Pub Date : 2023-02-28DOI: 10.1108/imefm-11-2021-0454
Norzalina Ahmad, Hazrul Shahiri, Safwan Mohd Nor, Mukhriz Izraf Azman Aziz
Purpose This study aims to explore the connectedness of price return index spillovers across eight economic sectors in the Malaysian stock market (Bursa Malaysia). Design/methodology/approach The analysis uses daily data of sectoral price index from 10 May 2005 to 24 February 2021. The study uses Bayesian time-varying parameter vector autoregressive. Findings The degree of price return index spillovers varies over time, reaching unprecedented heights during the COVID-19 pandemic in 2020. The industrial economic sector is the main transmitter of price index return shock, whereas the utilities economic sector is the dominant receiver of index return spillovers. Originality/value The findings are critical for investors, market participants, businesses and policymakers in developing action plans for the vulnerable sectors. It further enhances investors’ confidence in making investment decisions.
{"title":"Connectedness analysis of price return index among Malaysian economic sectors","authors":"Norzalina Ahmad, Hazrul Shahiri, Safwan Mohd Nor, Mukhriz Izraf Azman Aziz","doi":"10.1108/imefm-11-2021-0454","DOIUrl":"https://doi.org/10.1108/imefm-11-2021-0454","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore the connectedness of price return index spillovers across eight economic sectors in the Malaysian stock market (Bursa Malaysia).\u0000\u0000\u0000Design/methodology/approach\u0000The analysis uses daily data of sectoral price index from 10 May 2005 to 24 February 2021. The study uses Bayesian time-varying parameter vector autoregressive.\u0000\u0000\u0000Findings\u0000The degree of price return index spillovers varies over time, reaching unprecedented heights during the COVID-19 pandemic in 2020. The industrial economic sector is the main transmitter of price index return shock, whereas the utilities economic sector is the dominant receiver of index return spillovers.\u0000\u0000\u0000Originality/value\u0000The findings are critical for investors, market participants, businesses and policymakers in developing action plans for the vulnerable sectors. It further enhances investors’ confidence in making investment decisions.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47019483","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-27DOI: 10.1108/imefm-01-2022-0008
Md. Bokhtiar Hasan, PhD, Mustafa Raza Rabbani, T. Sarker, Tanzila Akter, Shaikh Masrick Hasan
Purpose This study aims to examine the effect of risk disclosure (RD) on commercial banks’ credit rating (CR) in the context of Bangladesh. It also explores the factors influencing RD in both Islamic and conventional banks. Design/methodology/approach The sample includes 200 bank-year observations consisting of 20 commercial banks (15 conventional and 5 Islamic banks) from 2010 to 2019. The sample is further segregated into Islamic and conventional banks. Ordered logit and random effect ordinary least square models are used to analyze the data. Furthermore, the two-stage least squares approach is used to perform a robustness test. Findings This study shows that RD significantly positively impacts CR, with a stronger effect in Islamic banks than in conventional banks. This study also finds that banks’ age and leverage negatively influence CRs. Moreover, banks’ size and total capital have a positive and negative influence on CRs, respectively. This study also shows that the age of Islamic and conventional banks positively and negatively influences the RD scores, respectively. In contrast, the RD score of conventional banks is positively impacted by bank size. Practical implications By examining which variables substantially impact RD and, hence, CR scores, bank stakeholders may make better financing, investment and other policy decisions. Investors may choose stocks with a high level of RD in the annual reports as the earlier studies imply that higher RD enhances CR. Originality/value Only a few studies have examined the relationship between RD and CRs, while, to the best of the authors’ knowledge, this study is the maiden attempt in the Bangladesh context. This study also compares the link between Islamic and conventional banks.
{"title":"Role of risk disclosure on creditworthiness and driving forces of risk disclosure of banks: Islamic vs conventional banks","authors":"Md. Bokhtiar Hasan, PhD, Mustafa Raza Rabbani, T. Sarker, Tanzila Akter, Shaikh Masrick Hasan","doi":"10.1108/imefm-01-2022-0008","DOIUrl":"https://doi.org/10.1108/imefm-01-2022-0008","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the effect of risk disclosure (RD) on commercial banks’ credit rating (CR) in the context of Bangladesh. It also explores the factors influencing RD in both Islamic and conventional banks.\u0000\u0000\u0000Design/methodology/approach\u0000The sample includes 200 bank-year observations consisting of 20 commercial banks (15 conventional and 5 Islamic banks) from 2010 to 2019. The sample is further segregated into Islamic and conventional banks. Ordered logit and random effect ordinary least square models are used to analyze the data. Furthermore, the two-stage least squares approach is used to perform a robustness test.\u0000\u0000\u0000Findings\u0000This study shows that RD significantly positively impacts CR, with a stronger effect in Islamic banks than in conventional banks. This study also finds that banks’ age and leverage negatively influence CRs. Moreover, banks’ size and total capital have a positive and negative influence on CRs, respectively. This study also shows that the age of Islamic and conventional banks positively and negatively influences the RD scores, respectively. In contrast, the RD score of conventional banks is positively impacted by bank size.\u0000\u0000\u0000Practical implications\u0000By examining which variables substantially impact RD and, hence, CR scores, bank stakeholders may make better financing, investment and other policy decisions. Investors may choose stocks with a high level of RD in the annual reports as the earlier studies imply that higher RD enhances CR.\u0000\u0000\u0000Originality/value\u0000Only a few studies have examined the relationship between RD and CRs, while, to the best of the authors’ knowledge, this study is the maiden attempt in the Bangladesh context. This study also compares the link between Islamic and conventional banks.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41453137","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-26DOI: 10.1108/imefm-11-2021-0443
A. Shahid, Hafiza Sobia Tufail, H. Ali, Joane Jonathan
Purpose This paper aims to contribute to the corporate social responsibility (CSR) literature by providing holistic insights into financial analysts’ personal values, perceived behavioural risk and investment decisions relating to the social aspects of CSR. Specifically, this paper examines whether analysts’ personal values, such as religiosity, spirituality and social consciousness, influence their investment decisions relating to a highly profitable firm that is alleged of exploiting labour rights. This study also examines the mediating role of analysts’ perceived behavioural risk between personal values and investment decisions. Design/methodology/approach Data were collected, using a scenario-based survey, from 145 financial analysts at both public and private companies in Pakistan. Findings The results show that analysts’ values, including religiosity, spirituality and social consciousness, have a significant negative impact on their investment decisions. The results also demonstrate that perceived behavioural risk mediates the relationship between these values and investment decisions. Practical implications This study has implications for the globalised business world, regulators and researchers for incorporating personal and ethical values into risk and investment decision-making. Originality/value This study establishes the importance of analysts’ personal values in risky investment decision-making.
{"title":"Financial analysts’ personal values, perceived behavioural risk and investment decisions in evaluating CSR","authors":"A. Shahid, Hafiza Sobia Tufail, H. Ali, Joane Jonathan","doi":"10.1108/imefm-11-2021-0443","DOIUrl":"https://doi.org/10.1108/imefm-11-2021-0443","url":null,"abstract":"\u0000Purpose\u0000This paper aims to contribute to the corporate social responsibility (CSR) literature by providing holistic insights into financial analysts’ personal values, perceived behavioural risk and investment decisions relating to the social aspects of CSR. Specifically, this paper examines whether analysts’ personal values, such as religiosity, spirituality and social consciousness, influence their investment decisions relating to a highly profitable firm that is alleged of exploiting labour rights. This study also examines the mediating role of analysts’ perceived behavioural risk between personal values and investment decisions.\u0000\u0000\u0000Design/methodology/approach\u0000Data were collected, using a scenario-based survey, from 145 financial analysts at both public and private companies in Pakistan.\u0000\u0000\u0000Findings\u0000The results show that analysts’ values, including religiosity, spirituality and social consciousness, have a significant negative impact on their investment decisions. The results also demonstrate that perceived behavioural risk mediates the relationship between these values and investment decisions.\u0000\u0000\u0000Practical implications\u0000This study has implications for the globalised business world, regulators and researchers for incorporating personal and ethical values into risk and investment decision-making.\u0000\u0000\u0000Originality/value\u0000This study establishes the importance of analysts’ personal values in risky investment decision-making.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41911169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-18DOI: 10.1108/imefm-03-2022-0122
Mousa Alsheyab, N. Filimon, Francesc Fusté-Forné
Purpose From a hospitality and tourism perspective, the purpose of this study is to analyse the case of Jordan by looking at the implementation of corporate social responsibility (CSR) practices in the hospitality industry and their contribution to the management of the pandemic crisis, with a special focus on large hotels. Design/methodology/approach The method focuses on a qualitative study based on ten in-depth interviews with senior managers of five-star hotels in Jordan, fully used as quarantine facilities during the COVID-19 pandemic. Findings The study reveals how and why the implementation of CSR practices contributes to the crisis management in Jordan, also highlighting the role of the managers and the hotels’ organizational cultures. Originality/value Drawing from the unique case of Jordan, to the best of the authors’ knowledge, this is the first study which analyses the close relationships between crisis and hospitality management from a CSR perspective, and the impact of organizational cultures and ethical strategies on local stakeholders.
{"title":"Hospitality management in times of crisis: a corporate social responsibility perspective","authors":"Mousa Alsheyab, N. Filimon, Francesc Fusté-Forné","doi":"10.1108/imefm-03-2022-0122","DOIUrl":"https://doi.org/10.1108/imefm-03-2022-0122","url":null,"abstract":"\u0000Purpose\u0000From a hospitality and tourism perspective, the purpose of this study is to analyse the case of Jordan by looking at the implementation of corporate social responsibility (CSR) practices in the hospitality industry and their contribution to the management of the pandemic crisis, with a special focus on large hotels.\u0000\u0000\u0000Design/methodology/approach\u0000The method focuses on a qualitative study based on ten in-depth interviews with senior managers of five-star hotels in Jordan, fully used as quarantine facilities during the COVID-19 pandemic.\u0000\u0000\u0000Findings\u0000The study reveals how and why the implementation of CSR practices contributes to the crisis management in Jordan, also highlighting the role of the managers and the hotels’ organizational cultures.\u0000\u0000\u0000Originality/value\u0000Drawing from the unique case of Jordan, to the best of the authors’ knowledge, this is the first study which analyses the close relationships between crisis and hospitality management from a CSR perspective, and the impact of organizational cultures and ethical strategies on local stakeholders.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44660648","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-16DOI: 10.1108/imefm-12-2021-0490
Wafa Ghardallou
Purpose The purpose of this study is to look at the effect of financial leverage on the performance of Saudi listed companies. It particularly proposes to examine the heterogeneity of this relationship depending on firm profitability and firm size. Design/methodology/approach The paper uses a sample of 120 nonfinancial companies listed on the Tadawul stock exchange during the period 2017–2020. Data is obtained from the companies’ financial reports. This study uses the system GMM and the quantile regression. The first methodology examines the effect of leverage decisions on firm performance, whereas the second one tests the heterogeneity of this relationship. Findings GMM results demonstrate the adverse effect of leverage on firm performance in terms of return on assets, return on equities and Tobin’s Q. Besides, quantile regression results show that this relationship is heterogeneous. Particularly, leverage seems to have a greater adverse effect on the performance of high-profitable firms than low-profitable firms. Moreover, leverage has a negative effect in larger firms, whereas the influence becomes negative in smaller ones. Originality/value This study is unique in that it approaches the capital structure issue from a different perspective, where the leverage decision is distinctly considered at various levels of firm profitability and firm size. In addition, the majority of the existing studies is carried out in developed countries. However, the results might not apply to emerging countries given the specificity of their institutional structure. In this regard, Saudi Arabia has a distinctive business climate characterized by the absence of corporate tax and an illiquid bond market.
{"title":"The heterogeneous effect of leverage on firm performance: a quantile regression analysis","authors":"Wafa Ghardallou","doi":"10.1108/imefm-12-2021-0490","DOIUrl":"https://doi.org/10.1108/imefm-12-2021-0490","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to look at the effect of financial leverage on the performance of Saudi listed companies. It particularly proposes to examine the heterogeneity of this relationship depending on firm profitability and firm size.\u0000\u0000\u0000Design/methodology/approach\u0000The paper uses a sample of 120 nonfinancial companies listed on the Tadawul stock exchange during the period 2017–2020. Data is obtained from the companies’ financial reports. This study uses the system GMM and the quantile regression. The first methodology examines the effect of leverage decisions on firm performance, whereas the second one tests the heterogeneity of this relationship.\u0000\u0000\u0000Findings\u0000GMM results demonstrate the adverse effect of leverage on firm performance in terms of return on assets, return on equities and Tobin’s Q. Besides, quantile regression results show that this relationship is heterogeneous. Particularly, leverage seems to have a greater adverse effect on the performance of high-profitable firms than low-profitable firms. Moreover, leverage has a negative effect in larger firms, whereas the influence becomes negative in smaller ones.\u0000\u0000\u0000Originality/value\u0000This study is unique in that it approaches the capital structure issue from a different perspective, where the leverage decision is distinctly considered at various levels of firm profitability and firm size. In addition, the majority of the existing studies is carried out in developed countries. However, the results might not apply to emerging countries given the specificity of their institutional structure. In this regard, Saudi Arabia has a distinctive business climate characterized by the absence of corporate tax and an illiquid bond market.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45208398","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-12DOI: 10.1108/imefm-12-2020-0614
Islam Abdelbary
Purpose The purpose of this study is to outline the reasons for the 2011 Arab Spring and why the Arab states failed to achieve sustainability and inclusive growth over the past three decades. Design/methodology/approach This study used the augmented growth model framework derived from a production function and a dynamic panel LSDCV estimation, which incorporates aggregated economic and political reform indicators generated by principal component analysis. The empirical analysis is a comparative assessment of the Arab region as a whole and the Gulf countries and emerging Arab countries. This study is based on several panel data models for the Arab region’s reform programmes from 1995 to 2018. Findings The absence of robust economic and institutional reforms was the main reason for the uprising. Structural reforms in Gulf countries have been insufficient and more difficult to address than macroeconomic stability. By contrast, Arab emerging economies have achieved strong progress in structural reform but with weak progress in economic stability. Critically, governance indicator reforms enhance growth, with different items of governance based on the type of each group of countries. The results of this study confirm that reform is simultaneously political, social and economical. Practical implications Economic reform should not be seen in a vacuum or in isolation from the political and social choices that society makes. Looking forward, the Arab reform agenda must address critical governance issues that hinder the effectiveness of reform policies. Originality/value Theoretically, this study reappraises governance’s role in economic growth using a unified mathematical model. Methodologically, this study analyses economic, social and political reform components in the Arab region using econometric analysis. Empirically, this study investigates regional socioeconomic reform programmes. Existing studies have failed to recognise the economic and institutional policy reform patterns in the Arab world.
{"title":"From revolutions to institutions: the experience of Arab reform","authors":"Islam Abdelbary","doi":"10.1108/imefm-12-2020-0614","DOIUrl":"https://doi.org/10.1108/imefm-12-2020-0614","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to outline the reasons for the 2011 Arab Spring and why the Arab states failed to achieve sustainability and inclusive growth over the past three decades.\u0000\u0000\u0000Design/methodology/approach\u0000This study used the augmented growth model framework derived from a production function and a dynamic panel LSDCV estimation, which incorporates aggregated economic and political reform indicators generated by principal component analysis. The empirical analysis is a comparative assessment of the Arab region as a whole and the Gulf countries and emerging Arab countries. This study is based on several panel data models for the Arab region’s reform programmes from 1995 to 2018.\u0000\u0000\u0000Findings\u0000The absence of robust economic and institutional reforms was the main reason for the uprising. Structural reforms in Gulf countries have been insufficient and more difficult to address than macroeconomic stability. By contrast, Arab emerging economies have achieved strong progress in structural reform but with weak progress in economic stability. Critically, governance indicator reforms enhance growth, with different items of governance based on the type of each group of countries. The results of this study confirm that reform is simultaneously political, social and economical.\u0000\u0000\u0000Practical implications\u0000Economic reform should not be seen in a vacuum or in isolation from the political and social choices that society makes. Looking forward, the Arab reform agenda must address critical governance issues that hinder the effectiveness of reform policies.\u0000\u0000\u0000Originality/value\u0000Theoretically, this study reappraises governance’s role in economic growth using a unified mathematical model. Methodologically, this study analyses economic, social and political reform components in the Arab region using econometric analysis. Empirically, this study investigates regional socioeconomic reform programmes. Existing studies have failed to recognise the economic and institutional policy reform patterns in the Arab world.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43698953","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-10DOI: 10.1108/imefm-12-2021-0474
A. Ascarya, A. Masrifah
Purpose This study aims to develop the maqasid index (MI) for Islamic corporate social responsibility (CSR), namely, Dana Abadi Umat (DAU) (Ummah’s Endowment Fund) or MI-DAU in Indonesia. Design/methodology/approach Modeling and weighting are based on Delphi and analytic network process (ANP) methods, called Delphi–ANP additive weighting. The Delphi method was applied to design and validate the factors of the MI-DAU model, and the ANP method was applied to generate and validate weights for these factors. Finally, the MI-DAU is calculated, based on the planned budget and actual allocation of DAU returns, called the maslahah fund, using additive weighting. Findings Delphi and ANP show significant and robust results. The priority order and weights of maqasid Shariah are safeguard the faith (0.32), safeguard the intellect (0.219), safeguard the life (0.204), safeguard the wealth (0.171) and safeguard the lineage (0.104). Meanwhile, the priority order and weights of the main activities are education (0.190), Ummah’s economy (0.167), Hajj service (0.155), Da’wah (0.124), health care (0.118), social-religious (0.097), worship facilities (0.085) and disaster emergency response (0.065). Finally, the results of MI-DAU show a high index in 2019 and 2020 of 71.89 and 69.51, respectively, generated from allocation ratio of 90.63% and 85.98%, respectively. Research limitations/implications Maqasid Shariah used in this study follows Al-Ghazali, where it could also follow maqasid Shariah of Abu Zahrah or Al-Najjar. Moreover, the MI-DAU score uses additive calculations, where it can also use Pentagon calculation. Practical implications The improved framework and method used to design MI-DAU in this study could be applied to design more scientific MI for other Islamic financial institutions. Originality/value The novelty of this study is in the improved method used to design the MI model, including its factors, using Delphi, and to assign weights of all factors using ANP, where both provide validation for more robust MI model.
{"title":"Developing maqasid index for Islamic CSR: the case of Ummah’s Endowment Fund in Indonesia","authors":"A. Ascarya, A. Masrifah","doi":"10.1108/imefm-12-2021-0474","DOIUrl":"https://doi.org/10.1108/imefm-12-2021-0474","url":null,"abstract":"\u0000Purpose\u0000This study aims to develop the maqasid index (MI) for Islamic corporate social responsibility (CSR), namely, Dana Abadi Umat (DAU) (Ummah’s Endowment Fund) or MI-DAU in Indonesia.\u0000\u0000\u0000Design/methodology/approach\u0000Modeling and weighting are based on Delphi and analytic network process (ANP) methods, called Delphi–ANP additive weighting. The Delphi method was applied to design and validate the factors of the MI-DAU model, and the ANP method was applied to generate and validate weights for these factors. Finally, the MI-DAU is calculated, based on the planned budget and actual allocation of DAU returns, called the maslahah fund, using additive weighting.\u0000\u0000\u0000Findings\u0000Delphi and ANP show significant and robust results. The priority order and weights of maqasid Shariah are safeguard the faith (0.32), safeguard the intellect (0.219), safeguard the life (0.204), safeguard the wealth (0.171) and safeguard the lineage (0.104). Meanwhile, the priority order and weights of the main activities are education (0.190), Ummah’s economy (0.167), Hajj service (0.155), Da’wah (0.124), health care (0.118), social-religious (0.097), worship facilities (0.085) and disaster emergency response (0.065). Finally, the results of MI-DAU show a high index in 2019 and 2020 of 71.89 and 69.51, respectively, generated from allocation ratio of 90.63% and 85.98%, respectively.\u0000\u0000\u0000Research limitations/implications\u0000Maqasid Shariah used in this study follows Al-Ghazali, where it could also follow maqasid Shariah of Abu Zahrah or Al-Najjar. Moreover, the MI-DAU score uses additive calculations, where it can also use Pentagon calculation.\u0000\u0000\u0000Practical implications\u0000The improved framework and method used to design MI-DAU in this study could be applied to design more scientific MI for other Islamic financial institutions.\u0000\u0000\u0000Originality/value\u0000The novelty of this study is in the improved method used to design the MI model, including its factors, using Delphi, and to assign weights of all factors using ANP, where both provide validation for more robust MI model.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48670303","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-10DOI: 10.1108/imefm-01-2022-0019
Ooi Kok Loang, Zamri Ahmad
Purpose This study aims to examine the existence of herding and the impact of economic and political factors in the Shariah-compliant stocks of Gulf Cooperation Council markets, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. This study also seeks to explore the existence of herding under market stress and cross-stocks herding between Shariah-compliant and conventional stocks. Design/methodology/approach The data period is from 1 January 2016 to 31 December 2021. Panel data regression and panel quantile regression are used to examine herding. Findings The results show that herding tends to exist in Shariah stocks before the pandemic but is more pronounced in both types of stocks during the pandemic. The empirical evidence shows that economic factors are significant to herding before and during pandemic, whereas the political factors are only shown to be significant before COVID-19. Conventional stocks are correlated to the herding of Shariah stocks but the Shariah stocks have no significant impact on the herding of conventional stocks. Panel quantile regression shows that herding exists in extreme conditions but not all markets perform similarly. Originality/value The results of this study imply that the political factor can lead investors to herd. This political factor represents information that is used by investors to herd, consistent with the prediction of information-based theory of herding. Hence, policymakers and regulators need to be wary of any change in the political factors as they may cause movement in stock prices that deviate from fundamental value because of investor herding.
{"title":"Economic and political factors on herding in Islamic GCC stock markets during COVID-19 pandemic","authors":"Ooi Kok Loang, Zamri Ahmad","doi":"10.1108/imefm-01-2022-0019","DOIUrl":"https://doi.org/10.1108/imefm-01-2022-0019","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the existence of herding and the impact of economic and political factors in the Shariah-compliant stocks of Gulf Cooperation Council markets, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. This study also seeks to explore the existence of herding under market stress and cross-stocks herding between Shariah-compliant and conventional stocks.\u0000\u0000\u0000Design/methodology/approach\u0000The data period is from 1 January 2016 to 31 December 2021. Panel data regression and panel quantile regression are used to examine herding.\u0000\u0000\u0000Findings\u0000The results show that herding tends to exist in Shariah stocks before the pandemic but is more pronounced in both types of stocks during the pandemic. The empirical evidence shows that economic factors are significant to herding before and during pandemic, whereas the political factors are only shown to be significant before COVID-19. Conventional stocks are correlated to the herding of Shariah stocks but the Shariah stocks have no significant impact on the herding of conventional stocks. Panel quantile regression shows that herding exists in extreme conditions but not all markets perform similarly.\u0000\u0000\u0000Originality/value\u0000The results of this study imply that the political factor can lead investors to herd. This political factor represents information that is used by investors to herd, consistent with the prediction of information-based theory of herding. Hence, policymakers and regulators need to be wary of any change in the political factors as they may cause movement in stock prices that deviate from fundamental value because of investor herding.\u0000","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":" ","pages":""},"PeriodicalIF":3.0,"publicationDate":"2023-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42325394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-01-03DOI: 10.1108/imefm-12-2019-0518
K. Ullah, M. Ashfaque, M. Atiq, Muhammad Khan, A. Hussain
Purpose The purpose of this paper is to explore the types of Shariah capabilities of Islamic banks, which provide bases for the types of Shariah value propositions, offered by the relationship managers in their front-line service experiences with the customers. Design/methodology/approach A resource-based view of Shariah capabilities and a service-dominant logic view of value propositions are adopted. Fifteen relationship managers from multiple Islamic banks in Pakistan are interviewed to find a typology of Shariah capabilities and a resultant typology of value propositions for Islamic banks. Findings The findings suggest that Islamic banks claim to possess five types of Shariah capabilities, namely, Shariah governance capability (SGC), Shariah compliance capability (SCC), Shariah monitoring capability (SMC), Shariah structuring (product) capability (SSC) and Shariah learning capability (SLC). These capabilities lead to four types of values propositions, namely, Shariah identity value (SIV), Riba-free value (RFV), Shariah disclosure value (SDV) and Tangibility value (TV) of the real assets in transactions. Research limitations/implications The study has relied on the front-line experiences of relationship managers who are connected to the Islamic banks’ capabilities inside the banks and the value propositions that they offer to show relationships with customers in front-line service experiences. Other stakeholders may have different perspectives on both capabilities and value propositions. Originality/value This paper contributes to Islamic finance theory by theoretically and empirically showing two typologies for the Islamic banks' capabilities and value propositions, respectively.
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Pub Date : 2022-12-22DOI: 10.1108/imefm-12-2021-0479
Rym Ammar, S. Rebai, Dhafer Saidane
Purpose The purpose of this paper is to suggest a model that yields a sustainability performance index for Islamic banks (IBs). This index is expected to account for stakeholders’ viewpoints while considering sustainability and Maqasid Al-Shariah as bases. Design/methodology/approach First, based on the relevant literature review refined through consultations with academic, banking and Shariah experts, the main stakeholders and their corresponding lists of relevant attributes and sub-attributes are identified. Then, adopting a multi-attribute utility approach and based on a second step of interviews with experts, an aggregated index is suggested. Finally, the developed index is applied to five famous Islamic banking groups over the period 2005–2019. Findings Empirical evidence shows that the banks used in the implementation do not achieve high scores of the suggested index. This can be interpreted through a lack of Islamic normative aspects and low adherence to sustainability practices. Specifically, they are not functioning on a justice basis and are deficient in providing sufficient varieties of Islamic products. They are also more interested in economic sustainability and are not involved in environmental and social ones. Originality/value The developed index not only considers the compliance of the banking activities with Shariah, but it also addresses their sustainability from the main stakeholders’ perspectives. The suggested model provides a transparent performance evaluation tool for IBs omitting all causes of conflict of interests and certifies the fairness of the resulting assessments.
目的本文的目的是提出一个伊斯兰银行可持续发展绩效指数的模型。该指数预计将考虑利益相关者的观点，同时考虑可持续性和Maqasid Al Shariah作为基础。设计/方法论/方法首先，根据与学术、银行和Shariah专家协商完善的相关文献综述，确定主要利益相关者及其相应的相关属性和子属性列表。然后，采用多属性效用方法，在第二步专家访谈的基础上，提出了一个综合指数。最后，在2005-2019年期间，将所开发的指数应用于五个著名的伊斯兰银行集团。发现经验证据表明，在实施中使用的银行没有达到建议指数的高分。这可以解释为缺乏伊斯兰规范和对可持续性做法的遵守程度低。具体而言，他们没有在公正的基础上运作，也没有提供足够种类的伊斯兰产品。他们也对经济可持续性更感兴趣，而不参与环境和社会可持续性。独创性/价值制定的指数不仅考虑了银行活动与Shariah的合规性，还从主要利益相关者的角度解决了其可持续性问题。所建议的模型为IB提供了一个透明的绩效评估工具，忽略了利益冲突的所有原因，并证明了评估结果的公平性。
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