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This study aims to examine how sharia supervisory board (SSB) characteristics are determinants of the maqashid sharia performance (MSP) of Islamic banks (IBs) and how MSP has implications for profitability and for profit-sharing investment account holders (PSIAHs).

MSP is ascertained by semi-structured interviews. The SSB characteristics measured are size, cross-membership, education level, expertise, reputation, rotation and remuneration. Annual reports of Indonesian and Malaysian IBs from 2010 to 2018 are analysed using panel data regression.

In Indonesia, SSB education level attenuates MSP, while other characteristics have only minor influence. However, in Malaysia, SSB size, education and reputation reinforce MSP, while others are ineffective. MSP in both countries is pseudo-Islamic; so their customers ignore religiosity. However, MSP in Malaysia can improve profitability because sharia assurance is more transparent; meanwhile, MSP in Indonesia cannot improve profitability because sharia assurance is less transparent.

In order for MSP to improve in Indonesia, the regulators need to increase SSB size, reduce cross-membership and arrange the format for sharia assurance in SSB reports, while IBs need to increase SSB education and expertise.

MSP is constructed in accordance with legal and social requirements to achieve IBs’ Islamic, economic, social and ethical objectives. Resource dependence theory is used to evaluate SSB, while PSIAH and profitability are investigated to demonstrate the impact of MSP. Finally, comparing SSB capabilities in Indonesia and Malaysia could be beneficial to regulatory and IB policies.

This study aims to shed light on Shari’ah supervisory boards (SSBs) and the possibilities of Islamic banks to reduce the tax avoidance. Performance and Shari’ah compliance have been extensively studied; however, tax avoidance remains a challenge.

SSB characteristics, based on resource dependence theory, influence tax avoidance, including SSB size, educational level, expertise, reputation, remuneration and turnover. The samples were obtained from Islamic banks in Indonesia and Malaysia (2010–2020) using the data panel method.

Islamic banks avoid taxes through the effective tax rate and book tax difference. SSBs who have more expertise play a role in investigating the complexity of tax avoidance, and SSB reputation, who is a member of the Islamic bank regulator, understands immorality, resulting in reduced tax avoidance. Moreover, the recruitment system has been effective, as SSBs with more expertise have become more prevalent. Meanwhile, SSB from a Shari’ah background works only in regulated areas, simplifying Shari’ah compliance, in particular, attestation of financial reporting. A heavy workload is created by cross-membership, resulting in the neglect of the immoral value of tax avoidance. The calculation of tax avoidance also includes remuneration and bank assets.

Given the uniqueness of Islamic banks contributing to social welfare, tax regulators need to review the appropriateness of fees that can be treated as taxes. Tax regulators can join hands with Islamic bank regulators on this review.

To the best of the authors’ knowledge, this study is one of the first to examine the characteristics of SSBs and Islamic banks on tax avoidance. Separating Islamic banks by country enriches the analysis.

The purpose of this paper is to analyse thermal comfort and the thermal environment in naturally ventilated classrooms. Specifically, the aims of the study were to identify the thermal environment and thermal comfort of respondents in naturally ventilated university classrooms and compare them with the ASHRAE and Indonesian National Standard (SNI); to check on whether the predicted mean vote (PMV) model is applicable or not for predicting the thermal comfort of occupants in naturally ventilated university classrooms; and to analyse the neutral temperature of occupants in the naturally ventilated university classrooms.

The study was carried out at the new campus of Faculty of Engineering, Hasanuddin University, Gowa campus. A number of field surveys, which measured thermal environments, namely, air temperature, mean radiant temperature (MRT), relative humidity, and air velocity, were carried out. The personal activity and clothing properties were also recorded. At the same time, respondents were asked to fill a questionnaire to obtain their thermal sensation votes (TSV) and thermal comfort votes (TCV), thermal preference, and thermal acceptance. A total of 118 respondents participated in the study. Before the survey was conducted, a brief explanation was provided to the participants to ensure that they understood the study objectives and also how to fill in the questionnaires.

The results indicated that the surveyed classrooms had higher thermal environments than those specified in the well-known ASHRAE standard and Indonesian National Standard (SNI). However, this condition did not make respondents feel uncomfortable because a large proportion of respondents voted within the comfort zone (+1, 0, and −1). The predictive mean vote using the PMV model was higher than the respondents’ votes either by TSV or by TCV. There was a huge difference between neutral temperature using operative temperature (T_o) and air temperature (T_a). This difference may have been because of the small value of MRT recorded in the measured classrooms.

The research shows that the use of the PMV model in predicting thermal comfort in the tropic region might be misleading. This is because PMV mostly overestimates the TSV and TCV of the respondents. People in the tropic region are more tolerant to a higher temperature. On the basis of this finding, there is a need to develop a new thermal comfort model for university classrooms that is particularly optimal for this tropical area.

This study aims to investigate the market reaction to dividend announcements and sharia compliance based on the Islamic stock indexes of Indonesia, Malaysia and Pakistan by scrutinising investors’ interpretations, behaviour (traditional, rational, religious or ethical) and preferences.

Event study methodology (ESM) was used to analyse 31 days around the event date. The research period spanned 2011–2018, during which 282 observed dividend announcements were tested using a t-test, and there were 4,960 cases of sharia compliance in the data panel.

Indonesian investors react to earnings surprises as bad news while bypassing dividend announcements, thus classifying their behaviour as rational. Meanwhile, investors in Malaysia and Pakistan respond to dividend announcements as bad news while bypassing earnings surprises, thus classifying their behaviour as traditional. Surprisingly, sharia compliance does not affect abnormal returns. These results imply that investors prefer a profit motive rather than sharia compliance.

To perpetrate positive reactions, companies need to increase earnings (Indonesia), nominal dividends (Malaysia) and delay dividend announcements (Pakistan). Also, tax regulators need to evaluate dividend tax and capital gains tax.

Investors cannot solely rely on Islamic stock lists, while regulators and firms must be transparent and accountable regarding sharia compliance ratio.

There is a dearth of research on market reaction in Islamic stock indexes. This study adheres to critical assumptions of ESM: controlling the confounding effects and ensuring market efficiency. These assumptions lead to the proposal of mandatory and advisory sharia compliance, evaluation of ratios using a staple scale and examination of differences in dividend tax rates. An extended tax preference theory is also proposed to contribute to the body of knowledge.

This study compares the profitability of sharia-compliant firms (SCFs) and non-sharia-compliant firms (NSCFs) and explores the causal links among board of directors (BODs) characteristics (size, gender, meeting frequency, tenure, turnover and compensation), sharia compliance, capital structure and profitability. Specifically, sharia compliance and capital structure serve as moderators.

A total of 72 SCFs and 65 NSCFs were investigated during 2011–2019, resulting in 1,644 data. A t-test was used to compare profitability, and causal relationships were explored through panel data regression.

SCFs outperform NSCFs in profitability in 24 of 36 t-tests. Surprisingly, 87 out of 864 instances of sharia violations were found in SCFs. Despite purifying sharia-compliant stocks from violations, the board negatively affected sharia compliance. Furthermore, sharia compliance contradicts the board’s tendency to increase profitability, implying a ceremonial screening, which reveals the board’s reluctance to incorporate sharia compliance into their management style. In contrast, boards in NSCFs rely more on their internal strengths and capacities to influence profitability, as they understand the adverse impact of debt.

The findings of this study are beneficial for evaluating Islamic loopholes for both boards that are apathetic to sharia compliance and regulators who are not transparent in Islamic financial screening.

Academic literature concentrates on comparing Islamic banks with conventional banks, while the comparison of corporate governance and management styles in SCF vs. NSCF is minimal. Additionally, a novel measurement, the Stapel scale, is proposed for finding the purity of Islamic stocks, which is most suitable when regulators and firms conduct Islamic loopholes.

This paper aims to study the relationship between the ball grid array (BGA) flip-chip underfilling process parameter and its void formation region.

A set of top-down scanning acoustic microscope images of BGA underfill is collected and void labelled. The labelled images are trained with a convolutional neural network model, and the performance is evaluated. The model is tested with new images, and the void area with its region is analysed with its dispensing parameter.

All findings were well-validated with reference to the past experimental results regarding dispensing parameters and their quantitative regional formation. As the BGA is non-uniform, 85% of the test samples have void(s) formed in the emptier region. Furthermore, the highest rating factor, valve dispensing pressure with a Gini index of 0.219 and U-type dispensing pattern set of parameters generally form a lower void percentage within the underfilling, although its consistency is difficult to maintain.

This study enabled manufacturers to forecast the void regional formation from its filling parameters and array pattern. The filling pressure, dispensing pattern and BGA relations could provide qualitative insights to understand the void formation region in a flip-chip, enabling the prompt to formulate countermeasures to optimise voiding in a specific area in the underfill.

The void regional formation in a flip-chip underfilling process can be explained quantitatively with indicative parameters such as valve pressure, dispensing pattern and BGA arrangement.

The purpose of this study is to develop and assess the effects of unified theory of acceptance and use of technology (UTAUT 2) constructs – effort expectancy (EE), social influence (SI) and hedonic motivation (HM) – on behavioural intention (BI), as well as the impact of innovation resistance theory (IRT) constructs – usage barrier (UB) and tradition barrier (TB) – on innovation resistance (IR) behavior in the context of digital zakat payment in Aceh. In addition, this study also examines how knowledge of fiqh zakat influences both BI and IR.

This was a quantitative study including 350 Acehnese persons who paid zakat online. This research used a Likert scale, and the sampling technique was purposive sampling applied for the Acehnese people. The research respondents were civil servants, private employees, BUMN employees (employees of State-Owned Enterprises), merchants, restaurant owners, professionals and other occupations who had paid professional zakat through a digital system mechanism. The data were analysed using partial least squares structural equation modelling.

This research found that the constructs built through the theory of UTAUT 2 explained the position of the EE variable, which had a significant effect on BI. On the other hand, the variable of SI and HM did not significantly affect BI in digital zakat payment. This finding demonstrated that BI significantly influenced actual usage (AU). UB and TB had no impact on IR, according to the theoretical framework developed by IRT. Yet, the knowledge about the fiqh zakat (KFZ) significantly affected the AU. In terms of the moderation role, the KFZ variable moderated the relationship between BI and AU. However, the KFZ variable did not moderate the relationship between IR and AU.

This research had limitations and could still be investigated further by involving a larger sample. This study does not include all UTAUT 2 and IRT constructs, but only involves UTAUT 2 and IRT constructs based on the phenomenon of digital zakat paying behavior in the people of Aceh.

This research had a managerial contribution and an evaluation of the use of digital zakat collection services in Aceh and zakat management institutions in various countries. The existence of significant EE should be a reference for zakat institutions to produce continuous payment applications with a higher level of convenience in the future. In addition, the government should encourage more organised fiqh zakat education in society to plan a more optimal zakat collection. The reason for this is that KFZ has been shown to moderate zakat intentions towards actual digital zakat payment behaviour.

The results of this study were then accommodated by the government to design a digital zakat collection system so that it resulted in optimising the collected zakat funds. The greater the zakat funds collected, the greater the economic impact and social resilience of the community was in the midst of the post-covid and global crisis.

This research provided an essential value in the aspect of collecting zakat funds, especially in the study of the behaviour of paying zakat digitally. The theory of planned behaviour predominated in earlier studies that investigated zakat-paying behaviour. Yet, this research was even more focused as it used the constructs of UTAUT 2 and IRT theory and applied the involvement of a moderator variable like fiqh zakat knowledge that was barely discussed.

This study aims to examine the impact of agency cost, Islamic board characteristics and corporate governance on the performance of Islamic institutions.

Based on the selected criteria, 92 Islamic banks (IBs) from 20 countries were selected for further research. The authors used generalized method moments (GMM) estimation method. The agency cost and Shariah board characteristics are the explanatory variables. The author uses the age of the bank and the size of the bank for variable control.

Empirical results indicate that first, agency costs represented by cast/total assets negatively affect IBs’ return on equity and net income. As agency costs rise, IBs’ financial performance declines. Second, Shariah supervisory board (SSB) size and board independence affect IB performance. The study found that SSB size positively affects IB performance.

This research contributes to the literature on IBs in different countries, which policymakers and practitioners can use to improve agency cost functions and Shariah board characteristics. Second, this analysis shows that IBs require specific attention for agency charges, given their operations and business structures. This study contributes to agency theory, which requires Islamic banking information and practices. Finally, the author has aided regulators and IBs by identifying the sources of agency cost practices that can be resolved. The other bank governance contribution is twofold. First, the author studied dual board governance in IBs (SSB and ordinary boards of directors). Second, the author examines how SSB and traditional board governance affect IB performance. This research focuses on banks listed on stock exchanges in the 20 countries analysed.

The research has policy and practical implications for central banks and IBs. By outlining appropriate regulatory guidelines and reporting systems, regulatory authorities can ensure Sharia compliance and protect the independence of IB Shariah department officers. Regulators and relevant stakeholders must ensure Sharia compliance, audits, inspections, reporting and accurate disclosure for IBs.

This paper offers original contributions to professionals in the field of IBs and stakeholders investigating the relationship between agency costs, governance of IBs, characteristics of Islamic supervisory boards and the performance of IBs.

This study aims to examine the joint effect of accounting background and cross-membership of Islamic Supervisory Board (ISB) members on bank investment efficiency.

This study uses data collected from 36 Islamic banks across 15 countries globally, spanning the period from 2012 to 2021. This research uses an ordinary least squares regression and a comprehensive set of endogeneity and robustness tests.

The findings show a negative relationship between the accounting background of ISB members and investment efficiency. However, when ISB members with accounting backgrounds also have ISB cross-memberships, the banks exhibit high investment efficiency. These results suggest that ISB cross-membership plays a crucial role in facilitating Islamic banks’ access to timely information on investment opportunities. This enables ISB members with accounting expertise to thoroughly assess the benefits and risks associated with their investment prospects. These findings imply that ISB members with accounting backgrounds and cross-memberships have greater motivation and thoughtful considerations for making better investment decisions. Consequently, Islamic banks are better positioned to undertake high profitable investment projects, which enhance their investment efficiency.

The current study holds immense value for Islamic bank management in their selection of ISB members who possess an accounting background and cross-membership.

This study delves into a comprehensive investigation of the proficiency, underlying principles and unique characteristics exhibited by ISB members with an accounting background. Moreover, this study acknowledges the burgeoning global prominence of Islamic banks.