Browsing by Issue Date

Jump to a point in the index:
Showing results 1 to 20 of 1217
  • impact_social_environmental_sustainability_esma et al.pdf.jpg
  • Journal Article


  • Authors: Nizam, Esma; Ng, Adam Boon Ka; Dewandaru, Ginanjar; Nagayev, Ruslan; Nkoba, Malik Abdul Rahman (2019)

  • While there is ample evidence that non-financial firms' financial performance and social and environmental performance are related, evidence for the banking sector remains limited and inconclusive. This paper examines the impact of access to finance and environmental financing on the financial performance of the banking sector globally. Based on cross-sectional linear regressions and non-linear threshold regressions of 713 banks from 75 countries over the period 2013-2015, we find that access to finance has significantly positive effects on banks' financial performance in most estimation models controlling for both bank-specific and macroeconomic variables. The positive impact on fina...

  • structural changes_competition_and_bank_stability_Mansor et al.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Salim, Kinan; Abojeib, Moutaz; Lau, Wee Yeap (2019)

  • This paper assesses Malaysia's competition landscape and its risk implications subsequent to conventional banking consolidation and Islamic banking penetration in the aftermath of the 1997/1998 Asian financial crisis. Employing a panel sample of conventional and Islamic commercial banks, it arrives at the following conclusions. First, the consolidation exercise, which has led to a significant reduction in the number of domestic commercial banks, has not stifled banking competition. Second, the paper provides empirical support for the competition-stability relationship, particularly for the conventional banking sector. Islamic banking sector risk appears to be neutral to market competi...

  • Waqf_shares_a_fundraising_scheme_for_community_development_projects_and_humanitarian_magda.PDF.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2018)

  • The waqf-share scheme is a 21st century Islamic social finance tool that has been used successfully in Muslim and Muslim-minority countries (Cizakca, 2000). It is a fundraising scheme organized by a charitable institution that issues "waqf-shares" for sale to different contributors for various projects. Since a waqf-share is a movable waqf, it has to follow the strict conditions of waqf in terms of its irrevocability, its inalienability, and its perpetuity. This means that contributors cannot sell or transfer their waqf shares; they can only receive and hold a waqf-share certificate as evidence of theircontributions to the project if the created waqf is public waqf.

  • Musharakah Mutanaqisah home financing_alam_zulkarnain_zaher_shinaj_shamsher.pdf.jpg
  • Journal Article


  • Authors: Asadov, Alam; Muhamad Sori, Zulkarnain; Anwer, Zaher; Shamsudheen, Shinaj Valangattil; Ramadili Mohd, Shamsher Mohamad (2018)

  • Musharakah mutanaqisah (MM) mode of Islamic financing purchase of an asset, where the bank and customer enter into a contract of joint property ownership and the customer's ownership of the asset gradually increases throughout the financing period and fully own the asset after the last financial settlement. This mode of financing was introduced to mitigate the issue of unequal risk burden of conventional mortgage financing, where the bank just provide the financing and the customer bears all risk. MM financing reflects a true partnership contract through sharing of risk and reward between both parties. Though the MM mode of financing has the salient features to address the flaws of co...

  • statistical_field_theory_of_futures_commodity_prices_Belal_Miao.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Miao, Yu (2018)

  • The statistical theory of commodity prices has been formulated by Baaquie (2013). Further empirical studies of single (Baaquie et al., 2015) and multiple commodity prices (Baaquie et al., 2016) have provided strong evidence in support the primary assumptions of the statistical formulation. In this paper, the model for spot prices (Baaquie, 2013) is extended to model futures commodity prices using a statistical field theory of futures commodity prices. The futures prices are modeled as a two dimensional statistical field and a nonlinear Lagrangian is postulated. Empirical studies provide clear evidence in support of the model, with many nontrivial features of the model finding unexpec...

  • risky_forward_interest_rates_and_swaptions_Belal_Miao_Jitendra.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Miao, Yu; Bhanap, Jitendra (2018)

  • Risk free forward interest rates (Diebold and Li, 2006 [1]; Jamshidian, 1991 [2]) and their realization by US Treasury bonds as the leading exemplar have been studied extensively. In Baaquie (2010), models of risk free bonds and their forward interest rates based on the quantum field theoretic formulation of the risk free forward interest rates have been discussed, including the empirical evidence supporting these models. The quantum finance formulation of risk free forward interest rates is extended to the case of risky forward interest rates. The examples of the Singapore and Malaysian forward interest rates are used as specific cases. The main feature of the quantum finance model i...

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...

  • chapter 13_managing the Malaysian economy after GE 2008_Ariff.jpg.jpg
  • Chapter in Book


  • Authors: Lopez, Greg; Abdul Kareem, Mohamed Ariff (2018)

  • On 8 March 2008 (GE 2008) Malaysians unexpectedly delivered a stunning blow to Malaysia's long-standing ruling coalition, Barisan Nasional (BN), at the twelfth general election. Although it won the election, BN lost its psychologically important two-thirds majority in parliament which allows it to change the Federal Constitution at will. The blow was all the more devastating as the Anwar Ibrahim-led informal coalition of Parti Keadilan Rakyat (PKR/People's Iustice Party), Democratic Action Party (DAP) and Parti Se-Islam Malaysia (PAS/Pan Islamic Party of Malaysia) managed to form state governments in almost all states in the developed western parts of Peninsular Malaysia with citizens...

  • accounting_for_leasing_zulkarnain_shamsher.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain; Ramadili Mohd, Shamsher Mohamad (2018)

  • This case was developed based on a real-life experience dealing with an Islamic car financing contract (i.e. Al-ljarah Thumma Al-Bay |AITAB] contract - Sale and Leaseback) between a Malaysian Islamic Financial Institution and their customer. It is well recognised that AITAB is governed by the Malaysian Hire Purchase Act 1967, that oversees conventional (nor Islamic) car financing, yet it is used for both financing modes. The contract requires clarification on the following: understanding of the nature of the contract used and the relevant transactions involved; revenue recognition (current and future); capitalisation of relevant costs in the asset's value; fair value of leased asset; ...

  • accounting_for_the_property acquisition_zulkarnain.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain (2018)

  • This case was developed based on a real-life experience related to an lslamic equity home financing contract (ie. Musharakah Mutanaqisah) between a Malaysian Islamic Bank and their customer. The Musharakah Mutanaqisah (MM) Financing mode has gained popularity in house financing in Malaysia, where the bank and customer enter into a contract of joint property ownership and the customer's ownership of the asset gradually increases throughout the financing period and fully owns the asset after the last financial settlement. This case aims to: illustrate the process of property acquisition using the MM financing mode; account the various transactions involved in MM financing; account capit...

  • accounting_for_Islamic_financial_transactions_zulkarnain.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain (2018)

  • This hypothetical case study was developed based on the financial statements of Bahrain Islamic Bank and Bank Islam Malaysia Berhad. The banks were registered in two different countries namely Bahrain and Malaysia that adopted Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and International Financial Reporting Standards (IFRS) (the standards are locally adopted and named as Malaysian Financial Reporting Standards (MFRS)) issued by International Accounting Standards Board (IASB) respectively. The key issues explored in this case are: the motivation for recording and reporting Islamic financial transact...

  • Chinese_dynasties_and_modern_China_unification_and_fragmentation_belal_qing.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Qing-hai, Wang (2018)

  • The history of China is briefly reviewed to ascertain the features that are common to the various dynasties. Our study shows that China has repeatedly gone through a historical phase of fragmentation and a historical phase of unification. In our view, the single most important factor in the unity, stability and longevity of a dynasty is the system for determining the succession of the emperor. Given the vastly changed circumstances of the present era, we discuss the relevance of China's historical pattern of fragmentation and unification. The contemporary rise of China is shown to follow a pattern that is similar to the case of many previous dynasties. A few tentative predictions are ...

  • Nonfinancial_traits_and_financial_smartness_wajahat_shamsher_eskandar.pdf.jpg
  • Journal Article


  • Authors: Naeem Azmi, Choudhari Wajahat; Ramadili Mohd, Shamsher Mohamad; Mohd Rasid, Mohamed Eskandar Shah (2018)

  • This paper examines the flow-performance relationship and the presence of "Smart money effect" in Socially responsible funds (SRFs) and Shariah compliant funds (SCFs). A survivorship bias free sample of 686 funds comprising of 212 SCFs and 474 SRFs were analysed with investment focus in the Asia pacific, Emerging markets, Europe, Global (with no focus to any specific country or region), Middle East and North Africa (MENA) and North America. The findings show that flow-performance relationship is asymmetric for both the funds as the response to positive returns is more as compare to the negative returns for the last/current year as well as the last/current month. There is also a signif...

  • Efficiency_and_bank_margins_a_comparative_analysis_of_Islamic_and_conventional_banks_in_Yemen_fekri_et_al.pdf.jpg
  • Journal Article


  • Authors: Shawtari, Fekri Ali; Abdul Kareem, Mohamed Ariff; Shaikh Abdul Razak, Shaikh Hamzah (2018)

  • This paper examines the determinants of bank margins' in the Yemeni banking sector for Islamic and conventional banks. The first objective is to investigate whether there is a significant difference between the margins of conventional and Islamic banks. The second objective is to examine whether efficiency represents an influential factor in determining bank margins for Islamic and conventional banks controlling for other micro and macro variables. The study finds that the overall bank margin in Yemen has steadily decreased during the observation period with the exception of the year 2011. The parametric and non parametric results show that the bank margins are significantly higher fo...

  • Sukuk_announcement_effects_during_financial_crisis_the_case_for_Indonesia_ziyaad_et_al.pdf.jpg
  • Journal Article


  • Authors: Mahomed, Ziyaad; Ramadili Mohd, Shamsher Mohamad; Ariff, Mohamed (2018)

  • The effects of capital-raising announcements have long been used as an indicator of increased shareholder wealth (Brown and Warner, 1985). Studies on bond announcements, for example, have been largely inconclusive. However, when effects are measured based on bond underlying structure, 'straight and convertible bonds', then the results are more conclusive (Abdul Rahim, 2012). Furthermore, issuances around crisis period are expected to result in negative market reaction as investors prefer liquidity (Fenn, 2000). Sukuk are bond-like instruments that are issued based on the Sharia guidelines and perceived to be less risky due to their risk sharing attribute. Sukuk are issued by the gover...

  • Comment_on_US_trade_policy_in_the_Trump_administration_Ariff.pdf.jpg
  • Journal Article


  • Authors: Abdul Kareem, Mohamed Ariff (2018)

  • Noland (2018) has done a remarkable service, not only putting the subject matter in perspective, but also pin-pointing some of the risks and pitfalls, and what these mean for the USA and the rest of the world, notably Asia. For starters, the US policy changes will affect all its trading partners, even if these are purely domestic, given the size of the US economy and its extensive connectivity, what more if it involves trade policy. For one thing, it is most unfortunate that the policy changes are premised on flimsy grounds, and for another, it is also questionable that such policy responses represent solutions.

  • Analysis_of_commodity_reserve_currency_system_yusuf.pdf.jpg
  • Journal Article


  • Authors: Ahmed, Jameel; Mydin Meera, Ahamed Kameel; Saleem, Muhammad Yusuf; Collins, Patrick (2018)

  • This paper aims to apply the doctrine of siyasah shariyyah to a policy proposal in the area of monetary economics, namely, the Grondona system of conditional currency convertibility, which has been proposed as a practical means of resisting the economic instability caused by the present-day fiat money system. The paper uses library research to review the literature relevant to the Grondona system, and examines the extent to which its operations conform to the principle of siyasah shariyyah, thereby encouraging Maslahah, i.e. the public interest. The paper includes important implications for the policymakers in the Organization of Islamic Cooperation countries for the possible implemen...

  • comparison_methodologies_shariah_stock_screening_shar_za.pdf.jpg
  • Journal Article


  • Authors: Ismail Zakri, Aida Shaiza; Shaikh Abdul Razak, Shaikh Hamzah; Mohd Tahir, Zainal Abidin (2018)

  • On average the Islamic finance industry has grown by almost 20% per annum, a compound annual growth rate of 17% from 2009 to 2013 (IFSB, 2013) with its current assets estimated to be worth USD 2 trillion and is set to reach USD 5 trillion in year 2020. This paper aims to analyse three Shari'ah screening methodologies namely Securities Commission (Malaysia), FTSE NASDAQ Dubai Shari'ah Index Series and the Dow Jones Islamic Market Indices. A sample of 30 companies comprising Shari'ah and non-Shari'ah stocks invested by the Malaysian institutional funds were analysed. Our analysis shows that out of the 30 samples stocks, only eight companies passed the screening using the criteria of the...

  • Theoretical_impact_of_enhanced_musharakah_mutanaqisah_home_financing_Alam_Mansor.pdf.jpg
  • Journal Article


  • Authors: Asadov, Alam; Ibrahim, Mansor H. (2018)

  • This paper theoretically analyzes two alternative modes of home financing. The first mode is the conventional housing loan and the other is Enhanced Musharakah Mutanaqisah (EMM) home financing. Our results reveal the EMM based setting is superior to the conventional housing loans in at least two aspects. These are the prevention of house price inflation in all phases of economic business cycle and the smoothening of real estate cycles. This means that, under the EMM, the risk of real estate bubble formation is subdued, which should prove to be welfare improving.

  • Comparative_study_of_ hajj_fund_management_institution_aishath.pdf.jpg
  • Journal Article


  • Authors: Muneeza, Aisha; Tamby Sudeen, Amira Shuhada; Nasution, Atiqoh; Nurmalasari, Ratih (2018)

  • Performing hajj is one of the five pillars of Islam which may become compulsory for a Muslim who has financial ability to perform this ibadah at least once in his lifetime. To facilitate Muslims to fulfil this religious obligation, countries which have majority Muslim population like Malaysia, Indonesia and Maldives have established legal entities/institutions to manage hajj funds from hajj depositors (aspirant pilgrims) and provide services related to hajj. Although these institutions share the same objective in terms of helping Muslims to perform hajj, their operational activities are largely different. This paper aims to contribute to the understanding of hajj fund management insti...

Browsing by Issue Date

Jump to a point in the index:
Showing results 1 to 20 of 1217
  • impact_social_environmental_sustainability_esma et al.pdf.jpg
  • Journal Article


  • Authors: Nizam, Esma; Ng, Adam Boon Ka; Dewandaru, Ginanjar; Nagayev, Ruslan; Nkoba, Malik Abdul Rahman (2019)

  • While there is ample evidence that non-financial firms' financial performance and social and environmental performance are related, evidence for the banking sector remains limited and inconclusive. This paper examines the impact of access to finance and environmental financing on the financial performance of the banking sector globally. Based on cross-sectional linear regressions and non-linear threshold regressions of 713 banks from 75 countries over the period 2013-2015, we find that access to finance has significantly positive effects on banks' financial performance in most estimation models controlling for both bank-specific and macroeconomic variables. The positive impact on fina...

  • structural changes_competition_and_bank_stability_Mansor et al.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Salim, Kinan; Abojeib, Moutaz; Lau, Wee Yeap (2019)

  • This paper assesses Malaysia's competition landscape and its risk implications subsequent to conventional banking consolidation and Islamic banking penetration in the aftermath of the 1997/1998 Asian financial crisis. Employing a panel sample of conventional and Islamic commercial banks, it arrives at the following conclusions. First, the consolidation exercise, which has led to a significant reduction in the number of domestic commercial banks, has not stifled banking competition. Second, the paper provides empirical support for the competition-stability relationship, particularly for the conventional banking sector. Islamic banking sector risk appears to be neutral to market competi...

  • Waqf_shares_a_fundraising_scheme_for_community_development_projects_and_humanitarian_magda.PDF.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2018)

  • The waqf-share scheme is a 21st century Islamic social finance tool that has been used successfully in Muslim and Muslim-minority countries (Cizakca, 2000). It is a fundraising scheme organized by a charitable institution that issues "waqf-shares" for sale to different contributors for various projects. Since a waqf-share is a movable waqf, it has to follow the strict conditions of waqf in terms of its irrevocability, its inalienability, and its perpetuity. This means that contributors cannot sell or transfer their waqf shares; they can only receive and hold a waqf-share certificate as evidence of theircontributions to the project if the created waqf is public waqf.

  • Musharakah Mutanaqisah home financing_alam_zulkarnain_zaher_shinaj_shamsher.pdf.jpg
  • Journal Article


  • Authors: Asadov, Alam; Muhamad Sori, Zulkarnain; Anwer, Zaher; Shamsudheen, Shinaj Valangattil; Ramadili Mohd, Shamsher Mohamad (2018)

  • Musharakah mutanaqisah (MM) mode of Islamic financing purchase of an asset, where the bank and customer enter into a contract of joint property ownership and the customer's ownership of the asset gradually increases throughout the financing period and fully own the asset after the last financial settlement. This mode of financing was introduced to mitigate the issue of unequal risk burden of conventional mortgage financing, where the bank just provide the financing and the customer bears all risk. MM financing reflects a true partnership contract through sharing of risk and reward between both parties. Though the MM mode of financing has the salient features to address the flaws of co...

  • statistical_field_theory_of_futures_commodity_prices_Belal_Miao.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Miao, Yu (2018)

  • The statistical theory of commodity prices has been formulated by Baaquie (2013). Further empirical studies of single (Baaquie et al., 2015) and multiple commodity prices (Baaquie et al., 2016) have provided strong evidence in support the primary assumptions of the statistical formulation. In this paper, the model for spot prices (Baaquie, 2013) is extended to model futures commodity prices using a statistical field theory of futures commodity prices. The futures prices are modeled as a two dimensional statistical field and a nonlinear Lagrangian is postulated. Empirical studies provide clear evidence in support of the model, with many nontrivial features of the model finding unexpec...

  • risky_forward_interest_rates_and_swaptions_Belal_Miao_Jitendra.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Miao, Yu; Bhanap, Jitendra (2018)

  • Risk free forward interest rates (Diebold and Li, 2006 [1]; Jamshidian, 1991 [2]) and their realization by US Treasury bonds as the leading exemplar have been studied extensively. In Baaquie (2010), models of risk free bonds and their forward interest rates based on the quantum field theoretic formulation of the risk free forward interest rates have been discussed, including the empirical evidence supporting these models. The quantum finance formulation of risk free forward interest rates is extended to the case of risky forward interest rates. The examples of the Singapore and Malaysian forward interest rates are used as specific cases. The main feature of the quantum finance model i...

  • how_to_expand_role_islamic_banking_trading_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • Ever since the establishment of Islamic banks in the 1970s, the difficulty in executing actual buy and sell transactions as the Quran commanded in the verse "Allah has permitted al-bay but prohibits riba" (Al-Baqarah 275) has spurred the industry into using questionable products that resemble interest-bearing loans as evident now in tawaruq munazzam and earlier in bay al-enah. Much of this unfortunate development in Islamic banking has to do with its deposit-taking function. Doing so requires the bank to follow stringent Basel Accord capital requirement against any risky positions it took in the business such as equity, leasing and trading positions. The trading business, namely buy a...

  • chapter 13_managing the Malaysian economy after GE 2008_Ariff.jpg.jpg
  • Chapter in Book


  • Authors: Lopez, Greg; Abdul Kareem, Mohamed Ariff (2018)

  • On 8 March 2008 (GE 2008) Malaysians unexpectedly delivered a stunning blow to Malaysia's long-standing ruling coalition, Barisan Nasional (BN), at the twelfth general election. Although it won the election, BN lost its psychologically important two-thirds majority in parliament which allows it to change the Federal Constitution at will. The blow was all the more devastating as the Anwar Ibrahim-led informal coalition of Parti Keadilan Rakyat (PKR/People's Iustice Party), Democratic Action Party (DAP) and Parti Se-Islam Malaysia (PAS/Pan Islamic Party of Malaysia) managed to form state governments in almost all states in the developed western parts of Peninsular Malaysia with citizens...

  • accounting_for_leasing_zulkarnain_shamsher.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain; Ramadili Mohd, Shamsher Mohamad (2018)

  • This case was developed based on a real-life experience dealing with an Islamic car financing contract (i.e. Al-ljarah Thumma Al-Bay |AITAB] contract - Sale and Leaseback) between a Malaysian Islamic Financial Institution and their customer. It is well recognised that AITAB is governed by the Malaysian Hire Purchase Act 1967, that oversees conventional (nor Islamic) car financing, yet it is used for both financing modes. The contract requires clarification on the following: understanding of the nature of the contract used and the relevant transactions involved; revenue recognition (current and future); capitalisation of relevant costs in the asset's value; fair value of leased asset; ...

  • accounting_for_the_property acquisition_zulkarnain.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain (2018)

  • This case was developed based on a real-life experience related to an lslamic equity home financing contract (ie. Musharakah Mutanaqisah) between a Malaysian Islamic Bank and their customer. The Musharakah Mutanaqisah (MM) Financing mode has gained popularity in house financing in Malaysia, where the bank and customer enter into a contract of joint property ownership and the customer's ownership of the asset gradually increases throughout the financing period and fully owns the asset after the last financial settlement. This case aims to: illustrate the process of property acquisition using the MM financing mode; account the various transactions involved in MM financing; account capit...

  • accounting_for_Islamic_financial_transactions_zulkarnain.jpg.jpg
  • Chapter in Book


  • Authors: Muhamad Sori, Zulkarnain (2018)

  • This hypothetical case study was developed based on the financial statements of Bahrain Islamic Bank and Bank Islam Malaysia Berhad. The banks were registered in two different countries namely Bahrain and Malaysia that adopted Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and International Financial Reporting Standards (IFRS) (the standards are locally adopted and named as Malaysian Financial Reporting Standards (MFRS)) issued by International Accounting Standards Board (IASB) respectively. The key issues explored in this case are: the motivation for recording and reporting Islamic financial transact...

  • Chinese_dynasties_and_modern_China_unification_and_fragmentation_belal_qing.pdf.jpg
  • Journal Article


  • Authors: Baaquie, Belal E.; Qing-hai, Wang (2018)

  • The history of China is briefly reviewed to ascertain the features that are common to the various dynasties. Our study shows that China has repeatedly gone through a historical phase of fragmentation and a historical phase of unification. In our view, the single most important factor in the unity, stability and longevity of a dynasty is the system for determining the succession of the emperor. Given the vastly changed circumstances of the present era, we discuss the relevance of China's historical pattern of fragmentation and unification. The contemporary rise of China is shown to follow a pattern that is similar to the case of many previous dynasties. A few tentative predictions are ...

  • Nonfinancial_traits_and_financial_smartness_wajahat_shamsher_eskandar.pdf.jpg
  • Journal Article


  • Authors: Naeem Azmi, Choudhari Wajahat; Ramadili Mohd, Shamsher Mohamad; Mohd Rasid, Mohamed Eskandar Shah (2018)

  • This paper examines the flow-performance relationship and the presence of "Smart money effect" in Socially responsible funds (SRFs) and Shariah compliant funds (SCFs). A survivorship bias free sample of 686 funds comprising of 212 SCFs and 474 SRFs were analysed with investment focus in the Asia pacific, Emerging markets, Europe, Global (with no focus to any specific country or region), Middle East and North Africa (MENA) and North America. The findings show that flow-performance relationship is asymmetric for both the funds as the response to positive returns is more as compare to the negative returns for the last/current year as well as the last/current month. There is also a signif...

  • Efficiency_and_bank_margins_a_comparative_analysis_of_Islamic_and_conventional_banks_in_Yemen_fekri_et_al.pdf.jpg
  • Journal Article


  • Authors: Shawtari, Fekri Ali; Abdul Kareem, Mohamed Ariff; Shaikh Abdul Razak, Shaikh Hamzah (2018)

  • This paper examines the determinants of bank margins' in the Yemeni banking sector for Islamic and conventional banks. The first objective is to investigate whether there is a significant difference between the margins of conventional and Islamic banks. The second objective is to examine whether efficiency represents an influential factor in determining bank margins for Islamic and conventional banks controlling for other micro and macro variables. The study finds that the overall bank margin in Yemen has steadily decreased during the observation period with the exception of the year 2011. The parametric and non parametric results show that the bank margins are significantly higher fo...

  • Sukuk_announcement_effects_during_financial_crisis_the_case_for_Indonesia_ziyaad_et_al.pdf.jpg
  • Journal Article


  • Authors: Mahomed, Ziyaad; Ramadili Mohd, Shamsher Mohamad; Ariff, Mohamed (2018)

  • The effects of capital-raising announcements have long been used as an indicator of increased shareholder wealth (Brown and Warner, 1985). Studies on bond announcements, for example, have been largely inconclusive. However, when effects are measured based on bond underlying structure, 'straight and convertible bonds', then the results are more conclusive (Abdul Rahim, 2012). Furthermore, issuances around crisis period are expected to result in negative market reaction as investors prefer liquidity (Fenn, 2000). Sukuk are bond-like instruments that are issued based on the Sharia guidelines and perceived to be less risky due to their risk sharing attribute. Sukuk are issued by the gover...

  • Comment_on_US_trade_policy_in_the_Trump_administration_Ariff.pdf.jpg
  • Journal Article


  • Authors: Abdul Kareem, Mohamed Ariff (2018)

  • Noland (2018) has done a remarkable service, not only putting the subject matter in perspective, but also pin-pointing some of the risks and pitfalls, and what these mean for the USA and the rest of the world, notably Asia. For starters, the US policy changes will affect all its trading partners, even if these are purely domestic, given the size of the US economy and its extensive connectivity, what more if it involves trade policy. For one thing, it is most unfortunate that the policy changes are premised on flimsy grounds, and for another, it is also questionable that such policy responses represent solutions.

  • Analysis_of_commodity_reserve_currency_system_yusuf.pdf.jpg
  • Journal Article


  • Authors: Ahmed, Jameel; Mydin Meera, Ahamed Kameel; Saleem, Muhammad Yusuf; Collins, Patrick (2018)

  • This paper aims to apply the doctrine of siyasah shariyyah to a policy proposal in the area of monetary economics, namely, the Grondona system of conditional currency convertibility, which has been proposed as a practical means of resisting the economic instability caused by the present-day fiat money system. The paper uses library research to review the literature relevant to the Grondona system, and examines the extent to which its operations conform to the principle of siyasah shariyyah, thereby encouraging Maslahah, i.e. the public interest. The paper includes important implications for the policymakers in the Organization of Islamic Cooperation countries for the possible implemen...

  • comparison_methodologies_shariah_stock_screening_shar_za.pdf.jpg
  • Journal Article


  • Authors: Ismail Zakri, Aida Shaiza; Shaikh Abdul Razak, Shaikh Hamzah; Mohd Tahir, Zainal Abidin (2018)

  • On average the Islamic finance industry has grown by almost 20% per annum, a compound annual growth rate of 17% from 2009 to 2013 (IFSB, 2013) with its current assets estimated to be worth USD 2 trillion and is set to reach USD 5 trillion in year 2020. This paper aims to analyse three Shari'ah screening methodologies namely Securities Commission (Malaysia), FTSE NASDAQ Dubai Shari'ah Index Series and the Dow Jones Islamic Market Indices. A sample of 30 companies comprising Shari'ah and non-Shari'ah stocks invested by the Malaysian institutional funds were analysed. Our analysis shows that out of the 30 samples stocks, only eight companies passed the screening using the criteria of the...

  • Theoretical_impact_of_enhanced_musharakah_mutanaqisah_home_financing_Alam_Mansor.pdf.jpg
  • Journal Article


  • Authors: Asadov, Alam; Ibrahim, Mansor H. (2018)

  • This paper theoretically analyzes two alternative modes of home financing. The first mode is the conventional housing loan and the other is Enhanced Musharakah Mutanaqisah (EMM) home financing. Our results reveal the EMM based setting is superior to the conventional housing loans in at least two aspects. These are the prevention of house price inflation in all phases of economic business cycle and the smoothening of real estate cycles. This means that, under the EMM, the risk of real estate bubble formation is subdued, which should prove to be welfare improving.

  • Comparative_study_of_ hajj_fund_management_institution_aishath.pdf.jpg
  • Journal Article


  • Authors: Muneeza, Aisha; Tamby Sudeen, Amira Shuhada; Nasution, Atiqoh; Nurmalasari, Ratih (2018)

  • Performing hajj is one of the five pillars of Islam which may become compulsory for a Muslim who has financial ability to perform this ibadah at least once in his lifetime. To facilitate Muslims to fulfil this religious obligation, countries which have majority Muslim population like Malaysia, Indonesia and Maldives have established legal entities/institutions to manage hajj funds from hajj depositors (aspirant pilgrims) and provide services related to hajj. Although these institutions share the same objective in terms of helping Muslims to perform hajj, their operational activities are largely different. This paper aims to contribute to the understanding of hajj fund management insti...