Screening and performance of shariah-compliant companies

Rashid, Mamunur; Saw, Andrew Tek Wei

doi:10.4324/9781351061506-1

Cited by 2 publications

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“…The association between a shared investment system and the total number of unit trusts can be seen in the most recent statistics (Nathie, 2008). The total asset allocation, including Shariah, was RM629.93 billion on December 31, 2014; however, only RM150.6 billion was allocated to Shariah (Rashid, 2005). The Islamic Units in Circulation as of 30 November 2017 in Malaysia were 146.309 billion units out of 558.978 billion units, and the NAV was RM75.835 billion (MUTI, 2017).…”

Section: Introductionmentioning

confidence: 99%

A Correlation Analysis of Knowledge, Experience, Religious Belief, and Behavior of Malaysian EPF Investors Towards Investing in Islamic and Conventional Unit Trusts

Hasnat,

Islam,

Rahimi

et al. 2024

TUJISE

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The objective of the study is to examine the relationship between knowledge, religiosity and experience, and the behavior of employee provident fund (EPF) investors investing in Islamic and conventional unit trusts. The variables are extracted from the literature to achieve the objective. Additionally, 125 valid responses were composed through surveys of Malaysian government and private employees. The Statistical Package for Social Sciences has been applied to analyze the collected data, using correlation analysis techniques. This research found that knowledge about Islamic unit trusts and religious beliefs have a positive significant relationship with the EPF investors’ behavior of investing in Islamic unit trusts. Moreover, the experience of investing in Islamic and conventional unit trusts is also positively and significantly associated with the EPF investors’ behavior of investing in Islamic and conventional unit trusts, respectively. As research in this area is insufficient, this study will play a vital role for the unit trust industry in exploiting the financial strategies that are highly and positively observed by Malaysian EPF investors.

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Section: Introductionmentioning

confidence: 99%

A Correlation Analysis of Knowledge, Experience, Religious Belief, and Behavior of Malaysian EPF Investors Towards Investing in Islamic and Conventional Unit Trusts

Hasnat,

Islam,

Rahimi

et al. 2024

TUJISE

View full text Add to dashboard Cite

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Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia

Ramachandran,

Hidajat,

Izadi

et al. 2024

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PurposeThis study investigates the influence of corporate income tax on two corporate financial decisions — dividend and capital structure policies, particularly for Shariah compliant companies in Malaysia.Design/methodology/approachThe study considered data from a sample of 529 Malaysian listed companies from four industrial sectors from 2007–2021 (6,746 company-year observations, before eliminating outliers). Panel models such as Fixed Effect and Random effect models were used. The study specifically tested the effect of corporate income tax on dividend and capital structure policies for Shariah compliant companies (3,148 observations) and controlled for industrial sectors.Findings(1) Firms are mostly Shariah-compliant, less liquid, less profitable and smaller in size, (2) Broadly when analysed together, tax has no impact on debt-equity ratio while it has an impact on dividend per share, (3) However, when tested separately for Shariah compliant companies, the influence of effective tax on capital structure is very evident but not for dividend and (4) influence of industrial sector on the relationship between corporate tax and capital structure and dividend policy is significant. Results indicate that Shariah firms might be raising debt to gain tax advantage. Companies in general pay dividends to avoid reputational damage.Research limitations/implicationsThis study assumes that leverage and dividend policy decisions are the main outcomes of the changing tax policies, while it seems that there could be other important outcomes that can be tested in future research. The study also shows the changing tax regimes of different ASEAN countries but they have not been tested to see the differences between countries. It will be indeed interesting for future researchers to focus on this aspect.Originality/valueThe findings contribute to the literature on tax planning of the Shariah-compliant firms, a high growth business segment in the Asian context. The study discussed potential tax-based Islamic market product development.

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Screening and performance of shariah-compliant companies

Cited by 2 publications

References 1 publication

A Correlation Analysis of Knowledge, Experience, Religious Belief, and Behavior of Malaysian EPF Investors Towards Investing in Islamic and Conventional Unit Trusts

A Correlation Analysis of Knowledge, Experience, Religious Belief, and Behavior of Malaysian EPF Investors Towards Investing in Islamic and Conventional Unit Trusts

Corporate tax policy, Shariah compliance and financial decisions: evidence from Malaysia

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