Pub Date : 2022-08-03DOI: 10.20885/jeki.vol8.iss2.art7
Siswantoro Siswantoro
Purpose – This study aims to examine the effects of Islamic social finance, Islamic commercial finance, and the integration of Islamic social finance and Islamic commercial finance on poverty in Indonesia.Methodology – Data in the form of time series from 2002 to 2021 were evaluated using the Error Correction Model (ECM) approach. This method describes both long and short-term effects of Islamic social finance, Islamic commercial finance, and integration of Islamic social finance and Islamic commercial finance on poverty.Findings – The results show that Islamic social finance, Islamic commercial finance, and the integration between the two Islamic finance sectors have a significant negative effect on poverty rates in the long term. In the short term, the integration between Islamic social finance and Islamic commercial finance has a significant negative effect on the poverty rate, while Islamic social finance and Islamic commercial finance have a negative but not significant effect on the poverty rate.Implication – This study recommends policymakers make rules regarding the implementation of collaborative efforts on institutions in the two Islamic finance sectors in the future.Originality – Most of the studies that have been conducted have only focused on one sector of Islamic finance. In fact, the integration between Islamic social finance and Islamic commercial finance in Indonesia makes these two sectors of Islamic finance have the potential to reduce poverty higher than without integration.
{"title":"Can the integration between Islamic social finance and Islamic commercial finance tackle poverty in Indonesia?","authors":"Siswantoro Siswantoro","doi":"10.20885/jeki.vol8.iss2.art7","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art7","url":null,"abstract":"Purpose – This study aims to examine the effects of Islamic social finance, Islamic commercial finance, and the integration of Islamic social finance and Islamic commercial finance on poverty in Indonesia.Methodology – Data in the form of time series from 2002 to 2021 were evaluated using the Error Correction Model (ECM) approach. This method describes both long and short-term effects of Islamic social finance, Islamic commercial finance, and integration of Islamic social finance and Islamic commercial finance on poverty.Findings – The results show that Islamic social finance, Islamic commercial finance, and the integration between the two Islamic finance sectors have a significant negative effect on poverty rates in the long term. In the short term, the integration between Islamic social finance and Islamic commercial finance has a significant negative effect on the poverty rate, while Islamic social finance and Islamic commercial finance have a negative but not significant effect on the poverty rate.Implication – This study recommends policymakers make rules regarding the implementation of collaborative efforts on institutions in the two Islamic finance sectors in the future.Originality – Most of the studies that have been conducted have only focused on one sector of Islamic finance. In fact, the integration between Islamic social finance and Islamic commercial finance in Indonesia makes these two sectors of Islamic finance have the potential to reduce poverty higher than without integration.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81374861","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 : 2022-08-03DOI: 10.20885/jeki.vol8.iss2.art6
Ihsanul Ikhwan, R. Riani
Purpose – This study aims to measure the efficiency level of Indonesian Banking in the period 2015-2020, especially in the year 2020 when the Covid-19 pandemic began to spread in Indonesia. In addition, the efficiency determinant was further analyzed to find some factors that affect banking efficiency.Methodology – Non-parametric approach-Data Envelopment Analysis (DEA) and Tobit Regression were employed as the research methods to determine determinants that affect efficiency level.Findings – The findings show that the efficiency level of Indonesian Banks experienced a decreasing trend in 2020. The impact of Covid-19 on banking efficiency was also confirmed by RTS, which was included in the Decreasing Return to Scale (DRS) category. Islamic banking scored a higher score of 0.66 than conventional banking, with a score of 0.59. In addition, Indonesian Banks' most crucial variable to be improved during the pandemic is total financing. This study also found that ROA and LDR/FDR significantly affects banking efficiency. Therefore, Indonesian Banks should maintain and increase their bank profitability and financing distributions to improve their efficiency.Implication – This research can be used as guidelines for policymakers, especially bank management, to improve their weaknesses in terms of banking efficiency. Originality – This study was the first research that focuses on measuring the efficiency of Islamic banks compared to conventional banks in Indonesia during the Covid-19 and precisely measures the bank's internal factors affecting bank efficiency.
{"title":"The efficiency level of Indonesian banks in the Covid-19 pandemic era and its determinant","authors":"Ihsanul Ikhwan, R. Riani","doi":"10.20885/jeki.vol8.iss2.art6","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art6","url":null,"abstract":"Purpose – This study aims to measure the efficiency level of Indonesian Banking in the period 2015-2020, especially in the year 2020 when the Covid-19 pandemic began to spread in Indonesia. In addition, the efficiency determinant was further analyzed to find some factors that affect banking efficiency.Methodology – Non-parametric approach-Data Envelopment Analysis (DEA) and Tobit Regression were employed as the research methods to determine determinants that affect efficiency level.Findings – The findings show that the efficiency level of Indonesian Banks experienced a decreasing trend in 2020. The impact of Covid-19 on banking efficiency was also confirmed by RTS, which was included in the Decreasing Return to Scale (DRS) category. Islamic banking scored a higher score of 0.66 than conventional banking, with a score of 0.59. In addition, Indonesian Banks' most crucial variable to be improved during the pandemic is total financing. This study also found that ROA and LDR/FDR significantly affects banking efficiency. Therefore, Indonesian Banks should maintain and increase their bank profitability and financing distributions to improve their efficiency.Implication – This research can be used as guidelines for policymakers, especially bank management, to improve their weaknesses in terms of banking efficiency. Originality – This study was the first research that focuses on measuring the efficiency of Islamic banks compared to conventional banks in Indonesia during the Covid-19 and precisely measures the bank's internal factors affecting bank efficiency.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72417696","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 : 2022-07-22DOI: 10.20885/jeki.vol8.iss2.art3
M. Kholid, Y. Tumewang, H. Amin
Purpose – Using Social Cognitive Career Theory (SCCT), this study tries to find out what factors influence accounting students' intention to be-come Sha¬ria Accountants. This research also investigates the university envoronment’s moderating effect (Islamic-Based University vs Public University).Methodology – The participants in this study were chosen using a purposive sampling method from undergraduate accounting students in Yogyakarta who had completed Shariah accounting or related courses. A total of 231 people took part in this study. SmartPLS 3.0 was used to conduct the multigroup analysis in this study.Findings – The results of this study indicate that self-efficacy and outcome expectations have a significant and positive effect on the intention of accounting students to become Shariah Accountants. In addition to that, the influence of self-efficacy on intention is moderated by the university environment, in which the role of self-efficacy becomes more important for students from Islamic-based universities than those from public universitiesImplications – This research is useful for universities majoring in accounting to support accounting students to become sharia accountants. Islamic-based universities and public universities need to improve knowledge and skills of Islamic accounting and finance to increase students' self-efficacy regarding Islamic accounting. Lecturers need to convey information to students about the various benefits obtained by sharia accountants to encourage students to become sharia accountants.Originality – This study contributes to the growing empirical literature on accounting education. This article offers the importance of considering the university environment in the SCCT framework to understand the intentions of accounting students to become sharia accountants.
{"title":"Aspirations to become a sharia accountant: A multigroup analysis between Islamic and public university","authors":"M. Kholid, Y. Tumewang, H. Amin","doi":"10.20885/jeki.vol8.iss2.art3","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art3","url":null,"abstract":"Purpose – Using Social Cognitive Career Theory (SCCT), this study tries to find out what factors influence accounting students' intention to be-come Sha¬ria Accountants. This research also investigates the university envoronment’s moderating effect (Islamic-Based University vs Public University).Methodology – The participants in this study were chosen using a purposive sampling method from undergraduate accounting students in Yogyakarta who had completed Shariah accounting or related courses. A total of 231 people took part in this study. SmartPLS 3.0 was used to conduct the multigroup analysis in this study.Findings – The results of this study indicate that self-efficacy and outcome expectations have a significant and positive effect on the intention of accounting students to become Shariah Accountants. In addition to that, the influence of self-efficacy on intention is moderated by the university environment, in which the role of self-efficacy becomes more important for students from Islamic-based universities than those from public universitiesImplications – This research is useful for universities majoring in accounting to support accounting students to become sharia accountants. Islamic-based universities and public universities need to improve knowledge and skills of Islamic accounting and finance to increase students' self-efficacy regarding Islamic accounting. Lecturers need to convey information to students about the various benefits obtained by sharia accountants to encourage students to become sharia accountants.Originality – This study contributes to the growing empirical literature on accounting education. This article offers the importance of considering the university environment in the SCCT framework to understand the intentions of accounting students to become sharia accountants.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90556347","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 : 2022-07-22DOI: 10.20885/jeki.vol8.iss2.art1
Prastowo Prastowo, Diyah Putriani
Purpose – This paper aims to analyze the effect of financial depth in Islamic banks on income inequality in 33 provinces in Indonesia. Methodology – We use data for the period 2010-2018 from 33 provinces in Indonesia which are estimated using panel data to develop spatial panel data model. The dependent variable is income inequality, while the variable independent are Islamic regional financial depth, economic growth, human capital, and government expenditure.Findings – This research finds that Islamic Regional Financial Depth (FDS) has a positive and statistically significant direct effect on income inequality represented by Gini index. It means that an increase in the FDS will also cause an increase in the level of Gini index. In addition, the indirect effect of FDS on income inequality is also positive and significant, indicating that the ratio of financing to GRDP has a spillover effect on connected regions. Implications – This research recommends policymaker to expand the business of Islamic banking by financing the small medium enterprises and concern on the promotion of Islamic banking in the regional level. Originality – This study is potentially to contribute and be the early work which employs spatial analysis in the area of Islamic economics and finance. In addition, this study examines the impact of financial depth in Islamic bank on income inequality which is rarely discussed. Hence, this study presents relatively new information for policy makers, practitioners and researchers.
{"title":"Spatial analysis on the impact of Islamic regional financial depth on income inequality in Indonesia","authors":"Prastowo Prastowo, Diyah Putriani","doi":"10.20885/jeki.vol8.iss2.art1","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art1","url":null,"abstract":"Purpose – This paper aims to analyze the effect of financial depth in Islamic banks on income inequality in 33 provinces in Indonesia. Methodology – We use data for the period 2010-2018 from 33 provinces in Indonesia which are estimated using panel data to develop spatial panel data model. The dependent variable is income inequality, while the variable independent are Islamic regional financial depth, economic growth, human capital, and government expenditure.Findings – This research finds that Islamic Regional Financial Depth (FDS) has a positive and statistically significant direct effect on income inequality represented by Gini index. It means that an increase in the FDS will also cause an increase in the level of Gini index. In addition, the indirect effect of FDS on income inequality is also positive and significant, indicating that the ratio of financing to GRDP has a spillover effect on connected regions. Implications – This research recommends policymaker to expand the business of Islamic banking by financing the small medium enterprises and concern on the promotion of Islamic banking in the regional level. Originality – This study is potentially to contribute and be the early work which employs spatial analysis in the area of Islamic economics and finance. In addition, this study examines the impact of financial depth in Islamic bank on income inequality which is rarely discussed. Hence, this study presents relatively new information for policy makers, practitioners and researchers.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78105618","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 : 2022-07-22DOI: 10.20885/jeki.vol8.iss2.art5
Ulumuddin Nurul Fakhri, Aminah Nuriyah
Purpose – The purpose of this study was to determine the extent of the impact of Covid-19 on the macroeconomic indicators and financial performance of Islamic banks in Indonesia. The results of this study may serve as a reference for the Indonesian government and Islamic banks’ stakeholders in formulating strategic decisions in creating innovative solutions during the Covid-19 pandemic.Methodology – Quantitative research method with 2 approaches, namely Partial Least Square-Structural Equation Modeling (PLS-SEM) and Artificial Neural Networks (ANN) was selected for this study.Findings – This study demonstrated that macroeconomic indicators were significantly affected by the Covid-19 pandemic. However, the results of the ANN and PLS-SEM models varied. The PLS-SEM model illustrated the impact of the Covid-19 pandemic affecting the performance of Islamic banking, while the ANN model did not.Implication – This research has implications for stakeholders, especially the government to maintain macroeconomic stability, while for Islamic banking management to focus more on product innovation and service excellence so that it can be closer to the public, especially Muslims community.Originality – Numerous studies examining macroeconomics and the financial performance of Islamic banking have been conducted. This study aimed to offer an alternative perspective by using two models, namely PLS-SEM and ANN.
{"title":"The impacts of Covid-19 on macroeconomic indicators and the performance of Islamic banks in Indonesia","authors":"Ulumuddin Nurul Fakhri, Aminah Nuriyah","doi":"10.20885/jeki.vol8.iss2.art5","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art5","url":null,"abstract":"Purpose – The purpose of this study was to determine the extent of the impact of Covid-19 on the macroeconomic indicators and financial performance of Islamic banks in Indonesia. The results of this study may serve as a reference for the Indonesian government and Islamic banks’ stakeholders in formulating strategic decisions in creating innovative solutions during the Covid-19 pandemic.Methodology – Quantitative research method with 2 approaches, namely Partial Least Square-Structural Equation Modeling (PLS-SEM) and Artificial Neural Networks (ANN) was selected for this study.Findings – This study demonstrated that macroeconomic indicators were significantly affected by the Covid-19 pandemic. However, the results of the ANN and PLS-SEM models varied. The PLS-SEM model illustrated the impact of the Covid-19 pandemic affecting the performance of Islamic banking, while the ANN model did not.Implication – This research has implications for stakeholders, especially the government to maintain macroeconomic stability, while for Islamic banking management to focus more on product innovation and service excellence so that it can be closer to the public, especially Muslims community.Originality – Numerous studies examining macroeconomics and the financial performance of Islamic banking have been conducted. This study aimed to offer an alternative perspective by using two models, namely PLS-SEM and ANN.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74326226","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}
Purpose – In an uncertain economic condition, maintaining companies’ profitability is essential. This study aims to analyze and assess the factors that affect bank profitability by focusing on internal factors such as capital, size, asset quality, and liquidity risk. This study also observed the effect of Islamic and conventional banking in Indonesia with a comprehensive profitability analysis as measured by ROA, ROE, and NIM/NOM.Methodology – The method used in this research was panel data regression. The data studied were derived from the quarterly reports of Islamic and conventional banking in Indonesia for five years, from 2016 to 2020.Findings – The results showed that conventional banking in Indonesia had a higher level of profitability than Islamic banking. The profitability of conventional banks is significantly influenced by the level of equity, size, CKPN, and LDR. On the other hand, Islamic banking in Indonesia generally has a lower level of profitability, but in terms of individual performance, the value was not inferior to conventional banking. Variables that significantly influence the profitability of Islamic banking included equity, CKPN, and FDR.Implication – Banks in Indonesia must improve their performance so that the development of asset size can be in line with the level of profitability generated, maintain asset quality so that the health of the bank is maintained, and has proportional equity and LDR/FDR value.Originality – This research used three profitability ratios: ROA, ROE, and NIM/NOM, and analyzed Islamic and conventional banking, considering that Indonesia has a dual banking system, so the analysis carried out was more comprehensive.
{"title":"Assessing the internal factor affecting the bank profitability in Indonesia: Case of dual banking system","authors":"Roisatun Kasanah, Achmad Fadlil Abidillah, Sulistya Rusgianto","doi":"10.20885/jeki.vol8.iss2.art2","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art2","url":null,"abstract":"Purpose – In an uncertain economic condition, maintaining companies’ profitability is essential. This study aims to analyze and assess the factors that affect bank profitability by focusing on internal factors such as capital, size, asset quality, and liquidity risk. This study also observed the effect of Islamic and conventional banking in Indonesia with a comprehensive profitability analysis as measured by ROA, ROE, and NIM/NOM.Methodology – The method used in this research was panel data regression. The data studied were derived from the quarterly reports of Islamic and conventional banking in Indonesia for five years, from 2016 to 2020.Findings – The results showed that conventional banking in Indonesia had a higher level of profitability than Islamic banking. The profitability of conventional banks is significantly influenced by the level of equity, size, CKPN, and LDR. On the other hand, Islamic banking in Indonesia generally has a lower level of profitability, but in terms of individual performance, the value was not inferior to conventional banking. Variables that significantly influence the profitability of Islamic banking included equity, CKPN, and FDR.Implication – Banks in Indonesia must improve their performance so that the development of asset size can be in line with the level of profitability generated, maintain asset quality so that the health of the bank is maintained, and has proportional equity and LDR/FDR value.Originality – This research used three profitability ratios: ROA, ROE, and NIM/NOM, and analyzed Islamic and conventional banking, considering that Indonesia has a dual banking system, so the analysis carried out was more comprehensive.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84454843","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 : 2022-07-22DOI: 10.20885/jeki.vol8.iss2.art4
Nabilah Nabilah, M. N. R. Al Arif
Purpose – This study aims to analyze the efficiency level of Islamic banks from spin-off and non-spinoff results and the impact of the separation policy and other factors that affect the efficiency level of Islamic banks.Methodology – This study uses a quantitative approach through data envelopment analysis to measure the efficiency level of Islamic banks and the difference-in-difference approach to examine the impact of separation and other factors that affect the efficiency level of Islamic banks. Data is collected directly from each of the six Islamic banks' financial statements.Findings – The results showed no difference in the efficiency level between before and after the spin-off policy at the spin-off bank. Furthermore, it was found that the efficiency level of spin-off Islamic banks was significantly lower than that of non-spinoff Islamic banks. Implication – This result implies that the rules regarding spin-offs should be evaluated. The spin-off policy must be a corporate action and not a regulation imposed by the regulator. Merger or conversion between sharia business units can be an alternative to improve the performance of sharia banking in Indonesia. Originality – Research on the impact of Islamic bank spin-off policies is still limited. Only a few studies analyze the efficiency level of Islamic banks as a result of spin-offs by measuring data analysis. Therefore, this research will contribute to research that discusses the spin-off policy of Islamic banks, especially the impact on efficiency and the factors that affect the level of efficiency.
{"title":"Spin-off and efficiency in Islamic banks: DEA approach","authors":"Nabilah Nabilah, M. N. R. Al Arif","doi":"10.20885/jeki.vol8.iss2.art4","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss2.art4","url":null,"abstract":"Purpose – This study aims to analyze the efficiency level of Islamic banks from spin-off and non-spinoff results and the impact of the separation policy and other factors that affect the efficiency level of Islamic banks.Methodology – This study uses a quantitative approach through data envelopment analysis to measure the efficiency level of Islamic banks and the difference-in-difference approach to examine the impact of separation and other factors that affect the efficiency level of Islamic banks. Data is collected directly from each of the six Islamic banks' financial statements.Findings – The results showed no difference in the efficiency level between before and after the spin-off policy at the spin-off bank. Furthermore, it was found that the efficiency level of spin-off Islamic banks was significantly lower than that of non-spinoff Islamic banks. Implication – This result implies that the rules regarding spin-offs should be evaluated. The spin-off policy must be a corporate action and not a regulation imposed by the regulator. Merger or conversion between sharia business units can be an alternative to improve the performance of sharia banking in Indonesia. Originality – Research on the impact of Islamic bank spin-off policies is still limited. Only a few studies analyze the efficiency level of Islamic banks as a result of spin-offs by measuring data analysis. Therefore, this research will contribute to research that discusses the spin-off policy of Islamic banks, especially the impact on efficiency and the factors that affect the level of efficiency.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78073885","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 : 2022-02-09DOI: 10.20885/jeki.vol8.iss1.art10
Putri Purwandari Hasan, Elvia R. Shauki
Purpose – This study aims to examine phenomena related to the collection and development of waqf funds by waqf institutions and formulate recommendations regarding applicable strategies to optimize the collection and development of waqf funds based on the principles of commitment-trust theory.Methodology – This study applied a case study approach with a qualitative method at 5 (five) different waqf institutions in Indonesia to further explore the phenomena related to the collection and development of waqf funds. Data was collected through semi-structured interviews.Findings – The results of this study indicate that several problems, i.e. low literacy of waqf, lack of professionalism of nazhir, and low accountability of waqf institutions are still encountered by waqf institutions in collecting and developing waqf funds. In addition, the efforts made by waqf institutions have not been sufficiently qualified to foster waqif’s commitment and trust to optimize the collection and development of waqf funds. Therefore, several recommendations on applicable strategies for waqf managers are formulated based on the four precursors outlined in the commitment-trust theory, namely shared values, relationship benefits, communication, and non-opportunistic behavior. These recommendations include reaffirming the values of waqf institutions, making efforts to maintain good relations with waqifs, keeping good communication with waqifs, and improving transparency of financial reports.Originality – This study complements the research gap of the limited studies on the collection and development of waqf funds. In addition, previous studies on this topic did not implement the commitment-trust theory.
{"title":"Recommendations for collection and development strategy of waqf funds: A case study on waqf institutions","authors":"Putri Purwandari Hasan, Elvia R. Shauki","doi":"10.20885/jeki.vol8.iss1.art10","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss1.art10","url":null,"abstract":"Purpose – This study aims to examine phenomena related to the collection and development of waqf funds by waqf institutions and formulate recommendations regarding applicable strategies to optimize the collection and development of waqf funds based on the principles of commitment-trust theory.Methodology – This study applied a case study approach with a qualitative method at 5 (five) different waqf institutions in Indonesia to further explore the phenomena related to the collection and development of waqf funds. Data was collected through semi-structured interviews.Findings – The results of this study indicate that several problems, i.e. low literacy of waqf, lack of professionalism of nazhir, and low accountability of waqf institutions are still encountered by waqf institutions in collecting and developing waqf funds. In addition, the efforts made by waqf institutions have not been sufficiently qualified to foster waqif’s commitment and trust to optimize the collection and development of waqf funds. Therefore, several recommendations on applicable strategies for waqf managers are formulated based on the four precursors outlined in the commitment-trust theory, namely shared values, relationship benefits, communication, and non-opportunistic behavior. These recommendations include reaffirming the values of waqf institutions, making efforts to maintain good relations with waqifs, keeping good communication with waqifs, and improving transparency of financial reports.Originality – This study complements the research gap of the limited studies on the collection and development of waqf funds. In addition, previous studies on this topic did not implement the commitment-trust theory.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85330630","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 : 2022-02-07DOI: 10.20885/jeki.vol8.iss1.art9
Dauh Wijana, I. W. Widnyana
Purpose – We intended to test and compare the durability of Islamic banking and conventional banking during the Covid-19 pandemic in Indonesia. To that end, we first compared their performance before and during the pandemic. Next, we examined the effects of pandemic shocks on the performance of each of them.Methodology – The data covers 80 banks in Indonesia, which were divided into four groups, namely Islamic and conventional commercial banks, and Islamic and conventional rural banks. Each group consisted of 20 banks. Our observation period is 10 quarters, which was divided into two periods, namely the period before the pandemic (Q1-2019 – Q1-2020) and the period during the pandemic (Q2-2020 – Q2-2021). For comparison, we used a paired sample t-test, while testing the effect of shocks using a panel regression model.Findings – Islamic banking outperformed conventional banking, both before and during the Covid-19 pandemic. The Covid-19 pandemic has predominantly shaken conventional banking indicators and has only slightly shaken Islamic banking. However, this does not mean Islamic banks were superior to their conventional counterparts because both were shaken, it's just that conventional banks experienced a bigger shock than their Islamic counterparts.Originality – This is an original study that examines and compares the performance between Islamic and conventional banking using financial ratios during the Covid-19 pandemic.
{"title":"Is Islamic banking stronger than conventional banking during the Covid-19 pandemic? Evidence from Indonesia","authors":"Dauh Wijana, I. W. Widnyana","doi":"10.20885/jeki.vol8.iss1.art9","DOIUrl":"https://doi.org/10.20885/jeki.vol8.iss1.art9","url":null,"abstract":"Purpose – We intended to test and compare the durability of Islamic banking and conventional banking during the Covid-19 pandemic in Indonesia. To that end, we first compared their performance before and during the pandemic. Next, we examined the effects of pandemic shocks on the performance of each of them.Methodology – The data covers 80 banks in Indonesia, which were divided into four groups, namely Islamic and conventional commercial banks, and Islamic and conventional rural banks. Each group consisted of 20 banks. Our observation period is 10 quarters, which was divided into two periods, namely the period before the pandemic (Q1-2019 – Q1-2020) and the period during the pandemic (Q2-2020 – Q2-2021). For comparison, we used a paired sample t-test, while testing the effect of shocks using a panel regression model.Findings – Islamic banking outperformed conventional banking, both before and during the Covid-19 pandemic. The Covid-19 pandemic has predominantly shaken conventional banking indicators and has only slightly shaken Islamic banking. However, this does not mean Islamic banks were superior to their conventional counterparts because both were shaken, it's just that conventional banks experienced a bigger shock than their Islamic counterparts.Originality – This is an original study that examines and compares the performance between Islamic and conventional banking using financial ratios during the Covid-19 pandemic.","PeriodicalId":34834,"journal":{"name":"Jurnal Ekonomi dan Keuangan Islam","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88511334","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 : 2022-02-01DOI: 10.20885/jeki.vol8.iss1.art3
Muhammad Anis, Baitul Hamdi
Purpose – This paper aims to analyze the effect of economic uncertainty on liquidity risk of Islamic banks in Indonesia by observing the impact of economic uncertainty (World Uncertainty Index), macroeconomic factors (GDP Growth and Inflation Rate), and bank-specific factors (CAR and ROA) on liquidity risk.Methodology – Using time-series quarterly data from OJK’s Islamic Banking Statistics 2015-2021, this research applies Auto-Regressive Distributed Lag (ARDL) and Error Correction Term (ECT) to see the long-term impact and short-term response of economic uncertainty, inflation rate, GDP growth, ROA and CAR on liquidity risk of Islamic Bank.Findings – This research finds that economic uncertainty has a positive and significant effect on liquidity risk in the short term and long term. It means the increase in uncertainty index caused by the crisis, war, or pandemic like nowadays will enhance the liquidity risk of Islamic banking. At the same time, the inflation rate has a significant negative effect on liquidity risk in the short-term and long term.Originality – This research uses a combination of macroeconomic variables and bank-specific factors, and the economic uncertainty variable from the World Uncertainty Index. In this case, one of the reasons for liquidity problems apart from fund management failure is unfavorable economic conditions. In addition, this study also provides several recommendations in maintaining banking liquidity risk.Research limitations – This study uses time-series data with a limited period (2015Q1-2021Q2). In addition, this uses cumulative data on Islamic banking in Indonesia; thus, it does not describe the conditions in each Islamic bank, although certainly there are some different conditions between each other. Therefore, it is hoped that studies will complement these limitations in the future.
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