Journal of Islamic Accounting and Business Research最新文献

Purpose

This study aims to determine the role of gold as a safe haven, hedge and asset diversification for Shariah stock in conditions of extreme stock market declines.

Design/methodology/approach

Quantitative approach is used by applying the threshold generalized autoregressive conditional heteroskedasticity (TGARCH) model to capture bad or good news in the market condition and quantile regression method to obtain the extreme values of stock returns in several market conditions. The data used were the daily closing price of gold and the Jakarta Islamic Index from January 2011 to October 2022.

Findings

The average conditions show gold does not have a hedge property and only acts as an asset diversification. Second, gold has a substantial, safe haven property in every economic condition. However, the safe-haven property of gold seemed to weaken during the most extreme stock market decline. Thus, although gold appears as a safe haven and asset diversification, it remains a risky investment and only provides a minor role in the face of the extreme stock market period.

Practical implications

This research provides a discourse and literature for Islamic investors and investor managers to choose the right investment instrument in various economic conditions where gold has a function as diversification and safe haven in their asset portfolio under any other asset portfolio conditions which is also in line with modern portfolio theory. For policymakers, the study can be used as material for consideration in making policies related to the accessibility of gold as an investment instrument.

Originality/value

This study presents the originality by using the price of Antam gold as a proxy for gold investment during the latest research year data and focusing on case studies in Islamic capital market in Indonesia. Moreover, this research provides quantile regression that sharply discussion in various economics condition.

Purpose

This study aims to explain the effect of customer loyalty, financial performance and market power on Shariah compliance (SC).

Design/methodology/approach

This study investigates 101 fully-fledged Islamic banks (IBs) from 27 countries, and panel data regression methods were used to analyze the data. This study uses alternative empirical models and the generalized method of moment (GMM) system to address endogeneity problems.

Findings

This study finds that high profitability causes a decrease in SC. High levels of competition cause the IBs to make policies to increase their SC. However, the effect of competition on SC depends on the ownership status of the IBs – high levels of competition cause unlisted IBs to increase their SC. However, for listed IBs, severe competition weakens their SC.

Research limitations/implications

This study focuses on interest-free IB deposit products as SC indicators.

Practical implications

This paper suggests regulators should control the IBs’ competition to increase the level of competition among IBs and conventional banks to increase the SC.

Originality/value

This study develops two SC indicators that focus on the relationship between the rate of return for investment account holders (RRIAH) and the interest rate (IR): the difference between the IR and the RRIAH and the elasticity of the RRIAH with the IR.

Purpose

The COVID-19 pandemic has affected economic activity both globally and nationally, which also has an impact to banking sector and Islamic banking is no exception. This study aims to see how the impact of Islamic bank financing in seven sectors affected by the COVID-19 to the credit risk of Indonesian Islamic banks. In addition, this study also tries to see whether the proportion of mudharabah-musharaka or profit-loss sharing (PLS) financing also affects credit risk in Indonesian Islamic banks.

Design/methodology/approach

This study uses fixed effect panel data regression over the period 2011–2020.

Findings

The results of this study show that wholesale and retail trade financing will increase credit risk in Indonesian Islamic banks as a policy implication. In terms of the proportion of PLS financing, it shows that a larger share of PLS financing will reduce credit risk in Islamic banks.

Originality/value

This paper demonstrates that despite the industry’s perception of PLS as riskier than murabaha-based instruments. According to the research, PLS financing will lower credit risk in Islamic banks. This study found that PLS contributes to overall economic stability by shifting the function of Islamic banks from a simple lending body to an active market catalyst/manager/consultant to market players seeking financial aid.

Purpose

This study aims to offer quantitative data on the expansion of Islamic accounting literature. The analysis concentrated on publishing patterns, nations that conduct Islamic accounting research, prominent contributors, leading writers, highly productive nations, keywords and papers with the greatest citations.

Design/methodology/approach

The author describes the field’s development and structure, including co-citation, co-authorship and bibliographical coupling, using a bibliometric approach combined with content analysis. The author discovers that Malaysia is the most pertinent nation, Universiti Sains Islam Malaysia is the most pertinent university and the most pertinent journal is the Journal of Islamic Accounting and Business Research.

Findings

The author stresses the importance of critically assessing such approaches as more research looks into the possible contribution of Islamic banks to the provision of Shari’ah-compliant microfinance to rural small and medium enterprises. Finally, all business models are changing paradigms as a result of Industry 4.0. information and communication technology advancements might increase the adoption of Islamic accounting. Future research could create Shari’ah-compliant Islamic accounting models based on financial technology (fintech) for the benefit of underprivileged business owners who have little access to accounting and financing through conventional financial channels. The consideration of the necessity of regulatory reform to enhance the practical feasibility of Islamic accounting as a vehicle for economic transformation could also be helpful to policymakers.

Originality/value

Future research could create Shari’ah-compliant Islamic accounting models based on financial technology (fintech) for the benefit of underprivileged business owners who have little access to accounting and financing through conventional financial channels. The study’s consideration of the necessity of regulatory reform to enhance the practical feasibility of Islamic accounting as a vehicle for economic transformation could also be helpful to policymakers.

Purpose

This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Design/methodology/approach

Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance. 

Findings

AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry.

Practical implications

The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices.

Originality/value

There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.

Purpose

This study aims to investigate the dynamics of return connectedness of the Standard & Poor’s (S&P) Gulf Cooperation Council (GCC) composite index with five regional equity indices, three global equity indices and other different asset classes during the COVID-19 pandemic period.

Design/methodology/approach

This study uses daily data spanning from January 2, 2018, to December 23, 2021. A subsample analysis is conducted to determine the role of uncertainty in modifying the connectedness structure during the ongoing pandemic period.

Findings

The results of this study show that the nature of connectedness is time-frequent, with clear evidence for a higher level of connectedness during stress periods, especially after the onset of the pandemic. The GCC index is found to be a net receiver of shocks to other assets, with an increase in magnitude during the COVID period.

Research limitations/implications

This study is limited by the use of only daily data, and future research could consider using higher frequency data.

Practical implications

The results of this study confirm the disturbing effects of the pandemic on the GCC index and its connectedness with other assets, which matters for policymakers and investors.

Originality/value

This study provides new insights into the dynamics of return connectedness of the GCC index with other assets during the COVID-19 pandemic period, which has not been previously explored.

Purpose

The purpose of this paper is to examine how the board of directors effectiveness (BODE), financial determinants, Takaful-specific determinants and the Takaful firms’ financial stability are related to the Shari’ah Supervisory Board’s quality (SCQ).

Design/methodology/approach

Using hierarchical regression analysis, the authors examine the determinants of financial stability of Takaful insurance and the authors test the moderator role of SCQ over 2016–2022 on a sample of 19 listed Takaful firms in 10 countries in the Middle East and South Asia region.

Findings

The findings reveal that SCQ negatively moderates the positive relationship between BODE, the Takaful model, diversification strategy, solvency, liquidity and Takaful financial stability. Shari’ah governance plays a crucial role in improving the financial soundness and the Shari’ah compliance of Takaful insurance.

Research limitations/implications

This paper includes two main limitations. The results are restricted to the Middle East region and South Asia and may not be generalized to other areas. The study presents data from only 19 Takaful firms.

Practical implications

This kind of investigation is of immense relevance to enhance the understanding of governance and soundness of Takaful companies. Furthermore, it serves as a guide to the recruitment of Shari’ah board members, the choice of Takaful model and appropriate strategy to increase its financial stability.

Originality/value

This research studies the financial stability of Takaful insurance and the moderating role of SCQ, unlike the majority of other works that focus on financial performance.

Purpose

The purpose of this paper was to explore the impact of interest rate shocks on the deposits and financing of Islamic and conventional banks in Saudi Arabia.

Design/methodology/approach

The authors use impulse response functions (IRFs) and variance decomposition (VDC) analyses over the period 2008Q1–2020Q2.

Findings

The IRFs showed that increasing interest rates reduce loans and conventional deposits. For Islamic banks, the deposits are more affected by interest rate changes than the financing. The VDC analysis found that deposits contribute up to 61% of Islamic financing variations, compared to only 25% in conventional lending ones.

Originality/value

This research contributes to the field of Islamic economics and finance by providing empirical evidence on how interest rates likely impact Islamic and conventional deposits and financing in Saudi banking system.

Purpose

This study aims to analyze the influence of the dimensions of Sharia hospital service standards, religiosity commitment and trust of Muslim patients on attitudes and satisfaction, as well as the implications of loyalty.

Design/methodology/approach

This study was carried out by analyzing data obtained from a survey with purposive sampling techniques with 425 patients in an Indonesian-certified Sharia hospital and analyzing it using partial least squares structural equation modeling software to test the path modeling and the relationship between the instruments.

Findings

This study shows that hospital amenities, doctor’s services, nurses’ services, health-care technicalities and hospital environmental and administrative behavior affect patient satisfaction. In addition, religiosity and trust in encouraging patient attitudes determine patient satisfaction. High satisfaction points will increase loyalty to Sharia hospitals.

Research limitations/implications

This study encourages managers to maximize the quality of humanist Islamic medical services and the infrastructure of comfortable facilities. In addition, hospitals need to improve their holistic atmosphere, technical services and administrative behavior so that they can become essential value for hospital marketing – the development of competence and ethical behavior of health workers through various training programs internally and externally.

Originality/value

This study presents the determination of Sharia hospital service standards accompanied by a commitment to religiosity and trust as a psychological perspective of Muslim patients on attitudes and satisfaction and its implications on the brand loyalty of Indonesian Sharia hospitals that have been officially certified.