1book of abstracts english

8/10/2019 1book of Abstracts English

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BACKGROUND

Over the past few decades, the behavioural finance theory has largely contributed to theunderstanding of various financial phenomena that were still puzzling under the standard

finance principles. These theoretical principles were further developed and empirically testedresulting in a more sound conventional finance theory. Thus, the behavioural aspect imposeditself as an indispensable component of the finance theory. The same principle applies to therecently emerging Islamic financial system. In this context, though there have beentremendous studies on Islamic finance and Islamic investment, there are very few studies thathave addressed specific topics within the behavioural finance framework.

Moreover, it is needless to say that currently, majority of the issues faced by Islamic financeand its future is highly related to the behaviour of investors as well as the other market

players. Furthermore, the financial theory has long demonstrated that the investment patternsalways have long run impacts on the market movements. In this regards, behavioural financeoffers a comprehensive set of tools to identify these investment patterns and their possibleinfluence on the overall development of Islamic finance.

In line with the above progress, and to contribute to the development of Islamic behaviouralfinance, the current conference is organised by Effat University, which marks the inspirationof the University to become a regional leader in Islamic Finance education and research. Theconference will benefit the participants in the sense that it will offer a better understanding of

behavioural Islamic finance and the outstanding issues marking the current practice ofIslamic finance industry. The conference is also a great opportunity for internationalnetworking, particularly with the international attendance from various Islamic finance

institutions. Furthermore, the conference will expose the participants to the internationalcommunity of Islamic finance experts.

OBJECTIVES

To provide a better understanding of behavioural financial patterns in Islamic bankingand finance

To enrich the theory of Islamic behavioural finance

To highlight the great importance of behavioural finance in developing Islamic financeindustry and discipline

To address various issues currently faced by the Islamic finance industry

To acknowledge and highlight the financial needs to enhance research and development

in Islamic finance by generous contributors like the setting of the Scientific Chair inIslamic Finance.

KEYNOTE SPEAKERS

Dr. Moh’d Azmi Omar,Professor Dr. Moh’d Azmi Omar is currently the Director General of Islamic Research andTraining Institute (IRTI, IDB), Jeddah, Saudi Arabia. He has been the Dean of the Faculty ofEconomics and Management Sciences at the International Islamic University Malaysia(IIUM) from 1996 to 2003, and the Dean of the Institute of Islamic Banking and Finance forthe same University from 2009 to 2011. He has also occupied a Deputy Rector position atIIUM for academic affairs from 2003 to 2008. He has been highly active in research,teaching, consultancy and training in the areas of Finance and Islamic Finance.



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Mr. Yasser DahlaouiMr. Yasser Dahlaoui is the founder and Chief Executive Officer of Shariyah Review Bureau(SRB). He is a Certified Shariyah Adviser and Auditor (CSAA), he possesses a Master's

degree in business administration and 15 years of experience in banking and productdevelopment, focusing mainly on Islamic banking products and services with leading banksin the region.He has been involved in multiple study/project mandates such as exploring customer’s inputs

and managing Shariyah compatible financial products and the development of Shariyahcompliant markets.



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DETERMINANTS OF ISLAMIC FINANCE IN MALAYSIA:

AN ARDL-BOUNDS TESTING APPROACH

Salina H. KassimInstitute of Islamic Banking and Finance, International Islamic University Malaysia,

Malaysia

Abdulsalam Abubakar Department of Economics, International Islamic University Malaysia, Malaysia

ABSTRACTAs Islamic banking and finance (IBF) continued its rapid growth and increasingly becominga major force within the global financial system, several countries are attempting to becomethe hub for the industry so as to capture the benefits arising from participating in it. Malaysia

in particular, has been one of the major leading centres of the IBF as shown by itscommitment in pioneering the development of the industry over the years. Amid Malaysia’s

inspiration to become the global hub for the IBF, there is a need to continuously appraise thedevelopment of the industry due to its dynamic nature and increased industry sophistication.This study aims to determine the factors which are critical in the development of the IBFindustry. In efforts to arrive at conclusive empirical findings, the study employs the recentARDL-bounds testing approach to co-integration on potential determinants of IBF growth inthe context of Malaysia. The results revealed that the level of real economic activities andassets accumulation of the IBF industry are the important positive determinants of Islamic

banking growth in Malaysia. However, deposits of conventional banks and conventionalinterest rate have significant negative influences on deposit and financing of Islamic banks.This finding indicates that Islamic banks compete with conventional ones for savings, whilethey tend to benchmark against the conventional rate when setting the financing rate. Thisimplies that, for the Islamic banks to distinctly develop and contribute to the real economy,they need to disentangle themselves as much as possible from the influences of theconventional ones.

Keywords: Determinants, Islamic Finance, ARDL-bounds test, Malaysia

TIMING AND INVESTMENT PERFORMANCE OF ISLAMIC MUTUAL FUNDS: APANEL DATA ANALYSIS

Fadillah MansorDepartment of Shariah and Management, University of Malaya, Kuala Lumpur. Malaysia

M. Ishaq Bhatti

Department of Finance, La Trobe University, Melbourne, Australia.



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ABSTRACTSoon after the financial crises, the search for alternative financial instruments, lead the globalgrowth in Islamic mutual funds. This tremendous growth resulted Malaysia to host about 30

per cent of the Islamic fund clients worldwide. This paper aims to investigate returns performance of the Islamic mutual funds relative to the respective market benchmark using

panel data analysis from January 1990 to April 2009. Intersecting results are observed fromthis study; insignificant difference in return performance of the Islamic mutual funds relativeto the single and multiple benchmarks, there is a superior fund selectivity skill but inferiormarket timing expertise among the Islamic fund managers and the returns performance ofIslamic funds is comparable to the market benchmark. The outcome of this study would

benefit to policy makers, potential investor, market players towards making decision forinvestment participation in mutual fund industry.

Keywords: Islamic mutual fund; unit trust; performance evaluation, panel data

MONETARY POLICY TRANSMISSION AND ROLE OFISLAMIC BANKS: EVIDENCE FROM PAKISTAN

Azam AliInternational Institute of Islamic Banking and Finance, International Islamic University

Malaysia, Malaysia

Tanveer KishwarJinnah University for Women, Pakistan

ABSTRACTThe impacts of monetary policy can be transmitted to the real economy via several channels,such as asset price, credit, exchange rates and the interest rate. The relative importance of a

particular channel in the transmission of monetary policy generally depends on among otherthings is the structural characteristics of the economy. In Pakistan economy, the bank lendingchannel is a likely candidate for an important channel of monetary transmission process. The

bank lending channel highlights the importance of the banking institutions in channellingmonetary policy effects to the real economy. Several studies provide empirical evidence onthe importance of the conventional banking sector in monetary transmission; howeverimportance of Islamic banking sector in monetary transmission is discussed at meagre level.To cope up with the situation, this paper aims to determine the importance of the Islamic

banks in the monetary transmission in the Pakistan economy. Particularly, the paperempirically analyses the relevance of Islamic banks’ financing and deposit in channelling the

monetary policy effects to the real economy. The paper relies on the co-integration test,impulse response functions, and variance decomposition analysis, focusing on the periodfrom 2003QI to 2013QIV. Results expect that both Islamic banks’ financing and deposits

play important roles in the monetary transmission process in the Pakistan economy.

Keywords: Monetary policy, Islamic banks, Deposits, Financing, Communication, Pakistan



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Omer Bin ThabetUniversiti Sains Islam Malaysia, Malaysia

Abdullah Moh’d Ayedh

Universiti Sains Islam Malaysia, Malaysia

ABSTRACTThe capital structure choices been under investigation since long, however, with regardsShariah-compliant market, it is still virgin and contemporary issues. Therefore, study aims toexamine the capital structure of choices in the Shariah-compliant markets. By applying themodel proposed by Huang and Song (2006) to test the determinants of as capital structure assuggested by capital structure theories. The paper used descriptive statistic, correlation andthree regressions (pooled, faxed effect, and random effect) are conducted to examine therelationship between capital structure and it determinants for 263 Shariah-compliant firmslisted on Bursa Malaysia over the period 2006-2011. The findings of this paper provides

evidence suggests that the capital structure choice of Shariah-compliant firms influenced byfactors such as non-debt tax shields (NDTS), profitability, and risks. However, no evidenceof the influence of tax and tangibility on capital structure choice of Shariah-compliant firms. These findings provide empirical evidence on the effective determinations of capital structurechoice of Shariah-compliant firms. This will be useful for advancement of Shariah-compliantfirms’ competitiveness position.

Keywords: Shariah-compliant firms, leverage, Malaysia

ISLAMIC INVESTMENT and HOW TO TAKE ADVANTAGE of CAPITAL

(The case of gold and pearl merchants in the city of Mataram Lombok Indonesia)

BusainiFaculty of Economics, Universitas Mataram, Indonesia

ABSTRACTThis paper describes how the economic development of Islam in Indonesia and Islamicinvestment offender, specific investment is viewed from two musty mudharabah and ijarah.We know generally people are familiar with conventional investments that rely on the interestrate, but the author tries to see a bunch of people who do not invest based on the interest rate.

Community groups in question are gold and pearl merchants in the city of Mataram, theytraded with the sharia prinsif informed with the actual quality of the goods, weighing, andmake an appointment with either. Associated with investments, they provided capital amongtraders with profit sharing agreement at the end of the year, 60 percent to 40 percent owner ofcapital for business managers. Labor they take an average of 2 people for each trader withwage system 50 thousand rupiah per day. Contribution to the development of economic goldtraders Mataram is helpful in employment, supporting the development of West NusaTenggara Tourism, both domestic and abroad, especially in the area of increased income tax

payments, an increase in the welfare of the community with many traders who perform theHajj.

Keywords: Islamic investments, murabahah, ijarah, contribution and profit sharing



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ASSET, ITS CONCEPT, LEGALITY AND FEATURES FOR DEVELOPING

ISLAMIC FINANCE PRODUCT

Umar Mohammed IdrisDepartment of Finance, Effat University, Saudi Arabia

Muhammad Tahir Jan

Department of Business Administration, Faculty of Economics and Management, Sciences,International Islamic University Malaysia, Malaysia

ABSTARCTThere have been increasing contentions on the way Islamic banking products are developedin the market. There seems to be an implicit majority view that Islamic finance products arereplica of the conventional ones. Whereas many studies have focused on the technicalities ofdeveloping these Islamic finance products, the question of what determines a viable asset forthese products remain largely neglected. The present study aims at exploring modern juristic

views on the concept and characteristics of an asset from an Islamic perspective in the currentfinancial setting in order to arrive at a definition under which the development of certainIslamic finance products is possible. The study adopts the inductive approach to presentviews of scholars in the Islamic heritage, in books of contemporary jurisprudence, traditionalfinance, other relevant research and studies that are conducted on the topic of asset. The studyalso adopts the comparative and analytical approaches to the views of the various scholarsunder review to arrive at a clear concept of an asset. In this study, the term “asset” is

attributed to anything tangible and non- tangible that has a lawful benefit within the boundaries of the Shari’ ah, common law and accepted custom, and can be disposed of withinthese boundaries. The study adopts the theory of contract for asset possession based on threeelements: existence of financial value in the item, fulfillment of the ownership of the plaintiffin the item and the plaintiffs’ right and ability to use the item. The author hypothesized that

Islamic finance products can be developed based on anything that fulfils the identifiedcharacteristics of an asset as long as it does not lead to prohibition. The study provides someShari’ah guidelines to the determinants and uses of assets in every stage of Islamic finance

product development.

Keywords: Islamic finance, development, asset, legality, products, Shari’ah

IMPACT OF GOVERNMENT INTERVENTION ON ISLAMIC BANK

PERFORMANCE: A MALAYSIAN EXPERIENCE

Abdirahman Mao

Syed Musa AlhabshiInstitute of Islamic Banking and Finance, International Islamic University Malaysia,

Malaysia



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ABSTRACT Islamic Banking has experienced a sweeping popularity since the rise of petrodollars in theMiddle East, and has become a popular banking alternative to “western” conventional banksas its Shari’ah-based financing principles posed a workable alternative to interest-basedfinancial products that are susceptible to financial shocks. Malaysia, in particular, exhibited

the feasibility and success of Islamic banking in mixed cultures for 30 years, as proven by itscontinuously growing market share estimated at 15 percent annually. However, variousstudies have shown that Islamic banks in mixed cultures, such as Malaysia, struggle to

perform compared with its conventional counterparts; it required consistent governmentinterventions to sustain its presence. While authors have recognized the value of governmentsupport for Islamic financing, this aspect has rarely been studied. This paper attempts toexhibit this relationship by using correlation analysis between Malaysian Islamic banks’

performance and government regulation and stock infusion from 2007-2012. Results of thestudy may assist states that plan to copy the Malaysian model in setting up a feasible Islamic

banking system in their respective countries.

Keywords: Islamic Bank, Conventional Banks, Malaysia

NON-LINEAR DEPENDENCE OR OTHERWISE AND GARCH EFFECTS OF

INDIAN SHARIAH MARKET

Sania AshrafDepartment of Commerce, Pondicherry University, India.

Malabika DeoDepartment of Commerce, Pondicherry University, India.

ABSTRACTThe work focuses on linearity or otherwise of Indian Shariah market i.e. CNX NIFTY,CNX500 and S&P BSE TASIS 50 during the period spanning from 01/January/2008 to31/June/2013. In order to detect the presence, BDS test of Brock et al (1996) was employedand null hypothesis was strongly rejected the existence of Independent Identical Distribution(IID). On further investigation on presence of IID with the help of GARCH (1, 1) and enquiryon whether the non-linear dependence was caused by predictable conditional volatility, it wasfound that the non-linearity was caused not by serial dependence or linear dependence ratherit was caused by volatility clustering and GARCH effect in the return series. This leads to the

inference that the market lacks efficiency and rejects the Random Walk Hypothesis. Hence,alerts the policy makers on the predictability of the market even for short horizon which in principle should not exist, as Shariah market is expected not to give opportunity for abnormalreturn.

Keywords: Shariah market, IID, non-linear dependence, BDS test, Financial modelling,GARCH.



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ISLAMIC ETHICAL STANDARDS FOR COMMERCIAL

TRANSACTIONS: A BEHAVIOURAL APPROACH

Odeduntan Akeem KolawoleAhmed Zakari and Co. (Chartered Accountants), Nigeria

Mustafa HamatInstitute of Islamic Banking and Finance, International Islamic University Malaysia,

Malaysia

Oni Tajudeen AdetokunboAhmed Zakari and Co. (Chartered Accountants), Nigeria

ABSTRACTBehaviour entails what is good and bad, right and wrong, and just and unjust. Behaviourstudies how psychology influences the behaviour of individuals and with respect to finance itstudies the financial practitioners’ psychology and the consequential effect of their decisionson the markets at large. Therefore, the current paper aims at examining ethics from Islamic

perspective in respect of business transactions from the sources of Shariah on the basis ofcorrect behavioural approach. This paper is theoretical based and uses document analysis todetermine usual ethical issues that deter viability of business organization with particularreference to Lehman Brothers. Hence, the paper acknowledges ethical standard forcommercial transaction based on the primary sources of Sharia and suggests practicalapproaches towards effectual running of the affairs of business organizations.

Keywords: Ethics, behaviour, commercial transaction, business organization.

WILL IT SURVIVE? CHALLENGES FACED BY ISLAMIC FINANCE IN TODAY’S WORLD

Muhammad Tahir Jan

Ali Shafiq

Department of Business Administration, Faculty of Economics and Management Sciences,International Islamic University Malaysia, Malaysia

Umar Mohammed Idris

Department of Finance, Effat University, Saudi Arabia

ABSTRACT

Despite the significant accomplishments by Islamic banks over the past decades there are stillsome grave challenges and problems faced by the same because of which they have lost theirmarket position. Conventional banks are their major competitors and undoubtedly acontinuous threat. In order for them to face this challenge, there is a need for these Islamicinstitutions to grow bigger. They also need to develop and make new and attractive financial

products available to the customers. Islamic banks must also put emphasis on complying withShariah requirements more comprehensively and focus on the development of fresh aptitudes.



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There is also a strong need for these financial institutions to develop a robust legal structurefor accounting, administration, and as a lender of last resort.

Keywords: Islamic Finance, Islamic banks, conventional banks, challenges, issues,comparative advantage

THE CHALLENGES AND OPPORTUNITY OF INTRODUCING AN ISLAMIC

BANKIING SYSTEM IN TAJIKISTAN

Ashurov SharofidinInsaniah College University, Malaysia

ABSTRACTThe purpose of this research is to investigate the opportunities of introducing as well as the

main challenges of introducing an Islamic banking in Tajikistan. The Tajikistan is the one ofthe Central Asian majority Muslim Countries which is not implemented an Islamic bankingyet. Introducing an Islamic banking is facing some great challenges in the Tajikistan becausethe financial system is more favorable to conventional banking. However, based on theWorld Bank statistic in regards of Tajikistan banking system that only 14% of population isdealing with banking sector because of violating the majority Muslim believe in the country.The paper attempts to study of the possibility of public adoption and acceptability of anIslamic Banking and Finance among the Tajik population specifically among bankers,customers and sharīʿah scholars due to the fact that 95% of the population is Muslim. Thequantitative data used for this empirical research was collected through a questionnaireadministered on 203 bankers, bank customers, scholars and academicians in DushanbeTajikistan. A measurement and structural model were formulated through adopting thestructural equation modeling approach (using AMOS version 18). This paper concluded thatthe awareness and social norm are not influencing on perceived on trust to adopt an Islamic

banking system. One major implication of this paper is that the people in Tajikistan are awareabout product knowledge, relative advantage and perceived trust on an Islamic bankingsystem and they ready to adopt an Islamic bank, if it is introduced there. Therefore, thewillingness of adoption of an Islamic bank are exist among Tajik population and need tointroduce an Islamic bank in order to increase awareness and social norm of Tajik populationtowards adoption an Islamic bank.

Keywords: Islamic banking, Islamic finance, Muslim population, Muslim scholars,Tajikistan.

AN EMPIRICAL ANALYSIS OF FINANCIAL STABILITY OF ISLAMIC BANKS: A

CASE OF MALAYSIA

Odeduntan Akeem International Institute of Islamic Banking and Finance, International Islamic University

Malaysia, Malaysia

Adewale Abideen Adeyemi Department of Finance, Kulliyyah of Economics and Management Sciences, International



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Islamic University Malaysia, Malaysia

ABSTRACTFinancial stability of a bank is its ability to withstand any financial shocks or stress whichmight be due to liquidity risk, excessive leverage, nonperforming loans, etc. The present

study explores the indulgence of most Islamic banks in Malaysia on financing in the form ofdebt-based financial products with a view to analysing its impacts on the financial stability ofthose banks. Relevant data were collected from the annual reports of sixteen (16) Islamic

banks in Malaysia within the time-frame of 2008 to 2012. The study adopts Z-score analysisas a proxy to assess financial stability of Islamic banks while Liquidity ratio, Nonperformingfinancing as well as C redit risk ratio were used as a proxy to measure the debt-based model.Partial Least Squares (PLS) was used to analyse the relationship between the dependentvariable (financial stability) and the independent variables (debt-based model). The outcomeof the study shows that there is a negative relationship between Non Performing Financing(NPF) and financial stability on one hand and between credit risk and financial stability onthe other. Liquidity however shows a positive and significant relationship with financial

stability. In a nutshell, the study finds that Islamic banks are financially stable but grantexcessive financing while the total assets invested on financing are on the increase year byyear. Hence, this result reveals an impending financial crisis for Islamic banks if its financingmechanism is not revisited.

Keywords: Financial Stability, Islamic Finance, Malaysia, Non-Performing Financing

CURRENT ISSUES IN ISLAMIC BANKING AND FINANCE: A WAY FORWARD

Yusuff Jelili AmudaFaculty of Law and International Relations, Sultan Zainal Abidin University, Malaysia

ABSTRACTIslamic banking and finance requires a global critical discussion on current issues and

practices. Islam encourages Muslims to engage in any lawful and profitable business andtransaction in order to enhance and enrich their daily income. However, Islam prohibits allelements of interest (riba) in transaction and business. The prime difference between Islamic

banking/finance and conventional banking is the prohibition of interest. The researchdiscusses current issues in Islamic banking and finance such as home/vehicle financing,loans, and other related contract with reference to the opinions of classical jurists. Thequestion is whether Islamic banking and finance is engaging in usury or interest (riba) or not.

The study adopts a qualitative and quantitative discussion and analysis. Finally, usefulsuggestions will be suggested on current issues in Islamic banking and finance in order to protect the sanctity of Islamic values.

Keywords: Current Issues, Islamic Banking, Islamic Finance, Shariah, Riba andConventional.

PROJECTION OF WAQF PROPERTY ON AGRIBUSINESS IN NIGERIA

Yusuff Jelili Amuda

Faculty of Law and International Relations, Sultan Zainal Abidin University, Malaysia



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Nor Azizan C. EmbiDepartment of Islamic Finance, Kulliyyah of Economics and Management Sciences,

International Islamic University Malaysia, Malaysia

Oladapo H. Babatunde

Department of Islamic Economics, Kulliyyah of Economics and Management Sciences,International Islamic University Malaysia, Malaysia

ABSTRACT

The Nigeria agricultural sector is faced with many predicaments such as insufficient modernagricultural tools and facilities, loss of focus, abandonment, and inadequate motivation offarmers. In the history of Nigeria, agriculture contributed significantly to nationaldevelopment and poverty reduction. Such was the case before Nigeria found petroleum. Themajority of Nigerian tribes were focused, committed and invested in agriculture. Poverty isrampant and common in the Muslim world. Inequality and low productivity have contributedto poor standards of living. The large number of Muslims in Africa, Asia and Middle East are

living below $2 a day due to their abject and absolute poverty. The Muslim communityaccounts for a significant number of poor and less privileged in Nigeria. Waqf propertiescomprise of movable and immovable properties such as cash, land, and others. Waqf is aform of Islamic endowment that has enormous un-utilized potential for its application infulfilling unmet social needs. One such need is for the establishment of more effectiveschemes to alleviate the struggles faced by Nigeria’s less privileged Muslims through

agribusiness. The objective of this paper is to examine how waqf properties can bechannelled into agribusiness on cocoa, palm tree and cotton farm projects that will assist inempowering needy Nigerian Muslims. The research applied qualitative and quantitativeapproaches to examine the applicability of Cash Waqf funds and land for this purpose. Thestudy proposes strategies through which waqf properties can be used for the generation ofincome and reduction of poverty in Nigeria. It is believed that employment opportunities will

be enhanced through the proper management of such projects.

Keywords: Cash Waqf, Land, Cocoa, Palm Tree, Poverty, Employment and Income.

TAKAFUL STRUCTURE, BUSINESS MODEL AND EFFICIENCY EVALUATION:

A COMPARATIVE ANALYSIS AMONG COUNTRIES IN GULF COOPERATIVE

COUNTRIES (GCC).

Asafa Adeyinka DaudaZarinah Hamid

Abideen Adewale AdeyemiInternational Islamic University Malaysia, Malaysia

ABSTRACTThis paper examines whether the variation in the structure and business model of Takafulcompanies across the countries in the GCC region has significant effect on their efficiencyusing array of variables selected from the financial statement that reflect the businessoperation of Takaful industry. A new frontier technique data envelopment analysis (rangeadjustment measure) is used for the analysis that produces the efficiency scores which is

subsequently subjected to further diagnostic test using Kruskal Wallis rank order statistical



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test (non-parametric statistical measure). The result indicates that there is no significantdifference in the efficiency of Takaful companies across the countries in the region.

Keywords: Business model, Efficiency, Takaful, Gulf cooperative council (GCC).

DISPUTE RESOLUTION IN THE ISLAMIC BANKING INDUSTRY OFTANZANIA: LEARNING FROM OTHER JURISDICTIONS

Abdul-Nasser Hamed Rashid Hikmany

Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, Malaysia

Umar A. OseniAhmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, Malaysia

ABSTRACTThis paper examines the prospects of a dispute resolution framework for the Islamic banking

industry in Tanzania under the existing legal framework. This paper is based on comparativestudy by drawing significant lessons from other jurisdictions, and argues that in order toavoid some of the initial drawbacks in the dispute resolution framework for Islamic bankingtransactions in more advanced jurisdictions like Malaysia and United Kingdom, it isimportant for Tanzania to get it right from the onset to effectively manage Islamic bankingdisputes. The study finds that apart from the court system which provides the main avenue forIslamic finance litigation, other processes such as arbitration and mediation which aredeemed to be more sustainable, could also be developed for effective dispute management.The study focuses on Tanzania banking system with comparison to other jurisdictions. Anincrease of Sharī‘ah-compliant products in Tanzania has led to the establishment of a numberof Islamic banks. This study demonstrates the need for Tanzania to make use and/or makeadjustment of its laws for effective dispute settlement of banking-related disputes. This studyappears to be the first paper to draw significant experiences from other jurisdictions toresolve Islamic banking disputes in Tanzania. It is expected to provide a good policyframework for the stakeholders in the Islamic banking industry in Tanzania.

Keywords – Islamic banking, dispute settlement, alternative dispute resolution, Islamic law,Tanzania

EARNINGS MANIPULATION AMONG SUKUK ISSUERS

Nor Balkish Zakaria and Nur Syuhadah NasruAccounting Research Institute, Universiti Teknologi MARA, Malaysia.

ABSTRACT This study examines the relationship between income manipulation and sukuk rating inMalaysia. The objectives of firms income manipulation is to produce stable growth of incomeflows while sukuk is one of Islamic debt instrument or so called Islamic bond. This study

believes that the firms that smooth their income would have better sukuk ratings. This studywill use the data from datastream for approximately 240 companies. Sukuk rating data are

obtained from RAM (Rating Agency Malaysia). This data would be assigned scales thatrepresenting each rating judgment. Income manipulation measurement would be based on the



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manipulation metrics of Eckel (1981) and the manipulation metrics of Leuz (2003). Theanalysis show that the sukuk rating and income manipulation has significant correlation and

positive relationship.

Keywords: Earnings manipulation, sukuk, rating

THE IMPACTS OF ISLAMIC MICROFINANCING ON THE SUSTAINABLE

LIVELIHOOD OF THE BORROWERS: USES OF MULTIPLE LOGISTIC

REGRESSION MODEL IN BANGLADESH

Abul Bashar BhuiyanSchool of Economics, Finance & Banking, College of Business (COB), Universiti Utara

Malaysia (UUM), Malaysia

Accounting Research Institute (ARI), Universiti Teknologi MARA (UiTM), MalaysiaInstitute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia,

Malaysia

Chamhuri SiwarInstitute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia,

Malaysia

Abdul Ghafar Ismail

Research Centre for Islamic Economics and Finance, Universiti Kebangsaan Malaysia,Malaysia

Basri Abdul TalibFaculty of Economics and Business Universiti Kebangsaan Malaysia (UKM), Malaysia

Jamaliah Said

Accounting Research Institute Universiti Teknologi MARA, Malaysia

ABSTRACT The study investigates the impacts of microfinance on the Sustainable Livelihood (SL) ofIslami Bank microfinance schemes in Bangladesh. Towards the achievement of its objectives

this study uses descriptive statistical and econometric techniques to assess the Islamic MFIscontributions on sustainable livelihood of the borrowers. The multiple logistic regressionmodel was used to estimate the parameters that influenced on the status of sustainablelivelihood of the poor borrowers. The study found that access to credit has contributedtowards reducing the incidence of poverty as well as improving on the status of sustainablelivelihood of the borrowers of Islami Bank microfinance schemes. On the other hand,multiple logistic regression model outputs shows that there are significant positive impacts ofmicrofinance on the status of sustainable livelihood of its poor borrowers. The studyrecommended for more emphasizing on increase of proper income generating activities,sufficient amount of credit, increase the period of instalment repayment, providing thenecessary skills training through complete Zakat based Islamic mode of financing as well as

Qard-al-Hasan on the basis of spiritual values as an alternative microfinance model for poverty alleviation in Bangladesh.



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Keywords: Islamic Microfinance, Sustainable Livelihood, Islami Bank & Bangladesh

PUBLIC ACCOUNTABILITY SYSTEM: EMPIRICAL ASSESSMENTOF PUBLIC SECTOR OF MALAYSIA

Jamaliah SaidAccounting Research Institute (ARI), Universiti Teknologi MARA (UiTM), Malaysia

Md. Mahmudul AlamInstitute for Environment and Development (LESTARI), National University of Malaysia

(UKM), Malaysia

Mohamad Azizal bin Abd AzizFaculty of Accountancy, Universiti Teknologi MARA (UiTM), Malaysia

ABSTRACTThis study assesses the status of accountability practices of the Malaysian public sector inresponse to the recent report of the Auditor General that revealed corruption, weakness, andlack of control in asset management. Primary data were collected using a questionnairedistributed through Google Docs application to the heads of 682 departments and agenciesunder 24 federal ministries, including the Prime Minister Department. The final sample of thestudy consists of 109 respondents. The data gathered were based on the opinions ofrespondents on the 10 factors of public accountability practices in their respective

departments or agencies using a seven-point Likert scale that ranged from 1 (stronglydisagree) to 7 (strongly agree). Data were analyzed using descriptive statistics and factoranalysis. Data reliability was tested using Cronbach's alpha test. Data validity and normalitywere tested using the Shapiro Wilk's test. About 87.3% of the respondents indicated that theirdepartments and agencies generally implement accountability practices. However, priorityaccountability factor differs among service schemes. Accountability in administrative anddiplomatic, education, and medical and health services is below the overall average. Thestudy findings is useful in providing awareness to policy makers and in encouragingaccountability environments in many countries, especially Malaysia.

Keywords: Accountability System; Public Sector; Factor Analysis; Malaysia



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INTEGRATING MAQASID SYARIAH FRAMEWORK INTO CAST MODEL IN

ASSESSING EFFECTIVENESS OF SOCIAL ENTREPRENEURSHIP

Jamaliah Said, Mafuza Ahmed

Sharifah Norzehan Syed Yusuf

Accounting Research Institute and Faculty of Accountancy, Universiti Teknologi MARA,Malaysia

ABSTRACT

This study aims to examine the impact of capital assistance programme initiated byMalaysian Zakat Organization on the quality of life of recipients who received capital to startsmall businesses. The quality of life is measured by incorporating the eight principles ofMaqasid Al-Shari’ah. Based on 55 poor recipients who received capital assistance to startsmall scale business in 2005 the finding discovered a significant impact on the quality of lifein terms of securing the honour among the family members, religion practices, environment,self-determination and knowledge quality of the recipients. However, most of the

respondents agreed that capital assistance they received in 2005 bring no significant impacton monthly income.

Keywords: Asnaf Entrepreneurs, Zakat Organizations, Quality of Life, Capital AssistanceProgramme

AN EVALUATION OF RESOLUTION PROCESSES IN BANKING DISPUTES: THE

MALAYSIAN EXPERIENCE

Nuraisyah Chua AbdullahFaculty of Law, Universiti Teknologi MARA, Malaysia

Jamaliah SaidAccounting Research Institute, Universiti Teknologi MARA, Universiti Teknologi MARA,

Malaysia

ABSTRACTIntegrity, professionalism, competence and knowledge, consumer service and education arevalues uphold by the Financial Mediation Bureau (FMB). With these values, this independent

bureau is entrusted with the mission to provide consumers with a vehicle for an objective and

timely resolution of disputes, claims and complaints arising from services provided byfinancial institutions (who presently comprise the commercial banks, Islamic banks, merchant banks, finance companies, insurance companies, takaful operators and card issuers).However, the FMB has certain criteria and limitations which restrict its function as anindependent alternative financial dispute resolution body. This paper discusses the nature,limitations and challenges which are faced by the FMB and the way forward for the bettersettlement of financial disputes.

Keywords: Banking Disputes, Malaysia, Takaful, Financial Mediation Bureau.



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FINANCIAL CONSEQUENCES OF PILOTS’ INTERVENTION BEHAVIOUR IN

THE AVIATION INDUSTRY

Ramzyzan RamlyFaculty of Mechanical Engineering, Universiti Teknologi MARA, Malaysia

Nuraisyah Chua AbdullahFaculty of Law, Universiti Teknologi MARA, Malaysia

Jamaliah SaidAccounting Research Institute, Universiti Teknologi MARA, Malaysia

ABSTRACTThis paper describes the safety issues in civil aviation relating to the aircraft accidents and thefinancial implication to the airline companies. The cause of the accidents discussed in the

paper is pilot error, where the pilots turn off the warning system of the flight monitoring

system and failed to communicate with the air traffic controller. The failure of the pilot toturn on the warning system led to the uneventful flight crash. Due to this pilot error, thefinancial implications of the airline companies are discussed.

Keywords: Aviation Industry, Civil Aviation, Behaviour.



18

ق ب و عانس كهط

تحة

در سة

أ د ر

– ا دا

ا ا

مخص

و ا ا ا ارد إ ا ا ك

ا او عا ا ا ح عاا و

اا اذج خ اذ ا وخ اول ك اع

ا ا اح ا ا ان ا ا

ا

ا

ن

ا

ا

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ا

.ا س دا ة و

انظو

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ر

اسذ اشرك ادور سد بوهراوة

زل

اسة

اللة

في

الشرعة

لبحوث

اللة

اكدة

[email protected]

شوروب ح ةرودا ةدعسا ذسا

زل

اللة

اسة

الجة

لحوق

كة حد براهم

[email protected]



19

اسخص

راو .ا ا ض و ا ا عض إ را ف

ةؤا اا ا قا ة ض ئا ضا را اا قارواو ا رأ

اوراق ا خ ت ار اض ا ا ق ازت ا ادة قا ن ى

راو

.دا

ا

ا

اات

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و

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ئاا

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ا ا را إ نو ا او ا ا فاو .ا را ر

ا قاروا ار وى إل ا ا ا ا أر إ ا و

ا لخ را اا .

حا تا

وسا اضرفة وساسا احا نا ا

او ةا توا ا تؤ

ا ا و

.

محد

ب ل

ي

ب ل

ب ل مح ائد.

لبحمص



20

اراإاو فا ا ااو ةا ا ؤت اوت

ا

ا

ا ر

ا م

ا

ا ا و ا

إ. و اواخر رآي ا ات ااائ خل

ئا

:ا

رةأن

و

ا

ا

ل

أ

اد

ادل

اأ

و اونأا ا ا تؤا ا ن

ا ائا تظأ

اا أ

اا نأ. : ارا و ا توا نأة

ا ا تؤ دو و ا او صخاا ا خ .ا د

ا تؤا ا

ا

اوا ت ا

إ

اا و و ا ا ل ا رات ه ا ا

اة

وت

.

لبنية لعرفية خقي ت ل لية سمية

مفتاح

م

لاخ

كة لشطة

ه ة لتريس

ضع

ق

دولة

ا

ص

و ا ا ل قخا ا ا ل را ةدإ لوا ا

ا لأ ظ ا ا ا لخ ذو خا رطإ ض و

ا أ إ كاذ و ا ئاا ا تاودأ ما

.ا ذو اد ادة ا أ ا ا ث و را ا إ ةر و

. ا ا خا ا أ قخا إ را ا ا يرا قا

خق

او

ا

ا

و

و

"ا

"اض

اص

ا

و ت را وو " " اي آ ا ا ز

ا ا خاد خا ا.

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