- Journal Article
Authors: M. Kabir Hassan; Aishath Muneeza; Mustapha Abubakar; Muhammad Auwalu Haruna (2021) - Finance industry has become an essential part of the digital transformation in the perspective of Industry 4.0. The objective of this research is to find out the prospects of applying precious metal-backed cryptocurrency (PMBC) to Islamic finance by exploring its application to the different Islamic finance contracts for structuring Islamic finance products. A qualitative methodology is employed in conducting this research where relevant literature on the subject matter was reviewed. By using doctrinal approach, the paper presents Shari'ah compatibility of and issues in application of PMBC to Islamic finance contracts. The outcome of the research reveals that there is scope to use PMB...
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- Journal Article
Authors: Mastura Abdul Karim; M. Kabir Hassan; Taufiq Hassan; Shamsher Mohamad Ramadili Mohd (2014) - Capital adequacy plays an important role in determining banking activities. A bank must hold a minimum level of capital to ensure sufficient funds to buffer against unexpected losses or adverse shocks. This study analyzes and compares Islamic and conventional banks in 14 Organization of Islamic Conference (OIC) countries from 1999 to 2009. The empirical evidence suggests that capital requirements have a significant impact on the deposit and lending behaviors of the 52 Islamic banks (IBs) and 186 conventional banks (CBs) in the sample. There is a strong positive relationship between capital requirements and deposit and loan growth for both IBs and CBs
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- Journal Article
Authors: M. Kabir Hassan; Mohammad Sydul Karim; Aishath Muneeza (2020) - The contention surrounding bitcoin's acceptability and usage has an unsettled premise in both conventional and Shari'ah law, although digital and cryptocurrencies reflect a lasting reality. This research analyses this contention by examining the concept of currency and/or money and the underpinning trust reposed on its issuing authority against the notion that cryptocurrencies and fiat money differ only in form but share the same substance and purport. Qualitative methodology provides an analysis from conventional as well as Shari'ah viewpoints to examine the extent cryptocurrencies can gain admittance in contemporary conventional and Islamic finance and economy. The methodology entai...
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- Book
Authors: M. Kabir Hassan; Aishath Muneeza (2022) - The objective of this element is to provide an overview of Islamic finance by highlighting the impact of the pandemic on it in a comprehensive manner by looking at two branches of Islamic finance: Islamic commercial finance; and Islamic social finance. The approach that is adopted in this element is to first provide an overview of Islamic finance to the readers in a simple and easy manner followed by the impact of pandemic discussed separately for both types of Islamic finance. Last, but not least, the element also recommends ways in which Islamic finance could be further improved in the light of the lessons learnt from the pandemic. It is anticipated that the recommendations made in ...
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- Book
Authors: M. Kabir Hassan; Aishath Muneeza; Adel M. Sarea (2021) - It is said that the COVID-19 pandemic has turned back the poverty clock. As such, there is a need to have social mechanisms put in place to provide relief to those who are affected in this regard. Islamic social finance consists of tools and institutions that could be used to alleviate poverty. This book explores the impact of COVID-19 on Islamic finance to better understand the effectiveness of Islamic social finance in helping those who have been affected by poverty overnight due to the halt in all major economic activities in the context of the pandemic. Since the struggle against poverty in each country will be different, the book attempts to shed light on the experiences of diffe...
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- Journal Article
Authors: Zaheer Anwer; Shamsher Mohamad Ramadili Mohd; Andrea Paltrinieri; M. Kabir Hassan (2021) - This paper investigates the effects of religious screening on payout behavior of US firms. Shariah compliant (SC) indices serve as suitable sample as they are emerging as alternative investment class in the last two decades. Through an analysis of a sample of US firms belonging to Dow Jones proprietary database for the period 2006-2018, this study provides evidence that SC firms are more prone to make total payout, cash dividends and repurchases. We use panel logistic regressions with industry and year fixed effects. The findings reveal that the drivers of higher propensity of total payout are higher profitability, higher retained earnings, lower debt capital structure and lower asset...
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- Chapter in Book
Authors: Zaheer Anwer; Shamsher Mohamad Ramadili Mohd; Mohamed Eskandar Shah Mohd Rasid; M. Kabir Hassan; Andrea Paltrinieri (2019) - Capital structure serves as an important device for mitigation of agency conflicts and, although firms combine debt and cash dividends to address the agency conflicts, debt is preferred as a bonding device by many managers due to its lower cost as compared to equity (John, Knyazeva & Knyazeva, 2015). However, shariah-compliant firms (SCF) cannot use this device due to prohibition of interest-bearing loans in Islam. In this scenario, the dividend payout policy becomes a highly important tool of corporate governance for shariah-compliant investors. Moreover, the managers of these firms cannot maintain stable dividends by issuing bonds and, therefore, the dividend policy of such firms wo...
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- Journal Article
Authors: Nai Chiek Aik; M. Kabir Hassan; Taufiq Hassan; Shamsher Mohamad Ramadili Mohd (2015) - This article examines the value-added phenomenon of Malaysian horizontal merger and acquisition activities (M&A) in the long run for the period 1994–2010. In this regard, this article used economic value-added (EVA) approach and cost-efficiency approach (stochastic frontier analysis (SFA)) to investigate synergistic benefits. The findings suggest that bidder firms experience no significant improvement in operating and financial efficiencies in the long run. Specifically, the operating performance of bidder firms deteriorated after the merger exercise, whereas the target firms had no significant improvement in operating performance over the same period. In summary, the findings suggest...
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- Chapter in Book
Authors: M. Kabir Hassan; Aishath Muneeza; Adel M. Sarea (2021) - COVID-19 is considered by some as a 'black swan event', which is a pandemic that is unpredictable, unprepared for, and totally spontaneous (Gubler, 2020). This pandemic is different from four other recent pandemics the world has witnessed within the last 25 years (Gubler, 2020) as its impact has created not only a health crisis, but has led to an economic as well as human crisis brought due to a halt in all major economic activities in the world. The impact of COVID-19 on the sudden increase of poverty is uncontainable. By 12 March 2020, the World Health Organization (WHO) declared COVID-19 a pandemic, as, since December 2019, the disease had been spreading worldwide, putting the worl...
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- Chapter in Book
Authors: M. Kabir Hassan; Aishath Muneeza; Adel M. Sarea (2022) - This chapter explores the impact of the pandemic on Islamic commercial finance and Islamic social finance in a comprehensive manner. The chapter reveals that COVID-19 has provided more opportunities to Islamic social finance than Islamic commercial finance. The beauty of Islamic finance in this regard is reflected as the perception that Islamic finance does not achieve its objective as being a social finance is proved to be false as Islamic finance not only promotes profit maximization, but it has also the potential to achieve social objectives. Islamic commercial finance developments could be slower, but it is anticipated that Islamic social modes of financing will be used widely eve...
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- Chapter in Book
Authors: Jemilah Mahmood; M. Kabir Hassan; Aishath Muneeza (2022) - Zakat is an effective Islamic social financial tool that could be used to eliminate global poverty. The pandemic has turned back the world's poverty clock and as such, more work is required to bring equitable and shared prosperity to the world. International organizations that serve humanity could be used as intermediaries of zakat to reach out to those categories of legal recipients of zakat who are most deserved of such assistance, but who are unidentified and unreachable by the zakat organizations. This is with the ultimate objective of enhancing the effectivity of zakat as a social finance tool. However, using international organizations as zakat intermediaries is not a straightfo...
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- Journal Article
Authors: Adesina-Uthman Ganiyat Adejoke; Taufiq Hassan; Shamsher Mohamad Ramadili Mohd; M. Kabir Hassan (2013) - Decomposition of yield curves is important for pricing of fixed income instruments, inflation management, and modeling term structure of interest rates. Therefore, this study investigates whether the long term profit rate of different classes of Sukuk (Islamic bond) is a viable predictor of future spot profit rates. Data on Malaysian Sukuk from 2001-2010 was used to estimate yield curves and forward rates. Regression findings suggest that the forward rate is a weak predictor of future spot profit rate, implying long term profit rates are not average of future spot rate s on long term Sukuk. The findings do not support the expectation hypothesis. However, comparison with securities of ...
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- Journal Article
Authors: M. Kabir Hassan; Tahsin Huq; Aishath Muneeza (2022) - Islamic finance is an alternative source of financing to the conventional financing that emerged via institutionalization in the 1960s. It has gained popularity in the world irrespective of faith convictions due to the universal and ethical principles adhered in the practice of it. In this regard, North America is not an exception. In the United States and Canada, Islamic finance has been adopted, and there is an established regulatory environment for the operation of it with political support. There is also a wide range of innovative Islamic finance products structured and used in this part of the world that is conducive to the demand of the population and regulatory environment of I...
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- Journal Article
Authors: M. Kabir Hassan; Aishath Muneeza; Zakariya Mustapha (2021) - This research investigates how Islamic banking institutions control default cases and the mechanisms they employ in handling such cases with reference to Malaysian Islamic banking regime. It was conducted on an exploratory design that employed doctrinal approach. Data were sourced from relevant statutes, regulatory guidelines, policy documents and established practices among Islamic banking institutions as well as academic texts that pertain to default cases. The data were examined with legal reasoning and qualitative analysis. The research finds that Islamic banks are prone to default cases and provide internal and external mechanisms to handle such cases in their operations. Though ...
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- Chapter in Book
Authors: M. Kabir Hassan; Aishath Muneeza; Mehmet Sarac (2021) - The history of Islamic finance began with the inception of Islam in the world. However, the modern institutionalization of Islamic finance began in the 1960s with the establishement of the first Islamic bank, Mit Ghamr in Egypt in 1963. prior to this, Islamic finance was practices in isolation at an informal level in communities where Muslims wanted to practice muamalat or commercial matters in accordance with Islamic law. These ad hoc practices were customized as pert the requirement of the societies and the benefits from these practices were enjoyed by Muslims of selected communities. When institutionalization of Islamic began, the compatibility of it with the conventional financial...
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- Chapter in Book
Authors: M. Kabir Hassan; Saeed Awadh Bin-Nashwan; Aishath Muneeza (2022) - COVID-19 is a pandemic that is a black swan event that has disrupted the economic activities in the whole world. Organization for Islamic Cooperation (OIC) is the second largest international organization that unites Muslims to collectively protect their interest by having a global platform to voice out their concerns. This is an exploratory research of which the objective is to understand the implication of this pandemic on OIC countries to suggest ways in which pandemic related economic challenges facing these countries could be resolved. This research identifies four key economic challenges faced by the OIC countries: challenges in adapting to new normal in in re-starting the econo...
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- Chapter in Book
Authors: M. Kabir Hassan; Aishath Muneeza; Ashraf Khan (2021) - Islamic economics and finance derived its axioms from Shariah. Irrespective of the faith convictions, Islamic economics and finance has gained momentum in the world today. It is reported that by 2024, the global Islamic finance industry assets will reach USD$3.69 trillion and in 2019, it is estimated that Muslims have spent USD$2.02 trillion on halal sectors inspired by ethical consumption needs while it is anticipated that by 2024, this amount will reach to USD$2.4 trillion at a five-yaer cumulative annual growth rate of 3.1% (Dinar Standard, 2020). It is also forecasted that there will be 8% decrease in global Muslim spending in 2020 due to pandemic on sectors covered by report publ...
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- Academic Presentation
Authors: Aishath Muneeza; M. Kabir Hassan (2021) - These are the slides presented by Associate Professor Dr. Aishath Muneeza entitled "The role of technology in effective distribution of zakat to poor and needy" at the International Conference on Islamic Finance (ICIF) 2021, Doha, Qatar.
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- Journal Article
Authors: Saeed Awadh Bin-Nashwan; M. Kabir Hassan; Aishath Muneeza (2022) - While the world is yet to fully recuperate from the social and economic repercussions of COVID-19, the Russia-Ukraine conflict poses another major threat causing a humanitarian crisis and economic shock. Although the 2030 Agenda for Sustainable Development Goals (SDGs) and its pledge to "leave no one behind" is a universal commitment to protect the livelihoods of vulnerable groups, the Russia-Ukraine ongoing conflict is causing immense suffering and a gloomy future for the 2030 Agenda. The purpose of this study is to provide a holistic understanding of the ramifications of the Russia-Ukraine war in SDGs progress around the world. Further, the authors shed light on how stakeholders can...
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- Journal Article
Authors: Poi Hun Sun; M. Kabir Hassan; Taufiq Hassan; Shamsher Mohamad Ramadili Mohd (2014) - This article focuses on the short- and long-term assets and liabilities gap and the determinants of net interest/profit margins of both conventional banks and Islamic banks in the Organization of Islamic Cooperation countries over the period from 1997 to 2010. The results show that both conventional and Islamic banks have negative short-term gaps and positive long-term gaps. These indicate that banks use short-term deposits and funding to finance long-term loans, advances and investments, taking into consideration refinancing and reinvestment risks. The findings also show that operating cost is a significant determinant of bank margins and important factor to improve quality of manage...
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