The Journal of Muamalat and Islamic Finance Research http://jmifr.usim.edu.my/index.php/jmifr <h1><img style="display: block; margin-left: auto; margin-right: auto;" src="/public/site/images/iqmal/homepageImage_en_US1.jpg"></h1> <p style="text-align: justify;"><strong><em>The Journal of Muamalat and Islamic Finance Research (JMIFR)</em></strong>&nbsp;is a fully refereed journal published biannually in June and December by the Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM). Its main objective is to provide a channel for the publication of articles, research notes, case studies and book reviews in Muamalat, Islamic Economics, Finance, Banking and its related fields. All article will follow a double-blind review by independent consulting editors. Articles are published in&nbsp;English, Malay and&nbsp;Arabic.&nbsp;JMIFR is indexed and abstracted in MyCite, MyJurnal, Index Islamicus, Al-Manhal, Crossref, OCLC WorldCat, Dimensions, ResearchBib, Asian Digital Library, Scientific Indexing Services and Google Scholar.</p> en-US <p>Copyright of the accepted articles will not remain with author(s). Prior to publication of accepted article, author(s) will be asked to assign copyright to the JMIFR. All published articles in the journal are copyrighted to the JMIFR.</p> mustafa@usim.edu.my (Prof. Dato' Dr. Mustafa Mohd Hanefah) chuyah@usim.edu.my (Dr. Supiah Salleh) Mon, 31 Dec 2018 00:00:00 +0000 OJS 3.1.1.4 http://blogs.law.harvard.edu/tech/rss 60 The Impact of Shariah Governance and Corporate Governance on the Risk Management Practices: Evidence from Local and Foreign Islamic Banks in Malaysia http://jmifr.usim.edu.my/index.php/jmifr/article/view/174 <p>The purpose of this study is to examine the impact of Shariah governance and corporate governance (CG) on the risk management practices (RMPs) of local Islamic banks and foreign Islamic banks operating in Malaysia. The Shariah governance comprises the Shariah review (SR) and Shariah audit (SA) variables. The study also evaluates the level of RMPs, CG, SR, and SA between these two type of banks. With the aid of SPSS version 20, the items for RMPs, CG, SR, and SA were subjected to principal component analysis (PCA). From the PCA, one component or factor was extracted each for the CG, SR, and RMPs while another two factors were extracted for the SA. Primary data was collected using a self-administered survey questionnaire. The questionnaire covers four aspects ; CG, SR, SA, and RMPs. The data received from the 300 usable questionnaires were subjected to correlation and regression analyses as well as an independent t-test. The result of correlation analysis shows that all the four variables have large positive correlations with each other indicating a strong and significant relationship between them. From the regression analysis undertaken, CG, SR, and SA together explained 52.3 percent of the RMPs and CG emerged as the most influential variable that impacts the RMPs. The independent t-test carried out shows that there were significant differences in the CG and SA between the local and foreign Islamic banks. However, there were no significant differences between the two types of the bank in relation to SR and RMPs. The study has contributed to the body of knowledge and is beneficial to academicians, industry players, regulators, and other stakeholders.</p> Sabri Embi, Zurina Shafii ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/174 Mon, 31 Dec 2018 00:00:00 +0000 Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC) http://jmifr.usim.edu.my/index.php/jmifr/article/view/175 <p>This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure in the annual reports of SIRC, indicating accountability of SIRCs. This paper used the self-developed disclosure index that applies specifically for SIRC. Multiple regression was used to examine the financial determinants of the extent and quality of disclosure. The result of the regression models revealed that the extent and quality of SIRC disclosure is influenced by organisational characteristic, namely size. This study suggests that disclosure in the annual report, in particular the non-financial performance, increases with the amount of zakat collection, thereby demonstrating SIRC’s responsibility. Next, the control variable of accessibility is found to be significantly related to financial statements. Obliged to produce financial statements, SIRC are more likely to disclose more information in the financial statements. This research finding has important implications for regulators, policy makers and top officials in SIRC, by monitoring the quality of disclosure, supporting the notion of public accountability, which appreciates the public’s right to get inform about SIRC. Despite the voluntary disclosure of a non-financial report, SIRC should consider producing a comprehensive annual report for the discharge of their accountability and thus, encourage more funding. They should be more transparent to enhance accessibility, concerning the extent and quality of the disclosure.</p> Rosnia Masruki, Khaled Hussainey, Doaa Aly ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/175 Mon, 31 Dec 2018 00:00:00 +0000 Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies http://jmifr.usim.edu.my/index.php/jmifr/article/view/176 <p>Corporate reporting is considered important because it provides information to assist internal and external corporate annual report users in making informed decisions. The high quality of financial reporting information is really significant, since employing this information can also lead to an increase in investment efficiency. Owners or shareholders need all necessary financial information for decision making. Nevertheless, even though they own the companies but the management is carried out by a pool of professionals – managers and directors. Thus, the directors set the directions and policies for the management team to run the company’s daily affairs. The separation between ownership and managers in firms leads to the agency problem between them. This study looks into the relationship between corporate governance characteristics (the size of the board of directors, the number of Shariah background directors, number of Muslim female in board, Muslim ownership structure) and value relevance of accounting information. Findings show a positive association between board size and value relevance of accounting information in Malaysian Shariah-compliant firms.&nbsp; However, there is not enough evidence to prove Shariah background members on board can enhance the value relevance of accounting information. Regarding the relationship between the presence of Muslim female directors in the board and the value relevance of accounting information, the results reveal insignificant relationship. The findings also indicate that companies with large Muslim ownership are negatively significant for value relevance of accounting information.</p> Abdelhakhem Hamed Mohamed Ali Adaa, Mustafa Mohd Hanefah ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/176 Mon, 31 Dec 2018 00:00:00 +0000 Mediating Effect of Organizational Commitment Between Islamic Human Resource Practices and Organizational Performance Among Islamic Banks of Bangladesh http://jmifr.usim.edu.my/index.php/jmifr/article/view/177 <p>This paper aims at exploring the impact of Islamic human resource (HR) practices on organizational performance though organizational commitment. Data were collected from randomly selected 170 branch managers of six Islamic Banks listed on Dhaka Stock Exchange of Bangladesh. After collecting data, descriptive analysis and structural equation model were done to examine reliability and validity of the model. By analysis, the study finds that Islamic HR practices have more significant impact on organizational performance though organizational commitment rather than the direct effect of Islamic HR practices to organizational performance. The findings of the study advocate that Islamic banks should emphasize more on Islamic HR practices and organizational commitment to uphold their organizational performance.</p> Bablu Kumar Dhar, Rosnia Masruki, Mahazan Mutalib, Hatem Mohammed Rahouma, Farid A. Sobhani, Mir Mohammed Nurul Absar ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/177 Mon, 31 Dec 2018 00:00:00 +0000 An Empirical Study on Awqaf Endowers’ Perception: Imperatives for Awqaf Institutions’ Success http://jmifr.usim.edu.my/index.php/jmifr/article/view/178 <p>The success of <em>awqaf</em> institutions are determined by many factors, among others is good feedback from the endowers either from their contribution or repeat endowing. This study investigates the perception of endowers to endow and factors motivating them to repeat endowing in ensuring <em>waqf</em> institution success among 366 respondents in 2014. The study employs two models of multiple linear regression analysis. The first model examines the determinant factors influencing the intention to endow whereas the second model investigates internal and external factors influencing the intention to repeated <em>waqf </em>endowment in future. The findings show integrity of <em>waqf</em> institution, religious obligation and access to cash <em>waqf</em> have significant contribution to the endower’s perception to endow cash <em>waqf</em>. Meanwhile, repeated cash <em>waqf</em> behavior will take place if endowers are familiar with <em>waqf</em> institutions and have easy access to cash <em>waqf</em> as these two variables are significantly related to dependent variable. Thus, in order to motivate endowers to repeat cash <em>waqf </em>behavior, continuous promotion to create familiarity together with easy access to cash <em>waqf</em> are vital to encourage repeated charitable behavior.</p> Fuadah Johari, Nursilah Ahmad, Mohammad Haji Alias, Syadiyah Abdul Shukor, Kalsom Abd Wahab, Muhammad Ridhwan Ab. Aziz, Zurina Kefeli @ Zulkefli, Nor Masitah Mohd Orip, Fauzi Abu Hussin, Patmawati Ibrahim ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/178 Mon, 31 Dec 2018 00:00:00 +0000 Case Study: Qayz Holdings (M) Sdn Bhd http://jmifr.usim.edu.my/index.php/jmifr/article/view/179 <p>This case is about a few small business enterprises in the construction industry that were operating in one of the district in Selangor. In their regular acquaintance in the district, the five owners decided to jointly set up a holding company, with 5 subsidiaries, and the fifth one being the new brick manufacturing plant (churning out interlocking bricks). Most of them had not being formally trained in business. They faced some difficulties in the management of a holding company where they had to be more aware of what is required of being Board members and managing the subsidiaries. They are now jointly responsible not only for their own subsidiary but also the others under the Holding structure. With the new interlocking brick manufacturing factory, life had become a bit more challenging and this case reflects the difficulty of working as board members and managing the 5 subsidiaries. While they had climbed into a higher level of technology usage (IBS as compared to the normal brick and mortar technology), their management was still individualistic in nature and this case will demonstrate these common weaknesses through the financial problems that they had to endure.</p> Akmal Hakim, Zainal Abidin Mohamed ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/179 Mon, 31 Dec 2018 00:00:00 +0000 Pengurusan Pendapatan Tidak Patuh Syariah di Bank Muamalat Malaysia Berhad http://jmifr.usim.edu.my/index.php/jmifr/article/view/180 <p>Pendapatan tidak patuh Syariah merupakan istilah baharu dalam kontek sistem kewangan dan perbankan Islam di Malaysia. Pendapatan tidak patuh Syariah merujuk kepada apa-apa jenis harta yang diperolehi hasil daripada transaksi yang bertentangan dengan syariat Islam seperti riba, judi dan rasuah, atau kerana percampuran antara aktiviti yang dibenarkan oleh syarak dengan yang sebaliknya. Sesuatu isu Syariah yang dilaporkan akan melalui beberapa proses sebelum ianya disahkan sebagai tidak patuh Syariah sebenar atau sebaliknya oleh Jawatankuasa Syariah institusi kewangan Islam (IKI). Sekiranya isu yang dilapor dan disahkan sebagai tidak patuh Syariah yang sebenar oleh Jawatankuasa Syariah serta melibatkan kerugian kewangan, IKI perlu menyalurkan pendapatan tersebut kepada badan-badan kebajikan untuk kegunaan umum. Kajian ini bertujuan untuk mengkaji kaedah pelaporan, kejadian, pendapatan serta pengurusan pendapatan tidak patuh Syariah di Bank Muamalat Malaysia Berhad (BMMB). Data kajian diperoleh daripada sumber primer seperti wawancara dengan pegawai BMMB. Di samping itu, dokumen polisi Bank Negara Malaysia (BNM) turut digunakan sebagai garis panduan utama yang menjadi penanda aras dalam menentukan sesuatu kejadian tidak patuh Syariah.</p> Muhamad Fadli Abdullah, Azizi Che Seman ##submission.copyrightStatement## http://creativecommons.org/licenses/by-nc/4.0 http://jmifr.usim.edu.my/index.php/jmifr/article/view/180 Mon, 31 Dec 2018 00:00:00 +0000