Pub Date : 2022-10-06DOI: 10.1163/24685542-12340084
A. Poya, Isabel Schatzschneider
{"title":"God’s Justice and Animal Welfare","authors":"A. Poya, Isabel Schatzschneider","doi":"10.1163/24685542-12340084","DOIUrl":"https://doi.org/10.1163/24685542-12340084","url":null,"abstract":"","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":"170 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86962949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-10-06DOI: 10.1163/24685542-12340083
İbrahim Özdemir (إبراهيم أوزدمير)
This paper will try to present and discuss Said Nursi’s (d. 1960) ethics of compassion and the possibility of a new ethics of compassion derived from the Qurʾānic Weltanschauung. It will start with a slight detour in the history of philosophy to keep the evolution of an ethics of compassion in perspective. Then, it will deal with Said Nursi’s perception of compassion as he discovers mercy and compassion as universal values manifested by all creatures. For him, like al-Ghazālī (d. 505/1111), Ibn ʿArabī (d. 638/1240), and Rūmī (d. 672/1273), the existence and reality of divine mercy are as clear as the sun. Therefore, the compassion observed in humans, animals, and plants reflects and indicates universal compassion: it is from God. The paper’s primary focus will be on Nursi’s treatise on flies.
{"title":"A New Ethics of Compassion for Animals: Said Nursi on the Rights of Flies","authors":"İbrahim Özdemir (إبراهيم أوزدمير)","doi":"10.1163/24685542-12340083","DOIUrl":"https://doi.org/10.1163/24685542-12340083","url":null,"abstract":"\u0000 This paper will try to present and discuss Said Nursi’s (d. 1960) ethics of compassion and the possibility of a new ethics of compassion derived from the Qurʾānic Weltanschauung. It will start with a slight detour in the history of philosophy to keep the evolution of an ethics of compassion in perspective. Then, it will deal with Said Nursi’s perception of compassion as he discovers mercy and compassion as universal values manifested by all creatures. For him, like al-Ghazālī (d. 505/1111), Ibn ʿArabī (d. 638/1240), and Rūmī (d. 672/1273), the existence and reality of divine mercy are as clear as the sun. Therefore, the compassion observed in humans, animals, and plants reflects and indicates universal compassion: it is from God. The paper’s primary focus will be on Nursi’s treatise on flies.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":"126 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75386349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.30659/ijibe.7.2.125-137
R. Riani, A. Rusydiana
This study maps out research related to the development of research trends in digital banking themed papers published by leading journals that have been indexed by Scopus from 1976 to 2021. The analysis focuses on trends in keywords, authors and journals of 873 digital banking themed papers. publication. The results of the scientometric analysis mapping are then studied more deeply to review development strategies related to digital banking that can be adopted by Islamic banking in Indonesia. This study uses descriptive statistical methods and bibliometric analysis using biblioshiny R software to determine bibliometric maps. The flow of economic digitization requires banks to transform in order to maintain their role and position as the main intermediary institution in the financial system as well as the transmission axis of monetary policy. Digital transformation requires banks to be able to adapt the business innovation model used, organizational structure, work culture, and infrastructure they have. Islamic banking is required to be a solution by offering services and innovations through digital channels. The main thing is how to find the right balance between efforts to�optimize opportunities and carry out various digital innovations in an effort to increase market share in the future.�
{"title":"SCIENTOMETRIC ANALYSIS OF DIGITAL BANKING: FUTURE ISLAMIC DIGITAL BANK IN INDONESIA","authors":"R. Riani, A. Rusydiana","doi":"10.30659/ijibe.7.2.125-137","DOIUrl":"https://doi.org/10.30659/ijibe.7.2.125-137","url":null,"abstract":"This study maps out research related to the development of research trends in digital banking themed papers published by leading journals that have been indexed by Scopus from 1976 to 2021. The analysis focuses on trends in keywords, authors and journals of 873 digital banking themed papers. publication. The results of the scientometric analysis mapping are then studied more deeply to review development strategies related to digital banking that can be adopted by Islamic banking in Indonesia. This study uses descriptive statistical methods and bibliometric analysis using biblioshiny R software to determine bibliometric maps. The flow of economic digitization requires banks to transform in order to maintain their role and position as the main intermediary institution in the financial system as well as the transmission axis of monetary policy. Digital transformation requires banks to be able to adapt the business innovation model used, organizational structure, work culture, and infrastructure they have. Islamic banking is required to be a solution by offering services and innovations through digital channels. The main thing is how to find the right balance between efforts to�optimize opportunities and carry out various digital innovations in an effort to increase market share in the future.�","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45174210","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.30659/ijibe.7.2.138-148
Andika Nuraga Budiman
This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research method was using questionnaire spread to 169 respondents in Central Jakarta area in Cempaka Putih. The purposive sampling with especially for Muslim was absolute condition to become this research samples. The result shows that interesting result that Muslim in Jakarta, which is we expecting these results are representing majority of population, evidently our respondents are not paying attention in Halal process before they visiting restaurant, which is one of the process is animal slaughtering process. An explanation of the relationship between Halal certification and subscribing. Halal restaurants have a significant relationship. apart from the regression results, the results of the T test have explained that the existence of Halal certification is very important. Also, Halal accreditation and their awareness need to be improve, there is not significant toward subscribing Halal restaurant. The main part is a religiosity which is a very strong religious status for Muslims; this is one of the reasons why Muslims always subscribe to restaurants because they believe wherever there is a religious status that is still firmly held.�
{"title":"AN EFFECT OF HALAL�S DIMENSIONS ON SUBSCRIPTION TO HALAL RESTAURANTS IN JAKARTA","authors":"Andika Nuraga Budiman","doi":"10.30659/ijibe.7.2.138-148","DOIUrl":"https://doi.org/10.30659/ijibe.7.2.138-148","url":null,"abstract":"This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research objective is to investigate the influence of Halal dimension towards subscribing Halal restaurant. This research method was using questionnaire spread to 169 respondents in Central Jakarta area in Cempaka Putih. The purposive sampling with especially for Muslim was absolute condition to become this research samples. The result shows that interesting result that Muslim in Jakarta, which is we expecting these results are representing majority of population, evidently our respondents are not paying attention in Halal process before they visiting restaurant, which is one of the process is animal slaughtering process. An explanation of the relationship between Halal certification and subscribing. Halal restaurants have a significant relationship. apart from the regression results, the results of the T test have explained that the existence of Halal certification is very important. Also, Halal accreditation and their awareness need to be improve, there is not significant toward subscribing Halal restaurant. The main part is a religiosity which is a very strong religious status for Muslims; this is one of the reasons why Muslims always subscribe to restaurants because they believe wherever there is a religious status that is still firmly held.�","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44085944","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.30659/ijibe.7.2.100-107
Ikhyanuddin Ikhyanuddin
This paper aims to review and understand about waqf accounting system in the world such as Asia, Europe, and African. The study of a review shows that a �Waqf accounting system in Asia, Europe, and Africa has similarities, such as every country has a waqf institution for organizing waqf accounting (waqf asset, cash waqf, etc). Every country has its own way of regulating and operating� �waqf �accounting. The growth of waqf in some minority countries is still constrained by several legal restrictions and the high cost of living in these countries.
{"title":"WAQF ACCOUNTABILITY AROUND THE WORLD: A MINI-REVIEW","authors":"Ikhyanuddin Ikhyanuddin","doi":"10.30659/ijibe.7.2.100-107","DOIUrl":"https://doi.org/10.30659/ijibe.7.2.100-107","url":null,"abstract":"This paper aims to review and understand about waqf accounting system in the world such as Asia, Europe, and African. The study of a review shows that a �Waqf accounting system in Asia, Europe, and Africa has similarities, such as every country has a waqf institution for organizing waqf accounting (waqf asset, cash waqf, etc). Every country has its own way of regulating and operating� �waqf �accounting. The growth of waqf in some minority countries is still constrained by several legal restrictions and the high cost of living in these countries.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46674432","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.30659/ijibe.7.2.108-124
A. Azwar, Bayu Taufiq Possumah, Khaerul Aqbar
The objective of this paper is to analyze the short and long run relationship between Islamic financial development and income inequality in Indonesia over the period of 2000-2020. The study has employed the Auto Regressive Distributed Lag (ARDL) bound testing approach and the Error Correction Mechanism (ECM) to examine the existence of long-run and short-run relationship, while variance decomposition (VDC) technique is used to provide Granger causal relationship between the variables. The cointegration tests show that there is a long run relationship between Islamic financial development, economic growth, inflation and income inequality in Indonesia. However, Islamic financial development itself is found to be not statistically significant in influencing income inequality during the sample period for long-run. This study found a positive and statistically significant (10%) effect of Islamic financial development in explaining the changes in income inequality in the short run. In terms of policy, enhancing financial access is needed to ensure that financial development fully supports the reduction of income inequality in Indonesia.
{"title":"ISLAMIC FINANCIAL DEVELOPMENT AND INCOME INEQUALITY IN INDONESIA","authors":"A. Azwar, Bayu Taufiq Possumah, Khaerul Aqbar","doi":"10.30659/ijibe.7.2.108-124","DOIUrl":"https://doi.org/10.30659/ijibe.7.2.108-124","url":null,"abstract":"The objective of this paper is to analyze the short and long run relationship between Islamic financial development and income inequality in Indonesia over the period of 2000-2020. The study has employed the Auto Regressive Distributed Lag (ARDL) bound testing approach and the Error Correction Mechanism (ECM) to examine the existence of long-run and short-run relationship, while variance decomposition (VDC) technique is used to provide Granger causal relationship between the variables. The cointegration tests show that there is a long run relationship between Islamic financial development, economic growth, inflation and income inequality in Indonesia. However, Islamic financial development itself is found to be not statistically significant in influencing income inequality during the sample period for long-run. This study found a positive and statistically significant (10%) effect of Islamic financial development in explaining the changes in income inequality in the short run. In terms of policy, enhancing financial access is needed to ensure that financial development fully supports the reduction of income inequality in Indonesia.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44087384","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-30DOI: 10.30659/ijibe.7.2.85-99
Kawther Mousa, Muhammad Naveed Ahmad, Eli Sumarliah
The current COVID-19 epidemic unveils the vulnerability in the apparel supply chain (ASC). Many workforces are facing future uncertainty due to pandemic-driven job losses. This study aims to comprehend the causes of societal sustainability deficiency in the ASC in Muslim-majority countries and propose strategies supporting a suitable improvement.� Information gathered from experts using a qualitative research method; reveals that the primary cause of the lack of societal sustainability is the dominating power of several brands in the ASC. The usage of contract workforce and illegal subcontracting of apparel production also disrupt the protocol of societal compliance. Besides, the lack of application of Islamic ethics in business operations leads to poor labor conditions causing disruption in labor-societal security. The study proposes that it is imperative to adopt a sustainable procurement framework that integrates the sharing of disturbance risks among suppliers and brands post-COVID-19 crisis. It is also crucial to prohibit suppliers operate illegal subcontracting of apparel manufacture. Besides, brands� order allocation plans and supplier selection must be adjusted to enable the workforce�s societal security. Contribution from labor unions and NGOs must be urged to achieve the grassroots level in community development schemes. As this study involves the Muslim-majority context, mitigation strategies from the Islamic ethics perspective are also considered helpful for solving societal sustainability issues in the ASC.
{"title":"COVID-19-DRIVEN SOCIETAL SUSTAINABILITY IN THE APPAREL SUPPLY CHAIN: INSIGHT FROM MUSLIM-MAJORITY COUNTRIES","authors":"Kawther Mousa, Muhammad Naveed Ahmad, Eli Sumarliah","doi":"10.30659/ijibe.7.2.85-99","DOIUrl":"https://doi.org/10.30659/ijibe.7.2.85-99","url":null,"abstract":"The current COVID-19 epidemic unveils the vulnerability in the apparel supply chain (ASC). Many workforces are facing future uncertainty due to pandemic-driven job losses. This study aims to comprehend the causes of societal sustainability deficiency in the ASC in Muslim-majority countries and propose strategies supporting a suitable improvement.� Information gathered from experts using a qualitative research method; reveals that the primary cause of the lack of societal sustainability is the dominating power of several brands in the ASC. The usage of contract workforce and illegal subcontracting of apparel production also disrupt the protocol of societal compliance. Besides, the lack of application of Islamic ethics in business operations leads to poor labor conditions causing disruption in labor-societal security. The study proposes that it is imperative to adopt a sustainable procurement framework that integrates the sharing of disturbance risks among suppliers and brands post-COVID-19 crisis. It is also crucial to prohibit suppliers operate illegal subcontracting of apparel manufacture. Besides, brands� order allocation plans and supplier selection must be adjusted to enable the workforce�s societal security. Contribution from labor unions and NGOs must be urged to achieve the grassroots level in community development schemes. As this study involves the Muslim-majority context, mitigation strategies from the Islamic ethics perspective are also considered helpful for solving societal sustainability issues in the ASC.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45147195","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-16DOI: 10.1163/24685542-12340082
A. Deif, Cochrane Logan
Recurrent and concurrent crises call for new development paradigms, as dominant theories of economic development are not fostering equity or sustainability. We argue that part of the reason is that the conceptualization of development, and the resulting metrics driving decision-making, are narrow. Building on work that proposes adding values/ethics as a fourth pillar to development, along with economic, environmental, and social pillars, this article presents an Islamic perspective of how values-based development would differ from the dominant, contemporary forms. While rooted in a specific perspective and worldview, it has great relevance as approximately a quarter of humanity adheres to the faith. We offer a holistic, values-based approach to development, drawing on classical foundations and contemporary lessons, rooted in a different epistemic and ideological orientation. On this basis, we highlight five values that could be the foundation for re-orienting development: vicegerency, justice, excellence, tranquility, and freedom. Integrating these values in a fourth, values-based pillar of development alters the conceptualization and the metrics of development, resulting in processes driven by different objectives for individuals and societies.
{"title":"A Values-Based Approach for Development: An Islamic Perspective","authors":"A. Deif, Cochrane Logan","doi":"10.1163/24685542-12340082","DOIUrl":"https://doi.org/10.1163/24685542-12340082","url":null,"abstract":"\u0000Recurrent and concurrent crises call for new development paradigms, as dominant theories of economic development are not fostering equity or sustainability. We argue that part of the reason is that the conceptualization of development, and the resulting metrics driving decision-making, are narrow. Building on work that proposes adding values/ethics as a fourth pillar to development, along with economic, environmental, and social pillars, this article presents an Islamic perspective of how values-based development would differ from the dominant, contemporary forms. While rooted in a specific perspective and worldview, it has great relevance as approximately a quarter of humanity adheres to the faith. We offer a holistic, values-based approach to development, drawing on classical foundations and contemporary lessons, rooted in a different epistemic and ideological orientation. On this basis, we highlight five values that could be the foundation for re-orienting development: vicegerency, justice, excellence, tranquility, and freedom. Integrating these values in a fourth, values-based pillar of development alters the conceptualization and the metrics of development, resulting in processes driven by different objectives for individuals and societies.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":"59 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75970384","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tengku Humaira Tunku Abdul Rahman, S. Shahimi, Shifa Mohd Nor
Previously, women in Organization of Islamic Cooperation (OIC) member countries were reported to be more financially excluded compared to the global average. Hence, this study aims to have a closer look at the aspect of gender inequality in financial inclusion in OIC member countries. Specifically, it seeks to examine the role of Islamic banking in enhancing financial inclusion among women in selected OIC member countries empirically. This study frames its analysis based on annual economic and financial data for OIC member countries from several sources including the World Bank Global Findex and World Development Indicators for each respected country for the years 2011 and 2014 using ordinary least squares (OLS) estimation. The findings show significant improvement in the growth of women’s account penetration for 2014, suggesting Islamic banking deepening has had a positive effect on financial inclusion among women in the OIC member countries under study. The significant positive effect of Islamic banking presence and accessibility of Muslim women to financial services indicates pivotal role of Islamic banking in promoting financial inclusion among women, enhance economic activities for women and reduce gender gap in finance. The finding helps to promote gender equality, empowerment and financial inclusion among Muslim women in OIC countries through Islamic banking services. The findings call for Islamic finance industry players to expand their outreach to Muslim clients and help policymakers to define their role more clearly in expanding financial inclusion, Islamic or otherwise, to Muslim adults.
{"title":"DOES ISLAMIC BANKING PROMOTE FINANCIAL INCLUSION AMONG WOMEN IN OIC MEMBER COUNTRIES?","authors":"Tengku Humaira Tunku Abdul Rahman, S. Shahimi, Shifa Mohd Nor","doi":"10.32890/ijib2022.7.1.2","DOIUrl":"https://doi.org/10.32890/ijib2022.7.1.2","url":null,"abstract":"Previously, women in Organization of Islamic Cooperation (OIC) member countries were reported to be more financially excluded compared to the global average. Hence, this study aims to have a closer look at the aspect of gender inequality in financial inclusion in OIC member countries. Specifically, it seeks to examine the role of Islamic banking in enhancing financial inclusion among women in selected OIC member countries empirically. This study frames its analysis based on annual economic and financial data for OIC member countries from several sources including the World Bank Global Findex and World Development Indicators for each respected country for the years 2011 and 2014 using ordinary least squares (OLS) estimation. The findings show significant improvement in the growth of women’s account penetration for 2014, suggesting Islamic banking deepening has had a positive effect on financial inclusion among women in the OIC member countries under study. The significant positive effect of Islamic banking presence and accessibility of Muslim women to financial services indicates pivotal role of Islamic banking in promoting financial inclusion among women, enhance economic activities for women and reduce gender gap in finance. The finding helps to promote gender equality, empowerment and financial inclusion among Muslim women in OIC countries through Islamic banking services. The findings call for Islamic finance industry players to expand their outreach to Muslim clients and help policymakers to define their role more clearly in expanding financial inclusion, Islamic or otherwise, to Muslim adults.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":"51 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88965024","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A. Abdurraheem, R. Abdulkadir, Fatima Oyebola Etudaiye-Muhtar
This study investigates the perception of the relationship between interest-free financing contracts of Islamic banking as an incentive to provide voluntary information disclosure among entrepreneurs in Nigeria thereby reducing the incidence of information asymmetry. Questionnaires were used as an instrument of data collection. Multivariate Logistic Regression Model was employed to estimate the model. The result showed a positive and significant relationship between the incentive of interest-free financing contracts and motivation to give voluntary information disclosure, thereby minimizing the incidence of asymmetric information. Similarly, the finding also indicates that level of education, understanding and awareness of the procedures of obtaining credit facilities from banks (both conventional and non-interest banks) has a significant relationship with the entrepreneurs’ motivation to give voluntary information disclosure to the banks concerning the financing contracts obtained from Islamic banks. However, the religious belief of the entrepreneurs did not indicate a significant relationship with their decisions to have a banking relationship with Islamic banks but was largely motivated by economic factors and business decisions in their relationship with the banks and their motivation to give voluntary information disclosure. This study, unlike most previous studies on Islamic banking in Nigeria, investigates the perception of entrepreneurs of the relationship between the incentive of interest-free financing contracts and motivation to volunteer greater information. The policymakers can, therefore, leverage the positive perception of entrepreneurs of the incentive of interest-free financing, to reduce information asymmetry in Islamic banking, and promote the establishment of more Islamic banks through appropriate legislations and regulations that can ensure enabling operating environment. This would, in turn, promote financial inclusion and reduce the widening funding gap experienced by small and medium enterprises in the country.
{"title":"PERCEPTION STUDY ON THE EFFECTS OF INTEREST-FREE FINANCING OF ISLAMIC BANKING ON INFORMATION ASYMMETRY AMONG ENTREPRENEURS: EVIDENCE FROM NIGERIA","authors":"A. Abdurraheem, R. Abdulkadir, Fatima Oyebola Etudaiye-Muhtar","doi":"10.32890/ijib2022.7.1.1","DOIUrl":"https://doi.org/10.32890/ijib2022.7.1.1","url":null,"abstract":"This study investigates the perception of the relationship between interest-free financing contracts of Islamic banking as an incentive to provide voluntary information disclosure among entrepreneurs in Nigeria thereby reducing the incidence of information asymmetry. Questionnaires were used as an instrument of data collection. Multivariate Logistic Regression Model was employed to estimate the model. The result showed a positive and significant relationship between the incentive of interest-free financing contracts and motivation to give voluntary information disclosure, thereby minimizing the incidence of asymmetric information. Similarly, the finding also indicates that level of education, understanding and awareness of the procedures of obtaining credit facilities from banks (both conventional and non-interest banks) has a significant relationship with the entrepreneurs’ motivation to give voluntary information disclosure to the banks concerning the financing contracts obtained from Islamic banks. However, the religious belief of the entrepreneurs did not indicate a significant relationship with their decisions to have a banking relationship with Islamic banks but was largely motivated by economic factors and business decisions in their relationship with the banks and their motivation to give voluntary information disclosure. This study, unlike most previous studies on Islamic banking in Nigeria, investigates the perception of entrepreneurs of the relationship between the incentive of interest-free financing contracts and motivation to volunteer greater information. The policymakers can, therefore, leverage the positive perception of entrepreneurs of the incentive of interest-free financing, to reduce information asymmetry in Islamic banking, and promote the establishment of more Islamic banks through appropriate legislations and regulations that can ensure enabling operating environment. This would, in turn, promote financial inclusion and reduce the widening funding gap experienced by small and medium enterprises in the country.","PeriodicalId":33481,"journal":{"name":"IJIBE International Journal of Islamic Business Ethics","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79686245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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