firms. Moreover, further analysis suggests that heir-controlled family firms do not show a significant difference in performance compared to firms that never had a family succession in its managerial positions. The implications are that there could be nonfinancial family-centric motivations for family business ownership transition.
Practical implications
Family succession of firm ownership is venerated without necessarily a validation of its financial merit. In Bangladesh, this is too often a de facto transfer of leadership within family firms. This study can act as a reference point to understand that family succession of firm ownership in Bangladesh may not necessarily be in the best financial interest of a firm.
Originality/value
The literature on family firms propounds a plethora of vacillating conclusions and opinions. This paper adds this body of empirical literature into an exercise of formal logic. Such an empirical investigation into the financial performance of Bangladeshi family firms, visualized through the lens of leadership transfer to a second-generation family member, has not been extensively studied in contemporary literature.
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This study examines the organic food continuance behavior (OFCB) of young (Generations Y and Z) Bangladeshi consumers as a part of green consumption for sustainable development…
Abstract
Purpose
This study examines the organic food continuance behavior (OFCB) of young (Generations Y and Z) Bangladeshi consumers as a part of green consumption for sustainable development. Based on the extended “Theory of Planned Behavior” (TPB), this study investigates the reasons for continuing organic food (OF) consumption. This research aims to create a model highlighting the characteristics influencing Bangladeshi consumers to continue eating OFs while considering the moderating role of health consciousness during the COVID-19 health crisis (CHC).
Design/methodology/approach
This is a longitudinal study, the first phase of which was conducted in 2020, whereas the second phase of data collection is completed on December 31, 2021. Thus, a longitudinal research design (N = 196) was used to investigate whether TPB element have the same impact over the period of time in two data collection phases. It also attempted to reveal if there is any change in the level of influences of Knowledge of organic food health benefit (HAK), and health consciousness on OFCB. A structured questionnaire was used to collect data from the participants of Generations Y and Z. Partial least square structural equation modeling validates the proposed research model.
Findings
Research results of phase two ensure that out of the five direct hypotheses related to social norm (SNRM), attitude (ATD), perceived behavioral control (PBRC), HAK and CHC, four (ATD, PBRC, HAK and CHC) significantly influence OFCB of Bangladeshi consumers. SNRM has no significant statistical influence on OFCB. On the other hand, all the direct hypotheses, including SNRM, were accepted during the first phase of the study. Hence, when people begin eating OF and recognize the health benefits, their firm behavioral control ensures that what others think has no significant influence on OFCB.
Research limitations/implications
Most of the data for this study came from those born after 1980, commonly known as Generations Y and Z. Thus, including more data from different age groups may result in different research conclusions. The survey contains a large proportion (62%) of respondents with an income of less than BDT 40,000 per month, a price-sensitive demographic in Bangladesh. The price of OF was not included in this study though price sensitivity may have impacted the study’s findings.
Practical implications
This research used one moderating and four exogenous variables to determine Bangladeshi consumers’ OFCB. HAK and PBRC are proven to be the strongest determinants. Though health consciousness, Knowledge and self-control are essential, Bangladeshi citizens’ awareness of OF and sustainable consumption is still far below compared to other countries. Consequently, this study urges policymakers to raise health awareness through various social efforts.
Social implications
The Bangladesh government has various initiatives to encourage sustainable development, including promoting OF consumption. Increased OF consumption will increase demand, resulting in an enormous need for organic production. This phenomenon will benefit society as bio-fertilizers are ecologically benign, resolving soil fertility issues and reducing disease risks while enhancing nutritional content. This study can serve as the foundation for developing a plan to boost the consumption of OFs, which can have a beneficial social impact.
Originality/value
Since no longitudinal study to explain the continuance of OFs has been observed in Bangladesh, this research uniquely contributes to predicting sustainable consumption behavior.
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M. Kabir Hassan and Adnan Q. Aldayel
This study examines empirically the stability of the demand for money under two different financial systems. One system pays interest on money deposited at the bank and charges…
Abstract
This study examines empirically the stability of the demand for money under two different financial systems. One system pays interest on money deposited at the bank and charges interest on bank loans; the other does not pay interest on money deposited in the bank, and enters into a profit‐sharing contract with the bank borrower instead of charging interest on bank loans. The first system resembles the western financial system and the second resembles the Islamic financial system. A study by Darrat (1988) studies the behavior of demand for money in Tunisia, and concluded that interest‐free money is more stable than the interest‐bearing money. The behavior of demand for money in fifteen countries has been analyzed in this research in order to find out if the findings by Darrat (1988) are applicable to other countries that practice Islamic banking. This study finds that the velocity of money and its variance are lower for interest‐ free banking system than for interest‐bearing banking system. This result may support the hypothesis that interest‐free money is more stable than interest‐bearing money. The monetary policy implications of interest‐free banking are also analyzed.
Adnan Malik, Karim Ullah, Shafiullah Jan, Muhammad Atiq and Ali Abdullah
This study aims to describe the role of knowledge diffusion in evolving governance principles for Islamic banking.
Abstract
Purpose
This study aims to describe the role of knowledge diffusion in evolving governance principles for Islamic banking.
Design/methodology/approach
This study develops a discursive theoretical debate using the discourse analysis method on the Sharīʿah principles related to interest (Riba), excessive uncertainty (Gharrar) and profit and loss sharing and their convergence with the conventional banking principles of profitability, solvency and liquidity.
Findings
The study proposes a novel framework that describes how knowledge diffusion bridge-up the Sharīʿah and banking principles in terms of integration of banking principles by Sharīʿah scholars, integration of Sharīʿah principles by managers and the resultant, emergent principles for the governance of Islamic banking.
Practical implications
The proposed framework can inform professionals on how knowledge of banking practices and Sharīʿah can help them in governing Islamic banking. The Board of Directors may adopt a holistic approach for encouraging enhanced interactions between Sharīʿah scholars and managers. Such interaction may be increasing harmony, reducing conflicts and better coordination resulting in Sharīʿah-compliant and market wise viable products and services, thus increasing banking profitability.
Originality/value
This is the first study, which acknowledges and illustrates the role of the knowledge diffusion process in evolving governance principles for Islamic banks. This paper contributes to the theory of corporate governance by using the knowledge, aptitude and practice theory lens to examine conceptually how Islamic banking governance principles emerged through the knowledge diffusion process.
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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Swati Anindita Sarker, Shouyang Wang, K.M. Mehedi Adnan, Prithila Pooja, Kaynath Akhi and Khadija Akter
The purpose of this study is to see the energy relation to economic growth and find a way to solve the energy crisis for Bangladesh. Bangladesh is facing a high rate depletion of…
Abstract
Purpose
The purpose of this study is to see the energy relation to economic growth and find a way to solve the energy crisis for Bangladesh. Bangladesh is facing a high rate depletion of traditional energy sources. Renewable energy technology may be an alternative solution to meeting Bangladesh’s rising energy demand. Despite huge potential, Bangladesh fails to use renewable energy sources properly due to insufficient information and technical knowledge. The present research studied the current energy condition and potentiality of renewable energy with its influence on economic growth in Bangladesh.
Design/methodology/approach
This study analyzes the relationship between renewable energy consumption and economic growth of Bangladesh for the period of 2001–2016, based on yearly data, by using multiple regression model where augmented Dickey–Fuller unit root test has been chosen for testing the viability.
Findings
The result of this study showed that economic growth of Bangladesh is influenced positively by the consumption of renewable energy.
Practical implications
In addition, SWOT analysis has also done to develop a roadmap, and suggest some policies which will be able to accomplish the country’s climbing energy demands for a short- and long-term solution.
Originality/value
This study is an original work for Bangladesh, showing the results of the relationship between renewable energy consumption and economic growth. Therefore, this research will be useful to contribute to the literature review in the near future.
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‘Stans’ is an ancient Persian word meaning land, country or nation. This chapter begins with a review of the historical basis of zakat management in Islamic practice and provides…
Abstract
‘Stans’ is an ancient Persian word meaning land, country or nation. This chapter begins with a review of the historical basis of zakat management in Islamic practice and provides a brief historical account and status of zakat practices in select countries in Central Asia. The section thereafter focuses on benchmark international zakat management models before providing recommendations for the development of an effective zakat management model within Central Asia. The economic shocks resulting from the pandemic have forced many in the region into situational poverty. If left unchecked, this may easily regress into chronic poverty, undoing the significant growth that these countries have experienced over the last decade. Existing social programmes have limited the impact of economic loss. Since the collapse of the Soviet Union, they have an opportunity to revive this history and once again empower their nations with Islamic social finance instruments. Effective zakat management models in Indonesia and Kuwait, for example, provide different dimensions to social impact. The Indonesian model of BAZNAS provides the most comprehensive methodology for governance, risk management and replication. BAZNAS′ strategy for digitalization and collaboration suggests a strong model for development within Central Asia. Through an effective zakat model, it is expected that Central Asian nations will be better protected against economic disruptions and provide a safety net for vulnerable communities in the region. These conclusions and recommendations in this chapter are limited to the information available in the literature. Further study is required through primary research to understand better what the challenges are in zakat modelling. Locals may also be surveyed to determine their levels of zakat knowledge and their concerns for institutional zakat collection and disbursement.
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Fathullah Asni, Mohamad Ihsan Zulkifli and Yusairi Yusli
This paper aims to examine the acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan Financing through Zakat Fund (MCZF) for post-pandemic asnaf…
Abstract
Purpose
This paper aims to examine the acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan Financing through Zakat Fund (MCZF) for post-pandemic asnaf entrepreneurs. The study is motivated by the declining trend in Zakat collection and the increasing number of asnaf individuals in the post-pandemic period. This necessitates alternative initiatives such as the MCZF scheme by Zakat institutions. However, the reception of the MCZF scheme in Malaysia is unfavourable, despite studies suggesting its suitability for Zakat institutions and asnaf entrepreneurs.
Design/methodology/approach
This study adopts a qualitative methodology involving library and field research as data collection methods. The library research encompasses reviewing relevant books, articles, statutes and circulars. In terms of the field study, semi-structured interviews were conducted with five selected Zakat management officers from Zakat institutions and two proficient academics specialising in Shariah and Zakat management. The interview data generated several themes analysed using the content analysis method. Consequently, the snowball method was employed to determine the sample size of Zakat institutions, ensuring comprehensive coverage of their acceptance of the MCZF scheme.
Findings
The study’s findings reveal that three Zakat institutions accept the MCZF scheme for implementation, justifying it as a matter of differing opinions (khilaf) that allows room for ijtihad based on the current needs and well-being (maslahah). However, one of the Zakat institutions expresses unpreparedness to implement the scheme due to obstacles posed by an official fatwa. Additionally, the study demonstrates that two Zakat institutions reject the MCZF scheme, citing reasons such as the principle of direct ownership (tamlik) in giving Zakat funds, the prohibition specified by the official state fatwa, and the prevailing societal expectation of direct Zakat distribution without loans.
Research limitations/implications
This study focuses solely on five Zakat institutions in Malaysia, all of which have specific fatwas concerning the MCZF scheme. Future research may explore Zakat institutions in other states. Furthermore, this study specifically concentrates on asnaf entrepreneurs. Hence, further research could investigate the applicability of the MCZF scheme for other asnaf groups, such as asnaf students.
Practical implications
This study examines the acceptance of Zakat institutions towards the MCZF scheme and the justifications provided by Zakat institutions for its implementation. The findings of this study can guide Zakat institutions in Malaysia in accepting and implementing the MCZF scheme. It can significantly impact these institutions by assisting asnaf entrepreneurs in securing capital and expanding their businesses.
Social implications
This study has substantial implications for society, particularly for asnaf entrepreneurs, as loans provided through Zakat funds can help boost their business capital. Consequently, this can elevate the asnaf group from being recipients of Zakat to becoming contributors. Furthermore, when Zakat funds are provided as debt to asnaf entrepreneurs, they can be motivated to grow their businesses since they commit to repaying the debt through instalments.
Originality/value
This study analyses the acceptance of the MCZF scheme by Zakat institutions in Malaysia as an alternative initiative to support asnaf entrepreneurs after the pandemic.