A survey on Islamic Finance and accounting standards

Hassan, M. Kabir; Aliyu, Sirajo; Huda, Miftachul; Rashid, Mamunur

doi:10.1016/j.bir.2019.07.006

Cited by 65 publications

(52 citation statements)

References 25 publications

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“…The implementation of Shariah compliance is supported by the Shariah internal auditors to ensure that the SSB's decisions are appropriately carried out. The UAE recently introduced the role of external Shariah auditors to independently confirm Shariah compliance [21]. As decisions are made in the context of novel products and situations, the different layers provide an opportunity for interaction and dialogue.…”

Section: Methodsmentioning

confidence: 99%

M&A Open Innovation, and Its Obstacle: A Case Study on GCC Region

Bindabel

2020

Journal of Open Innovation: Technology, Market, and Complexity

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Considering the effective growth in challenges and an urge in establishment for sustainable business, companies trading globally are inclined towards the implementation of highly efficient cross-border reallocations of revolving capital. The prominent objective of this research paper is therefore the clear identification of the active key attributes and specifications of all strategic measures for efficient sustainable cross-border mergers and acquisitions (M&As) of the Islamic companies in the Gulf region that are keen to engage with the non-Islamic companies across the globe. This paper also explores the paradigm of culture, in its different manifestations, it was and still is a primary factor of creativity. This study also focuses on building some better understanding of the role of "Culture for Open Innovation Dynamics." Initially, since the need to interpret community, that can also influence the dynamics of open innovation, has sharply increased, the research addresses open innovation dynamics and its significant concerns related to cross border mergers and cross culture ventures of firms and organizations. The researcher purposively selected 15 financial institutions from the selected Gulf Cooperation Council (GCC) countries. Semi-structured interviews were conducted with 40 key individuals including Board of Directors (BOD) members, lawyers and the Shariah scholars involved with three Islamic banks and two Islamic insurance companies in GCC. The findings indicate a consensus among the respondents regarding how the Shariah corporate governance principles can present barriers for cross-border M&As. Key obstacles to the success of cross-border M&As between the Islamic and the non-Islamic companies include the Shariah compliance, weak systems of disclosure, dependency, corruption in compliance, having family members on the Board, weakened communication with external auditors, different interpretations of Shariah by different scholars and a lack of alternative Islamic financial instruments. The comprehensive research in this paper fills the research gap by specifying the key attributes of considering the future implementation and management of M&As in broader scopes.

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Section: Methodsmentioning

confidence: 99%

M&A Open Innovation, and Its Obstacle: A Case Study on GCC Region

Bindabel

2020

Journal of Open Innovation: Technology, Market, and Complexity

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“…Therefore, even though the current model of Islamic banking is found to cause economic growth in Malaysia (Majid and Kassim, 2015), the PLS system faces opposing quarters. Islamic banks find PLS system difficult to implement because of higher operating cost involved, limited human expertise to manage business as partners and a heightened competition from much easier conventional banking system (Hassan et al, 2019b). Consequently, PLS is found to be a miniature part of the overall ethical identity of Islamic banks globally (Hassan et al, 2019c;Haniffa and Hudaib, 2007;Rashid and Hassan, 2014;Rashid et al, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Choice of Indonesia is pushed forward by its phenomenal performance in global Islamic finance development (IFSB, 2020). Despite knowing the fact that PLS is difficult to implement because of several operational inconveniences, studies on the choice and sacrifice of PLS are limited (Hassan et al, 2019b;Imronudin and Hussain, 2016). Several bank (institutional), system and market (consumer) related factors are found to be responsible for lower acceptance/use of PLS-based contract (Ascarya, 2013).…”

Section: Introductionmentioning

confidence: 99%

Governance of profit and loss sharing financing in achieving socio-economic justice

Yaya

Saud

Hassan

et al. 2021

JIABR

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Purpose This study aims to explore the governance practices of profit and loss sharing (PLS) financing in connection to the socio-economic development objective of the Islamic financial institutions (IFIs). Design/methodology/approach The study context included IFIs from Yogyakarta, Indonesia. A two-stage research methodology was used. In the first stage, top ten IFIs – three Islamic commercial banks, three Islamic rural banks and four Islamic micro finance institutions – were considered for in-depth interviews. Formal interview protocol was followed to record and transcribe interviews. In the second stage, a questionnaire survey considered 26 IFIs. Unit of measurement was individuals working at the mid and top level from the selected organisations. Findings The governance process of providing and managing PLS financing involves several critical factors, such as the financing duration, instalment timing, contract approval and cost, basis of sharing, risk management, customer empowerment and Sharīʿah compliance. Contrary to the existing belief, the authors found that PLS financing is primarily available for shorter period of time (three years) and it is unavailable for start-ups. Also, newer IFIs rely less on PLS financing than the older IFIs. In addition to worrying about the higher risk of return, IFIs considered government regulation on PLS to be tighter in terms of provision and rescheduling. Research limitations/implications This study is limited to investigating IFIs in Yogyakarta, Indonesia. This limitation is covered by taking samples from three types of IFIs. Practical implications For IFI practitioners, these findings are expected to improve their confidence in undertaking more progressive efforts in adopting governance policies that contribute to greater socio-economic justice. Social implications If the governance good practices are implemented by all IFIs, a higher degree of social welfare and customer awareness can be achieved. Originality/value Across all types of IFIs, this study’s results confirm that PLS is less preferred for long-term and start-up financing. These findings should be the ingredients to push research on PLS further, as these findings grossly violate the theory. Fulfilling these gaps could strengthen the nexus between PLS and socio-economic justice.

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“…Thus, the burden on the lives of needy and poor people will only disappear temporarily and subsequently will return to poverty (Ambrose et al, 2015;Aufseeser, 2020;Baloch et al, 2020;Hassan et al, 2019;Hassan & Aliyu, 2018;Heyneman & Lee, 2016;Imam & Kpodar, 2016;Jaime-Castillo et al, 2016).…”

Section: 1mentioning

confidence: 99%

The Other Side of Zakat in Poverty Reduction: A Phenomenology Study

2020

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This study aims to understand the phenomenon of zakat given to Mustahiq. The Mustahiq uses the zakat to increase income through business development so that it can reduce poverty. The research method used is qualitative using a phenomenology approach. This study interviewed three informants who received zakat. The results of this study reveal that zakat has a different spiritual value from taxes. When zakat is distibuted, it can increase the income of the grantees. BAZNAS management system must be carried out in a professional, transparent and accountable manner and aims at eradicating poverty and unemployment in Palu with a cultural approach based on faith. Besides, it helps the poor in community. One of the goals is to create some of muzakki and awareness of helping each other.

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A survey on Islamic Finance and accounting standards

Cited by 65 publications

References 25 publications

M&A Open Innovation, and Its Obstacle: A Case Study on GCC Region

M&A Open Innovation, and Its Obstacle: A Case Study on GCC Region

Governance of profit and loss sharing financing in achieving socio-economic justice

The Other Side of Zakat in Poverty Reduction: A Phenomenology Study

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