A Review of Board of Director, Shariah Supervisory Board and Zakat Distribution Performance in Malaysia

Rahman, Norlizawati Abd; Jusoh, Mohd Abdullah

doi:10.6007/ijarbss/v8-i2/3985

Cited by 2 publications

(1 citation statement)

References 14 publications

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“…No regulation explains SSB's duties in Zakat institutions. So that to understand the role and responsibilities of SSB, this paper refers to the publication of SSB in Islamic Banks as defined by the following SSB: AAOIFI (2005) describes SSB as "shariah board refers to the independent body responsible for directing, reviewing and supervising on sharia compliance as well as legal rulings in Islamic financial institutions" (Rahman, N. A., & Jusoh, M. A. 2018).…”

Section: Introductionmentioning

confidence: 99%

Sharia Compliant in Private Zakat Institutions of Riau

Megawati

2020

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This study aims to understand the role of Sharia Supervisors in the private Zakat Institution (LAZ) as well as other aspects of sharia compliance, such as Zakat fatwa on the perspective of Zakat officers. According to Decree of the Minister of Religion Number 333 / 2015 that LAZ as register must have a sharia supervisor. Sharia compliance of an institution could rely on the role of the sharia supervisory board (SSB). Some literature discussing this topic is still dominated study on Islamic financial institutions (IFIs), especially in Islamic Banks. Therefore this article will contribute to the body of knowledge, especially in the zakat literature. Data were gathered from five presiding officers of private zakat institutions in one province in Indonesia which consists of three presiding officers from provincial LAZ representative and two presiding officers from LAZ district. The study found that Sharia compliance in LAZ had many weaknesses such as lack of sharia control by sharia supervisors, a member of the sharia supervisory board who does not follow the latest issues about Zakat or the absence of competency requirements to be a sharia supervisor at LAZ and also did not make Zakat fatwa issued by MUI as the primary reference by zakat officer. This information will be useful for stakeholders, including supervisory authorities and regulators.

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Section: Introductionmentioning

confidence: 99%

Sharia Compliant in Private Zakat Institutions of Riau

Megawati

2020

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Sharia governance and organizational performance in zakat management organization: evidence from Indonesia

Zakiy,

Falikhatun,

Fauziah

2023

JIABR

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Purpose This paper aims to investigate the impact of sharia governance on organizational performance in zakat management institutions in Indonesia over the period 2017–2021. Design/methodology/approach This study examined 33 zakat management organizations in Indonesia from 2017 through 2021 for 151 observations. Gross allocation ratio and growth of ZIS collection are used as organizational performance measures. The independent variables in this study are board of director size, educational background of the board of directors, sharia supervisory board size, sharia supervisory expertise, supervisory size and management size. Also, the study uses size, age and audit opinion as control variables to help measure the relationship between sharia governance and organizational performance. Findings This study shows that the board of directors and supervisory size positively and significantly affect organizational performance. Then, the educational background of board of directors has a negative and significant effect on organizational performance. In Model 1, sharia supervisory board size has a positive and significant effect on organizational performance, but in Model 2, sharia supervisory board size does not. Meanwhile, sharia supervisory expertise and management board size do not affect organizational performance. Practical implications The findings in this study illustrate the importance of transparency in the zakat management organization. Transparency helps minimize conflicts of interest and information asymmetry in the zakat management organization. In addition, sharia governance mechanism helps regulators and top management to make effective policies to improve and enhance organizational performance. Social implications Sharia governance is essential for zakat management organizations to increase accountability, credibility and public trust and support the practice of zakat management organizations. Originality/value This study discusses sharia governance and organizational performance in socioreligious organizations, especially zakat management organizations, which are still rarely carried out. Thus, this study broadens the insights of sharia governance and highlights the importance of performance appraisal in zakat management organizations.

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A Review of Board of Director, Shariah Supervisory Board and Zakat Distribution Performance in Malaysia

Cited by 2 publications

References 14 publications

Sharia Compliant in Private Zakat Institutions of Riau

Sharia Compliant in Private Zakat Institutions of Riau

Sharia governance and organizational performance in zakat management organization: evidence from Indonesia

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