Browsing by Issue Date

Jump to a point in the index:
Showing results 1 to 20 of 1181
  • a_proposal_designed_calibrating_liquidity_coverage_ratio_Islamic_banks_adam et al.pdf.jpg
  • Journal Article


  • Authors: Dolgun, Muhammed Habib; Mirakhor, Abbas; Ng, Adam Boon Ka (2019)

  • This paper aims to critically investigate the liquidity risk management of Islamic banks and develop an alternative regulatory framework appropriate for liquidity management of these banks. The specific risk profile of an Islamic bank requires developing a new and more efficient regulatory framework, which relies on risk-sharing and symmetric information among parties. The paper makes a differentiation between small local banks and internationally active Islamic banks and proposes to apply liquidity requirements only for internationally active Islamic banks. A new proposal for the liquidity coverage ratio (LCR) of Islamic banks is developed in this paper towards mitigating risks and c...

  • 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...

  • belt_and_road_initiative_and_Islamic_financing_jinzi_aishath.pdf.jpg
  • Journal Article


  • Authors: JinZi, Chu; Muneeza, Aishath (2019)

  • China's One Belt and One Road (OBOR) is a global trade network across Asia, Africa, Europe and Oceania. Also known as Belt and Road Initiative (BRI), OBOR is an attempt to redraw ancient Silk Road to foster global trade and economic development. Nearly 30 Muslims-majority countries are part of China's vision of BRI. The purpose of this paper is twofold: first, to investigate how public private partnership (PPP) has been applied in BRI projects; and second, to explore how Islamic finance can fit within a PPP context. This paper proposes a framework for using Islamic finance in infrastructure PPP projects. This paper also analyses two PPP projects where Islamic finance was deployed as p...

  • sukuk_shehama_magda.pdf.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2019)

  • Sukuk shehama is a financial instrument that has only recently emerged. It is a form of government-issued Islamic bond (sukuk) based on musharakah which is found in Sudan but can be easily replicated in any other country. Each certificate carries a nominal value that is calculated in dinars and represents a share of the net investment allocated by the government for this purpose from the selected investment units. Shehama certificates are issued at different times from 6 months to one year. These certificates are issued in multiple categories 50 thousand dinars - 100 thousand dinars - 200 thousand dinars - 500 thousand dinars so that different categories of investors can buy any numb...

  • a_case_study_default_Islamic_financing_facilities_Malaysian_perspective_aishath.pdf.jpg
  • Chapter in Book


  • Authors: Muneeza, Aishath (2019)

  • Default can occur in Islamic banking. As the law applicable to Islamic banking is derived from Shariah, it is imperative to check whether the current practice of Islamic banks in default aligns with Shariah. The objective of this chapter is to discuss the rules and procedures Islamic banks in Malaysia follow in case of default. This is a qualitative research where data from primary sources such as laws on the matter are extracted to derive conclusions and secondary sources such as case laws and other published materials in the subject matter are explored. It is anticipated that the outcome of this chapter will assist to comprehend the way in which Islamic banks deal in case of default...

  • 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...

  • Issues_in_Islamic_equities_mansur_et_al.pdf.jpg
  • Journal Article


  • Authors: Mohammed Masih, Abul Mansur; Mustaffa Kamil, Nazrol Kamil; Bacha, Obiyathulla Ismath (2018)

  • This article reviews the current literature on Islamic equities. Our survey indicates that the bulk of articles is quantitative or empirical in nature, with a notable dearth of theoretical works. Among the common research themes explored by these articles are comparative performances of Islamic equities visa-vis their conventional counterparts, comparisons of Islamic portfolios with SRI funds, and empirically articulating portfolio diversification benefits associated with Islamic equities. In addition, numerous articles discuss idiosyncrasies of Shari'ah compliant stocks and portfolios under subthemes such as volatility, risk factors, and performance attributes. This survey also inclu...

  • Bank_lending_deposits_and_risk_taking_in_times_of_crisis_mansor.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Rizvi, Syed Aun Raza (2018)

  • In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain whether Islamic banks are able to sustain financing supply and whether its growth is higher than conventional bank lending growth in times of stress. For concreteness, we also assess whether the sustained financing supply of Islamic banks is justified by a concomitant increase in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of 25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe sustained financing supply by Islamic banks but significant reduction in the lending growth by conventional banks during the crisis period. ...

  • Portfolio_diversification_benefits_at_different_investment_horizons_during_the_Arab_uprisings_buriev_et_al.pdf.jpg
  • Journal Article


  • Authors: Buriev, Abdul Aziz; Dewandaru, Ginanjar; Zainal, Mohd-Pisal; Mohammed Masih, Abul Mansur (2018)

  • This study is an initial attempt at investigating the extent to which portfolio diversification benefits at different investment horizons are available to a Turkish investor from investment in MENA countries exposed to the Arab spring based on MGARCH-DCC and Wavelet techniques on daily data spanning from 2005 to 2015. The findings tend to suggest that the Turkish investors may not benefit from investment in Egypt for almost all investment horizons but may have moderate benefits from Lebanon up to the investment horizons of 32 - 64 days and longer. However, Turkish investors may benefit from Oman excepting the longer investment horizons. In the long run all stock holding periods exceed...

  • Unraveling_the_financial_contagion_in_European_stock_markets_during_financial_crisis_dewandaru_et_al.pdf.jpg
  • Journal Article


  • Authors: Dewandaru, Ginanjar; Masih, Rumi; Mohammed Masih, Abul Mansur (2018)

  • The article investigates the evidence of financial contagion and market integration in selected European equity markets during nine major crises across regions. The focus is to identify whether (i) contagion evidence is pure or fundamental and (ii) dynamic evolution of integration is in the short run or long run. Wavelet decomposition in both its discrete and continuous forms is used. The findings reveal the following: (i) prior to the subprime crisis, contagion effects generated short-term shocks. The most recent US subprime crisis, however, reveals the evidence of fundamental based contagion. (ii) We find increasing short-run and long-run stock market integration, driven by several ...

  • Determinants_of_capital_structure_ramazan_mansur_obiyathulla.pdf.jpg
  • Journal Article


  • Authors: Yildirim, Ramazan; Mohammed Masih, Abul Mansur; Bacha, Obiyathulla Ismath (2018)

  • Many Muslim individual and institutional investors seek to invest only in stocks that are compliant with the Shari'ah (i.e. Islamic law). Among others, Dow Jones addressed this demand and has developed their proprietary screening methodologies to identify Shari'ah compliant firms (SC). One key factor that distinguishes SC firms from their non-compliant peers (SNC) is that the former is not allowed to cross the leverage threshold of 33%. Due to the restrictions imposed on them, it is expected that SC firms exhibit different capital structure compared to the SNC firms. The purpose of this initial comparative study is to analyze the most reliable debt determinants identified in the liter...

  • Islamic_conception_of_psychological_nature_of_man_shinaj_saiful.pdf.jpg
  • Journal Article


  • Authors: Shamsudheen, Shinaj Valangattil; Rosly, Saiful Azhar (2018)

  • This paper aims to develop and validate a scale for Islamic conception of psychological nature of man. Al-Ghazali's model of psychological nature of man considered as the theoretical background of the study. Content validity test and factor analysis are used to refine measurement items and define and validate the scale. In total, 362 samples were collected from Islamic banking practitioners in UAE. Item statements are refined through content validation test. Three dimensions are extracted, i.e. 'Intellect,' 'Satanic element' 'Divine Knowledge,' through exploratory factor analysis and evidence of validation of scale/construct is reported through confirmatory factor analysis.

  • Islamic_finance_grasping_with_price_and_profit_theory_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • The Halal industry comprising of bank and non-banking firms is hardly visible in theoretical rigor except for the Shariah rules it promotes to exert religious labelling. While Islamic banks pay greater attention the elimination of riba, gambling and ambiguities in financing contracts to claim Shariah legitimacy, non-banking companies are more concerned about halal slaughtering, avoidance of pork in the production process, prevention of food adulteration, promoting hygiene in food preparation and many more.

  • 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...

Browsing by Issue Date

Jump to a point in the index:
Showing results 1 to 20 of 1181
  • a_proposal_designed_calibrating_liquidity_coverage_ratio_Islamic_banks_adam et al.pdf.jpg
  • Journal Article


  • Authors: Dolgun, Muhammed Habib; Mirakhor, Abbas; Ng, Adam Boon Ka (2019)

  • This paper aims to critically investigate the liquidity risk management of Islamic banks and develop an alternative regulatory framework appropriate for liquidity management of these banks. The specific risk profile of an Islamic bank requires developing a new and more efficient regulatory framework, which relies on risk-sharing and symmetric information among parties. The paper makes a differentiation between small local banks and internationally active Islamic banks and proposes to apply liquidity requirements only for internationally active Islamic banks. A new proposal for the liquidity coverage ratio (LCR) of Islamic banks is developed in this paper towards mitigating risks and c...

  • 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...

  • belt_and_road_initiative_and_Islamic_financing_jinzi_aishath.pdf.jpg
  • Journal Article


  • Authors: JinZi, Chu; Muneeza, Aishath (2019)

  • China's One Belt and One Road (OBOR) is a global trade network across Asia, Africa, Europe and Oceania. Also known as Belt and Road Initiative (BRI), OBOR is an attempt to redraw ancient Silk Road to foster global trade and economic development. Nearly 30 Muslims-majority countries are part of China's vision of BRI. The purpose of this paper is twofold: first, to investigate how public private partnership (PPP) has been applied in BRI projects; and second, to explore how Islamic finance can fit within a PPP context. This paper proposes a framework for using Islamic finance in infrastructure PPP projects. This paper also analyses two PPP projects where Islamic finance was deployed as p...

  • sukuk_shehama_magda.pdf.jpg
  • Industry Article


  • Authors: Ismail Abdel Mohsin, Magda (2019)

  • Sukuk shehama is a financial instrument that has only recently emerged. It is a form of government-issued Islamic bond (sukuk) based on musharakah which is found in Sudan but can be easily replicated in any other country. Each certificate carries a nominal value that is calculated in dinars and represents a share of the net investment allocated by the government for this purpose from the selected investment units. Shehama certificates are issued at different times from 6 months to one year. These certificates are issued in multiple categories 50 thousand dinars - 100 thousand dinars - 200 thousand dinars - 500 thousand dinars so that different categories of investors can buy any numb...

  • a_case_study_default_Islamic_financing_facilities_Malaysian_perspective_aishath.pdf.jpg
  • Chapter in Book


  • Authors: Muneeza, Aishath (2019)

  • Default can occur in Islamic banking. As the law applicable to Islamic banking is derived from Shariah, it is imperative to check whether the current practice of Islamic banks in default aligns with Shariah. The objective of this chapter is to discuss the rules and procedures Islamic banks in Malaysia follow in case of default. This is a qualitative research where data from primary sources such as laws on the matter are extracted to derive conclusions and secondary sources such as case laws and other published materials in the subject matter are explored. It is anticipated that the outcome of this chapter will assist to comprehend the way in which Islamic banks deal in case of default...

  • 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...

  • Issues_in_Islamic_equities_mansur_et_al.pdf.jpg
  • Journal Article


  • Authors: Mohammed Masih, Abul Mansur; Mustaffa Kamil, Nazrol Kamil; Bacha, Obiyathulla Ismath (2018)

  • This article reviews the current literature on Islamic equities. Our survey indicates that the bulk of articles is quantitative or empirical in nature, with a notable dearth of theoretical works. Among the common research themes explored by these articles are comparative performances of Islamic equities visa-vis their conventional counterparts, comparisons of Islamic portfolios with SRI funds, and empirically articulating portfolio diversification benefits associated with Islamic equities. In addition, numerous articles discuss idiosyncrasies of Shari'ah compliant stocks and portfolios under subthemes such as volatility, risk factors, and performance attributes. This survey also inclu...

  • Bank_lending_deposits_and_risk_taking_in_times_of_crisis_mansor.pdf.jpg
  • Journal Article


  • Authors: Ibrahim, Mansor H.; Rizvi, Syed Aun Raza (2018)

  • In this study, we conduct a panel analysis of Islamic and conventional banks to ascertain whether Islamic banks are able to sustain financing supply and whether its growth is higher than conventional bank lending growth in times of stress. For concreteness, we also assess whether the sustained financing supply of Islamic banks is justified by a concomitant increase in Islamic deposit growth and is not linked to excessive risk taking. Utilizing a panel sample of 25 Islamic banks and 114 conventional banks from 10 dual-banking countries, we observe sustained financing supply by Islamic banks but significant reduction in the lending growth by conventional banks during the crisis period. ...

  • Portfolio_diversification_benefits_at_different_investment_horizons_during_the_Arab_uprisings_buriev_et_al.pdf.jpg
  • Journal Article


  • Authors: Buriev, Abdul Aziz; Dewandaru, Ginanjar; Zainal, Mohd-Pisal; Mohammed Masih, Abul Mansur (2018)

  • This study is an initial attempt at investigating the extent to which portfolio diversification benefits at different investment horizons are available to a Turkish investor from investment in MENA countries exposed to the Arab spring based on MGARCH-DCC and Wavelet techniques on daily data spanning from 2005 to 2015. The findings tend to suggest that the Turkish investors may not benefit from investment in Egypt for almost all investment horizons but may have moderate benefits from Lebanon up to the investment horizons of 32 - 64 days and longer. However, Turkish investors may benefit from Oman excepting the longer investment horizons. In the long run all stock holding periods exceed...

  • Unraveling_the_financial_contagion_in_European_stock_markets_during_financial_crisis_dewandaru_et_al.pdf.jpg
  • Journal Article


  • Authors: Dewandaru, Ginanjar; Masih, Rumi; Mohammed Masih, Abul Mansur (2018)

  • The article investigates the evidence of financial contagion and market integration in selected European equity markets during nine major crises across regions. The focus is to identify whether (i) contagion evidence is pure or fundamental and (ii) dynamic evolution of integration is in the short run or long run. Wavelet decomposition in both its discrete and continuous forms is used. The findings reveal the following: (i) prior to the subprime crisis, contagion effects generated short-term shocks. The most recent US subprime crisis, however, reveals the evidence of fundamental based contagion. (ii) We find increasing short-run and long-run stock market integration, driven by several ...

  • Determinants_of_capital_structure_ramazan_mansur_obiyathulla.pdf.jpg
  • Journal Article


  • Authors: Yildirim, Ramazan; Mohammed Masih, Abul Mansur; Bacha, Obiyathulla Ismath (2018)

  • Many Muslim individual and institutional investors seek to invest only in stocks that are compliant with the Shari'ah (i.e. Islamic law). Among others, Dow Jones addressed this demand and has developed their proprietary screening methodologies to identify Shari'ah compliant firms (SC). One key factor that distinguishes SC firms from their non-compliant peers (SNC) is that the former is not allowed to cross the leverage threshold of 33%. Due to the restrictions imposed on them, it is expected that SC firms exhibit different capital structure compared to the SNC firms. The purpose of this initial comparative study is to analyze the most reliable debt determinants identified in the liter...

  • Islamic_conception_of_psychological_nature_of_man_shinaj_saiful.pdf.jpg
  • Journal Article


  • Authors: Shamsudheen, Shinaj Valangattil; Rosly, Saiful Azhar (2018)

  • This paper aims to develop and validate a scale for Islamic conception of psychological nature of man. Al-Ghazali's model of psychological nature of man considered as the theoretical background of the study. Content validity test and factor analysis are used to refine measurement items and define and validate the scale. In total, 362 samples were collected from Islamic banking practitioners in UAE. Item statements are refined through content validation test. Three dimensions are extracted, i.e. 'Intellect,' 'Satanic element' 'Divine Knowledge,' through exploratory factor analysis and evidence of validation of scale/construct is reported through confirmatory factor analysis.

  • Islamic_finance_grasping_with_price_and_profit_theory_saiful.pdf.jpg
  • Industry Article


  • Authors: Rosly, Saiful Azhar (2018)

  • The Halal industry comprising of bank and non-banking firms is hardly visible in theoretical rigor except for the Shariah rules it promotes to exert religious labelling. While Islamic banks pay greater attention the elimination of riba, gambling and ambiguities in financing contracts to claim Shariah legitimacy, non-banking companies are more concerned about halal slaughtering, avoidance of pork in the production process, prevention of food adulteration, promoting hygiene in food preparation and many more.

  • 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...