Scopus EXPORT DATE: 15 November 2023 @ARTICLE{Hadhri2021, author = {Hadhri, Sinda}, title = {The nexus, downside risk and asset allocation between oil and Islamic stock markets: A cross-country analysis}, year = {2021}, journal = {Energy Economics}, volume = {101}, doi = {10.1016/j.eneco.2021.105448}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85111564388&doi=10.1016%2fj.eneco.2021.105448&partnerID=40&md5=9f15bca07637a8692e9fefb587496504}, affiliations = {Institute of Sustainable Business and Organizations, Sciences and Humanities Confluence Research Center- UCLy, ESDES, Lyon, France}, abstract = {This study performs empirical analyses on Islamic stock markets of 20 countries disaggregated into oil-importing, oil-exporting, and moderately oil-dependent countries. We investigate the asymmetric dynamic linkages between oil and Islamic stock prices for the period from May 2002 to February 2018 based on a nonlinear-Autoregressive Distributed Lag (ARDL) framework using both global and domestic oil prices. For comparison purposes, we also investigate conventional stock markets of the same countries and during the same sample period. Our results show five interesting findings. First, Islamic stock markets react to oil price shocks differently across time horizons and markets. Second, in the long run, our results support that a negative shock in oil prices significantly increases stock prices of all Islamic stock markets irrespective of the country's category (importing, exporting, or moderate oil dependency). Third, in the long run, a divergent reaction is established (regarding magnitude) across markets depending on their oil net position. Islamic stock markets in oil-exporting countries specifically exhibit a more aggressive reaction to negative oil price shocks (world and domestic) than their oil-importing and moderately oil-dependent counterparts. Finally, in the short run, we find that negative oil price changes have a more significant effect on Islamic indices than positive ones. For the conventional counterparts, findings indicate that the long-run effect of oil price changes is not significant for all countries. The short-run results show that, independently from the country's category, the effect of the negative oil price shocks seems to be more significant than oil price increases and that the reaction is similar between countries, in terms of influence. These findings are confirmed through an out-of-sample predictive accuracy test, highlighting that asymmetric specifications improve the predictability of the both Islamic and conventional stock prices of the studied markets. We also examine the implications for risk management in the presence of oil risk. We find evidence of diversification benefits and oil downside risk reduction in a two-assets, Oil-Islamic stocks, investment portfolio, being greater than for their conventional counterparts. The implications of this study will be of interest to Islamic portfolio managers and market regulators to better adopt proactive awareness regarding Islamic stock market behavior, as well as for international investors since it suggests Islamic stocks as an alternative to conventional stocks concerning Oil risk reduction. © 2021 Elsevier B.V.}, author_keywords = {Asset allocation; Ethical finance; Islamic markets; Nonlinearity; Oil price}, keywords = {Matthiola; Commerce; Costs; Financial markets; Risk management; Asset allocation; Downside risks; Ethical finance; Islamic market; Longest run; Nonlinearity; Oil price shocks; Oil Prices; Short runs; Stock price; empirical analysis; ethics; export; finance; import; Islamism; nonlinearity; oil supply; price determination; risk factor; stock market; Investments}, correspondence_address = {S. Hadhri; Institute of Sustainable Business and Organizations, Sciences and Humanities Confluence Research Center- UCLy, ESDES, Lyon, France; email: shadhri@univ-catholyon.fr}, publisher = {Elsevier B.V.}, issn = {01409883}, coden = {EECOD}, language = {English}, abbrev_source_title = {Energy Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 9} } @ARTICLE{Touri2020, author = {Touri, Othmane and Ahroum, Rida and Achchab, Boujemâa}, title = {Management and monitoring of the displaced commercial risk: a prescriptive approach}, year = {2020}, journal = {International Journal of Emerging Markets}, doi = {10.1108/IJOEM-07-2018-0407}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078985971&doi=10.1108%2fIJOEM-07-2018-0407&partnerID=40&md5=0d9183f019c06063bb79d979935d7e31}, affiliations = {LAMSAD, École Nationale des Sciences Appliquées Berrechid, Berrechid, Morocco}, abstract = {Purpose: The displaced commercial risk is one of the specific risks in the Islamic finance that creates a serious debate among practitioners and researchers about its management. The purpose of this paper is to assess a new approach to manage this risk using machine learning algorithms. Design/methodology/approach: To attempt this purpose, the authors use several machine learning algorithms applied to a set of financial data related to banks from different regions and consider the deposit variation intensity as an indicator. Findings: Results show acceptable prediction accuracy. The model could be used to optimize the prudential reserves for banks and the incomes distributed to depositors. Research limitations/implications: However, the model uses several variables as proxies since data are not available for some specific indicators, such as the profit equalization reserves and the investment risk reserves. Originality/value: Previous studies have analyzed the origin and impact of DCR. To the best of authors’ knowledge, none of them has provided an ex ante management tool for this risk. Furthermore, the authors suggest the use of a new approach based on machine learning algorithms. © 2020, Emerald Publishing Limited.}, author_keywords = {Deposit variation intensity; Displaced commercial risk; Machine learning; Prudential reserves; Risk management}, correspondence_address = {O. Touri; LAMSAD, École Nationale des Sciences Appliquées Berrechid, Berrechid, Morocco; email: othmane.touri@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17468809}, language = {English}, abbrev_source_title = {Int. J. Emerg. Mark.}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Selim2008122, author = {Selim, Tarek H.}, title = {An Islamic capital asset pricing model}, year = {2008}, journal = {Humanomics}, volume = {24}, number = {2}, pages = {122 – 129}, doi = {10.1108/08288660810876831}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84993043435&doi=10.1108%2f08288660810876831&partnerID=40&md5=941d9808772d2b2c3562f69820c063b9}, affiliations = {Department of Economics, The American University, Cairo, Egypt}, abstract = {Purpose – The purpose of this paper is to describe the application of the Islamic financing method based on direct musharakah to the conventional capital asset pricing model yielding several interesting hypotheses. Design/methodology/approach – Theoretical methodology, with maximin criteria, and rational economic optimization. Findings – There are four major findings. First, an Islamic financing partnership based on complementary capital is proven to necessarily yield a lower beta-risk of investments than that compared to the market. Second, in order for the above conclusion to hold, capital lenders (such as banks) must abide by a maximum partnership share inversely proportional to project risk and increasing with opportunity cost of capital. Third, the sum of lender's share and relative risk level balances to unity at equilibrium. Hence, tradeoffs exist in risk-shares and not in risk-returns. Fourth, without accounting for inflation, and in contrast to predetermined fixed interest, a maximin strategy of financing partnerships (maximum return with minimum risk) imply an existence of an optimum zero risk-free rate. Research limitations/implications – The paper's findings are limited to a Direct Musharakah Partnership. Originality/value – A comparison between Islamic risks and returns to conventional risk management is deduced. Several implications on the conduct of Islamic financing are discussed. © 2008, Emerald Group Publishing Limited}, author_keywords = {Asset valuation; Economics; Finance; Islam; Partnership}, issn = {08288666}, language = {English}, abbrev_source_title = {Humanomics}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 23} } @ARTICLE{Shahar2020845, author = {Shahar, Nurul Ain and Nawawi, Anuar and Salin, Ahmad Saiful Azlin Puteh}, title = {Shari’a corporate governance disclosure of Malaysian IFIS}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {3}, pages = {845 – 868}, doi = {10.1108/JIABR-05-2016-0057}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078281685&doi=10.1108%2fJIABR-05-2016-0057&partnerID=40&md5=baf200ccf94ee5be759142f098418f22}, affiliations = {IPAC Education, INTEC Education, Shah Alam, Malaysia; Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia; Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, Tapah, Malaysia}, abstract = {Purpose: This paper aims to examine the extent of the Shari’a corporate governance disclosure in the annual report of Islamic financial institutions (IFIs) in Malaysia to determine the significant differences in this disclosure between the local and foreign-owned IFIs, small and large size IFIs and IFIs belong to Islamic and conventional holding companies. Design/methodology/approach: All 16 IFIs in Malaysia were selected to analyse the extent of disclosure in their annual reports on issues related to Shari’a corporate governance. For this purpose, an index of Shari’a corporate governance disclosure for IFIs was created based on adapting Sulaiman et al. (2015). The index consists of 127 items classified into 14 dimensions. The scoring of the disclosed items is binary, where a score of “1” if disclosed and “0” if it was not disclosed in the annual report. Findings: The result shows no significant differences in the Shari’a corporate governance disclosure between the local and foreign-owned IFIs, small and large size IFIs and IFIs belonging to Islamic and conventional holding companies. However, further examination shows that there was a significant difference in the disclosure of the risk management committee dimension between the large and small IFIs and investment account holders dimension between the conventional and Islamic holding companies. Research limitations/implications: The results provide new emerging evidence that deviates from many prior empirical research studies, which document the domination of Islamic-based IFIs in the corporate governance practices, as compared with their conventional financial institutions that venture into Islamic finance. This study, however, was conducted on only 16 IFIs in a one-year period, i.e. 2013. Future research should consider data from a larger number of IFIs that involve a number of countries with more than one year of data to have a better understanding of the extent of Shari’a corporate governance disclosure. Practical implications: This study provides an indicator to the stakeholders of Islamic finance that the Islamic-based IFIs and conventional IFIs are equal and cannot be differentiated based on the Shari’a corporate governance disclosure. For Islamic-based IFIs, as a pioneer in Islamic banking and finance industry, they need to take more efforts in adopting the Shari’a governance framework issued by the Central Bank of Malaysia (BNM), namely, the Shari’a review, audit and risk management. Originality/value: This study is original, as it includes the latest requirements by the Shari’a governance framework issued by the BNM, namely, the Shari’a review, audit, risk management and research functions in its research instrument. In addition, this research also scrutinised the disclosure in detail of all the dimensions constructed in the governance index. © 2020, Emerald Publishing Limited.}, author_keywords = {Corporate governance; IFIs; Islamic financial institutions; Malaysia; Shari’a disclosure; Shari’a index}, correspondence_address = {A.S.A.P. Salin; Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, Tapah, Malaysia; email: ahmad577@uitm.edu.my}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 14} } @ARTICLE{Muhammad2021981, author = {Muhammad, Rifqi and Fakhrunnas, Faaza and Hanun, Amalia Khairina}, title = {The Determinants of Potential Failure of Islamic Peer-to-Peer Lending: Perceptions of Stakeholders in Indonesia}, year = {2021}, journal = {Journal of Asian Finance, Economics and Business}, volume = {8}, number = {2}, pages = {981 – 992}, doi = {10.13106/jafeb.2021.vol8.no2.0981}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85100974283&doi=10.13106%2fjafeb.2021.vol8.no2.0981&partnerID=40&md5=0ffc7ca5ef0c76c532263ca4e5234933}, affiliations = {Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia, Indonesia; Department of Economics, Faculty of Business and Economics, Universitas Islam Indonesia, Indonesia; Department of Accounting, Faculty of Business and Economics, Universitas Islam Indonesia, Indonesia}, abstract = {This study identifies the determinants of potential failure of Islamic Peer-to-Peer (P2P) lending in Indonesia, and the mediating effect of Islamic ethics on reducing the potential for failure of Islamic P2P lending. This study uses primary data retrieved through questionnaires from the perspective of 152 stakeholders in Islamic P2P lending. Using a structural equation model (SEM), the study found that indebtedness, financing size, and governance have positive and significant relationships with the potential failure of Islamic P2P lending. This study provides evidence that the customer’s internal conditions and the governance structure applied can increase the potential failure of Islamic P2P lending. Further, Islamic ethics is evidently able to partially reduce the potential failure of Islamic P2P lending by lessening risk management exposure, but it fails to address failure through Ponzi scheme exposure. As an implication, this study suggest that Islamic P2P lending must implement Islamic ethics more comprehensively by optimizing the advisory and supervisory role of the shariah board within their overall boards of directors also in their operational activities. Finally, it also adds to the existing knowledge on financial technology literature, particularly on the determinants of potential failure of financial technology from the perspective of stakeholders. © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.}, author_keywords = {Financial Technology; Islamic Finance Industry; P2P Lending; Potential Failure}, correspondence_address = {R. Muhammad; Yogyakarta, Jalan Prawiro Kuat, Sleman, 55283, Indonesia; email: rifqimuhammad@uii.ac.id}, publisher = {Korea Distribution Science Association (KODISA)}, issn = {22884637}, language = {English}, abbrev_source_title = {J. Asian Financ. Econ. Bus.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Hassan200923, author = {Hassan, Abul}, title = {Risk management practices of islamic banks of Brunei Darussalam}, year = {2009}, journal = {Journal of Risk Finance}, volume = {10}, number = {1}, pages = {23 – 37}, doi = {10.1108/15265940910924472}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85014756223&doi=10.1108%2f15265940910924472&partnerID=40&md5=dbba5397686532947ae9c84120b2e15a}, affiliations = {Markfield Institute of Higher Education, Loughborough University, Markfield, United Kingdom; Islamic Economics Unit, The Islamic Foundation, United Kingdom}, abstract = {Purpose - The objective of this paper is to assess the degree to which Islamic banks in Brunei Darussalam use risk management practices (RMPs) and techniques in dealing with different types of risk. Design/methodology/approach - The researcher developed a questionnaire which covers six aspects in the first part: understanding risk and risk management, risk assessment and analysis (RAA), risk identification (RI), risk monitoring, credit risk analysis and RMPs. The second part consists of two questions based on an ordinal scale dealing with two topics: methods of RI and risk facing the sample banks. Findings - This study found that that the three most important types of risk that the Islamic banks in Brunei Darussalam facing are foreign-exchange risk, followed by credit risk and then operating risk. It also found that the Islamic banks are somewhat reasonably efficient in managing risk where RI and RAA are the most influencing variables in RMPs. Research limitations/implications - The paper’s findings are limited to the RMPs of Islamic banks in Brunei Darussalam. Originality/value - The paper explores the RMPs of the Islamic banks in Brunei Darussalam. The results can be used as a valuable feed back for improvement of RMPs in the Islamic banks in Brunei and will be of value to those people who are interested in the Islamic banking system. © Emerald Group Publishing Limited.}, author_keywords = {Banks; Brunei; Finance; Islam; Risk management}, correspondence_address = {A. Hassan; Markfield Institute of Higher Education, Loughborough University, Markfield, United Kingdom; email: abul.hassan@islamic-foundation.org}, issn = {15265943}, language = {English}, abbrev_source_title = {J. Risk Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 66} } @ARTICLE{Alhammadi20201921, author = {Alhammadi, Salah and Archer, Simon and Asutay, Mehmet}, title = {Risk management and corporate governance failures in Islamic banks: a case study}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {9}, pages = {1921 – 1939}, doi = {10.1108/JIABR-03-2020-0064}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85089964445&doi=10.1108%2fJIABR-03-2020-0064&partnerID=40&md5=d6e8a2aa7fc5d93e2a48168f13ac80df}, affiliations = {Department of Economics and Finance, Gulf University for Science and Technology, Kuwait City, Kuwait; ICMA Centre Henley Business School, University of Reading, Reading, United Kingdom; Durham Centre for Islamic Economics and Finance, Durham University Business School, Durham University, Durham, United Kingdom}, abstract = {Purpose: The purpose of this paper is to show how the choice and ongoing evaluation of a firm’s business model, as a matter of strategic guidance, are key aspects of corporate governance (CG), with particular reference to risk management (RM) in Islamic banks. Design/methodology/approach: This research uses a case study approach, with a single case, which was chosen as it fits very well the purpose of this research. The data collection was based largely on documentary evidence. Company data were collected from company annual reports, press releases and legitimate web sites. The ORBIS Bank Focus database was also used to produce a comparative financial analysis. Findings: The study findings illustrate how an apparently successful business model may fail due to an inherent instability that could have been identified through the application of careful risk analysis (including stress testing) in the choice and ongoing evaluation of the business model, which robust CG and strategic guidance require. In particular, Arcapita’s problems illustrate the dangers to Islamic financial institutions (IFI) from business models that involve undue exposure to liquidity risk. Practical implications: The issues raised in the paper are important in that Islamic banking and finance is an integral part of the global banking and finance industry. Investors and regulators are now requesting corporate management to provide improved service to shareholders and other stakeholders alike. IFI rely on the confidence of investors and market participants, just like conventional institutions and when this confidence erodes, it may prove difficult to regain. Social implications: The global credit crisis of 2008 caused significant difficulties to firms, especially financial institutions, even with substantial government intervention in the economy, which raised some issues of CG and ethics. Originality/value: This paper extends the knowledge of the potential effects of weaknesses in CG and RM, with specific reference to strategic guidance in the choice and ongoing evaluation of a firm’s business model, especially in relation to the Islamic banking sector. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements set out in the various Basel III documents. © 2020, Emerald Publishing Limited.}, author_keywords = {Arcapita; Corporate governance; Islamic banks; Risk management; Strategic guidance}, correspondence_address = {S. Alhammadi; Department of Economics and Finance, Gulf University for Science and Technology, Kuwait City, Kuwait; email: alhammadi.s@gust.edu.kw}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 11; All Open Access, Green Open Access} } @ARTICLE{Siddiqui2008680, author = {Siddiqui, Anjum}, title = {Financial contracts, risk and performance of Islamic banking}, year = {2008}, journal = {Managerial Finance}, volume = {34}, number = {10}, pages = {680 – 694}, doi = {10.1108/03074350810891001}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85015637086&doi=10.1108%2f03074350810891001&partnerID=40&md5=5828784a31688d327e1cd82c449a4de9}, affiliations = {Center for Research and Development, Gulf University for Science and Technology, Kuwait}, abstract = {Purpose – The purpose of this paper is to focus on various modes of Islamic finance and examines their risk and other characteristics by conducting a selective literature review. Design/methodology/approach – Due to the Islamic prohibition of interest and in compliance with injunctions on permissible trade contracts, the savings and investment contracts offered by Islamic banks have a different risk profile than those of conventional banks. This gives rise to a number of regulatory issues pertaining to capital adequacy and liquidity requirements. Operational issues also arise as Islamic banks are limited in their choice of risk and liquidity management tools such as derivatives, options and bonds. All these issues are theoretically examined and various performance indicators of two Islamic banks are also examined to compare them with traditional banks that practice mark up pricing. Findings – The balance sheets and various performance indicators show that there is evidence that Islamic banks in Pakistan tend to engage in little long-term project financing. However, on the plus side these banks have shown good performance with respect to the returns on their assets and equity and have also demonstrated better risk management and maintained adequate liquidity. Research limitations/implications – A larger set of banks across various countries needs to be examined before any substantive conclusions can be reached about the relative performance of Islamic versus conventional banks. Practical implications – These largely pertain to central bank prudential regulations which must ensure that a level playing field is created for Islamic banks to compete with traditional banks. Originality/value – The paper is a commentary on the risk characteristics of Islamic banks and also analyzes for the first time the performance of the only two purely Islamic banks currently operating in Pakistan. © 2008, © Emerald Group Publishing Limited.}, author_keywords = {Banking; Equity capital; Financing; Islam; Moral hazards; Partnership}, correspondence_address = {A. Siddiqui; Center for Research and Development, Gulf University for Science and Technology, Kuwait; email: anjum_economist@yahoo.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {03074358}, language = {English}, abbrev_source_title = {Manag. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 80} } @ARTICLE{Arshad2016220, author = {Arshad, Muhammad Usman and Yusoff, Mohammed Effandi and Tahir, Muhammad Sohail}, title = {Issues in transformation from conventional banking to islamic banking}, year = {2016}, journal = {International Journal of Economics and Financial Issues}, volume = {6}, number = {3}, pages = {220 – 224}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84973631244&partnerID=40&md5=ce3ec6beaed82274c7ef9e1ba954fd1c}, affiliations = {Faculty of Management, Universiti Teknologi Malaysia, Malaysia}, abstract = {The present era has witnessed intensive changes in last few decades. The transformation of conventional financial system to Islamic financial system is one of these drastic changes the world has faced. Islamic banking is the major constituent of the Islamic finance. In line with these transformations, Islamic banks and financial institutions are facing several problems due to non-existence of comprehensive framework. However, some prominent issues are convergence issues, stability and regulatory issues, existence of different schools of thought and sensitivity towards role of religion in commercial and financial sector. A careful analysis of these issues can lead to sort out the solutions. The approach to overcome these challenges will determine the future success or failure of the industry. Therefore, this study shed a light on some major challenges that can hinder the progress and benefits of Islamic finance promises. © 2016, Econjournals. All rights reserved.}, author_keywords = {Financial regulation; Financial stability; Governance; Islamic banks; Regulatory framework; Risk management}, publisher = {Econjournals}, issn = {21464138}, language = {English}, abbrev_source_title = {Int. J. Econ. Financ. Issues}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 6} } @ARTICLE{Ahmed2019391, author = {Ahmed, Adel}, title = {Socially responsible investing interconnect with the supply chain management in islamic finance model}, year = {2019}, journal = {International Journal of Supply Chain Management}, volume = {8}, number = {5}, pages = {391 – 401}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85075239067&partnerID=40&md5=feba41055d6a2c0b72d39bf554238f0f}, affiliations = {College of Business, Al Ain University, Abu Dhabi, United Arab Emirates}, abstract = {The concept of Islamic finance is related to Socially Responsible Investment (SRI) by many researchers in different time frames based on the similarities between Islamic finance and the concept of SRI and Supply Chain Management (SCM). SRI has been described by many authors as an investment philosophy that includes non-financial, ethical (e.g., social and environmental) objectives. This paper will shed the light on the interconnection between concepts the Socially Responsible Investment (SRI) and the Islamic Finance Model (IFM). To explain and explore the concept of SRI within Islamic Finance qualitative research technique will be used. The findings show that central values in IFM and SRI could be matched to optimize prospects for Islamic finance to tap the large pool of global SRI funds. Moving forward, greater interplay between these two markets should be explored. Key stakeholders on both ends, including financial experts, research centers, rating agencies, non-governmental organizations and even regulators should pursue ways to consolidate the connectivity of these markets. The Islamic finance focuses mainly on risk sharing, individuals' rights and responsibilities, property rights and the purity of contracts. Receipt and payment of interest in contracts differentiate Islamic Finance from conventional finance. The other factors such as banned on contracts involving investments in alcohol, tobacco, drugs, pornography, prostitution, gambling, armaments, animal experimentation, genetic engineering, financial exploitation makes it similar to social responsible investment SRI. © ExcelingTech Pub, UK.}, author_keywords = {Environmental, social and governance (ESG); Ethical investing; Islamic finance model (IFM); Socially responsible investing (SRI); Supply chain management}, correspondence_address = {A. Ahmed; College of Business, Al Ain University, Abu Dhabi, United Arab Emirates; email: adel.ahmed@aau.ac.ae}, publisher = {ExcelingTech}, issn = {20513771}, language = {English}, abbrev_source_title = {Int. J. Supply Chain Manag.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Hassan200933, author = {Hassan, M. Kabir and Kayed, Rasem N.}, title = {THE GLOBAL FINANCIAL CRISIS, RISK MANAGEMENT AND SOCIAL JUSTICE IN ISLAMIC FINANCE}, year = {2009}, journal = {ISRA International Journal of Islamic Finance}, volume = {1}, number = {1}, pages = {33 – 58}, doi = {10.55188/ijif.v1i1.63}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84882041492&doi=10.55188%2fijif.v1i1.63&partnerID=40&md5=0d6a4300a3a05e07a94a4397eb0ea985}, affiliations = {University of New Orleans, LA, United States; Arab American University, Jenin, Palestine}, abstract = {The most salient values of the Islamic financial system are fairness and socio-economic justice. The exuberance of Islam’s uncompromising commitment to the well-being of humankind goes beyond its caring for existing generations to ensuring a sustainable future for generations to come. This is evident by giving utmost priority to the environment and preserving earth’s valuable–yet limited–endowments and resources, and by limiting public borrowings to available resources hence freeing future generations from the burden of debt. The Islamic system of production and finance based on profit-and-loss sharing (PLS) is more efficient and equitable in distribution of wealth and income. Allocation of funds under risk sharing will be based on the viability and expected profitability of the proposed entrepreneurial undertakings rather than on the creditworthiness of competing entrepreneurs. Furthermore, risk sharing offers both entrepreneurs and investors incentives to be truly engaged in productive economic activities, wherein entrepreneurs will be encouraged by the prospect of seeing their ideas transformed into business entities, and financers will be obliged to assess the risk involved more cautiously and effectively monitor the use of funds by the entrepreneurs. The appropriate implementation of such partnership contracts increases the likelihood of business success, injects more discipline into the financial market by reducing excessive lending, and ultimately will have positive implications for the socio-economic well-being of society at large. © 2009, International Shari’ah Research Academy for Islamic Finance (ISRA). All rights reserved.}, author_keywords = {Islamic finance system; Profit-and-loss sharing (PLS); risk management; socio-economic justice}, publisher = {International Shari’ah Research Academy for Islamic Finance (ISRA)}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 36; All Open Access, Hybrid Gold Open Access} } @ARTICLE{Sakinç2021107, author = {Sakinç, İlker}, title = {Analysis of the Working Capital Management Efficiency of the Manufacturing Companies in the Islamic Index; [İslami Endekste Yer Alan İmalat Sanayi Şirketlerinin Çalışma Sermayesi Yönetimi Etkinlik Analizi]}, year = {2021}, journal = {Hitit Theology Journal}, volume = {20}, number = {3}, pages = {107 – 128}, doi = {10.14395/hid.930402}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85170687193&doi=10.14395%2fhid.930402&partnerID=40&md5=262e786d17b913993bec59da89670846}, affiliations = {Hitit University, Faculty of Economics And Administrative Sciences, Banking and Finance Department, Çorum, Turkey}, abstract = {Unlike the traditional finance model, Islamic finance is based on its own principles, outlined by the sharia provisions regarding the management of money in Islamic law. The most important of these principles are profit and loss sharing, risk sharing, interest prohibition, the principle of basing transactions on goods, and the prohibition of investing in extreme uncertainty. In addition to these principles, Islamic law prohibits investing in interest-based financial institutions and some sectors that Islam does not approve of such as alcohol, adult films, pork, etc., and refrains from cooperating with these sectors. The Islamic financial system has been established to take into account social and moral issues as well as acting on religious principles. Islamic finance has implemented Islamic indices as a guide for those who want to invest in Sharia-compliant stocks. The main purpose of Islamic indices is to inform which company stocks are suitable in terms of sharia. Qualitative and quantitative criteria must be met in order to be included in Islamic indices. Qualitative criteria are related to the fields of activity of companies. However, quantitative criteria consist of financial constraints. One of the financial constraints is the rate of investment in working capital components in total assets. The most important reason for this is that some of the working capital components generate interest income. Working capital is the portion of companies’ assets that are expected to be converted into cash within one year. Therefore, the ratio of these assets in total assets is important for companies’ risk, profitability, and liquidity. In conclusion, the main research question of this study is how financial restrictions in Islamic indices affect the working capital management of companies. There are quite a few studies on Islamic indices in the literature. Most of the studies are related to the structural characteristics of these indices. Li-kewise, there are many publications on the financial performance of these indices. However, studies on working capital management of companies included in Islamic indices are quite limited. In these studies, the relationship between working capital and profitability has been examined. As a result of the literature review, no academic study was found on the working capital management efficiency of companies in Islamic indices. Therefore, this study is the first study done on this subject. In particular, the effect of restrictions on current assets (working capital components) on working capital management has been investigated for the first time. Calculation of working capital management efficiency in the study was determined by the index method developed by Bhattacharya (1997). This method consists of calculating three indices. These are performance, utilization, and efficiency indices. Working capital components (cash and equivalents, trade receivables, other trade receivables, inventories, prepaid expenses, and other current assets) and sales of the company are taken into account in the calculation of the three indices. In this study, Participation 30 index companies serving as an Islamic index were selected as the universe of the research. However, not all of the 30 companies that make up this index are included in the analysis. In addition, not all types of companies need working capital management. Working capital management is essential for manufacturing industry companies. Therefore, only manufacturing industry companies were selected in this study. Since there are 17 manufacturing companies in the Participation 30 index, these companies constitute the universe of the study. Financial sector companies supplying the financing of manufacturing industry activities were excluded from the scope of the study. In addition, companies in the retail sector that do not produce commodities are not included in the analysis. In the study, the six-year balance sheet and income statement data of the companies between 2013 and 2018 were used, and these data were obtained from the public disclosure platform. According to the results obtained from the study, the performance index of 65.69% of the companies, the usage index of 55.89%, and the efficiency index of 67.65% were higher than 1. In other words, these companies have been successful in managing working capital. To sum up, it is concluded that the restrictions imposed by Islamic indices on working capital components do not adversely affect the effectiveness of companies’ working capital management. © 2021, Hitit University. All rights reserved.}, author_keywords = {Islamic Finance; Islamic Indices; Islamic Law; Participation 30 Index; Working Capital Management Efficiency}, correspondence_address = {İ. Sakinç; Hitit University, Faculty of Economics And Administrative Sciences, Banking and Finance Department, Çorum, Turkey; email: ilkersakinc@hitit.edu.tr}, publisher = {Hitit University}, issn = {27576949}, language = {English}, abbrev_source_title = {Hitit. Theol. J.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0; All Open Access, Gold Open Access, Green Open Access} } @ARTICLE{Rahman2011203, author = {Rahman, Asmak Ab and Wan Ahmad, Wan Marhaini}, title = {The concept of Waqf and its application in an Islamic insurance product: The Malaysian experience}, year = {2011}, journal = {Arab Law Quarterly}, volume = {25}, number = {2}, pages = {203 – 219}, doi = {10.1163/157302511X553994}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-79954478480&doi=10.1163%2f157302511X553994&partnerID=40&md5=47a4354d2066b4b7b59cd640c645264d}, affiliations = {Department of Shari.ah and Economics, Academy of Islamic Studies, University of Malaya, 50603 Kuala Lumpur, Malaysia; Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia}, abstract = {This article discusses the application of Waqf in a takāful product. Waqf is a charity with special features of permanency and irrevocability which enable the benefits to be obtained by its beneficiaries across generations and centuries. This becomes possible by the transfer of property from the original owner to Allah. takāful, i.e. Islamic insurance, is a risk-management tool whereby participants donate part or all of their contributions which are used to pay claims for damages suffered by its participants. Syarikat Takaful Malaysia Berhad, which is the pioneer takāful operator in Malaysia, has combined the concept of Waqf and takāful to design and offer a takāful product known as the Takāful-Waqf Plan. This product enables young Muslims in particular to save continuously and at the same time assure their ability to establish Waqf, even if events make it impossible for them to continue contributing to the plan. Customers who participate in such a takāful plan will contribute to it regularly and, at the end of the policy, will bequest all benefits from it to appointed beneficiaries as a Waqf endowment. Syarikat Takaful Malaysia Berhad will be the trustee who allocates the funds collected to orphanages, religious schools, mosques, and other appointed beneficiaries. Being the operator, it will also provide for the assigned sum in cases where customers may not be able to fulfil their contracted sum. However, after 7 years of operation, the plan was cancelled on 9 February 2009. However, we find that the collection of cash Waqf, managed by religious authority bodies such as Selangor State, is increasing each year. This Waqf fund that has been collected illustrates that awareness of Waqf is increasing among Muslims. This article will examine the mechanics of the plan in order to understand the reasons behind its demise. We suggest that Waqf can be integrated in the takāful policy, using different models to compare what has been implemented by the Syarikat Takaful Malaysia Berhad. © 2011 Koninklijke Brill NV, Leiden.}, author_keywords = {Islamic economics; Islamic finance; Islamic insurance; takāful; Waqf}, correspondence_address = {A. A. Rahman; Department of Shari.ah and Economics, Academy of Islamic Studies, University of Malaya, 50603 Kuala Lumpur, Malaysia; email: asmak@um.edu.my}, issn = {15730255}, language = {English}, abbrev_source_title = {Arab Law Q.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 18} } @ARTICLE{Mseddi2013262, author = {Mseddi, Slim and Naifar, Nader}, title = {Rating methodology and evaluating the issuer of sukuk}, year = {2013}, journal = {International Journal of Management Science and Engineering Management}, volume = {8}, number = {4}, pages = {262 – 275}, doi = {10.1080/17509653.2013.829629}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85024062930&doi=10.1080%2f17509653.2013.829629&partnerID=40&md5=43bcc08b93d1423b4667cc7be5d2a393}, affiliations = {Department of Finance and Investment, College of Economics and Administrative Sciences, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, P.O. Box 5701, Saudi Arabia}, abstract = {Islamic financial institutions have recently extended their activities in capital markets. Currently, sukuk are the most important tools of the Islamic capital market. They play a significant role in mobilizing resources. Islamic investors prefer that the money is repaid, managed in compliance with Shari'ah and generates an acceptable rate of return. The main objective of this paper is to develop and evaluate an appropriate rating methodology for the issuers of sukuk. First, this research begins with studying the differences between sukuk and conventional bonds. The key idea is to detect the real factors that affect the rating decision for the issuer of sukuk. Second, referring to the structure of sukuk and the international rating agencies (i.e. S&P, Moody's, Fitch, MARC, and IIRA) and using literature based on previous rating research for the issuers of conventional bonds (financial and operational risks) and fiduciary rating (systems failure risk, governance and quality of management), this study proposes an integrated methodology that combines sukuk rating and fiduciary rating that analyses a firm's ability to repay its debt, manage compliance with Shari'ah and provides acceptable performance compared to the market. It investigates major factors influencing an issuer of sukuk and offers a suitable rating methodology. Our research will try to provide a more comprehensive rating methodology suitable for the issuer of sukuk that can be used by investors, financial institutions and the financial market. © 2013 International Society of Management Science and Engineering Management.}, author_keywords = {Business risk; Default risk; Fiduciary rating; Financial risk; Islamic finance; Rating factors; Risk sharing; Sukuk}, correspondence_address = {S. Mseddi; Department of Finance and Investment, College of Economics and Administrative Sciences, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, P.O. Box 5701, Saudi Arabia; email: slim_mseddi@yahoo.fr}, issn = {17509653}, language = {English}, abbrev_source_title = {Int. J. Manage. Sci. Eng. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 6} } @ARTICLE{Jobst2009254, author = {Jobst, Andreas A.}, title = {Islamic derivatives}, year = {2009}, journal = {International Journal of Monetary Economics and Finance}, volume = {2}, number = {3-4}, pages = {254 – 260}, doi = {10.1504/IJMEF.2009.029062}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84952961538&doi=10.1504%2fIJMEF.2009.029062&partnerID=40&md5=20a3e01448a205443d4852cdaa24e823}, affiliations = {International Monetary Fund (IMF), Monetary and Capital Markets Department (MCM), NW, Washington DC 20431, 700 19th Street, United States}, abstract = {Financial globalisation facilitates greater diversification of investment and enables risk to be transferred across national financial systems through derivatives. The paper explains the current use of accepted risk transfer mechanisms in Islamic finance and explores the validity of derivatives consistent with Shari’ah law. After evaluating key issues regarding the religious permissibility of derivatives, the paper summarises basic principles for the use of derivatives and assesses the future prospects of derivatives in Islamic finance. © 2009 Inderscience Enterprises Ltd.}, author_keywords = {derivatives; gharar; Islamic finance; Islamic risk management; maslahah; qabd; risk transfer; salam}, issn = {17520479}, language = {English}, abbrev_source_title = {Int. J. Monet. Econ. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Ibrahim2014371, author = {Ibrahim, Mansor H and Sufian, Fadzlan}, title = {A structural VAR analysis of Islamic financing in Malaysia}, year = {2014}, journal = {Studies in Economics and Finance}, volume = {31}, number = {4}, pages = {371 – 386}, doi = {10.1108/SEF-05-2012-0060}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84915804226&doi=10.1108%2fSEF-05-2012-0060&partnerID=40&md5=abe3deb5afba5faa486ce3ec32cdf510}, affiliations = {International Centre for Education in Islamic Finance (INCEIF), Lorong Universiti A, Kuala Lumpur, Malaysia; Taylor’s Business School, Talylor’s University, Selangor, Malaysia}, abstract = {Purpose-The purpose of this paper is evaluate the interrelations between Islamic financing and key economic and financial variables including real output, price level, interest rate and stock prices for the case of Malaysia.; Design/methodology/approach-The paper makes use of a structural vector autoregressive (SVAR) model to discern the influences of key economic and financial variables on the behavior of Islamic financing.; Findings-The basic results indicate that Islamic financing responds positively to innovations in real output. In addition, the price level shocks also tend to have significant but lagged effects on the financing provision of Islamic banks. Most interestingly, Islamic financing is impacted negatively and immediately by positive interest rate shocks, contradicting the argument that Islamic bank operations are shielded from interest rate fluctuations. Indeed, the excess sensitivity of Islamic banks to interest rate fluctuations and their lagged responses to price level shocks are found to be robust across alternative SVAR specifications.; Practical implications-Operating under a dual banking system, Islamic banks are not immune from monetary conditions of the country. Indeed, it seems to be exposed to the interest rate risk, an aspect that needs to be accounted for by Islamic banks in their risk management.; Originality/value-With the emergence of Islamic finance industry, understanding the implications of various macroeconomic factors on Islamic financing is essential. This study adds to this understanding, which has received limited attention. © Emerald Group Publishing Limited.}, author_keywords = {Impulse response functions; Islamic financing; Malaysia; Structural VAR}, publisher = {Emerald Group Holdings Ltd.}, issn = {10867376}, language = {English}, abbrev_source_title = {Stud. Econ. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 14} } @ARTICLE{Dusuki200977, author = {Dusuki, Asyraf Wajdi}, title = {SharĪʿah Parameters on the Islamic Foreign Exchange Swap as a Hedging Mechanism in Islamic Finance}, year = {2009}, journal = {ISRA International Journal of Islamic Finance}, volume = {1}, number = {1}, pages = {77 – 99}, doi = {10.55188/ijif.v1i1.66}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84936999275&doi=10.55188%2fijif.v1i1.66&partnerID=40&md5=cabc545bf1fcf932795118b3e7395e70}, affiliations = {International SharĪʿah Research Academy for Islamic Finance (ISRA)., Malaysia}, abstract = {The Islamic Foreign Exchange Swap (hereafter Islamic FX Swap) is a contract that is designed as a hedging mechanism to minimise market participants’ exposure to market currency exchange rates which are volatile and fluctuating. Although an Islamic FX Swap functions in almost the same way as its conventional counterpart, its structure must not contravene the principles of SharĪʿah. In other words, an Islamic FX Swap structure should be free from any elements prohibited by Islam such as usury (ribā), gambling (maysir) and excessive ambiguity (gharar). These prohibitions are mainly to promote justice and provide a level playing field in order to protect the interests of and circumvent harm to all parties involved in market transactions, which is in line with the objectives of SharĪʿah (maqāid al-SharĪʿah). This paper therefore aims to review the structure and mechanism of the Islamic FX Swap as currently offered by many Islamic financial institutions worldwide. Specifically, this paper highlights the SharĪʿah parameters and guidelines in structuring an Islamic FX Swap. As will be evident in this paper, this instrument has its own advantages as a risk management tool which appeals to Islamic financial institutions as an instrument to hedge against currency exchange market rate volatility. © 2009, International Shari’ah Research Academy for Islamic Finance (ISRA). All rights reserved.}, author_keywords = {hedging; Islamic FX swap; maqāid al-Sharah; risk management; SharĪʿah parameters}, correspondence_address = {A.W. Dusuki; International SharĪʿah Research Academy for Islamic Finance (ISRA)., Malaysia; email: asyraf@isra.my}, publisher = {International Shari’ah Research Academy for Islamic Finance (ISRA)}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 8; All Open Access, Hybrid Gold Open Access} } @ARTICLE{ElMassah2019679, author = {ElMassah, Suzanna and AlSayed, Ola and Bacheer, Shereen Mostafa}, title = {Liquidity in the UAE Islamic banks}, year = {2019}, journal = {Journal of Islamic Accounting and Business Research}, volume = {10}, number = {5}, pages = {679 – 694}, doi = {10.1108/JIABR-02-2017-0018}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85075152200&doi=10.1108%2fJIABR-02-2017-0018&partnerID=40&md5=774cba66f635b1eee94f868421d8dafb}, affiliations = {College of Business, Zayed University, United Arab Emirates; Faculty of Economics and Political Science, Cairo University, Egypt}, abstract = {Purpose: The purpose of this study is to investigate the main factors that affect liquidity risk in the UAE Islamic banks. Design/methodology/approach: The study examines the annual data of the seven UAE Islamic banks over the period 2008-2014. Random effects panel data model is used to estimate the impact of four bank-specific variables and two macroeconomic ones on the liquidity risk of the UAE Islamic banks via their impact on five alternative liquidity ratios. Findings: The paper finds that bank size has a negative impact on liquidity risk according to two liquidity ratios only, and an insignificant impact according to the other three. Both capital adequacy and London interbank offered rate have significant negative impacts on liquidity risk for three liquidity ratios, and insignificant impacts on two. The effect of credit risk is negative for all adopted ratios, while that of return on assets is negative for one ratio only. Finally, real GDP has a positive effect on two ratios and an insignificant one on the others. Research limitations/implications: The study provides insights for policymakers and practitioners to choose appropriate liquidity management procedures. It emphasizes that identifying efficient procedures or policies depends on the liquidity ratio that is used as a proxy of liquidity risk and its definition, in addition to the correlation between the liquidity ratio and liquidity risk. The study also provides some guidance to Islamic banks in the UAE concerning the main factors impacting their liquidity, which can eventually enable them to support their liquidity management policies, in a way that would expand their customer base according to profitability aspects, and not only religious ones. Originality/value: The paper adds to the relatively limited literature on liquidity risk in Islamic banks. It also is the first study that investigates the determinants of liquidity risk facing Islamic banks in the UAE using five alternative liquidity ratios. © 2019, Emerald Publishing Limited.}, author_keywords = {Bank size; Capital adequacy; Credit risk; Islamic banks; Islamic finance; Liquidity ratio; Liquidity risk; Risk management; ROA; UAE}, correspondence_address = {S. ElMassah; Faculty of Economics and Political Science, Cairo University, Egypt; email: suzanna.elmassah@zu.ac.ae}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Shaikh2020533, author = {Shaikh, Omar}, title = {On the relevance of higher-moments for portfolio-management within Islamic finance}, year = {2020}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {13}, number = {3}, pages = {533 – 552}, doi = {10.1108/IMEFM-11-2018-0388}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85086164504&doi=10.1108%2fIMEFM-11-2018-0388&partnerID=40&md5=68ef38df385f7760768d2778c0a8c673}, affiliations = {School of Economics, University of Kent, Canterbury, United Kingdom}, abstract = {Purpose: Using a convenient tail-risk measure of performance, this paper aims to explore the extent to which incorporating higher statistical moments such as an assets skewness and kurtosis, provides further insight into the potential benefits of asset-class diversification within the realm of Islamic finance. Design/methodology/approach: The authors use Engle’s (2002) DCC-GARCH model to study the dynamic conditional correlations between asset classes. Furthermore, the authors use the modified value-at-risk (Favre and Galeano, 2002), which incorporates higher statistical moments, to measure the performance of portfolios during both crisis and bullish regimes. Findings: The most important finding relates to the estimation of portfolio tail-risk. In particular, the authors find that using a standard two-moment value-at-risk (VaR) measure, which assumes normally distributed returns, rather than a four-moment VaR, which incorporates an asset skewness and kurtosis, can lead to a substantial underestimation of portfolio risk during the most extreme market conditions. Originality/value: This paper contributes to the extremely limited research considering higher-moments within the realm of Islamic portfolio-management. The results suggest that Islamic portfolio managers should remain cognisant of the skewness and kurtosis parameters of their assets. Ignoring higher-moments could induce misleading inferences and would, therefore, constitute imprudent risk-management. © 2020, Emerald Publishing Limited.}, author_keywords = {Commodities; DCC-GARCH; Equities; Higher moments; Islamic finance; Portfolio diversification; Portfolio management; Sukuk; Value-at-risk}, correspondence_address = {O. Shaikh; School of Economics, University of Kent, Canterbury, United Kingdom; email: doctoromarshaikh@gmail.com}, publisher = {Emerald Group Holdings Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Nadar2009181, author = {Nadar, Aisha}, title = {Islamic finance and dispute resolution: Part 2}, year = {2009}, journal = {Arab Law Quarterly}, volume = {23}, number = {2}, pages = {181 – 193}, doi = {10.1163/157302509X415701}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-66749176725&doi=10.1163%2f157302509X415701&partnerID=40&md5=9f40dd4f80cf5e8fd8e8098f1d92985f}, affiliations = {School of Law, Queen Mary, University of London, London, United Kingdom}, abstract = {The Islamic Financial Industry is an industry that organises financial services in accordance with Islamic Law, in the same way as the traditional financial industry is organised in accordance with secular law. The unique challenges facing the industry in terms of compliance with Islamic law have been internationally recognised in relation to capital adequacy, risk management, corporate governance, transparency and disclosure. The same, however, has not been true in the area of dispute resolution. The purpose of this paper is to identify the unique challenges facing Islamic finance in compliance with Islamic law in the ambit of English courts, evaluate the features of international commercial arbitration as they relate to overcoming these challenges, and provide some suggestions for going forward. The paper is structured as follows. Section 1 will provide a discussion on governing law of contract and the limitations imposed by English courts on party autonomy. Section 2 discusses International commercial arbitration as an alternative dispute resolution forum. Section 3 presents some ideas for going forward, within the context of historical lessons. Finally the paper presents some conclusions in Section 4. © 2009 Brill Academic Publishers.}, author_keywords = {Contract law; Conventional fi nance; Dispute resolution; Fi nancial intermediation; International commercial arbitration; Islamic fi nance; Party autonomy}, issn = {15730255}, language = {English}, abbrev_source_title = {Arab Law Q.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Tlemsani2021298, author = {Tlemsani, Issam and Al Suwaidi, Huda}, title = {Comparative analysis of islamic and conventional banks in the uae during the financial crisis}, year = {2021}, journal = {Asian Economic and Financial Review}, volume = {16}, number = {6}, pages = {298 – 309}, doi = {10.18488/journal.aefr/2016.6.6/102.6.298.309}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85120674141&doi=10.18488%2fjournal.aefr%2f2016.6.6%2f102.6.298.309&partnerID=40&md5=95b237380a7b31e2d9e4f9d2ff36a6c4}, affiliations = {Department of Finance and Economics, Qatar University, Qatar; Senior Internal Auditor, Abu Dhabi Securities Exchange, United Arab Emirates}, abstract = {The discourses of Islamic and conventional finance differ according to the principles of Islamic finance there is no separation of the spiritual and the secular. Islamic finance is explicitly concerned with spiritual values and social justice, in contrast to conventional finance, which is based on the maximization of individual utility, welfare and choice, as expressed for example in the shareholder value model. Islamic and conventional banks respond differently to financial shocks. This study analyses the performance of Islamic and conventional banking systems in the UAE during the financial crisis. The study was undertaken in two stages, first a comparative analysis one Islamic and one conventional banks from 2007 until 2008. Secondly, a cross sectional analysis, between the Islamic (8 banks) and conventional banking sector (43 banks) that operated in the UAE during the period 2007-2008 was undertaken. © 2016 AESS Publications.}, author_keywords = {Banking stability and risk management; Banks performance; Islamic finance}, publisher = {Asian Economic and Social Society}, issn = {23052147}, language = {English}, abbrev_source_title = {Asian Eco. Financ. Rev.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10; All Open Access, Bronze Open Access} } @ARTICLE{Archer201010, author = {Archer, Simon and Ahmed Abdel Karim, Rifaat and Sundararajan, Venkataraman}, title = {Supervisory, regulatory, and capital adequacy implications of profit-sharing investment accounts in Islamic finance}, year = {2010}, journal = {Journal of Islamic Accounting and Business Research}, volume = {1}, number = {1}, pages = {10 – 31}, doi = {10.1108/17590811011033389}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84858961481&doi=10.1108%2f17590811011033389&partnerID=40&md5=b3eb46c93b162c1274922a4a9b97b4fa}, affiliations = {Islamic Financial Services Board, Kuala Lumpur, Malaysia; Henley Business School, ICMA Centre, University of Reading, Reading, United Kingdom; Centennial Group, Washington, DC, United States}, abstract = {PurposeThe aims of this paper are: first, to draw attention to the issues of displaced commercial risk (DCR) which arise as a result of the risk characteristics of profit-sharing investment accounts (PSIA), the main source of funding of Islamic banks in most jurisdictions; and, second, to present a value-at-risk approach to the estimation of DCR and the associated adjustments in capital requirements. Design/methodology/approachThe paper is based on empirical research into the characteristics of PSIA in practice, which vary to a greater or lesser extent from what one would expect them to be in principle, on an analysis of the capital adequacy and risk management implications that flow from this, and on an econometric formulation whereby the extent of DCR in Islamic banks may be estimated. FindingsThe findings are, first, that the characteristics of PSIA can vary from being a deposit like product (fixed return, capital certain, all risks borne by shareholders) to an investment product (variable return, bearing the risk of losses in underlying investments), depending upon the extent to which the balance sheet risks get shifted (“displaced”) from investment account holders to shareholders through various techniques available to Islamic banks' management. Second, the paper finds that this DCR has a major impact on Islamic bank's economic and regulatory capital requirements, asset-liability management, and product pricing. Finally, it proposes an econometric approach to estimating DCR but report that individual Islamic banks generally lack the data needed to apply this approach, in the absence of which panel data for a population of Islamic banks may be used to estimate DCR for that population. Research limitations/implicationsEmpirically, the paper is thus limited by the lack of data just mentioned. Furthermore, the application of the proposed panel data approach has been left for future research. Originality/valueThe analysis of the issues and the development of the econometric model represent in themselves an original research contribution of some significance. © 2010, © Emerald Group Publishing Limited.}, author_keywords = {Banks; Finance; Financial risk; Investments; Islam; Profit}, correspondence_address = {S. Archer; Islamic Financial Services Board, Kuala Lumpur, Malaysia; email: s.archer@blueyonder.co.uk}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 51} } @ARTICLE{Abdul-Rahman20151, author = {Abdul-Rahman, Aisyah and Hafizi, A.M.}, title = {Ar-Rahnu (Pawn-broking) in Al-Qamari Bank Berhad}, year = {2015}, journal = {Emerald Emerging Markets Case Studies}, volume = {5}, number = {5}, pages = {1 – 6}, doi = {10.1108/EEMCS-09-2014-0218}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85080991146&doi=10.1108%2fEEMCS-09-2014-0218&partnerID=40&md5=899773a41cba509deec4a3e475634923}, affiliations = {Universiti Kebangsaan Malaysia, Bangi, Malaysia}, abstract = {Subjectarea: The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework. Studylevel/applicability: The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions. Case overview: This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2. Expectedlearning outcomes: The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not. Supplementarymaterials: Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. © 2015, Emerald Group Publishing Limited.}, author_keywords = {Al-Wadiah yad dhamanah; Ar-Rahnu (pawn-broking); Collateral; Ujrah; Wadiah yad amanah}, correspondence_address = {A. Abdul-Rahman; Universiti Kebangsaan Malaysia, Bangi, Malaysia; email: eychah@ukm.edu.my}, publisher = {Emerald Group Publishing Ltd.}, issn = {20450621}, language = {English}, abbrev_source_title = {Emerald Emerg. Mark. Case Stud.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Azrai Azaimi Ambrose2021162, author = {Azrai Azaimi Ambrose, Azniza Hartini and Abdullah Asuhaimi, Fadhilah}, title = {Cash waqf risk management and perpetuity restriction conundrum}, year = {2021}, journal = {ISRA International Journal of Islamic Finance}, volume = {13}, number = {2}, pages = {162 – 176}, doi = {10.1108/IJIF-12-2019-0187}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85115761198&doi=10.1108%2fIJIF-12-2019-0187&partnerID=40&md5=f57892ec1000493bfce8bf63ef32f2ad}, affiliations = {International Islamic University Malaysia, Kuala Lumpur, Malaysia}, abstract = {Purpose: The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it attempts to consolidate the axioms in both conventional and Islamic finance, such as the risk-return trade-off and al-ghunm bi al-ghurm (liability accompanies gain), with the perpetual nature of waqf. Overall, this paper attempts to find a resolution to the dilemma of perpetuity restriction inherent in cash waqf against the natural occurrence of the risk. Design/methodology/approach: This paper is based on the secondary research methodology; past literature encompassing journal articles, books, relevant financial axioms, fatwas (Islamic rulings) and state enactments is critically reviewed to present its case. In regard to state enactments, only Malaysian state enactments have been used, thus restricting the study to the Malaysian case only. Findings: This study contends that the dilemma of the perpetuity restriction and the natural occurrence of risk can be resolved through the integration of waqf risk management, especially concerning cash waqf, with the Islamic spiritual approach. By implementing standard operating procedures that inculcate awareness on waqf risk management and Islamic spirituality in waqf stakeholders (wāqif (donor), trustee and beneficiaries), the stakeholders may accept the reality of risk that is inevitable even after all efforts have been exhausted. In other words, the violation of perpetuity is exonerated given that mental faculties aligned with revealed texts have been exhaustively used beforehand. Practical implications: Findings from this study may broaden the choice of investment avenues for waqf trustees while adhering to the perpetual restriction of waqf. More importantly, waqf trustees will not be forced to invest in interest-bearing securities or be involved in any usurious transactions just to obtain guaranteed returns and preserve the corpus of waqf. Originality/value: This study offers a unique perspective on cash waqf risk management by re-analyzing the axioms and concepts of finance and waqf while observing the welfare of the beneficiaries. © 2021, Azniza Hartini Azrai Azaimi Ambrose and Fadhilah Abdullah Asuhaimi.}, author_keywords = {Cash waqf; Irrevocable waqf; Islamic endowment; Islamic finance; Temporary waqf; Waqf}, correspondence_address = {A.H. Azrai Azaimi Ambrose; International Islamic University Malaysia, Kuala Lumpur, Malaysia; email: azniza_azrai@iium.edu.my}, publisher = {Emerald Publishing}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 8; All Open Access, Gold Open Access} } @ARTICLE{Boumediene2015329, author = {Boumediene, Aniss}, title = {Financing government budget deficit as a liquidity risk mitigation tool for Islamic Banks: A dynamic approach}, year = {2015}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {8}, number = {3}, pages = {329 – 348}, doi = {10.1108/IMEFM-04-2014-0038}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84950316654&doi=10.1108%2fIMEFM-04-2014-0038&partnerID=40&md5=5936e78752af1511a686e1b7c9b4092f}, abstract = {Purpose – The purpose of the paper is to construct a framework constituting a link between Islamic banks’ excess liquidity and states’ financing needs, in an Islamic way.evel0. Design/methodology/approach – The framework, constituting a linkage between Islamic banks’ funding capacity and governments’ financing needs, is constructed using a money market approach. Later on, the volatility of existing sovereign Sukuk is compared to corporate Sukuk, using generalized autoregressive conditional heteroskedasticity (GARCH) (1, 1) model, to assess the stability of the secondary market for Islamic government securities. Findings – The volatility is weak for the Sukuk studied; this means that there is stability of the secondary market for Sukuk (sovereign and corporate). Originality/value – This is the first paper that presents a framework dealing directly with Muslim states’ budget deficit and debt. The framework includes Islamic banks, public companies, the central bank, Ministry of Finance and the government. © 2015, Emerald Group Publishing Limited.}, author_keywords = {Budget deficit financing; Islamic banks; Liquidity risk management; Volatility}, correspondence_address = {A. Boumediene; email: a14919s@yahoo.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 11} } @ARTICLE{Waemustafa20161321, author = {Waemustafa, Waeibrorheem and Sukri, Suriani}, title = {Systematic and unsystematic risk determinants of liquidity risk between Islamic and conventional banks}, year = {2016}, journal = {International Journal of Economics and Financial Issues}, volume = {6}, number = {4}, pages = {1321 – 1327}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84992417382&partnerID=40&md5=2d9a86d2cd65f747b965f9bd07f75e64}, affiliations = {School of Economic Finance and Banking, Universiti Utara Malaysia,UUM, 06010, Kedah, Malaysia; School of Business Innovation and Technoprenuership, UniMap, Jln Kangar Alor Setar, Kangar, 01000, Perlis, Malaysia}, abstract = {The fundamental function of banking remains unchanged throughout the the history of banking theory. The management of risk,asset and liability remain the core function of banking. The early signal of banking crisis can be observed from the volatility of liquidity risk. Hence,this study attempted to investigate the influence of external and internal factors affecting liquidity risk of Islamic and conventional banks. This study employs time series regression analysis of Islamic banks and conventional banks from 2000 to 2010. The study found that Islamic banks maintain higher liquidity compared to conventional banks. The multivariate regression analysis shows that 4 out of 14 bank-specific factors and one macroeconomic factor significantly influence the liquidity risk of Islamic bank whereas conventional banks show that 5 out of 13 bank-specific factors are significant to liquidity risk. © 2016,Econjournals. All rights reserved.}, author_keywords = {Bank specific factor and unsystematic; Islamic banking; Islamic finance; Liquidity risk}, publisher = {Econjournals}, issn = {21464138}, language = {English}, abbrev_source_title = {Int. J. Econ. Financ. Issues}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 16} } @ARTICLE{Widyastuti2021114, author = {Widyastuti, Umi and Febrian, Erie and Sutisna, Sutisna and Fitrijanti, Tettet}, title = {Market discipline in the behavioral finance perspective: a case of Sharia mutual funds in Indonesia}, year = {2021}, journal = {Journal of Islamic Accounting and Business Research}, volume = {13}, number = {1}, pages = {114 – 140}, doi = {10.1108/JIABR-06-2020-0194}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85117081972&doi=10.1108%2fJIABR-06-2020-0194&partnerID=40&md5=1059a1e3e7f60c94b6e354171028f795}, affiliations = {Faculty of Economics, Universitas Negeri Jakarta, Jakarta, Indonesia; Faculty of Economics and Business, Universitas Padjadjaran, Bandung, Indonesia; Faculty of Economics and Business, Universitas Padjadjaran, Bandung, Indonesia}, abstract = {Purpose: This study aims to determine antecedents of market discipline. A model was constructed by extending the theory of planned behavior (TPB) to explore the cognitive, psychological and social factors that influence the market discipline in the form of withdrawal behavior. Design/methodology/approach: This study applied a quantitative approach by surveying 181 Indonesian retail investors in Sharia mutual funds, which were represented by civil servants. The samples were collected using the purposive sampling technique. This study used the partial least square–structural equation model to analyze the data. Findings: The results revealed that the Islamic financial literacy, the attitudes toward withdrawal, the subjective norms and the perceived behavioral control had a positive significant effect on the withdrawal intention, whereas financial risk tolerance had an insignificant impact. Then, all the exogenous variables and intention to withdraw had a significant contribution in explaining market discipline. Contrary to the proposed hypothesis, the attitude toward withdrawal had a negative impact on market discipline. The structural model indicated that the TPB could be extended by adding some exogenous variables (i.e. Islamic financial literacy and financial risk tolerance) in determining the intention to withdraw and withdrawal behavior, which indicated the market discipline in Sharia mutual funds. Research limitations/implications: This study was limited to individual investors who work as civil servants. This study did not accommodate different demographic factors such as age and gender, which influence fund withdrawal behavior. Practical implications: The government must focus on the inclusion of market discipline in Sharia mutual funds’ regulation to encourage the risk management disclosure, specifically that related to Sharia compliance. Originality/value: Previous studies applied a traditional finance theory to predict market discipline, but this study contributes to filling the theoretical gap by explaining the market discipline from a behavioral finance perspective that was found in Sharia mutual funds. © 2021, Emerald Publishing Limited.}, author_keywords = {Market discipline; Retail investors; Sharia mutual funds; Withdrawal behavior}, correspondence_address = {U. Widyastuti; Faculty of Economics, Universitas Negeri Jakarta, Jakarta, Indonesia; email: umiwidyastuti_feunj@unj.ac.id}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Kandil2014119, author = {Kandil, Tarek and Chowdhury, Dababrata}, title = {Islamic banks' mergers and acquisitions - Impacts on performance and financial crisis in the United Kingdom}, year = {2014}, journal = {Contemporary Studies in Economic and Financial Analysis}, volume = {95}, pages = {119 – 140}, doi = {10.1108/S1569-3759(2014)0000095016}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84904743540&doi=10.1108%2fS1569-3759%282014%290000095016&partnerID=40&md5=98641de462ef1447ef608b2063c5911c}, affiliations = {Faculty of Commerce and Business Administration, Helwan University, Ain Helwan, Cairo, Egypt; School of Business, Leadership and Enterprise, University Campus Suffolk (UCS), Suffolk, United Kingdom}, abstract = {Purpose - The purpose of this chapter is to reflect the impact of mergers and acquisitions processes on performance of Islamic banking industry in the United Kingdom through studying within. Design/methodology/approach - The present research uses explanatory approach in order to examine the research problems, methodology used in the research is quantitative methods through calculating the longterm share prices performance of the UK Islamic banks' sample. First, the researchers use the control Islamic bank in the event-time approach. The researchers calculate annual abnormal returns using the buy-andhold abnormal return (BHAR) method over a period of five years, counting from the quarter of a year when the transaction is said to be effective. Research findings - The research findings found that there are significant differences in the Islamic mergers and acquisitions post-long-run performance of the UK Islamic banks to the control the crises that face the United Kingdom from 2007 to 2010. However, the acquiring Islamic bank in high-tech industries had a negative effect on their long-term performance. Limitations/implications - The present research has been applied for the Islamic banking industry in the United Kingdom after the Western Europe industry from 2007 to 2010. Practical implication - The main implementations of the present research is valuing UK banks carried out the Islamic mergers and acquisitions of a broad range of management disciplines encompassing the financial, strategic, behavioral, operational, and cross-cultural aspects of this challenging and high-risk activity. Originality/value - The Islamic mergers and acquisitions have placed a significant amount of value added on the motivation of large banks for engaging in banking mergers and acquisitions' transactions. © 2014 by Emerald Group Publishing Limited.}, author_keywords = {Banking sector; Islamic finance; Mergers and acquisitions; ROE; ROI}, publisher = {Emerald Group Publishing Ltd.}, issn = {15693759}, isbn = {978-178350817-4}, language = {English}, abbrev_source_title = {Contemp. Stud. Econ. Financ. Anal.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Oseni201739, author = {Oseni, Umar A. and Omoola, Sodiq O.}, title = {Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis}, year = {2017}, journal = {Journal of Financial Regulation and Compliance}, volume = {25}, number = {1}, pages = {39 – 55}, doi = {10.1108/JFRC-07-2016-0055}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85011559227&doi=10.1108%2fJFRC-07-2016-0055&partnerID=40&md5=bc420e30a97419bff150406b03b5e0b8}, affiliations = {Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia; Department of Civil Law, International Islamic University Malaysia, Kuala Lumpur, Malaysia}, abstract = {Purpose: This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach: Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings: The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications: This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value: Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes. © 2017, © Emerald Publishing Limited.}, author_keywords = {Alternative dispute resolution; Dispute resolution; Islamic banking; Islamic finance; Malaysia; Online dispute resolution}, correspondence_address = {U.A. Oseni; Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia; email: umaroseni@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {13581988}, language = {English}, abbrev_source_title = {J. Financ. Regul. Compliance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 6} } @ARTICLE{Kasri2016105, author = {Kasri, Noor Suhaida and Rahman, Zaharuddin Abd and Mohamad, Shamsiah and Habib, Farrukh}, title = {ISSUES IN ISLAMIC HEDGING PRACTICES: A CRITICAL ANALYSIS}, year = {2016}, journal = {ISRA International Journal of Islamic Finance}, volume = {8}, number = {2}, pages = {105 – 109}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85165659996&partnerID=40&md5=45734a7c9442a399a0159ab1310a54d3}, affiliations = {International Shari’ah Research Academy for Islamic Finance (ISRA), Malaysia; International Islamic University Malaysia (IIUM), Malaysia}, abstract = {Hedging is an important concept in overall risk management in conventional finance. The need for hedging is also recognised in Islamic finance, although hedging strategies in Islamic finance are different from their conventional counterparts as they must be in compliance with the Sharīʿah principles. Accordingly, the following international Sharīʿah standard-setting bodies and other Sharīʿah authorities outside Malaysia have issued resolutions acknowledging the need for hedging and discussing various instruments to be used for that purpose © 2016, Emerald Group Holdings Ltd. All rights reserved.}, author_keywords = {Islamic Hedging; Sharīʿah}, publisher = {International Shari’ah Research Academy for Islamic Finance (ISRA)}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Alexakis2021, author = {Alexakis, Christos and Kenourgios, Dimitris and Pappas, Vasileios and Petropoulou, Athina}, title = {From dotcom to Covid-19: A convergence analysis of Islamic investments}, year = {2021}, journal = {Journal of International Financial Markets, Institutions and Money}, volume = {75}, doi = {10.1016/j.intfin.2021.101423}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85115124000&doi=10.1016%2fj.intfin.2021.101423&partnerID=40&md5=a97a3e195d6a29712e4c6989aea94bfb}, affiliations = {Rennes School of Business, Department of Finance and Accounting, France; National and Kapodistrian University of Athens, Department of Economics, Athens, Greece; University of Kent, Kent Business School, Kent, ME4 4TE, United Kingdom; SOAS University of London, School of Finance and Management, London, WC1H 0XG, UK, United Kingdom}, abstract = {This paper goes beyond the extant comparisons of Islamic and conventional investments by econometrically assessing their convergence dynamics, in a dataset spanning over 1996–2020, covering ten business sectors and five episodes of crisis. We use a dynamic multivariate framework to estimate time-varying correlations, which we submit to beta and sigma-convergence analysis. Subsequently we examine how convergence dynamics affect portfolio risk management and crisis propagation. Our results show strong convergence of Islamic and conventional investments. During crises conventional convergence rates double, but Islamic ones are less affected. Sectoral diversification works best for conventional investments; Islamic ones behave as a single entity. On average we document a 7% risk diversification benefit from Islamic investments, at a 64 basis points cost. Yet, at the epicentre of the Covid-19 financial crisis this rises to 466 basis points and highlights the resilience of these investments in an exogenous event. Islamic investments reduce volatility spillovers in the financial system, but they are progressively less insulated across time. Our findings withstand a battery of robustness checks and are primarily useful to policy makers and investors. © 2021 Elsevier B.V.}, author_keywords = {Contagion; Convergence; Crisis; Difference-in-difference; Dynamic correlation; Economy sectors; Islamic finance; Portfolio}, correspondence_address = {V. Pappas; University of Kent, Kent Business School, Kent, ME4 4TE, United Kingdom; email: v.pappas@kent.ac.uk}, publisher = {Elsevier Ltd}, issn = {10424431}, language = {English}, abbrev_source_title = {J. Int. Financ. Mark. Inst. Money}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10; All Open Access, Bronze Open Access, Green Open Access} } @ARTICLE{Kameel Mydin Meera2009101, author = {Kameel Mydin Meera, Ahamed and Larbani, Moussa}, title = {Ownership effects of fractional reserve banking: An Islamic perspective}, year = {2009}, journal = {Humanomics}, volume = {25}, number = {2}, pages = {101 – 116}, doi = {10.1108/08288660910964175}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84992979816&doi=10.1108%2f08288660910964175&partnerID=40&md5=98766021d902a3cb44e4b4b0e0bbe1fc}, affiliations = {Department of Business Administration, Faculty of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Selangor, Malaysia}, abstract = {Purpose – The purpose of this paper is to show that fractional reserve banking (FRB) has implications for the ownership structure of assets in the economy that violates the Islamic principles of ownership. Design/methodology/approach – This is a theoretical paper that looks into the works of Islamic scholars on the issue of ownership that are based on Qur'an principles and the traditions of the Prophet, and evaluates the FRB from that perspective. Findings – The conclusion of the paper is that money creation through FRB is creation of purchasing power out of nothing which brings about unjust ownership transfers of assets, from the economy to the bank effectively paid for by the whole economy through inflation. This transfer of ownership is not based on human effort by taking on legitimate risks and neither with the knowledge nor the consent of the initial owners. This violates the ownership principles in Islam and is tantamount to theft. It also has the elements of riba. Islamic governments should therefore not create fiat money since this is equivalent to taking assets of the people, rich and poor alike, forcefully without compensation. Research limitations/implications – Empirical investigations into how bank loans along the years have changed the asset ownership structure in economies may shed further light. Practical implications – It is, therefore, important that Shariah scholars render a fatwa on both the fiat money and the FRB system. Such a fatwa is urgent and pertinent before Islamic banking and finance, that operate under these systems, takes a course that may prove difficult to reverse later. The Islamic economics and finance cannot be founded upon a money system that is fundamentally equivalent to theft and riba. Originality/value – The paper shows how the operations of Islamic banking and finance within the fiat money, FRB system are invalid from the Islamic perspective. © 2009, Emerald Group Publishing Limited}, author_keywords = {Assets management; Banking; Islam; Money supply}, issn = {08288666}, language = {English}, abbrev_source_title = {Humanomics}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 24} } @ARTICLE{Trabelsi2017454, author = {Trabelsi, Mohamed Ali and Trad, Naama}, title = {Profitability and risk in interest-free banking industries: a dynamic panel data analysis}, year = {2017}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {10}, number = {4}, pages = {454 – 469}, doi = {10.1108/IMEFM-05-2016-0070}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85031800105&doi=10.1108%2fIMEFM-05-2016-0070&partnerID=40&md5=9646c14a887f7c9b6a62f80057a043df}, affiliations = {Department of Quantitative Methods, Faculty of Economics and Management, University Tunis El Manar, Ariana, Tunisia; Department of Economics, Universite de Tunis El Manar, Tunis, Tunisia}, abstract = {Purpose: The purpose of this paper is to examine whether Islamic finance could replace or complement the traditional financial system and could guarantee stability in times of crisis. Design/methodology/approach: To achieve the aim, the authors examined both risk-taking and profitability of 94 Islamic banks (IBs) operating in 18 countries observed during the 2006-2013 financial crisis period. A series of bank-specific and other country-specific indicators are combined to explain profitability of IBs as measured by return on assets and return on equity, and risk divided into credit risk measured by impaired loans/gross loans and total equity/net loans, and insolvency risk measured by Z-score. Indeed, a bank is stronger than another if it is stable with a higher capacity to absorb risks, on the one hand, and increased performance on the other. Findings: Using dynamic panel data econometrics (generalized moment method system), the authors estimated five regressions and found the following results: bank capital is found to be the main indicator that contributes to maximizing profitability and stability of IBs and reducing their credit risk. However, the study of liquidity and asset quality determinants often leads to inconclusive results. Nevertheless, they found that Gulf region-operating IBs are more profitable, more solvent and less risky than those operating in the South East Asian region. At the macroeconomic level, the authors could not find a significant relationship between inflation rate and IBs profitability. However, unlike for IBs in Southeast Asia, the authors found that inflation rate improves IBs stability and reduces their credit risk level. Practical implications: The results of this study have numerous implications for bank management and the different stakeholders (investors, customers). This study identified several factors that may help bank managers to improve their financial outlook by controlling risk level and profitability. These factors could as well help to understand how macroeconomic indicators affect both banking risk and profitability, in particular Islamic banking. Likewise, portfolio managers can use these results to support their decisions to include IBs in their assets portfolios to mitigate potential risk. Originality/value: This study contributes to the existing literature in two ways. First, this paper provides fresh data and recent information on Islamic banking in Gulf Cooperation Council and South East Asian countries. Second, the obtained results helped us to conclude that the Islamic financial system cannot replace but rather supplements the traditional system. This result may be explained by the fact that Muslims look for Islamic banking products, which conventional banks are not offering. © 2017, © Emerald Publishing Limited.}, author_keywords = {GMM system; Islamic banks; Liquidity risk; Profitability}, correspondence_address = {M.A. Trabelsi; Department of Quantitative Methods, Faculty of Economics and Management, University Tunis El Manar, Ariana, Tunisia; email: daly1704@yahoo.fr}, publisher = {Emerald Group Holdings Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 16} } @ARTICLE{200935, title = {Islamic banking}, year = {2009}, journal = {OECD Observer}, number = {275}, pages = {35 – 36}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-73349126395&partnerID=40&md5=f1e0faabacaf1debf7c0086fe4826d4d}, abstract = {The failure of financial markets in the Organization for Economic Co-operation and Development (OECD) countries has created a huge potential for Islamic banking. This banking model offers risk management, transparency and regulatory oversight much better than western financial institutions. Islamic banks take a more conservative approach in risk management as they consider the value and pricing of the products backed by existing physical assets. It has developed a number of alternative investment policies such as musharaka, mudaraba, and murabaha, in order to avoid taking interests. This type of banking is considered as an important source of liquidity for cash-deprived governments and companies in the west. The major drawback of Islamic bank is that it lacks some of the more sophisticated tools that help modern finance to better manage risks. Principles and standards for these banks are set by the Islamic Financial Services Board (IFSB) and the Accounting and Auditing Organization for Islamic Finance Institutions (AAOIFI).}, keywords = {banking; financial market; financial system; investment; OECD}, issn = {00297054}, language = {English}, abbrev_source_title = {OECD Obs.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Farooq2015173, author = {Farooq, Omar and AbdelBari, Allaa}, title = {Earnings management behaviour of Shariah-compliant firms and non-Shariah-compliant firms: Evidence from the MENA region}, year = {2015}, journal = {Journal of Islamic Accounting and Business Research}, volume = {6}, number = {2}, pages = {173 – 188}, doi = {10.1108/JIABR-07-2013-0021}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84956629851&doi=10.1108%2fJIABR-07-2013-0021&partnerID=40&md5=01d85a2676a1836700bb9aaae4c7a320}, affiliations = {Department of Management, American University in Cairo, Cairo, Egypt; School of Business Administration, Al Akhawayn University in Ifrane, Ifrane, Morocco}, abstract = {Purpose – This paper aims to answer the following questions by using the data from the MENA region (Morocco, Egypt, Saudi Arabia, United Arab Emirates, Jordan, Kuwait and Bahrain): Do Shariah-compliant firms differ from other firms in the quality of information disclosure? and Can investors consider information disclosed by Shariah-compliant firms more truthful than information disclosed by other firms? Design/methodology/approach – Using regression analysis, this paper examines the relationship between earnings management and Shariah compliance during the period between 2005 and 2009. Findings – Results show that Shariah-compliant firms engage in lower earnings management than non-Shariah-compliant firms. This paper argues that financial characteristics of Shariah-compliant firms (i.e. low leverage, low account receivables and low cash) provide lower chances to managers to misreport earnings. It is also shown that external conditions can minimize the difference in earnings management between the two groups. Results show no significant difference between earnings management of Shariah-compliant firms and earnings management of non-Shariah-compliant firms in the common law countries and during the crisis period. This paper considers high risk of litigation in common law countries and enhanced monitoring of stock market participants during the crisis period main factors behind these results. This paper argues that external governance mechanisms can result in improving disclosure practices of non-Shariah-compliant firms to a level that minimizes the impact of Shariah compliance on earnings management. Practical implications – Results have implications for investors and regulators functioning in the MENA region. These results indicate that non-Shariah-compliant firms, being more prone to earnings misreporting, need more scrutiny from regulators than Shariah-compliant firms. Originality/value – The authors believe that this paper is the first attempt to argue that it is the financial characteristics of Shariah-compliant firms (i.e. low leverage, low account receivables and low cash) that result in better disclosure of reported earnings. © 2015, © Emerald Group Publishing Limited.}, author_keywords = {Earnings management; Emerging markets; G34, M14; Islamic finance; Shariah-compliance}, correspondence_address = {O. Farooq; Department of Management, American University in Cairo, Cairo, Egypt; email: omar.farooq.awan@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 33} } @ARTICLE{Marzuki2015380, author = {Marzuki, Ainulashikin and Worthington, Andrew}, title = {Comparative performance-related fund flows for Malaysian Islamic and conventional equity funds}, year = {2015}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {8}, number = {3}, pages = {380 – 394}, doi = {10.1108/IMEFM-10-2012-0103}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84950311875&doi=10.1108%2fIMEFM-10-2012-0103&partnerID=40&md5=1bd2286fa8e1223bfee442fca6ff9e1a}, affiliations = {Department of Economics and Muamalat, Unversiti Sains Islam Malaysia, Bandar Baru, Nilai, Malaysia; Accounting, Finance and Economics, Griffith University, Nathan, Australia}, abstract = {Purpose – The purpose of this paper is to compare the fund flow – performance relationship for Islamic and conventional equity funds in Malaysia. Design/methodology/approach – The authors use panel regression models to estimate the relationship between fund flows and performance for Islamic and conventional equity funds in Malaysia from 2001 to 2009. The data for each fund include fund flows, assets under management, management expenses, fund age, portfolio turnover, fund risk and return and the number of funds in the fund’s family. The authors also include market returns and year effects. The sample consists of 127 Malaysian equity funds with at least 65 per cent domestic equity holdings comprising 35 Islamic and 92 conventional equity funds. Findings – Islamic fund investors respond to performance in much the same way as conventional fund investors, increasing fund flows to better performing funds and decreasing fund flows to poorer performing funds. However, there is also evidence that Islamic fund investors are relatively less responsive toward poorly performing Islamic funds, suggesting an asymmetry in the expected positive fund flow – performance relationship, but only for Islamic fund investors. When choosing funds based on other fund attributes, Islamic fund investors again exhibit similar behaviour, and like conventional fund investors direct larger percentage fund flows into smaller funds as well as funds with larger past fund flows and higher expense ratios. Research limitations/implications – The authors were only able to access data on annual net fund flows not quarterly or monthly fund inflows and outflows as usual in developed markets and this may obscure some important aspects of investor decision-making. There is also insufficient data for matched-sample techniques, which may better control for fund-specific characteristics. Practical implications – Islamic funds like conventional funds will experience increased fund flows with better performance and vice versa. However, Islamic fund investors appear somewhat less likely to remove monies from poorly performing funds. The authors believe this is because investors either place a premium on the non-return attributes of Shariah-compliant funds and/or wish to avoid search costs in finding another suitable Islamic fund. Apart from this, Islamic and conventional fund investors behave in a similar manner, and the authors believe that this is possible in Malaysia given the size and diversity of its Islamic fund sector. Originality/value – This paper is one of the very few empirical studies concerning the behaviour of Islamic investors, particularly in Malaysia, primarily because of limitations in data availability. © 2015, Emerald Group Publishing Limited.}, author_keywords = {Fund flow – performance relationship; Islamic finance; Mutual funds}, correspondence_address = {A. Worthington; Accounting, Finance and Economics, Griffith University, Nathan, Australia; email: a.worthington@griffith.edu.au}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 11; All Open Access, Green Open Access} } @ARTICLE{Soualhi2018307, author = {Soualhi, Younes and Bouhraouia, Said}, title = {Islamic finance regulations in Malaysia: A macro maqasidic approach}, year = {2018}, journal = {Al-Shajarah}, number = {Special Issue: ISLAMIC BANKING AND FINANCE}, pages = {307 – 336}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85060050666&partnerID=40&md5=c2cfcc2823c843c0c14cce7c64dff414}, affiliations = {International Shari’ah Research Academy for Islamic Finance (ISRA), Malaysia}, abstract = {The research aims primarily to identify the main macro objectives of Shari’ah (macro maqasid) that the regulators are supposed to imbue in the Acts and guidelines governing Islamic Financial Institutions. Focusing on Malaysia, the research starts with the conceptual framework of Islamic finance regulations, which addresses the objectives enshrined in the Acts and guidelines promulgated. After exposing the overall environment of Islamic finance in Malaysia, the research discussed some obstacles of regulations, namely harmonization between Shari’ah and law and its potential impact on the realization of maqasid al-Shari’ah. In order to give a glimpse on further obstacles, the research briefly discussed the governance framework, the prudential and risk management regulations, and the Shari’ah standards in terms of maqasid compliance. The research found that the Malaysian expertise in Islamic regulation is very commendable but no free from criticism as some are deemed maqasid non-compliant. More importantly, the research delineated the macro maqasid entrusted with the regulators to observe and imbue in the regulations of Islamic finance. The research found that Islamic finance regulations are not completely independent from conventional ones, let alone the independence from international regulatory regimes and practices. This should call for the propounding of a theory of maqasid specific to Islamic finance focusing on regulations at macro-economic level. The study recommends the operationalization of the macro maqasid at the regulatory level first before operationalizing them at the level of Islamic financial Institutions. © International Islamic University Malaysia (IIUM).}, author_keywords = {Central bank; Macro maqasid; Regulations; Shari’ah compliance}, publisher = {International Islamic University Malaysia}, issn = {13946870}, language = {English}, abbrev_source_title = {Al-Shajarah}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Duasa2014158, author = {Duasa, Jarita and Raihan Syed Mohd Zain, Sharifah and Tarek Al-Kayed, Lama}, title = {The relationship between capital structure and performance of Islamic banks}, year = {2014}, journal = {Journal of Islamic Accounting and Business Research}, volume = {5}, number = {2}, pages = {158 – 181}, doi = {10.1108/JIABR-04-2012-0024}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84959915880&doi=10.1108%2fJIABR-04-2012-0024&partnerID=40&md5=f41dc06d7471141b0299e825aee12e6b}, affiliations = {Department of Economics, International Islamic University Malaysia, Kuala Lumpur, Malaysia; Finance Department, International Islamic University Malaysia, Kuala Lumpur, Malaysia; Business Administration Department, Princess Nora Bint Abdul Rahman University, Riyadh, Saudi Arabia}, abstract = {Purpose – This paper aims to examine the effect of capital structure on Islamic banks’ (IBs) performance to provide guidance to finance managers for raising capital funds. As newcomers to the markets, IBs are facing a trade-off. They can either use high capital ratios which increase the soundness and safety of the bank and lower the required return by investors, or depend on deposits and Islamic bonds which are considered cheaper sources of funds due to their tax rebate. An IB’s management must carefully decide the appropriate mix of debt and equity, i.e. capital structure, to maximize the value of the bank. Design/methodology/approach – Using a sample of 85 IBs covering banking systems in 19 countries, the study uses a two-stage least squares method to examine the performance determinants of IBs to control the reverse causality from performance to capital structure. Findings – After control of the macroeconomic environment, financial market structure and taxation, results indicate that IBs’ performance (profitability) responds positively to an increase in equity (capital ratio). The result is consistent with the signaling theory which predicts that banks expected to have better performance credibly transmit this information through higher capital. Optimal capital structure results of the IBs found a non-monotonic U-shaped relationship between the capital-asset ratio and profitability, supporting the efficiency risk and franchise value hypotheses. Research limitations/implications – Due to limitations for market data, the study uses book accounting ratios. Future research where market data are available could use performance measures, such as Tobin’s Q in performance determinants models. Practical implications – The non-monotonic relationship found between IBs’ return on equity and capital ratios suggests that equity issuances for IBs’ with low capital ratios (lower than the turning point of 37.41 per cent) are expensive and have a negative effect on their profitability. On the other hand, managers of well-capitalized IBs (banks with capital ratios beyond 37.41 per cent) are advised to rely on equity when faced by a decision to raise capital, as the capital ratio starts to affect their profitability positively. Originality/value – Islamic banking literature has been silent on IBs’ capital structure and its relevance; this study will try to fill in the existent gap. © 2014, Emerald Group Publishing Limited.}, author_keywords = {Capital structure; Islamic banks; Optimal capital structure; Performance}, correspondence_address = {L. Tarek Al-Kayed; Business Administration Department, Princess Nora Bint Abdul Rahman University, Riyadh, Saudi Arabia; email: lama.alkayed@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 36} } @ARTICLE{Abdullah202027, author = {Abdullah, Adam and Hassan, Rusni and Kassim, Salina}, title = {A real asset management approach for Islamic investment in containerships}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {1}, pages = {27 – 48}, doi = {10.1108/JIABR-07-2017-0105}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85077559296&doi=10.1108%2fJIABR-07-2017-0105&partnerID=40&md5=ab36fa9285955ac1cc3cf70bb1e8f16d}, affiliations = {College of Economics and Management, Al Qasimia University, Sharjah, United Arab Emirates; Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia}, abstract = {Purpose: The purpose of this paper is to provide a real asset management investment appraisal of the performance of containerships as a primary segment within international shipping, to facilitate Islamic equity investment through a shipping fund. The objectives are to evaluate the risks and returns of shipping under the framework of Islamic equity finance, and to analyze the performance of investing in containerships over the long term, to appeal to retail and institutional clients of Malaysian asset management institutions. Design/methodology/approach: Accordingly, the methodology adopts an investment analysis of a full population of historical data over a period of 20 years, to evaluate performance involving a maritime return on investment (MROI), internal rate of return (IRR), net yield and standard deviation measures of risk and return. Findings: The findings reveal that while earnings are volatile in comparison to capital market expectations, unlevered, tax-free returns on containership investments outperform financial and other real assets. Research limitations/implications: Shipping is a strong growth industry with about 84 per cent of global trade carried out by the international shipping industry. The problem is that many Islamic asset management institutions and investors have essentially no exposure to Islamic investment in international shipping. Practical implications: However, shipping is a highly capital-intensive industry, and currently 75 per cent of ship lending has been conducted by European banks and financed on a conventional basis. Post-financial crisis, ship owners, ship lenders and shipyards have all been exposed to the impact of over-levered balance sheets and debt finance. There is a demand for alternative sources of finance. Social implications: By communicating risk and reward more effectively, retail and institutional investors, as well as Islamic finance institutions, will realize that the social benefit of equity finance on the basis of profit sharing is more efficient at allocating investible resources than debt finance at interest, thereby increasing investment and economic growth. Originality/value: The significance is that Islamic equity finance, rather than debt at the time-value of money, should enhance the development of international shipping. © 2020, Emerald Publishing Limited.}, author_keywords = {Asset management; International shipping; Investment; Islamic finance}, correspondence_address = {A. Abdullah; College of Economics and Management, Al Qasimia University, Sharjah, United Arab Emirates; email: azc.adama@gmail.com}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Boone20161380, author = {Boone, Christophe and Özcan, Serden}, title = {Ideological purity vs. hybridization trade-off: When do Islamic banks hire managers from conventional banking?}, year = {2016}, journal = {Organization Science}, volume = {27}, number = {6}, pages = {1380 – 1396}, doi = {10.1287/orsc.2016.1097}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85009347030&doi=10.1287%2forsc.2016.1097&partnerID=40&md5=cfcb5928a691d4191ac06729826d75cf}, affiliations = {Faculty of Applied Economic Sciences, Department of Management, University of Antwerp, Antwerp, 2000, Belgium; WHU-Otto Beisheim School of Management, Chair of Innovation and Organization, Vallendar, D-56179, Germany}, abstract = {Organizations that compete in institutional environments in which oppositional logics compete for dominance face a risk-return trade-offbetween maintaining ideological purity versus pragmatism by borrowing template elements from the rival ideology. Deviating from ideological purity might improve a firm's competitive strength, however, at the same time, it might also undermine its very identity and legitimacy. Although such decisions are of strategic importance, research about why, how, and where these trade-offs are made is still limited. We develop the argument that organizations will be more likely to deviate from ideological purity when the potential return of borrowing from the oppositional template exceeds the perceived risk of doing so. The more organizations aspire to be ideologically pure, the more they are constrained by the moral codes that define the category, and, therefore, the higher the risk associated with deviating from purity. However, given the potential benefits of pragmatism, pure organizations will be particularly sensitive to contextual cues that reduce the perceived risk of borrowing, tilting their trade-offbalance toward pragmatism. Specifically, we expect that pure (compared to less pure) organizations will be particularly tempted to seize the opportunities offered by pragmatism when (1) they perform below aspiration, (2) the relevant market attaches less importance to ideological purity, and (3) pragmatism is becoming taken-for-granted. We test our hypotheses on detailed data of the hiring process of branch managers of Turkish Islamic banks analyzing when and in which communities Islamic banks hire managers from conventional banking in order to implement their geographical expansion strategy in the period 2003-2016. © 2016 INFORMS.}, author_keywords = {Category straddling; Human resources management; Hybrid organizations; Identity management; Ideological rivalry; Islamic finance; Managerial mobility; Market expansion}, publisher = {INFORMS Inst.for Operations Res.and the Management Sciences}, issn = {10477039}, language = {English}, abbrev_source_title = {Organ. Sci.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 22; All Open Access, Green Open Access} } @ARTICLE{Sun2014333, author = {Sun, Poi Hun and Hassan, M. Kabir and Hassan, Taufiq and Ramadilli, Shamsher Mohamed}, title = {The assets and liabilities gap management of conventional and Islamic banks in the organization of Islamic cooperation (OIC) countries}, year = {2014}, journal = {Applied Financial Economics}, volume = {24}, number = {5}, pages = {333 – 346}, doi = {10.1080/09603107.2013.877568}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84893840862&doi=10.1080%2f09603107.2013.877568&partnerID=40&md5=e684e78b2830dfb015a9d8c078d6cc18}, affiliations = {Department of Accounting, Banking and Finance, Sunway University, Kuala Lumpur, Malaysia; Economics and Finance, University of New Orleans, New Orleans, LA 70148, 2000 Lakeshore Drive, United States; Accounting and Finance, University Putra Malaysia, Serdang 43400, Malaysia; Finance, INCEIF, Kuala Lumpur, Malaysia}, abstract = {This article focuses on the short- and long-term assets and liabilities gap and the determinants of net interest/profit margins of both conventional banks and Islamic banks in the Organization of Islamic Cooperation countries over the period from 1997 to 2010. The results show that both conventional and Islamic banks have negative short-term gaps and positive long-term gaps. These indicate that banks use short-term deposits and funding to finance long-term loans, advances and investments, taking into consideration refinancing and reinvestment risks. The findings also show that operating cost is a significant determinant of bank margins and important factor to improve quality of management in banks. Overall, the conventional banks have better quality of assets and liabilities with an optimum composition of profitable assets and low-costs liabilities. The low bank margins in conventional and Islamic banks indicate low volatility in financial markets and the growth of banking business. © 2014 Taylor & Francis.}, author_keywords = {ALM; commercial banks; dual banking; Islamic banks; NIM; NPM; OIC}, correspondence_address = {M. K. Hassan; Economics and Finance, University of New Orleans, New Orleans, LA 70148, 2000 Lakeshore Drive, United States; email: mhassan@uno.edu}, issn = {14664305}, language = {English}, abbrev_source_title = {Appl. Financ. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 11} } @ARTICLE{Ahmad20211, author = {Ahmad, Azlin Alisa and Dasar, Mohd Hafiz Mohd and Johor, Kolej Pengajian Islam and Ghani, Nik Abdul Rahim Nik Abd}, title = {Derivative Instruments: Criteria for Speculation in Islamic Finance}, year = {2021}, journal = {Journal of Legal, Ethical and Regulatory Issues}, volume = {24}, number = {5}, pages = {1 – 6}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85108874539&partnerID=40&md5=5d69fe29dc9a73f6c9659c5c5e4c092a}, affiliations = {Universiti Kebangsaan Malaysia; Research Centre for Shariah, Universiti Kebangsaan Malaysia}, abstract = {Derivative instruments were created as a risk management tool for the financial market. Hence, the majority of market players used it as a tool for carrying out speculative activities. The Islamic shariah concept rejects the element of speculation that exists in the financial market by allowing the implementation of derivative instruments only for hedging purposes. This qualitative study used the content analysis method on relevant documents to identify the characteristics of speculative activities that implement derivative instruments, which are prohibited in Islam. Findings indicate six characteristics related to speculative activities in the derivative market that are prohibited in Islam, such as reaping profits caused by price differences, short selling trading, absence of the physical exchange of goods, one party experiences losses, manipulation of market price, and information on market price obtained from hear-say (rumours) or based on an in-depth study of the market. © 2021. All Rights Reserved.}, author_keywords = {Derivatives; Hedging; Islamic Finance; Risk; Speculation}, publisher = {Allied Business Academies}, issn = {15440036}, language = {English}, abbrev_source_title = {J. Leg. Ethical Regul. Iss.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Gundogdu201678, author = {Gundogdu, Ahmet Suayb}, title = {Exploring novel Islamic finance methods in support of OIC exports}, year = {2016}, journal = {Journal of Islamic Accounting and Business Research}, volume = {7}, number = {2}, pages = {78 – 92}, doi = {10.1108/JIABR-04-2014-0015}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84978079917&doi=10.1108%2fJIABR-04-2014-0015&partnerID=40&md5=554e9e16df3963407f7ae2bcd27e2677}, affiliations = {International Islamic Trade Finance Corporation, Islamic Development Bank, Istanbul, Turkey}, abstract = {Purpose: This paper aims to propose a new Islamic trade finance framework for Islamic financial institution (FIs) to support exports in Organisation of Islamic Co-operation (OIC) countries. Design Methodology Approach:: This paper introduces and proposes the recently developed Islamic finance methods of the supplier financing Wakala agreement, restricted Mudaraba and award-winning Export Credit Agency (ECA) export finance structures from the aspects of Shari’ah compliance, efficiency, simplicity for traders and risk management. This paper uses the approach of critical realism. The three-stratum approach is appropriate for Islamic product development, where the real, the actual and the empirical can be observed. Findings:: The author argues that the ECA export financing structures, or restricted Mudaraba if preferred, with an embedded supplier financing Wakala agreement can pave the way for Islamic FIs to support exporting companies. It is also concluded that development and support of the Takaful industry are vital for the success of Islamic export financing schemes because of its role in risk management. Originality Value:: Although very active in import financing with standard Murabaha contracts, Islamic FIs are still not able to meet the need for financing the expanding exports of OIC countries. Because of the difficulty in developing products that are both efficient and Shari’ah-compliant, export financing is the most controversial issue for the Islamic trade finance industry. Existing or proposed export finance products are heavily criticised by concerned Muslims, as they include bill discounting, akin to factoring in conventional finance. This paper introduces methods aimed at overcoming the inadequacy of existing structures. © 2016, © Emerald Group Publishing Limited.}, author_keywords = {ECA financing; Islamic discounting/factoring; Islamic export finance; Restricted Mudaraba; Supplier financing; Wakala agreement}, correspondence_address = {A.S. Gundogdu; International Islamic Trade Finance Corporation, Islamic Development Bank, Istanbul, Turkey; email: agundogdu@isdb.org}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Bekri201437, author = {Bekri, Mahmoud and Shin (Aaron) Kim, Young and (Zari) T. Rachev, Svetlozar}, title = {Tempered stable models for Islamic finance asset management}, year = {2014}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {7}, number = {1}, pages = {37 – 60}, doi = {10.1108/IMEFM-10-2012-0096}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84950313376&doi=10.1108%2fIMEFM-10-2012-0096&partnerID=40&md5=e821b12b4b7bfd32fa7f373266c31f31}, affiliations = {Department of Statistics, Econometrics and Mathematical Finance (ETS), Karlsruhe Institute of Technology (KIT), Karlsruhe, Germany; Department of Applied Mathematics and Statistics, Stony Brook University, New York, NY, United States}, abstract = {Purpose – In Islamic finance (IF), the safety-first rule of investing (hifdh al mal) is held to be of utmost importance. In view of the instability in the global financial markets, the IF portfolio manager (mudharib) is committed, according to Sharia, to make use of advanced models and reliable tools. This paper seeks to address these issues. Design/methodology/approach – In this paper, the limitations of the standard models used in the IF industry are reviewed. Then, a framework was set forth for a reliable modeling of the IF markets, especially in extreme events and highly volatile periods. Based on the empirical evidence, the framework offers an improved tool to ameliorate the evaluation of Islamic stock market risk exposure and to reduce the costs of Islamic risk management. Findings – Based on the empirical evidence, the framework offers an improved tool to ameliorate the evaluation of Islamic stock market risk exposure and to reduce the costs of Islamic risk management. Originality/value – In IF, the portfolio manager – mudharib – according to Sharia, should ensure the adequacy of the mathematical and statistical tools used to model and control portfolio risk. This task became more complicated because of the increase in risk, as measured via market volatility, during the financial crisis that began in the summer of 2007. Sharia condemns the portfolio manager who demonstrates negligence and may hold him accountable for losses for failing to select the proper analytical tools. As Sharia guidelines hold the safety-first principle of investing rule (hifdh al mal) to be of utmost importance, the portfolio manager should avoid speculative investments and strategies that would lead to significant losses during periods of high market volatility. © 2014, © Emerald Group Publishing Limited.}, author_keywords = {ARMA; AVaR; GARCH; Risk management in Islamic finance; Stable and tempered stable distributions}, correspondence_address = {M. Bekri; Department of Statistics, Econometrics and Mathematical Finance (ETS), Karlsruhe Institute of Technology (KIT), Karlsruhe, Germany; email: mahmoud.bekri@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Hanim Kamil2010386, author = {Hanim Kamil, Karmila and Abdullah, Marliana and Shahimi, Shahida and Ghafar Ismail, Abdul}, title = {The subprime mortgages crisis and Islamic securitization}, year = {2010}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {3}, number = {4}, pages = {386 – 401}, doi = {10.1108/17538391011093315}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84950325518&doi=10.1108%2f17538391011093315&partnerID=40&md5=3304ae6960ca3f78699006f89f45814a}, affiliations = {Universiti Sains Islam Malaysia, Bandar Baru Nilai, Malaysia; Department of Syariah, Academy of Islamic Studies, Kolej Universiti Islam Antarabangsa Selangor, Kajang Bangi, Malaysia; Islamic Economics and Finance Research Group (EKONIS), School of Economics, Universiti Kebangsaan Malaysia, Bangi, Malaysia}, abstract = {PurposeThe purpose of this paper is to provide an insight of Islamic securitization based on sukuk structures. Design/methodology/approachDescriptive, analytical, and comparative analyses are used to discuss the risk-sharing behaviour in Islamic securitization through different structures of mudharabah and musharakah sukuk derived from asset securitization. FindingsThe paper reveals that although sukuk are structured in a similar way to conventional asset-backed securities, they can have significantly different underlying structures, provisions and shariah-compliant. In particular, it prohibits the receipt and payment of interest and stipulates that income must be derived from an underlying real business risk rather than as a guaranteed return from interest. With regards to sukuk securitization, an asset is one of the vital elements that should exist as an evidence to support the process and make it permissible in Islam. In terms of Islamic securitization mechanism, it can be divided into two principles, namely, debt based and partnership. This paper further emphasizes that sukuk structures based on partnership principle is regarded as risk sharing rather than risk shifting, where it works by combining risk-exposures in such a way that they offset one another to some degree. Accordingly, overall risk will be less than total risks on individual basis. Practical implicationsThis paper has important implication for the understanding of risk management practices particularly in structuring sukuk. Banks as originators and special purpose vehicles (SPV) as issuers, might consider more sukuk on partnership principles since it directed towards risk-sharing concept that could lead to increase mobilization of savings and investment. As for the investors or sukuk holders, the partnership principle could generate the wealth creation, which to be shared between both investors (fund providers) and issuers (fund users), while both bear the risks involved and the resulting loss. Originality/valueThe paper will fill the gap in the existing literature of Islamic finance by showing that Islamic securitization via sukuk is a viable source of funds that could help stabilize the securities market, and as solution to the current subprime mortgages financial crisis. © 2010, © Emerald Group Publishing Limited.}, author_keywords = {Finance; Islam; Risk management; Securities}, correspondence_address = {K. Hanim Kamil; Universiti Sains Islam Malaysia, Bandar Baru Nilai, Malaysia; email: karmila_hanim@yahoo.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 6} } @ARTICLE{Shinkafi2017315, author = {Shinkafi, Akilu Aliyu and Ali, Nor Aini and Choudhury, Masudul}, title = {Contemporary Islamic economic studies on Maqasid Shari’ah: a systematic literature review}, year = {2017}, journal = {Humanomics}, volume = {33}, number = {3}, pages = {315 – 334}, doi = {10.1108/H-03-2017-0041}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85028007421&doi=10.1108%2fH-03-2017-0041&partnerID=40&md5=2074e6e1bfb675ee36598d134be6f36d}, affiliations = {Department of Shariah and Economics, University of Malaya, Kuala Lumpur, Malaysia; Trisakti University, Jakarta, Indonesia}, abstract = {Purpose: The purpose of this paper is to come-up with a systematic exertion on Maqasid Shari’ah in Islamic economics, banking and finance, with a clear focus on forming an appropriate and novel framework that identifies the effort of contemporary scholars and detects the existing gap that might possibly champion new research commitments. Design/methodology/approach: A systematic approach to literature review was steered through the means propagated by the Centre for Reviews and Disseminations (DSR), but modified to the precise requirements of this review. Google Scholar was searched throughout the passage. The search criteria are confined to English documents that are within the period of 2006-2016. Articles that did not score or did not convince that the subject of Maqasid Shari’ah has been applied in Islamic economy, Islamic banking, Islamic finance, Islamic financing products and economic development are excluded. Appropriate search keys are used to gather better results. Findings: The findings inform that contemporary scholars show a robust commitment to the themes of the result during the stated period. The outcome reveals that contemporary scholars designate more interest and attention on Islamic banking and expose their potential specialty in the expanse than other themes. The study further highlighted the gap of some significant areas that are either outside the coverage of the reviewed documents or require more attention from contemporary scholars, for instance, wealth formation and management, wealth consumption, socioeconomic security, risk management, corporate governance, management policy, human resource development, prohibition of Riba, profit and loss sharing (PLS), etc. Research limitations/implications: The paper is limited to contemporary aspects of Islamic economics, banking, finance and economic development that have a link with the subject of Maqasid Shari’ah. Practical implications: A review of these scholarly reported documents has the potential to draw attention toward filling the existing gap that will likely result in salvation of current issues on the subject of Maqasid Shari’ah that has a direct association with Islamic economy, banking and finance. Originality/value: The paper is original in its nature considering the fact that it is assumed as the maiden attempt of its kind in the field. It is a treasure to all those who may cherish and find it relevant in their progressive and rounded convention or application on the matter. © 2017, © Emerald Publishing Limited.}, author_keywords = {Banking; Economic development; Finance; Financing products; Islamic economy; Maqasid Shari’ah}, correspondence_address = {A.A. Shinkafi; Department of Shariah and Economics, University of Malaya, Kuala Lumpur, Malaysia; email: aliyuakilu1@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {08288666}, language = {English}, abbrev_source_title = {Humanomics}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 25} } @ARTICLE{Ben Jedidia Khoutem201447, author = {Ben Jedidia Khoutem, Daoud}, title = {Islamic banks-Sukuk markets relationships and economic development: The case of the Tunisian post-revolution economy}, year = {2014}, journal = {Journal of Islamic Accounting and Business Research}, volume = {5}, number = {1}, pages = {47 – 60}, doi = {10.1108/JIABR-07-2012-0054}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84959887109&doi=10.1108%2fJIABR-07-2012-0054&partnerID=40&md5=aca516fad3a03b1655ccd7a605433b0c}, affiliations = {Institut Supérieur de Comptabilité et d’Administration des Entreprises, Manouba, Tunisia; Unité de Recherche en Economie de Développement (URED), FSEG Sfax, Sfax, Tunisia}, abstract = {Purpose – The purpose of this paper is to examine the opportunities of Islamic finance in spurring economic development in Tunisia after the revolution of 2011. Precisely, this paper seeks to explore whether the Islamic banks-Sukuk markets relationships are more conducive of economic growth. Design/methodology/approach – This work reviews the role of Islamic finance in economic development, examines the current dominance of Islamic banks on the saving-investment process and compares it with a situation characterized by a more important implication of banks in the Sukuk markets both as issuers and buyers. Findings – This paper finds that the “marketable Islamic intermediation” provides easily more funds to finance the economic development and solve the problems of poverty and unemployment. It also reveals that Islamic intermediation can be improved by a more important implication of banks in the Sukuk markets. This permits to overcome many problems related to saving mobilization, bank liquidity management, risk taking and long-run investment. Social implications – The author's recommendations related to the economic policy suggest strict rules to establish accountability, disclosure laws and transparency in Tunisia. Originality/value – This paper is a first attempt to study the role of the relationships between Islamic banks and Sukuk markets in the economic development process. It stresses the importance of these relationships to better meet the requirements of development financing in Tunisia. © 2014, © Emerald Group Publishing Limited.}, author_keywords = {Economic development; Financial intermediation; Financial structure; Islamic bank; Relationships Islamic banks; Sukuk; Sukuk markets}, correspondence_address = {D. Ben Jedidia Khoutem; Institut Supérieur de Comptabilité et d’Administration des Entreprises, Manouba, Tunisia; email: khoutembj@yahoo.fr}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 17} } @ARTICLE{Bhatti2020, author = {Bhatti, Maria}, title = {Managing Shariah Non-Compliance Risk via Islamic Dispute Resolution}, year = {2020}, journal = {Journal of Risk and Financial Management}, volume = {13}, number = {1}, doi = {10.3390/jrfm13010002}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85105983656&doi=10.3390%2fjrfm13010002&partnerID=40&md5=870a5aa414f2c8520c7cb032d20fc4d9}, affiliations = {Faculty of Law, Western Sydney University, Parramatta, 2150, NSW, Australia}, abstract = {This article discusses Shariah non-compliance risk as a form of operational risk intending to ensure that operations in the Islamic and banking finance industry comply with Shariah procedures. In the field of Islamic finance, Shariah non-compliance risk refers to the possibility that Islamic finance transactions may be challenged based on Shariah non-compliance. This article uses a comparative and normative approach as well as a legal analysis of the case of Beximco. The article proposes the management of Shariah non-compliance risk by augmenting the effectiveness of Shariah governance systems with Islamic banking and finance arbitration; arbitration should be an enforced part of Islamic finance institutional arrangements—as it always has been classically—to provide flexibility for dispute resolution. To this end, the article examines contemporary implementations of Shariah arbitration rules to assess how Shariah non-compliance risk can be better managed via Islamic dispute resolution procedures. © 2019 by the author.}, author_keywords = {i-arbitration rules; Islamic dispute resolution; Shariah governance; Shariah non-compliance risk}, correspondence_address = {M. Bhatti; Faculty of Law, Western Sydney University, Parramatta, 2150, Australia; email: m.bhatti@westernsydney.edu.au}, publisher = {Multidisciplinary Digital Publishing Institute (MDPI)}, issn = {19118074}, language = {English}, abbrev_source_title = {J. Risk. Financ. Manag.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 15; All Open Access, Gold Open Access, Green Open Access} } @ARTICLE{Bouslama2017718, author = {Bouslama, Ghassen and Lahrichi, Younes}, title = {Uncertainty and risk management from Islamic perspective}, year = {2017}, journal = {Research in International Business and Finance}, volume = {39}, pages = {718 – 726}, doi = {10.1016/j.ribaf.2015.11.018}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84956939742&doi=10.1016%2fj.ribaf.2015.11.018&partnerID=40&md5=452a5f3c0b05395a3aa0a065926eb9c7}, affiliations = {NEOMA Business School, Reims Campus, 59 rue Pierre Taittinger, Reims, 51 100, France; ISCAE Group, Casablanca, Morocco}, abstract = {Most decisions are taken in very uncertain contexts and all objective economic behaviour is dictated by the efforts of different agents to protect themselves against uncertainty. So, how to act in the face of uncertainty to minimise the harmful consequences of recurrent financial crises? The purpose of this article is to answer this question by highlighting the ethical aspect of investments and finance from the Islamic perspective, which notoriously, forbids excessive uncertainty, gharar. Islamic law proposes a legal framework that specifies the rules by which risk is understood, managed, taken or shared. The way the Islamic financial system resisted the recent crisis leads us to study its unusual interpretation of risk. We also investigate whether Islamic ethics as an alternative could help to prevent the disaster of repeated financial crises. © 2016 Elsevier B.V.}, correspondence_address = {G. Bouslama; NEOMA Business School, Reims Campus, Reims, 59 rue Pierre Taittinger, 51 100, France; email: ghassen.bouslama@neoma-bs.fr}, publisher = {Elsevier Ltd}, issn = {02755319}, language = {English}, abbrev_source_title = {Res. Int. Bus. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 15} } @ARTICLE{Mahdy2012625, author = {Mahdy, Samir Sayed}, title = {Risk management in Islamic banking}, year = {2012}, journal = {Quality - Access to Success}, volume = {13}, number = {SUPPL.3}, pages = {625 – 627}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84864442358&partnerID=40&md5=2527d81209a8bfc012f44a2ce39378b4}, affiliations = {Ex Consultant to Ministry of Finance (Egypt), Ex General Manager of Blom Bank (Egypt), Romanian Branches, Romania}, abstract = {The risk management in Islamic banking is organized by regulators in the Islamic countries by putting guidelines through six categories of risks, i.e. credit risk, equity investment risk, market risk, liquidity risk, rate of return risk and operational risk.}, author_keywords = {Islamic financing contracts; Mudarabah and murabahah; Musharakah; Profit sharing finance; Risk taking institutions; Sharia'a}, correspondence_address = {S. S. Mahdy; Ex Consultant to Ministry of Finance (Egypt), Ex General Manager of Blom Bank (Egypt), Romanian Branches, Romania; email: smahdimrb@yahoo.com}, issn = {15822559}, language = {English}, abbrev_source_title = {Qual. Access Success}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Kayed2011551, author = {Kayed, Rasem N. and Hassan, M. Kabir}, title = {The global financial crisis and Islamic finance}, year = {2011}, journal = {Thunderbird International Business Review}, volume = {53}, number = {5}, pages = {551 – 564}, doi = {10.1002/tie.20434}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84860405253&doi=10.1002%2ftie.20434&partnerID=40&md5=b5d892b83c9a40380216e025efc33482}, affiliations = {Arab American University, Jenin, Palestine; University of New Orleans, United States}, abstract = {The conventional view holds that the current global financial crisis was caused by extraordinarily high liquidity, reckless lending practices, and the rapid pace of financial engineering, which created complex and opaque financial instruments used for risk transfer. There was a breakdown of the lender-borrower relationship and informational problems caused by a lack of transparency in asset market prices, particularly in the market for structured credit instruments. There was outdated, lax, or absent regulatory-supervisory oversight; faulty risk management and accounting models; and the emergence of an incentive structure that not only encouraged excessive risk taking but also created a complicit coalition of financial institutions, real estate developers and appraisers, insurance companies, and credit rating agencies whose actions led to a deliberate underpricing of risk. Such a crisis would not have occurred under an Islamic financial system-due to the fact that most, if not all, of the factors that have caused or contributed to the development and spread of the crisis are not allowed under the rules and guidance of Shariah. The current global financial crisis is largely seen as a real test of the resilience of the Islamic financial services industry and its ability to present itself as a more reliable alternative to the conventional financial system. © 2011 Wiley Periodicals, Inc.}, correspondence_address = {M.K. Hassan; Department of Economics and Finance, University of New Orleans, New Orleans, LA 70148, United States; email: mhassan@uno.edu}, issn = {15206874}, language = {English}, abbrev_source_title = {Thunderbird Int. Bus. Rev.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 78} } @ARTICLE{Abdalla Ahmed2008182, author = {Abdalla Ahmed, Gaffar}, title = {The implication of using profit and loss sharing modes of finance in the banking system, with a particular reference to equity participation (partnership) method in Sudan}, year = {2008}, journal = {Humanomics}, volume = {24}, number = {3}, pages = {182 – 206}, doi = {10.1108/08288660810899359}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84992972091&doi=10.1108%2f08288660810899359&partnerID=40&md5=22f2697cb007b043dd5443979d5d1ced}, affiliations = {SGIA, University of Durham, Durham, United Kingdom; Sudan University for Science and Technology, Khartoum, Sudan}, abstract = {Purpose – The purpose of this paper is to evaluate the performance of musharakah (equity participation) in terms of profitability and risk; to investigate musharakah management to recognise the obstacles and factors influencing decision-making and to investigate the implications of using musharakah mode of finance. Design/methodology/approach – Data from Sudan, which fully adhere to interest-free principles of finance, will be used. Part of the data source is the Sudanese banks’ balance sheets and annual reports, which provide bank level data for all Sudanese banks for the period 1990-2004. Initially, some descriptive analysis is provided. The concentration of musharakah in the Sudanese Islamic banks each year is provided so as to give an indication of the influence of musharakah. The second part of the data is survey data collected from nine banks. The survey has been distributed and collected from staff members of investment departments at the Sudanese banks. Findings – The results show the high preference of musharakah among banks’ staff compared with other modes of finance. The results indicate that the lack of knowledgeable bankers in selecting, evaluating and managing profitable projects is a significant cause for the lack of profit and loss (PLS) projects. The results show the high profitability and risk performance. The paper has exposed the key issues involved in bad debt and general risk degree for musharakah. Originality/value – The advantages and disadvantages of using musharakah have been discussed, obstacles for the scheme have identified, and the performance of musharakah has been evaluated. The paper should contribute to a better understanding of the implications of using PLS modes of finance, particularly musharakah. © 2008, Emerald Group Publishing Limited}, author_keywords = {Banking; Islam; Loss; Partnership; Profit; Sudan}, issn = {08288666}, language = {English}, abbrev_source_title = {Humanomics}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10} } @ARTICLE{Baldwin20151, author = {Baldwin, Kenneth}, title = {The management of refinancing risk in Islamic banks}, year = {2015}, journal = {Journal of Risk}, volume = {17}, number = {6}, pages = {1 – 20}, doi = {10.21314/JOR.2015.308}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84973531847&doi=10.21314%2fJOR.2015.308&partnerID=40&md5=3c2383ac1ebb8f8a344cc4d587c920a0}, affiliations = {Islamic Financial Analytics Limited, 32 Clarendon Road, Edgbaston, Birmingham, B16 9SE, United Kingdom}, abstract = {Islamic banks have access to only short-dated funding sources resulting in asset liability mismatches when financing assets with longer maturities. Maturity mismatches give rise to a risk that an unexpected increase in the cost of refinancing liabilities as they mature will not be offset by corresponding asset returns. Exposure to refinancing risk is exacerbated by paying returns to providers of off balance sheet funds which do not covary with the returns of corresponding assets as they would from a stricter application of sharia principles underlying these funding structures. The active hedging of refinancing risk by Islamic banks is also challenged due to a lack of suitable hedging instruments as well as differing sharia opinions concerning their permissibility. As an alternative to risk transference through hedging, this paper develops a framework to quantify a reserve to instead absorb refinancing risk which is distinguished from reserves already in use by Islamic banks, namely the investment risk and profit equalization reserves. © 2015 Incisive Risk Information (IP) Limited.}, author_keywords = {Asset-liability management; Income smoothing; Islamic banking; Islamic finance; Refinancing risk}, correspondence_address = {K. Baldwin; Islamic Financial Analytics Limited, Birmingham, 32 Clarendon Road, Edgbaston, B16 9SE, United Kingdom; email: drkenbaldwin@isfinalytics.com}, publisher = {Incisive Media Ltd.}, issn = {14651211}, language = {English}, abbrev_source_title = {J. Risk}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Mokni2015261, author = {Mokni, Rim Ben Selma and Echchabi, Abdelghani and Rajhi, Mohamed Taher}, title = {Risk management practiced tools in the MENA region: A comparative study between islamic and conventional banks}, year = {2015}, journal = {International Journal of Business}, volume = {20}, number = {3}, pages = {261 – 277}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84944606057&partnerID=40&md5=0ecbb6f3722e9a7f207f1b6bae7d6889}, affiliations = {Faculty of Management Sciences and Economics, El-Manar University, Tunis, Tunisia; College of Business, Effat University, Jeddah, 21478, Saudi Arabia; Faculty of Management Sciences and Economics, El-Manar University, Tunis, Tunisia}, abstract = {The purpose of the study is to investigate the current risk management practices of Islamic and conventional banks in the MENA region. The study is based on a survey of 47 banks, including 24 conventional and 23 Islamic banks. The collected data were analysed using descriptive statistics and t-tests. The findings indicate that banks in MENA region have effective risk strategies and effective risk management frameworks in place. Furthermore, the findings reveal that credit risk is considered the most important for both conventional and Islamic banks followed by liquidity risk. Finally, both conventional and Islamic banks continue to rely on traditional credit risk mitigation tools. These findings have significant contributions to the literature by comprehensively clarifying and critically analysing the current state of risk management among the Islamic banks and conventional banks located in the MENA region.}, author_keywords = {Islamic banking; Islamic finance; MENA; Risk management; VaR}, publisher = {Premier Publishing, Inc.}, issn = {10834346}, language = {English}, abbrev_source_title = {Int. J. Bus.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Ashraf201773, author = {Ashraf, Muhammad Adeel and Lahsasna, Ahcene}, title = {Measuring Sharī'ah risk proposal for a new Sharī'ah risk rating model for Islamic banks and allocation of capital for Sharī'ah risk under Basel III}, year = {2017}, journal = {Journal of King Abdulaziz University, Islamic Economics}, volume = {30}, number = {Specialissue}, pages = {73 – 87}, doi = {10.4197/Islec.30-SI.5}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85019860959&doi=10.4197%2fIslec.30-SI.5&partnerID=40&md5=88b454251176a136134eb523c8e7976f}, affiliations = {Islamic Development Bank, Jeddah, Saudi Arabia; Malaysia Financial Planning Council (MFPC), International Islamic University of Malaysia, Malaysia}, abstract = {Customers interested in the Islamic banking Industry continue to put a question that whether the bank they wish to do business with is practically implementing Sharī'ah rules and guidelines despite being registered as an Islamic bank and having fatwá from the competent authority. This paper proposes a set of 14 rating factors that measure the risk of Sharī'ah non-compliance at an Islamic bank. These factors are used as an input to develop Sharī'ah Risk Rating Model, which can be used by the customers of the Islamic banking industry, the management of an Islamic bank, and the central banks to measure the degree of Sharī'ah compliance at an Islamic bank. The paper also suggests a methodology towards allocating capital charge against the risk of Sharī'ah non-compliance under Pillar 2 of Basel III accords. The main strengths of this model are simplicity and relevance towards assessing the Sharī'ah noncompliance risk because input factors are based on the information derived from published financial statements only. Another key strength is that the end rating can be used on a standalone basis or as an extension to the conventional rating models provided by external agencies such as Fitch, Moody's, S&P etc. Development of this model is aimed at motivating the banking customers, management of Islamic banks, and central banks to improve the implementation of Sharī'ah guidelines and hence contribute towards accelerated growth of the Islamic finance industry. The model was applied on three selected banks on unsolicited basis and results reflect discriminating power of the input factors in order to gauge the Sharī'ah risk.}, author_keywords = {Basel III; Islamic banking industry; Rating models; Sharī'ah non-compliance risk; Sharī'ah supervision}, publisher = {King Abdulaziz University Scientific Publishing Center}, issn = {10187383}, language = {English}, abbrev_source_title = {J. King Abdulaziz Univ. Islam. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Rosman2015150, author = {Rosman, Romzie and Abdul Rahman, Abdul Rahim}, title = {The practice of IFSB guiding principles of risk management by Islamic banks: International evidence}, year = {2015}, journal = {Journal of Islamic Accounting and Business Research}, volume = {6}, number = {2}, pages = {150 – 172}, doi = {10.1108/JIABR-09-2012-0058}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84960100476&doi=10.1108%2fJIABR-09-2012-0058&partnerID=40&md5=63ccf2292979d680f0fd7e058f419545}, affiliations = {International Shari’ah Research Academy for Islamic Finance, Lorong Universiti A, Kuala Lumpur, Malaysia; Islamic Science University of Malaysia (USIM), Nilai, Malaysia}, abstract = {Purpose – The purpose of this study is to examine the nature of the risk management practices of Islamic banks as recommended by the Islamic Financial Services Board (IFSB) in managing their unique risks. This study also explores the differences in risk management practices based on the country, size, type and age of the bank. Design/methodology/approach – A questionnaire was developed to investigate the risk management practices. The main reference for the questionnaire was the IFSB Guiding Principles of Risk Management and the respondents were either the chief risk officers or holders of other senior positions involved in risk management in the Islamic banks. A non-parametric test was then conducted to explain the difference in mean scores for the unique risk management practices by the Islamic banks. Findings – A lack of effective risk management practices was found in relation to liquidity risk, displaced commercial risk and equity investment risk by Islamic banks. However, Islamic banks were comparatively good in managing operational risk/Shari’ah non-compliance risk. The study found that there was a significant difference in the practice of equity investment risk management based on the size, type and age of the Islamic bank. In addition, a significant difference was found between the Islamic banks in the Middle Eastern and North African (MENA) and Asian countries concerning the practice of both displaced commercial risk and operational risk/Shari’ah non-compliance risk management. Research limitations/implications – In spite of the limitations in non-parametric analysis, this analysis was preferred inasmuch as the data were measured on an ordinal scale with a small sample size. Originality/value – This study is among the few studies that examine and explore the risk management practices of Islamic banks internationally by explaining the unique risks encountered in Islamic finance. © 2015, © Emerald Group Publishing Limited.}, author_keywords = {IFSB guiding principles; Islamic banks; Islamic financial services board; Risk management}, correspondence_address = {R. Rosman; International Shari’ah Research Academy for Islamic Finance, Lorong Universiti A, Kuala Lumpur, Malaysia; email: romzie@isra.my}, publisher = {Emerald Group Publishing Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 16} } @ARTICLE{Razak201651, author = {Razak, Shahrul Azman Abd}, title = {COMBINATION OF CONTRACTS IN ISLAMIC FINANCE: A SYNTHESIS}, year = {2016}, journal = {ISRA International Journal of Islamic Finance}, volume = {8}, number = {2}, pages = {51 – 77}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85111732497&partnerID=40&md5=dc9efe6b52234192d4150e02f7392b3b}, affiliations = {Strategic Investment Department, Ministry of Finance, Malaysia}, abstract = {Combination of contracts is a fusion of two or more contracts in a single arrangement by contracting parties to achieve a specific objective. It has been widely used in Islamic finance for many purposes such as product development and risk management. Nevertheless, combination of contracts encounters some problematic issues since there are three aḥādīth (Prophetic traditions) that prohibit the combination of two sales in one sale, a loan and a sale, and two transactions in one transaction. Although many studies have been undertaken, they remain inconclusive on the interpretation of the aḥādīth since scholars rendered various opinions on them. This has resulted in some perplexity among scholars and practitioners in their discussion of and employment of the concept of contract combination in Islamic financial transactions. Hence, this paper aims to revisit the issue and attempts to synthesise and consolidate all the opinions discussed by various scholars. To achieve this aim, the paper employs a qualitative research methodology, whereby it analyses secondary sources, namely classical and contemporary literature on fiqh (Islamic jurisprudence). The paper finds a strong basis for the conclusion that the interpretation of the aḥādīth can best be related to contractual stipulation—which means the execution of the first contract is dependent on the execution of the second contract, or vice versa. Contractual stipulation is not totally prohibited in combination of contracts so long as it is coherent with the legal requirements of the combined contracts and preserves the rights of the contracting parties. This paper also finds that most contracts which are combined are nominate contracts having specific requirements that must be honoured. If one contract is dependent on another, it may lead to ribā (interest) or gharar (uncertainty); hence, the contracts should be separated. The findings of this paper are especially useful for practitioners who aim to employ the concept as a product development tool or for other purposes in Islamic financial transactions. © 2016, International Shari’ah Research Academy for Islamic Finance (ISRA). All rights reserved.}, author_keywords = {combination of contracts; contractuastipulation; Islamic finance; two sales in one sale; two transactions in one}, correspondence_address = {S.A.A. Razak; Strategic Investment Department, Ministry of Finance, Malaysia; email: fadawi@yahoo.com}, publisher = {International Shari’ah Research Academy for Islamic Finance (ISRA)}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Jobst2009348, author = {Jobst, Andreas A.}, title = {Islamic securitisation: An ethical remedy to incentive problems?}, year = {2009}, journal = {International Journal of Monetary Economics and Finance}, volume = {2}, number = {3-4}, pages = {348 – 365}, doi = {10.1504/IJMEF.2009.029068}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84951715976&doi=10.1504%2fIJMEF.2009.029068&partnerID=40&md5=c91fc48b0cf27895c761f30c36403783}, affiliations = {International Monetary Fund (IMF), Monetary and Capital Markets Department (MCM), Washington, DC 20431, 700 19th Street NW, United States}, abstract = {Islamic securitisation in the form of sukuk has grown into a notable segment of global structured finance over the recent past. This paper surveys the unique structural features of the sukuk market and assesses the resilience of shari’ah compliance to the adverse effects of conflicts of interest that became apparent in the US subprime mortgage crisis and the subsequent fallout in global financial markets. This examination also considers recent regulatory changes to the definition of sukuk and current policy considerations of alternative forms of capital-market based refinancing techniques, such as covered mortgage bonds, and the way they relate to Islamic securitisation. The paper concludes with a brief outlook on future challenges and developments in the sukuk market. © 2009 Inderscience Enterprises Ltd.}, author_keywords = {asset-backed; asset-based; covered bonds; ijara; Islamic finance; Islamic securitisation; risk management; shari’ah compliance; structured finance; sukuk}, issn = {17520479}, language = {English}, abbrev_source_title = {Int. J. Monet. Econ. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Dharani201979, author = {Dharani, M. and Hassan, M. Kabir and Paltrinieri, Andrea}, title = {Faith-based norms and portfolio performance: Evidence from India}, year = {2019}, journal = {Global Finance Journal}, volume = {41}, pages = {79 – 89}, doi = {10.1016/j.gfj.2019.02.001}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85062809778&doi=10.1016%2fj.gfj.2019.02.001&partnerID=40&md5=61f19dd13be0e50ba36cd2abffafabed}, affiliations = {Department of Finance, ICFAI Business School (IBS), (A Constituent of IFHE, Deemed to be University), Hyderabad, 501203, Telangana, India; Department of Economics and Finance, University of New Orleans, New Orleans, 70148, LA, United States; Department of Economics and Statistics, University of Udine, Italy}, abstract = {This paper investigates the performance of Shariah and conventional stock portfolios in India during the period 2001–2017 by using asset pricing models. We first examine the influence of Shariah investment principles on the stock returns’ cross-section. Then we assess the overall risk of Shariah and conventional portfolios, focusing also on financial crises. We provide evidence of a positive Shariah effect on stock returns in India. Therefore, Shariah stocks offer higher returns than non-Shariah stocks. We also find that Shariah portfolios have lower risk than unconstrained conventional ones. Overall our results reveal that both portfolios have similar performance, but the Shariah portfolio has a lower level of risk. Finally, the results clearly indicate that the volatility of the Shariah portfolio is lower during the crisis period. © 2019 Elsevier Inc.}, author_keywords = {Asset pricing; India; Islamic finance; Portfolio management; Shariah portfolio}, correspondence_address = {M.K. Hassan; Department of Economics and Finance, University of New Orleans, New Orleans, 70148, United States; email: mhassan@uno.edu}, publisher = {Elsevier B.V.}, issn = {10440283}, language = {English}, abbrev_source_title = {Global Financ. J.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 28} } @ARTICLE{Zarrouk201445, author = {Zarrouk, Hajer}, title = {The impact of the international financial crisis on the performance of islamic banks in mena countries}, year = {2014}, journal = {Contemporary Studies in Economic and Financial Analysis}, volume = {95}, pages = {45 – 69}, doi = {10.1108/S1569-3759(2014)0000095011}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84904728145&doi=10.1108%2fS1569-3759%282014%290000095011&partnerID=40&md5=16117ea7561cf80660dc518537cfb1fc}, affiliations = {Department of Finance and Economics, Emirates College of Technology, United Arab Emirates; PS2D, FSEG, University El Manar Tunis, Abu Dhabi, United Arab Emirates}, abstract = {Purpose - The financial crisis at the end of the past decade resulted in downturns in stock markets and the collapse of many large banks around the world. It encouraged economists worldwide to consider alternative financial solutions. Attention has been focused on Islamic finance as an alternative model. This study examines the performance of Islamic banks in 10 Middle Eastern and North African (MENA) countries over the period of 2005-2010. Methodology/approach - It is an intertemporal analysis where it compares the profitability, liquidity, risk and solvency, and efficiency of 43 Islamic banks before and after the financial crisis. Findings - The results show that the financial crisis negatively affected the performance of Islamic banks. The profitability and liquidity of Islamic banks in Gulf Cooperation Council (GCC) countries decreased drastically after the crisis. Islamic banks in non-GCC countries were efficient and more profitable compared to GCC countries. However, they took excessive risk during and after the financial crisis. The chapter concludes that Islamic financial institutions are not immune from the effects of the global recession. Originality/value - The financial crisis has led to a greater recognition of the importance of liquidity risks. Reinforcing regulations and setting up a strong liquidity management framework are needed to improve the Islamic financial industry. © 2014 by Emerald Group Publishing Limited.}, author_keywords = {Financial crisis; Islamic bank performance; MENA countries}, publisher = {Emerald Group Publishing Ltd.}, issn = {15693759}, isbn = {978-178350817-4}, language = {English}, abbrev_source_title = {Contemp. Stud. Econ. Financ. Anal.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 9} } @ARTICLE{Mohd Yusof2016283, author = {Mohd Yusof, Syarah Syahira and Oseni, Umar A. and Hasan, Rusni}, title = {Abandoned housing projects, legal risks and islamic finance legal documentation}, year = {2016}, journal = {Al-Shajarah}, volume = {21}, number = {Specialissue}, pages = {283 – 305}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85028665474&partnerID=40&md5=6db66bbb9a8e4f2f4993448c80793aee}, affiliations = {International Islamic University, Malaysia; Institute of Islamic Banking and Finance (IIiBF), International Islamic University, Malaysia}, abstract = {This paper examines the role of effective legal documentation in mitigating the legal risks associated with abandoned housing projects in Malaysia. Specific attention is given to aspects relating to financial consumer protection, construction and interpretation of default clauses, and dispute management strategies, which seek to protect the interest of parties to the bundled agreements. Through conceptual analysis of relevant literature, legal documentary analysis, and unstructured interviews, this study adopts a qualitative legal research method to achieve its objective of ensuring legal risks associated with Islamic home financing are mitigated and financial consumers are adequately protected. Available legal remedies for the purchasers in the event of an abandoned housing project must be clearly included in the clauses relating to default in the Master agreement and financial guarantees, and effective dispute management processes should be considered to mitigate the triad of risks associated with abandoned housing projects - shariah, legal and reputational risks. This study provides a starting-point for further research on legal risks associated with abandoned housing projects, which seek to provide some minimum requirements for legal documentation in Islamic home financing. Legal documentation remains the bedrock of commercial dealings, and as such, it must be well crafted to avoid future disputes on contractual terms. Though previous studies have focused on the prevalence and the economic and financial impacts of abandoned housing projects, this is one of the earliest attempts to explore the legal risks associated with such projects with particular reference to legal documentation.}, author_keywords = {Abandoned housing projects; Islamic financing; Legal documentation; Legal risks}, publisher = {International Islamic University Malaysia}, issn = {13946870}, language = {English}, abbrev_source_title = {Al-Shajarah}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Hassan2018248, author = {Hassan, M. Kabir and Miglietta, Federica and Paltrinieri, Andrea and Floreani, Josanco}, title = {The effects of Shariah board composition on Islamic equity indices' performance}, year = {2018}, journal = {Business Ethics}, volume = {27}, number = {3}, pages = {248 – 259}, doi = {10.1111/beer.12185}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85045121986&doi=10.1111%2fbeer.12185&partnerID=40&md5=daaa78839313e0cfdc94058565b090e7}, affiliations = {Department of Economics and Finance, University of New Orleans, New Orleans, LA, United States; Department of Economics, Management and Business Law, University of Bari, Bari, Italy; Department of Economics and Statistics, University of Udine, Udine, Italy}, abstract = {Based on a sample of 54 Islamic indices over the period 2007–2014, we investigate the effect of Shariah board members' educational background on Islamic indices' risk and return characteristics via the screening criteria. Using a capital asset pricing model benchmark analysis, we assess the sensitivity of Islamic indices to their conventional peers in terms of beta and derive a measure of return (Jensen's alpha). First, we observe that the higher the number of members in common among the boards, the higher the risk–return profile of Islamic indices. Second, commonalities among board members lead to standardization of the screening criteria and to similar Islamic indices' performance. Third, we show that different betas across providers depend on the screening criteria, while the economic educational background of board members affects performance in terms of Jensen's alpha. Our study aims at contributing to the governance literature related to board composition and its importance as a possible driver of performance. In addition, given the impressive growth that Islamic finance has experienced during the last decade, this topic is of great interest to the asset management industry. © 2018 John Wiley & Sons Ltd}, correspondence_address = {M.K. Hassan; Department of Economics and Finance, University of New Orleans, New Orleans, United States; email: mhassan@uno.edu}, publisher = {Wiley-Blackwell Publishing Ltd}, issn = {09628770}, language = {English}, abbrev_source_title = {Bus. Ethics}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 25} } @ARTICLE{Naifar2018, author = {Naifar, Nader}, title = {Exploring the dynamic links between gcc sukuk and commodity market volatility}, year = {2018}, journal = {International Journal of Financial Studies}, volume = {6}, number = {3}, doi = {10.3390/ijfs6030072}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85099414880&doi=10.3390%2fijfs6030072&partnerID=40&md5=3c1e6e555bbd13c0569be5fd5a14bfe3}, affiliations = {Department of Finance and Investment, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), P.O. Box 5701, Riyadh, Saudi Arabia}, abstract = {This study investigates the impact of commodity price volatility (including soft commodities, precious metals, industrial metals, and energy) on the dynamics of corporate sukuk returns. Using a sample of sukuk indices from Gulf Cooperation Council (GCC) countries, we study the dynamic conditional correlation using a multivariate generalized autoregressive conditional heteroskedasticity dynamic conditional correlation (GARCH-DCC) process. Empirical results show a time-varying negative correlation between GCC sukuk returns and commodity prices. In fact, a negative conditional correlation among assets of a given portfolio implies higher gain-to-risk ratios. An understanding of volatility and dynamic co-movements in financial and commodity markets is important for portfolio allocation and risk management practices. © 2018 by the author. Licensee MDPI, Basel, Switzerland.}, author_keywords = {Commodity prices; Dynamic conditional correlation; Islamic finance; Sukuk}, correspondence_address = {N. Naifar; Department of Finance and Investment, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh, P.O. Box 5701, Saudi Arabia; email: naneifar@imamu.edu.sa}, publisher = {MDPI AG}, issn = {22277072}, language = {English}, abbrev_source_title = {Intern. J. Financial Stud.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4; All Open Access, Gold Open Access, Green Open Access} } @ARTICLE{Khairulanuwar2020417, author = {Khairulanuwar, Aina Jazima and Chuweni, Nor Nazihah}, title = {The significance and performance analysis of Malaysian real estate investment trusts}, year = {2020}, journal = {International Journal of Law and Management}, volume = {63}, number = {4}, pages = {417 – 430}, doi = {10.1108/IJLMA-01-2020-0022}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85097892898&doi=10.1108%2fIJLMA-01-2020-0022&partnerID=40&md5=f1affca9b3e2ecefc54a202dce5343a7}, affiliations = {Department of Estate Management, Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, Seri Iskandar, Malaysia}, abstract = {Purpose: This paper aims to examine the significance and performance analysis of the Malaysian Real Estate Investment Trust (M-REIT) from 2014 to 2018. Design/methodology/approach: Performance analysis is done through operating ratio (current ratio), leverage ratio (debt ratio) and efficiency ratio (return on asset and return on equity). Findings: M-REIT has been ranked 27th globally and 7th in Asia Pacific REIT market, implying the significance of the market. The trend of market capitalisation of M-REIT had flourished from 2014 to 2017 but declined in 2018. The total assets of M-REIT have been seen thriving over the years with both Islamic REIT market capitalisation and total assets showing improvements throughout the year. From the viewpoint of efficiency ratios of ROA and ROE, Islamic REIT is deemed more favourable to investors than conventional REITs, implying the high receptive of Islamic REITs. Research limitations/implications: In terms of efficiency of operation, it is evident that several sectors of REITs may be at risk of liquidity due to the decline in current ratio from 2014 to 2018, as current ratio of less than 1 is considered a red flag. Originality/value: Performance analysis on the performance of each sector as the outcome of the research could ease investors’ decision-making as whether it can be considered as one of the viable investments available in the market. © 2020, Emerald Publishing Limited.}, author_keywords = {Accounting & Finance; Business & Economics; Emerging Economies; Law & Management; Leverage ratio; Malaysian REIT; Operating ratio; Performance analysis; Profitability ratio; Strategy}, correspondence_address = {N.N. Chuweni; Department of Estate Management, Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA, Perak Branch, Seri Iskandar Campus, Seri Iskandar, Malaysia; email: norna692@uitm.edu.my}, publisher = {Emerald Group Holdings Ltd.}, issn = {1754243X}, language = {English}, abbrev_source_title = {Int. J. Law Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Peillex2013131, author = {Peillex, Jonathan and Ureche-Rangau, Loredana}, title = {Is there a place for a shariah-compliant index on the paris stock market?}, year = {2013}, journal = {International Journal of Business}, volume = {18}, number = {2}, pages = {131 – 150}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84877643841&partnerID=40&md5=c5e143335a4247dcdb0a28695dcc282f}, affiliations = {CRIISEA, University of Picardie Jules Verne, BP 2716 80027 Amiens Cedex 1, 10, placette Lafleur, France}, abstract = {Inspired by the huge potential and the increasing role played by Islamic finance along with French specificities in the matter, this paper proposes the introduction of a Shariah-compliant index on the Paris Stock Exchange market as a benchmark for Islamic portfolio management in France. The screening process applied on the investment set represented by the stocks composing the SBF250 index leaves us with 25 companies that will be included in our market-weighted SBF Shariah-compliant index. The weighting procedure is based on the free float of each stock composing the index with a capping factor whenever necessary. In terms of risk-adjusted performance, this newly created index outperforms both its conventional counterpart and other existing Shariah-compliant and conventional indices, both on the short and long run.}, author_keywords = {Islamic finance; Performance measures; Screening; Shariah-compliance}, correspondence_address = {J. Peillex; CRIISEA, University of Picardie Jules Verne, BP 2716 80027 Amiens Cedex 1, 10, placette Lafleur, France; email: jonathan.peillex@etud.u-picardie.fr}, issn = {10834346}, language = {English}, abbrev_source_title = {Int. J. Bus.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10} } @ARTICLE{Sakti2016168, author = {Sakti, Muhammad Rizky Prima and Syahid, Ahmad and Tareq, Mohammad Ali and Mohd Mahdzir, Akbariah}, title = {Shari’ah issues, challenges, and prospects for Islamic derivatives: a qualitative study}, year = {2016}, journal = {Qualitative Research in Financial Markets}, volume = {8}, number = {2}, pages = {168 – 190}, doi = {10.1108/QRFM-06-2015-0024}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84996503996&doi=10.1108%2fQRFM-06-2015-0024&partnerID=40&md5=1c4c17ecfcf3172c5a186abc480da22b}, affiliations = {Universiti Teknologi Malaysia, Malaysia-Japan International Institute of Technology (MJIIT), Kuala Lumpur, Malaysia}, abstract = {Purpose: The purpose of this study is to investigate shari’ah scholars’ views and experiences pertaining the shari’ah issues, challenges and prospects in Islamic derivatives. Specifically, this paper critically examines the criticisms toward conventional derivative instruments and the controversies surrounding underlying contracts and current Islamic derivative products. Design/methodology/approach: This study uses qualitative methods to form a deeper understanding of shari’ah scholars’ perception and experience on Islamic derivatives. Semi-structured interviews were conducted with five shari’ah scholars who are currently working in Islamic financial institutions in Malaysia and Singapore. This study used phenomenological techniques for its data analysis. Findings: This study has found that shari’ah scholars are aware of the shari’ah issues surrounding Islamic derivatives and have provided comprehensive insight on the solution to these issues. It was found that it is important to take into account the derivatives instruments in Islamic financial industry because of the need for hedging and risk mitigation within Islamic financial institutions. Nonetheless, the study has also found that the use of wa’ad contracts to structure Islamic profit rate swaps and foreign currency exchanges are problematic because of it having features of bay’ al-kali’ bil-kali (the sale of one debt for another). Originality/value: This study is one of few studies that highlight the shari’ah issues of Islamic derivatives in Islamic banking and finance industry. This paper is of value in discussing risk management and Islamic derivatives in Islamic financial institutions and how there are many issues under the investigation process, particularly issues related to controversial underlying contracts and products. © 2016, © Emerald Group Publishing Limited.}, author_keywords = {Islamic derivatives; Malaysia; Qualitative; Risk management; Shari’ah; Singapore}, correspondence_address = {M.R.P. Sakti; Universiti Teknologi Malaysia, Malaysia-Japan International Institute of Technology (MJIIT), Kuala Lumpur, Malaysia; email: sakti.finance@hotmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17554179}, language = {English}, abbrev_source_title = {Qual. Res. Financ. Markets}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 12} } @ARTICLE{Bello2017154, author = {Bello, Nabil and Hasan, Aznan and Saiti, Buerhan}, title = {The mitigation of liquidity risk in Islamic banking operations}, year = {2017}, journal = {Banks and Bank Systems}, volume = {12}, number = {3}, pages = {154 – 165}, doi = {10.21511/bbs.12(3-1).2017.01}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85033553731&doi=10.21511%2fbbs.12%283-1%29.2017.01&partnerID=40&md5=f4f81aef173345252f39a53d30f5b7a1}, affiliations = {Institute of Islamic Banking and Finance, International Islamic University Malaysia, Kuala Lumpur, Malaysia}, abstract = {The purpose of this paper is to discuss the issues and challenges of liquidity risk management in Islamic banks. At the same time, the authors are going to identify the sources of liquidity risk in Islamic banks and the common instruments used to mitigate liquidity mismatches in both sides of their balance sheets. The study is a qualitative study that uses secondary sources of data to describe and analyze risk mitigation in the Islamic banking context. Data were collected from libraries by referring to books, journals from both online and offline sources. The research objectives were addressed by critically analysing various issues from both the Islamic principles and contemporary applications. The authors found that Islamic liquidity management is an important building block for stable and efficient banking. Even though there are several attempts, for example, i) organized tawarruq (commodity murabahah), ii) salam sukuk and iii) short-term ijarah sukuk, to find solutions to the incessant problems of liquidity faced by majority of Islamic banks, there are still several underlying problems such as i) in terms of deficiency in infrastructure especially in countries where Islamic finance is still at an early stage, ii) lack of hedging instruments and iii) Shariah restrictions on some instruments. Regulatory bodies should come up with more innovative practices of Islamic liquidity management to solve unresolved theoretical issues and also meeting market requirements for liquidity. © 2017 Nabil Bello, Aznan Hasan, Buerhan Saiti.}, author_keywords = {Islamic banking; Liquidity management; Liquidity risk; Risk management; Risk mitigation}, publisher = {LLC CPC Business Perspectives}, issn = {18167403}, language = {English}, abbrev_source_title = {Banks Bank Syst.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3; All Open Access, Gold Open Access} } @ARTICLE{Wahab2007371, author = {Wahab, Abdul Rahim Abdul and Lewis, Mervyn K. and Hassan, M. Kabir}, title = {Islamic takaful: Business models, Shariah concerns, and proposed solutions}, year = {2007}, journal = {Thunderbird International Business Review}, volume = {49}, number = {3}, pages = {371 – 396}, doi = {10.1002/tie.20148}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-34248684136&doi=10.1002%2ftie.20148&partnerID=40&md5=ec3ec0a542913095e456b0dd2fecd706}, affiliations = {Actuarial Services, Sidat Hyder Morshed Associates, SHMA Private Limited, Pakistan; Department of Banking and Finance, University of South Australia, Adelaide, SA, Australia; Department of Economics and Finance, University of New Orleans, New Orleans, LA, United States; Drexel University, Philadelphia, PA, United States}, abstract = {Islamic insurance (takaful) is nearly as old as the Islamic banking system and dates back to 1979, when the concept was launched in Sudan and later in Saudi Arabia. Yet, unlike its banking counterpart, takaful has been covered less in the literature on Islamic finance, and its workings are not fully understood. Shariah scholars have raised a number of concerns about the Shariah permissibility of the business models employed in the industry. This article examines the basic principles of takaful and then analyzes the mechanics of the two models most commonly used in the industry - namely, the mudarabah system that was developed by the Malaysians and the wakala (agency) system that is now being used by most takaful operators and has achieved tremendous popularity and acceptance in recent years even in countries where the mudarabah model was earlier implemented. Shariah scholars have, however, expressed some misgivings about both approaches, but because of its wider acceptability among Shariah scholars in the case of the wakala approach, this is more urgent. With regards to the mudarabah model for risk management, there are major discrepancies that have been highlighted by Shariah scholars effectively rendering it inappropriate to apply this for insurance contracts. For this reason, the article outlines a third model, a wakala with waqf fund, that seeks to remain within the wakala framework while incorporating modifications that may render it more acceptable from a Shariah perspective. © 2007 Wiley Periodicals, Inc.}, correspondence_address = {A.R.A. Wahab; Actuarial Services, Sidat Hyder Morshed Associates, SHMA Private Limited, Pakistan; email: abdul.rahim@sidathyder.com.pk}, publisher = {John Wiley and Sons Inc.}, issn = {10964762}, language = {English}, abbrev_source_title = {Thunderbird Int. Bus. Rev.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 50} } @ARTICLE{Sungkawaningrum2022, author = {Sungkawaningrum, Fatmawati and Hartono, Sri and Holle, Mohammad H. and Gustiawan, Willson and Siskawati, Eka and Hasanah, Niswatun and Andiyan, Andiyan}, title = {DETERMINANTS OF COMMUNITY DECISIONS TO LEND MONEY TO LOANERS; [DETERMINANTES DE LAS DECISIONES COMUNITARIAS DE PRESTAR DINERO A LOS PRESTAMISTAS]; [DETERMINANTES DAS DECISÕES DA COMUNIDADE DE EMPRESTAR DINHEIRO AOS MUTUÁRIOS]}, year = {2022}, journal = {International Journal of Professional Business Review}, volume = {7}, number = {3}, doi = {10.26668/businessreview/2022.v7i3.510}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85140751174&doi=10.26668%2fbusinessreview%2f2022.v7i3.510&partnerID=40&md5=ef6c8e7e1c70574bb95c502750c331b2}, affiliations = {Sharia Economics Department, NahdatulUlama Islamic Institute Temanggung, Indonesia; Muhammadiyah University of Ponorogo, Indonesia; Sharia Economics Department, Ambon State Institute of Islamic Religion, Indonesia; Department of Business Administration, Padang State Polytechnic, Indonesia; Accounting Department, Padang State Polytechnic, Indonesia; Sharia Economics Department, Qomaruddin Gresik Islamic Institute, Indonesia; Department of Architecture, UniversitasFaletehan, Indonesia}, abstract = {Purpose: To meet the needs of the public, the government has provided an official financial institution, which is subject to a certain series of administrations with all the calculations. The problem is that not all community members understand access to finance at these financial institutions. There are Islamic banking, BMT, and Sharia KSPPS, but in borrowing money they choose moneylenders. This problem is influenced by the ease of borrowing money from moneylenders, which are more flexible and the method of payment can be adjusted according to a special agreement between the customer and the moneylender. Disbursement of funds that can be done at any time according to the time needed, without being bound by conditions that are considered complicated by the customer. As a form of compensation, the interest charged by moneylenders is high and burdensome for the borrower. The risk of high-interest rates is often not taken into account by the borrower. Design/Methodology/Approach: The method for developing public financial literacy is what the moneylender's practice as the object of observation. To be realized as an effort for educational methods is to conduct an analysis of moneylenders in the community and explore how people depend on moneylenders, evaluate financial behavior in the community, deconstruct financial behavior and re-conceptualize public financial behavior. Findings: Socialization and acceleration of the marketing of financial products from the BMT, or official government financial institutions need to be carried out to prevent the level of community dependence on moneylenders, including by expanding financial literacy in the community, establishing management education methods, and implementing finance that is more inclusive in the community. Research, Practical & Social Implications: The necessities of life for each individual in the community will certainly not be the same, to be able to fulfill the purpose of these needs it is financed by the availability of funds or financial means. There are members of the community who are relatively able to meet their financing needs, but not a few of the community have not met their needs. Originality/Value: This study seeks to help the government and society in Indonesia to have a good education in terms of financial literacy, people need information and knowledge that currently in Indonesia there are many formal and legal financial institutions to help financial problems faced by people in Indonesia. Indonesian people are no longer just dependent on moneylenders or illegal financial institutions, which will instead trap them into new financial problems. © 2022 by the Author(s).}, author_keywords = {Access to finance; Community; Financial institution; Moneylenders}, publisher = {AOS-Estratagia and Inovacao}, issn = {25253654}, language = {English}, abbrev_source_title = {Int. J. Prof. Bus. Rev.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 6; All Open Access, Gold Open Access, Green Open Access} } @ARTICLE{Gait2008783, author = {Gait, Alsadek and Worthington, Andrew}, title = {An empirical survey of individual consumer, business firm and financial institution attitudes towards Islamic methods of finance}, year = {2008}, journal = {International Journal of Social Economics}, volume = {35}, number = {11}, pages = {783 – 808}, doi = {10.1108/03068290810905423}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-53349119209&doi=10.1108%2f03068290810905423&partnerID=40&md5=60e21d4286a5bc0ab3db12a788f5dd26}, affiliations = {University of Wollongong, Wollongong, Australia; Griffith University, Brisbane, Australia}, abstract = {Purpose - The purpose of this paper is to review the attitudes, perceptions and knowledge of Islamic financial products and services. Design/methodology/ approach - A synoptic survey of empirical analyses about Islamic financial products and services and comparison with the literature on conventional financial services and products. Findings - It was found that while religious conviction is a key factor in the use of Islamic finance, consumers also identify bank reputation, service quality and pricing as being of relevance. When selecting a financial institution's products and services, business firms usually employ criteria that are more conventional, such as the cost of finance, in their decision making. There is also interest among financial institutions in supplying Islamic financial products and services, but this is mitigated by complications with firm management and a lack of familiarity with business conditions. The concept of risk sharing with borrowers serves as a substantial barrier to most financial institutions engaging in Islamic methods of finance. Research limitations/implications - This survey is limited to work published in refereed journals, books and book chapters. Practical implications - Need for further theoretical and empirical research on how religious convictions affect consumers in their financial decision making. In addition, most work on Islamic finance is in a single national context, international comparisons are required. Originality/value - This paper is the only known empirical survey of attitudes, perceptions and knowledge of Islamic financial products and services. It provides guidance for future research in Islamic finance and serves as an aid for decision making by policymakers, consumer interest groups, business firms and financial institutions. © Emerald Group Publishing Limited.}, author_keywords = {Banking; Finance; Financial services; Islam}, correspondence_address = {A. Worthington; Griffith University, Brisbane, Australia; email: a.worthington@griffith.edu.au}, issn = {03068293}, language = {English}, abbrev_source_title = {Int. J. Soc. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 100; All Open Access, Green Open Access} } @ARTICLE{Chiadmi20211, author = {Chiadmi, Mohammed Salah and Abbahaddou, Kaoutar}, title = {Heteroscedasticity and Financial Contagion: Evidence from Some Islamic Stock Indexes}, year = {2021}, journal = {Academy of Accounting and Financial Studies Journal}, volume = {25}, number = {1}, pages = {1 – 14}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85103686223&partnerID=40&md5=fcd287f79795a315f2c99aa1f488057d}, affiliations = {Mohammed V University in Rabat, Morocco}, abstract = {This paper aims to investigate the main econometrical properties that characterize a new class of stock market indexes. We have studied the stability of Islamic finance by analyzing the main stylized facts widely known in conventional financial markets which are: heteroscedasticity and financial contagion. Two Islamic stock indexes have been the subject of this paper, namely: the Jakarta Islamic index and the S&P Sharia index. Univariate and asymmetric GARCH models with different densities are used to model conditional volatility, while Multivariate GARCH models are used to model volatility transmission. We have proved that Islamic stock indexes have shown significant volatility, especially in times of crisis. Furthermore, the volatility transmission was very important from American market to Islamic markets. Despite its specific properties especially intrinsic stability, Islamic finance operates in an interdependent global economy and in a very risky environment. Consequently, the operators of Islamic finance must certainly strengthen the preventive management of systemic risks to consolidate the stability of Islamic finance. © 2021. All Rights Reserved.}, author_keywords = {Conditional Correlation; Conditional Volatility; Financial Contagion; Financial Crisis; Islamic Finance}, publisher = {Allied Business Academies}, issn = {10963685}, language = {English}, abbrev_source_title = {Acad. Account. Financ. Stud. J.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Gündoǧdu201659, author = {Gündoǧdu, Ahmet Şuayb}, title = {Risk management in Islamic trade finance}, year = {2016}, journal = {Bogazici Journal}, volume = {30}, number = {2}, pages = {59 – 77}, doi = {10.21773/boun.30.2.4}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85018712796&doi=10.21773%2fboun.30.2.4&partnerID=40&md5=5801fad46abb339549d59e82d60747e0}, affiliations = {Country Representative of International Islamic Trade Finance Corporation, Islamic Development Bank Group, Beybi Giz Plaza, Dereboyu Cad., Meydan Sokak, No:1, Kat: 31, Daire:122, Maslak, Sariyer, Istanbul, Turkey}, abstract = {Islamic trade finance, though still not fully developed, has in practice reached the stage in which it calls for a careful review of a wide range of products in export and import financing. The purpose of this paper is to categorize, from a risk management point of view, Islamic trade finance products for asset based&backed and sub-categories of exports and imports. Each cluster of products would necessitate specific risk measures to be taken for a healthy management of lending and borrowing processes. Asset based Murabaha requires transfer of ownership simultaneously from supplier to financier and from financier to the beneficiary of loan. Hence, risk management practices would be similar to conventional lending. Asset backed Murabaha, on the other hand, necessitates holding ownership of the goods financed and gives rise to certain risk to be managed. This paper highlights the risk areas for asset based&backed Murabaha and suggests methods to handle the risk associated with processes shaped by the underlying Islamic trade finance contract. © 2016, Bogazici Universitesi. All rights reserved.}, author_keywords = {Asset Backed Murabaha; Export receivable financing; Islamic trade finance; Murabaha; Risk management; Structured trade finance; Warehouse receipt financing}, keywords = {export; finance; import; Islamism; lending behavior; risk assessment; trade}, correspondence_address = {A.S. Gündoǧdu; Country Representative of International Islamic Trade Finance Corporation, Islamic Development Bank Group, Maslak, Sariyer, Beybi Giz Plaza, Dereboyu Cad., Meydan Sokak, No:1, Kat: 31, Daire:122, Turkey; email: ahmetsuayb@hotmail.com}, publisher = {Bogazici Universitesi}, issn = {13009583}, language = {English}, abbrev_source_title = {Bogazici J.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2; All Open Access, Bronze Open Access, Green Open Access} } @ARTICLE{Masood2012197, author = {Masood, Omar and Al Suwaidi, Hasan and Darshini Pun Thapa, Priya}, title = {Credit risk management: a case differentiating Islamic and non-Islamic banks in UAE}, year = {2012}, journal = {Qualitative Research in Financial Markets}, volume = {4}, number = {2-3}, pages = {197 – 205}, doi = {10.1108/17554171211252529}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85015311720&doi=10.1108%2f17554171211252529&partnerID=40&md5=c68f3a4eeb299e1ceda7239f97bc9bfd}, affiliations = {London, United Kingdom; Business school, London Metropolitan University, London, United Kingdom; Department of Business Management, South London College, London, United Kingdom}, abstract = {Purpose – The purpose of this paper is to identify any differences between the Islamic and non-Islamic banks in the UAE on credit risk management. Design/methodology/approach – The study uses survey based methodology for data collection. The sample for the study consists of six commercial banks from UAE with three non-Islamic and three Islamic banks and with 148 credit risk managers as respondents for the survey. The study aims to investigate factors which distinguish between Islamic and non-Islamic banks in UAE. This is achieved by fitting a binary logistic regression model. Findings – The study shows that the managers in Islamic banks now do not rely only on personal experiences and simple credit risk analysis. The Islamic banks appear also to be developing and practising the newer and robust techniques, in addition to traditional methods, to manage their credit risk in UAE compared to non-Islamic banks, which indicates a possibility of further improvement in their credit risk management. Originality/value – The paper uses questionnaire-based methodology, which has not been used previously in the UAE financial sector, as well as in studies of credit risk management. Therefore, this research could become the cornerstone of further academic research in other developing countries using this methodology. © 2012, © Emerald Group Publishing Limited.}, author_keywords = {Banking and finance; Banking industry; Credit management; Credit risk management; Financial services; Islam; Islamic and non-Islamic banks; Logistic regression analysis; Questionnaire method; UAE financial sector; United Arab Emirates}, correspondence_address = {P. Darshini Pun Thapa; Department of Business Management, South London College, London, United Kingdom; email: pdpthapa@gmail.com}, publisher = {Emerald Group Publishing Ltd.}, issn = {17554179}, language = {English}, abbrev_source_title = {Qual. Res. Financ. Markets}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 16} } @ARTICLE{Rahman20151, author = {Rahman, Aisyah Abdul and Ramli, Raudha}, title = {Islamic Cross Currency Swap (ICCS): hedging against currency fluctuations}, year = {2015}, journal = {Emerald Emerging Markets Case Studies}, volume = {5}, number = {4}, pages = {1 – 12}, doi = {10.1108/EEMCS-09-2014-0215}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85081001581&doi=10.1108%2fEEMCS-09-2014-0215&partnerID=40&md5=13da55f3e198fca92da9ce70d6c15af7}, affiliations = {National University of Malaysia, Bangi Selangor, Malaysia}, abstract = {Subject area: The case is suitable for use in the topics related to the functions and roles of hedging and the Islamic derivatives/hedging instruments. Study level/applicability: The case is designed for undergraduate students, taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions. Case overview: This case describes the theory and application of Islamic Cross Currency Swap (ICCS) in the market. Having this understanding enables case analysts to understand the functions and roles of hedging and the Islamic derivatives or hedging instruments of ICCS comprehensively. The case begins with Yusof, the new finance officer of Al-Yemeni Sdn. Bhd to analyse the permissibility of hedging and derivatives to hedge against currency fluctuations from Islamic perspective. Yusof had to complete the report before the Board of Director's quarterly meeting, which was within a week. Having in mind that the company's mission was to be a Shariah-compliant stock by 2012, Yusof was responsible for ensuring that the company was administrated in an Islamic way. Besides, he also had to ensure that the company generated income and profit as planned. In doing so, he had to strategise all possible risk exposures that could be mitigated or hedged. This case ends by giving the case analyst information on ICCS offered by Al-Rizky Bank Berhad (ARBB). In this case, Yusof had to find out whether hedging is allowed in Islam. What are the Islamic derivatives? What are the different views of Shariah scholars on various types of derivatives? What is the modus operandi of ICCS? Is the ICCS offered by ARBB Shariah compliant? What are the possible risk exposures being hedged in ICCS? Expected learning outcomes: To provide exposure on the concepts of hedging from Islamic perspectives; to provide exposure on the concepts of Islamic derivatives/Islamic hedging instruments; to stimulate understanding on the modus operandi of ICCS in ARBB; and to help case analysts understand what makes the Islamic hedging instruments become Shariah compliant. Supplementary materials: Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. © 2015, Emerald Group Publishing Limited.}, author_keywords = {Derivatives; Hedging; Islamic Cross Currency Swap}, correspondence_address = {A.A. Rahman; National University of Malaysia, Bangi Selangor, Malaysia; email: eychah@ukm.edu.my}, publisher = {Emerald Group Publishing Ltd.}, issn = {20450621}, language = {English}, abbrev_source_title = {Emerald Emerg. Mark. Case Stud.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Suayb Gundogdu201020, author = {Suayb Gundogdu, Ahmet}, title = {Islamic structured trade finance: a case of cotton production in West Africa}, year = {2010}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {3}, number = {1}, pages = {20 – 35}, doi = {10.1108/17538391011033843}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84950322611&doi=10.1108%2f17538391011033843&partnerID=40&md5=7a428c75600d1b77f86b9b461b957f9f}, affiliations = {International Islamic Trade Finance Corporation, Islamic Development Bank Group, Jeddah, Saudi Arabia}, abstract = {Purpose – The purpose of this paper is to show a creative way to fulfill financing needs of entities involved in pre- and post-harvest production activities in extreme cases while mitigating inherent risks by Islamic structured trade finance from the real-life case of cotton production in Burkina Faso. Design/methodology/approach – The existing Islamic structured finance design for SOFITEX was analyzed in details so as to provide clear understanding of the subject matter. This structure was evaluated and a new design is proposed to better accommodate the financing need of SOFITEX. Findings – There are some inherent drawbacks, explained in details, of the existing Islamic finance structure. Salam contract for pre-harvest input financing in favor of farmers can, unlike existing structure, accommodate the complete supply chain financing solution, hence, support the whole production cycle from input procurement to the exports of cotton fiber. That is, it fits better for financing the agricultural sector. Research limitations/implications – The case and the structure studied in depth are limited to the cotton sector. This could be widened in subsequent researches. Practical implications – Islamic finance instruments provide us enough room to fulfill financing needs in extreme cases as a better alternative to conventional financing tools. A method of mark-up calculation for structured cotton trade finance is developed for Murabaha and Salam contracts. Originality/value – The paper sheds new light on how to finance the agricultural sector starting from input procurement to the sale/export by Islamic finance instruments. It also shows how to get guarantees in the form of commodities in warehouse rather than bank guarantees, mortgage, sovereign guarantees, etc. © 2010, © Emerald Group Publishing Limited.}, author_keywords = {Cotton; Finance; Islam; Saudi Arabia; Supply chain management; Trade}, correspondence_address = {A. Suayb Gundogdu; International Islamic Trade Finance Corporation, Islamic Development Bank Group, Jeddah, Saudi Arabia; email: agundogdu@isdb.org}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Hanif2019967, author = {Hanif, Muhammad}, title = {Islamic mortgages: principles and practice}, year = {2019}, journal = {International Journal of Emerging Markets}, volume = {14}, number = {5}, pages = {967 – 987}, doi = {10.1108/IJOEM-02-2018-0088}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85070359578&doi=10.1108%2fIJOEM-02-2018-0088&partnerID=40&md5=0681dd5910ef566dece647dc800cec89}, affiliations = {College of Business Administration, Ajman University, Ajman, United Arab Emirates}, abstract = {Purpose: The purpose of this paper is to present an analysis of current practices of Islamic mortgages in the light of the principles of Islamic financial system, to document divergences – if any. A subsidiary goal is to develop an Islamic Mortgage Model (IMM) based on Musharakah principles. Design/methodology/approach: The author documents theoretical underpinnings of risk-return sharing from the Shari’ah perspective. A comparative study of conventional and Islamic mortgages is completed; existing practice of Islamic mortgages analyzed in the light of Musharakah principles and divergences identified. IMM is developed after taking divergences and Musharakah principles into considerations. A housing case is used to highlight differences (in financial terms) under multiple methods and scenarios. Findings: Study documents multiple divergences from Musharakah principles in the existing practice of Islamic mortgages including ignorance of market pricing in the negotiation of rentals and trading of equity units, and transfer of all ownership risks and rewards (vacancy, damage, destruction and market) to one partner (i.e. customer). Practice is divergent from principles in the area of economic substance. Modified IMM is developed by taking into account Musharakah principles; and differences highlighted by calculating financial figures – to determine financial rights and liabilities of the parties. Practical implications: Divergence from the principles of risk-return sharing leads to failure in the achievement of Islamic finance objective of equitable distribution of wealth. Moreover, protection of capital for financier reduces the market abilities to achieve financial stability by matching credit expansion with the rise in the real economy. Shari’ah boards and regulators, as well as, management of Islamic banking industry are expected to incorporate proposed changes in-practice for the realization of Islamic finance objectives. Originality/value: This study contributes to Islamic finance literature in the area of risk-return sharing. Based on important objectives of Islamic finance – equitable distribution of wealth and financial stability – divergences identified and a modified IMM in the light of Musharakah principles is presented. Descriptive rules are transformed into financial figures to document financial rights and liabilities of the concerned parties. © 2019, Emerald Publishing Limited.}, author_keywords = {Diminishing Musharakah; Islamic finance; Islamic mortgages; Profit and loss sharing; Risk and return}, correspondence_address = {M. Hanif; College of Business Administration, Ajman University, Ajman, United Arab Emirates; email: hanifacma@gmail.com}, publisher = {Emerald Group Holdings Ltd.}, issn = {17468809}, language = {English}, abbrev_source_title = {Int. J. Emerg. Mark.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Hussain2016, author = {Hussain, Mumtaz and Shahmoradi, Asghar and Turk, Rima}, title = {An Overview of Islamic Finance}, year = {2016}, journal = {Journal of International Commerce, Economics and Policy}, volume = {7}, number = {1}, doi = {10.1142/S1793993316500034}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84959911267&doi=10.1142%2fS1793993316500034&partnerID=40&md5=ebf6dd72bb495a72e976fd103feb4ae3}, affiliations = {International Monetary Fund (IMF), 700 19th Street, N.W., Washington, 20431, DC, United States}, abstract = {Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20% annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks (IBs), however, is so far mixed. While these banks face similar risks as conventional banks (CBs) do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations. © 2016 World Scientific Publishing Company.}, author_keywords = {financial stability; Islamic banking; Islamic finance; monetary policy; Sukuk}, publisher = {World Scientific Publishing Co. Pte Ltd}, issn = {17939933}, language = {English}, abbrev_source_title = {J. Int. Commer. Econ. Policy}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 34; All Open Access, Green Open Access} } @ARTICLE{Lee2020703, author = {Lee, Siew Peng and Isa, Mansor and Ahmad, Rubi and Bacha, Obiyathulla Ismath}, title = {Governance and risk-taking in conventional and Islamic banks}, year = {2020}, journal = {Managerial Finance}, volume = {47}, number = {5}, pages = {703 – 722}, doi = {10.1108/MF-04-2020-0146}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85097941292&doi=10.1108%2fMF-04-2020-0146&partnerID=40&md5=6d4b54e5ec437d7dac3b1744de8e8a78}, affiliations = {Faculty of Accountancy and Management, University of Tunku Abdul Rahman, Kajang, Malaysia; Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia; International Centre for Education in Islamic Finance, Kuala Lumpur, Malaysia}, abstract = {Purpose: The purpose of this study is to examine the relationship of the board and risk committee in respect of risk-taking in conventional and Islamic banks in Malaysia. Design/methodology/approach: This study uses unbalanced panel data for 15 conventional and 14 Islamic banks over the period 2007–2016. The generalised least squares random effects technique is applied. Findings: The evidence shows that independent directors and frequency of board meetings reduce risk-taking but that the number of directors with finance and banking experience and those with multiple directorships tend to increase risk-taking. The findings also indicate that the size of the risk committee, the number of directors on the risk committee and the appointment of a designated risk officer tends to reduce risk-taking in banks. By comparing conventional and Islamic banks, the findings show that Islamic banks have lower exposure to portfolio risk but higher insolvency risk. Practical implications: The findings in this study suggest that the board and risk committee have an impact on bank risk-taking. The implications for management include having more independent directors, fewer directors with multiple board memberships and having an efficient risk committee in order to reduce risks. Regulators should look into the issue of multiple directorships as this is positively related to risk-taking. Islamic banks should expand their operations as our findings indicate that bigger banks are better able to manage risk. Originality/value: This study covers bank governance and risk committee, which are crucial in influencing the risk-taking behaviour of conventional and Islamic banks. © 2020, Emerald Publishing Limited.}, author_keywords = {Conventional banks; Governance; Islamic banks; Malaysia; Risk committee; Risk-taking}, correspondence_address = {S.P. Lee; Faculty of Accountancy and Management, University of Tunku Abdul Rahman, Kajang, Malaysia; email: leesp@utar.edu.my}, publisher = {Emerald Group Holdings Ltd.}, issn = {03074358}, language = {English}, abbrev_source_title = {Manag. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 5} } @ARTICLE{Kamil2018161, author = {Kamil, Bidayatul Akmal Mustafa and Yahya, Khulida Kirana and Salleh, Marhanum Che Mohd and Iqbal, Fatin Izzati}, title = {Talent development and retention from the bankers' perspectives: A study at Islamic Banks in Malaysia}, year = {2018}, journal = {Journal of Social Sciences Research}, volume = {2018}, number = {Special Issue 6}, pages = {161 – 166}, doi = {10.32861/jssr.spi6.161.166}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85074803332&doi=10.32861%2fjssr.spi6.161.166&partnerID=40&md5=13cd2252faade903440ea7f63bbad321}, affiliations = {School of Business Management (SBM), College of Business, Universiti Utara Malaysia, Sintok, Kedah DarulAman, 06010, Malaysia; Kuliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, 50728, Malaysia; Management Innovation and Costing Department (MICD), Panasonic Manufacturing Malaysia Berhad, Shah Alam, Selangor, 40200, Malaysia}, abstract = {The credibility and performance of the Islamic banks depend on those who operate and manage the overall banking business. Due to high demand towards high performing talents for the industry lately, there is need to identify whether the industry has done their part to train and enhance their existing talents in order to ensure the Islamic banking business remain sustain in the future. This is more challenging when the demand for talents that have education background of combination of both Islamic jurisprudent (Shariah) and finance knowledge become pivotal.It is because of the nature of the Islamic banking business that need to ensure theoverall banking operations including product structure, accounting and auditing, credit evaluation, risk management, and others meet the Shariah requirement. This study therefore embarks to investigate relationship between talent development and talent retention and also to identify the effect of talent development towards talent retention at Islamic banking institutions. A total of 175 bankers from executive to managerial level of Islamic banks in Malaysia have involved in survey conducted in this research. The results show that the respondents agreed there is a relationship between talent development and retention. In addition, talent development do significantly affect talent retention positively. Therefore, as a suggestion from the bankers, there is need to have an appropriate talent development programme to ensure that the existing talents of the Islamic banks are competent both having strong knowledge in Islamic law as well as operating knowledge of the banking business. © 2018 Academic Research Publishing Group.}, author_keywords = {Islamic banks; Talent development; Talent management; Talent retention}, publisher = {Academic Research Publishing Group}, issn = {24136670}, language = {English}, abbrev_source_title = {J. Soc. Sci. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1; All Open Access, Gold Open Access} } @ARTICLE{Grira2021, author = {Grira, Jocelyn and Labidi, Chiraz}, title = {Banks, Funds, and risks in islamic finance: Literature & future research avenues}, year = {2021}, journal = {Finance Research Letters}, volume = {41}, doi = {10.1016/j.frl.2020.101815}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85095564485&doi=10.1016%2fj.frl.2020.101815&partnerID=40&md5=506b9a1a6509ea298e8c0bbba3f9d8ae}, affiliations = {Qatar University, College of Business & Economics, Doha, Qatar; United Arab Emirates University, College of Business & Economics, United Arab Emirates}, abstract = {In this paper, we present the current state of research in Islamic finance by focusing on three spheres of knowledge: Islamic banking, Islamic fund management, and risk management. We also discuss regulatory issues while systematically referring to conventional finance as a benchmark. We conclude by shedding more light on future research avenues. © 2020}, author_keywords = {Islamic banking; Islamic finance; Islamic Funds; Islamic risk management}, correspondence_address = {J. Grira; Qatar University, College of Business & Economics, Doha, Qatar; email: jocelyn@qu.edu.qa}, publisher = {Elsevier Ltd}, issn = {15446123}, language = {English}, abbrev_source_title = {Finan. Res. Lett.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 14} } @ARTICLE{Omrana2015224, author = {Omrana, Siham and Aboulaich, Rajae and Idrissi, Ali Alami}, title = {Modelling "Bai Al Arboun" using binomial model}, year = {2015}, journal = {International Journal of Business}, volume = {20}, number = {3}, pages = {224 – 236}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84944607925&partnerID=40&md5=e224b19a482416f8d81c1300f8117858}, affiliations = {Islamic Financial Engineering Laboratory, Laboratory of Study and Research in Applied Mathematics, Mohammadia School of Engineering, Mohammed V University, Rabat, Morocco; Optima Finance Consulting, Morocco}, abstract = {Bai Al Arboun, down payment sale, is characterized by many similarities with a call option in the sense that both could be employed as strategies of hedging risks and a method by which stakeholders have more flexibility prior to executing their contracts. From a theoretical perspective Bai Al Arboun would appear to be suitable for replicating the conventional call option in a manner that complies with Shariah. This paper examines Bai Al Arboun as a Shariah compliant alternative to Call Option. The challenge is to find instruments that allow the management of production risks without prejudice of speculation. We studied the possibility of modeling Bai Al Arboun using the Binomial Model. This model, widely used for pricing options, will be adapted to Shariah rules and conditions for pricing Al Arboun deposit.}, author_keywords = {Bai Al Arboun; Binomial model; Call options; Cox, Ross,&Rubenstein model; Derivatives; Financial engineering; Fixed point method; Islamic finance; Islamic risk management; Shariah compliance}, publisher = {Premier Publishing, Inc.}, issn = {10834346}, language = {English}, abbrev_source_title = {Int. J. Bus.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{Sriyakul2019335, author = {Sriyakul, Thanaporn and Jermsittiparsert, Kittisak and Joemsittiprasert, Watcharin and Pamornmast, Chayongkan}, title = {Comparative analysis of stability and bank earnings: A study of Indonesian Islamic and conventional banking firms}, year = {2019}, journal = {International Journal of Innovation, Creativity and Change}, volume = {10}, number = {1}, pages = {335 – 351}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85083737772&partnerID=40&md5=1901cd78a640e68f3799fc922eb2dfb2}, affiliations = {Mahanakorn University of Technology, Bangkok, Thailand; Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Viet Nam; Ton Duc Thang University, Ho Chi Minh City, Viet Nam; Division of Business Administration, ASA College, New York, United States; Mahanakorn University of Technology, Bangkok, Thailand}, abstract = {The objective of this study is to examine the effect of bank-related and country-based determinants of stability and earnings in the Indonesian banking industry. For this purpose, 7 banking firms from both conventional and Islamic title were selected over the period of 2012-2016, with annual observations made. Research design is based on the descriptive statistics, correlation matrix and finally regressions methods. Separate findings are presented and discussed for Islamic and conventional banks with and without consideration of country-based determinants of stability and earnings. It is found that under Islamic banking firms, key determinants for the stability are NPLs, market risk and book value per share. While GDP is also found to be a significant determinant of bank-stability and earnings. For conventional banks, key indicators for volatility in return on assets and return on equity are NPLs, capital ratio and GDP. These findings add significantly to the body of knowledge in the literature of banking, finance and risk management. Both conventional and Islamic banking officials are recommended to review these study findings to gain understanding of both regressors and outcome variables. The key limitation of this study is the limited sample from both Islamic and conventional banking, time duration and absence of cross-sectional comparative analysis. Future studies are recommended to overcome these limitations. © 2019, Primrose Hall Publishing Group.}, author_keywords = {Bank stability; Earnings; GDP; Indonesia; Return on equity; Volatility in return on assets}, correspondence_address = {K. Jermsittiparsert; Department for Management of Science and Technology Development, Ton Duc Thang University, Ho Chi Minh City, Viet Nam; email: kittisak.jermsittiparsert@tdtu.edu.vn}, publisher = {Primrose Hall Publishing Group}, issn = {22011315}, language = {English}, abbrev_source_title = {Int. J. Innov. Creat. Change}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Anwer2019147, author = {Anwer, Zaheer and Asadov, Alam and Kamil, Nazrol K.M. and Musaev, Mehroj and Refede, Mohd}, title = {Islamic venture capital – issues in practice}, year = {2019}, journal = {ISRA International Journal of Islamic Finance}, volume = {11}, number = {1}, pages = {147 – 158}, doi = {10.1108/IJIF-06-2018-0063}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85068258995&doi=10.1108%2fIJIF-06-2018-0063&partnerID=40&md5=0764dc2f9de67952963224dd893ca92d}, affiliations = {Lahore Centre of Excellence in Islamic Banking and Finance, University of Lahore, Lahore, Pakistan; Prince Sultan University, Riyadh, Saudi Arabia; Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia; Tashkent Islamic University, Tashkent, Uzbekistan; International Centre for Education in Islamic Finance, Kuala Lumpur, Malaysia}, abstract = {Purpose: This paper aims to explore the structure and underlying contracts of Islamic venture capital (IVC) and to evaluate its prospects. VC can be perceived as an investment vehicle possessing most of the desirable attributes of a Sharīʿah-compliant investment vehicle. There are certain issues involved in the formation, operations and exit strategies of these investments that are discussed in detail in this paper. Design/methodology/approach: A detailed review of relevant literature is performed to identify how IVC investments can be made and how related issues may be resolved. Findings: IVC investment has potential of incorporating Sharīʿah-compliant investment modes. Additionally, it may offer higher than average returns. These attributes can be desirable for Islamic finance industry that is currently in need of equity-based financing products. The major causes of lesser growth of IVC investments are lack of awareness among the investors and the absence of viable investment opportunities for small- and medium-scale investors. IVC may attract general public if established after extensive research aimed at introducing innovative products. Originality/value: This paper provides an overview of a truly Sharīʿah-compliant investment vehicle, furnishes a synthesis of various suggestions made by industry and academia and suggests viable solutions for valuation, risk management and exit strategies. © 2019, Zaheer Anwer, Alam Asadov, Nazrol K.M. Kamil, Mehroj Musaev and Mohd Refede.}, author_keywords = {Islamic finance; Islamic venture capital; Sharīʿah-compliant investment}, correspondence_address = {Z. Anwer; Lahore Centre of Excellence in Islamic Banking and Finance, University of Lahore, Lahore, Pakistan; email: zmanwar@gmail.com}, publisher = {Emerald Publishing}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10; All Open Access, Bronze Open Access, Green Open Access} } @ARTICLE{Zaki2011168, author = {Zaki, Abdul Rehman and Sattar, Abdul and Manzoor, Muhammad Mazhar}, title = {Risk mitigation in Islamic finance through policies and regulatory model- a way to long-term stability}, year = {2011}, journal = {International Research Journal of Finance and Economics}, volume = {68}, pages = {168 – 175}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-79958280970&partnerID=40&md5=ed17feb1add1564ef3f1671abbfd6573}, affiliations = {Chairman, Karachi University Business School, KU, Karachi, Pakistan; Faculty of Management Sciences, BUITEMS, Quetta, Pakistan; Business Administration Department, FUUAST, Gulshan-e Iqbal, Karachi, Pakistan}, abstract = {Hedging of risks in Islamic finance has gained more importance in recent era because of the financial crisis faced by conventional finance. It is believed that Islamic finance is turning to be an alternative to orthodox economic system but the nature and risks faced by Islamic financial institutions have alarming concerns for Islamic finance and it's functioning. In this regard, this paper aims at suggesting policies and procedures for risk mitigation in Islamic finance by proposing a regulatory model which highlights different pre requisite policies mandatory for effective risk management. in this paper policies and procedures are highlighted as the variables of the study, including, policies for prudent financing, investing and lending activities, separation of Shariah advisory board from management for the mitigation of Shariah non Compliance, effective information system, policies for mitigating risks. The regulatory frame work of this paper leads to purported results which provide bases for stability and effective risk mitigation of Islamic banks. © EuroJournals Publishing, Inc. 2011.}, author_keywords = {Conventional finance; Financial crisis; Islamic finance; Prudent financing; Risk mitigation; Shariah Advisory Board}, correspondence_address = {A. R. Zaki; Chairman, Karachi University Business School, KU, Karachi, Pakistan; email: ar.zaki@hotmail.com}, issn = {14502887}, language = {English}, abbrev_source_title = {Int. Res. J. Financ. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Alaabed2019S14, author = {Alaabed, Alaa and Ferdous Chowdhury, Mohammad Ashraful and Masih, Mansur}, title = {Size, correlations, and diversification: New evidence from an application of wavelet approach to the emerging Islamic mutual fund industry}, year = {2019}, journal = {Borsa Istanbul Review}, volume = {19}, pages = {S14 – S20}, doi = {10.1016/j.bir.2018.08.001}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85052969569&doi=10.1016%2fj.bir.2018.08.001&partnerID=40&md5=5e809b517a4ea611cc0cdb7306665509}, affiliations = {The Islamic International Rating Agency (IIRA), Bahrain; INCEIF, Malaysia; Shahjalal University of Science & Technology, Bangladesh}, abstract = {Despite the rapid growth of Islamic finance in recent years, there has been relatively little work done on the emerging Islamic mutual fund industry within the broad field of Islamic finance. As far as the authors’ knowledge, this paper is the first attempt dedicated to understanding the correlation between different sizes of the young and rapidly growing Islamic mutual fund industry at different investment horizons. Major part of economic time series analysis is done in time or frequency domain separately. Wavelet analysis can combine these two fundamental approaches, so we can work in the time-frequency domain. Using wavelet coherence, we have gained valuable insights into the continuous dynamics of correlation between small, medium and large size Islamic mutual funds at different investment horizons for reaping the benefits of portfolio diversification in particular and keeping contagion risk at bay. © 2018 The Authors}, author_keywords = {Assets under management; Diversification; Islamic mutual funds; Size; Volatility; Wavelet analysis; Wavelet coherence}, correspondence_address = {M. Masih; INCEIF, Malaysia; email: mansurmasih@gmail.com}, publisher = {Borsa Istanbul Anonim Sirketi}, issn = {22148450}, language = {English}, abbrev_source_title = {Borsa Istanb. Rev.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2; All Open Access, Gold Open Access} } @ARTICLE{Beseiso20143, author = {Beseiso, Fouad H.}, title = {Central banks' role in shaping the future of islamic banking}, year = {2014}, journal = {Contemporary Studies in Economic and Financial Analysis}, volume = {95}, pages = {3 – 30}, doi = {10.1108/S1569-3759(2014)0000095009}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84904752696&doi=10.1108%2fS1569-3759%282014%290000095009&partnerID=40&md5=793660cc015291fae8fe336e3f33f428}, affiliations = {Center of Economic Future for Consultancy and Strategic Studies (Founder and Executive Charmn.), Amman, Jordan}, abstract = {Purpose - This chapter's goal is to define the kind of seeds to be planted for moving forward in the safe and stable drive toward a leading central banking role directed at achieving a sustained Islamic banking and finance development within the global financial system. The system witnessed the input of Islamic banking with its fruitful contribution as a feasible banking structure in both implementing agreed reforms and shaping the next steps directed toward crisis prevention and crisis resolution. Approach and methodology - The adopted approach is based upon scientific conceptual basis as well as the practical experience related to the central banking role and Islamic banking evolution. This chapter will define the strategic role of Central Banks and highlight the conceptual basis governing the leading role of central banks as well as the practical basis derived from our central banking and Islamic banking experience. Contribution - In light of the conceptual and practical basis for enabling an efficient and effective role of Central Banks as a regulatory body in shaping the future of the Islamic Financial System. Legal, institutional and managerial strategic determinants for this role have been defined. The analytical work of this chapter crystallises in a pioneering initiative the main determining factors governing the role of central banks as the main regulatory body for Islamic banking, and how this role could be effective in affecting the future role to be played by the Islamic banks in the global financial system. Also, to this end, the integrated required role by central banks, public policies, multilateral institutions and Islamic banks are illustrated. Findings - Energy and cooperative hard work and commitment from all players, including the regulators of Islamic banks supported by public policies, international and multilateral institutions and members of the Islamic banking family is thought to be the main determining factor for transforming the Islamic banking family into one that will make the Islamic people and all humanity - through the global financial system - live with more stability, welfare and happiness. © 2014 by Emerald Group Publishing Limited.}, author_keywords = {Banking technology; Central banking; Crisis and risk management; Islamic banking; Strategic planning}, publisher = {Emerald Group Publishing Ltd.}, issn = {15693759}, isbn = {978-178350817-4}, language = {English}, abbrev_source_title = {Contemp. Stud. Econ. Financ. Anal.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 1} } @ARTICLE{Yaya2021814, author = {Yaya, Rizal and Saud, Ilham Maulana and Hassan, M. Kabir and Rashid, Mamunur}, title = {Governance of profit and loss sharing financing in achieving socio-economic justice}, year = {2021}, journal = {Journal of Islamic Accounting and Business Research}, volume = {12}, number = {6}, pages = {814 – 830}, doi = {10.1108/JIABR-11-2017-0161}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85112651335&doi=10.1108%2fJIABR-11-2017-0161&partnerID=40&md5=3f7275af1f23e51fede0c904b5f07453}, affiliations = {Department of Accounting, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia; Department of Economics and Finance, University of New Orleans, New Orleans, LA, United States; School of Business and Economics, Universiti Brunei Darussalam, Gadong, Brunei Darussalam}, abstract = {Purpose: This study aims to explore the governance practices of profit and loss sharing (PLS) financing in connection to the socio-economic development objective of the Islamic financial institutions (IFIs). Design/methodology/approach: The study context included IFIs from Yogyakarta, Indonesia. A two-stage research methodology was used. In the first stage, top ten IFIs – three Islamic commercial banks, three Islamic rural banks and four Islamic micro finance institutions – were considered for in-depth interviews. Formal interview protocol was followed to record and transcribe interviews. In the second stage, a questionnaire survey considered 26 IFIs. Unit of measurement was individuals working at the mid and top level from the selected organisations. Findings: The governance process of providing and managing PLS financing involves several critical factors, such as the financing duration, instalment timing, contract approval and cost, basis of sharing, risk management, customer empowerment and Sharīʿah compliance. Contrary to the existing belief, the authors found that PLS financing is primarily available for shorter period of time (three years) and it is unavailable for start-ups. Also, newer IFIs rely less on PLS financing than the older IFIs. In addition to worrying about the higher risk of return, IFIs considered government regulation on PLS to be tighter in terms of provision and rescheduling. Research limitations/implications: This study is limited to investigating IFIs in Yogyakarta, Indonesia. This limitation is covered by taking samples from three types of IFIs. Practical implications: For IFI practitioners, these findings are expected to improve their confidence in undertaking more progressive efforts in adopting governance policies that contribute to greater socio-economic justice. Social implications: If the governance good practices are implemented by all IFIs, a higher degree of social welfare and customer awareness can be achieved. Originality/value: Across all types of IFIs, this study’s results confirm that PLS is less preferred for long-term and start-up financing. These findings should be the ingredients to push research on PLS further, as these findings grossly violate the theory. Fulfilling these gaps could strengthen the nexus between PLS and socio-economic justice. © 2021, Emerald Publishing Limited.}, author_keywords = {Financing; Governance practices; Islamic financial institutions; Profit and loss sharing; Profit and loss sharing financing; Socio-economic justice}, correspondence_address = {R. Yaya; Department of Accounting, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia; email: r.yaya@umy.ac.id}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Atta2021263, author = {Atta, Anas Ahmad Bani and Marzuki, Ainulashikin}, title = {STAR AND POOR FUND PHENOMENA IN ISLAMIC- AND CONVENTIONAL-FOCUSED FAMILIES: EMERGING COUNTRY EVIDENCE}, year = {2021}, journal = {Journal of Islamic Monetary Economics and Finance}, volume = {7}, number = {2}, pages = {263 – 284}, doi = {10.21098/jimf.v7i2.1349}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85149411948&doi=10.21098%2fjimf.v7i2.1349&partnerID=40&md5=1e99e05e5c7c8bcd42641d7e2f572695}, affiliations = {Universiti Sains Islam Malaysia (USIM), Malaysia}, abstract = {The aim of this study is to investigate star and poor phenomena and their impact on the flows of Islamic-focused family (IFF) and conventional-focused family (CFF). The sample includes the four emerging countries with the largest number of Islamic mutual funds from 2007 to 2018 (Saudi Arabia, Malaysia, Indonesia, and Pakistan). Panel regression analysis was used to examine the impact of dummy star and poor as independent variables, and family age, size, number of funds, past returns, and total risk as control variables for fund family flows. The results show that the dummy star has a significantly positive relationship with family flows. Family managers have succeeded in attracting more investors by using the strategy of advertising the best performing funds. However, in both, all families and IFF, the dummy poor has a negative relationship, but is insignificant. On the other hand, for CFFs, the dummy poor is significantly negative. This is because investors in IFFs, unlike those in CFFs, have more loyalty due to their moral and religious goals in addition to traditional goals. The novel finding of the study is the difference in the star phenomenon between the IFF and CFF. The findings are important for managers, as they will help them to create appropriate strategies to attract more flows and increase the assets under their management. In addition, the findings will help investors to direct their money to appropriate families. © Islamic Monetary Economics and Finance. All rights reserved.}, author_keywords = {Family flow; Fund family; Islamic finance; Star fund}, publisher = {Bank Indonesia Institute}, issn = {24606146}, language = {English}, abbrev_source_title = {J. Islam. Monet. Econ. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2; All Open Access, Gold Open Access} } @ARTICLE{Hassan201621, author = {Hassan, Rusni}, title = {Shariah non-compliance risk and its effects on islamic financial institutions}, year = {2016}, journal = {Al-Shajarah}, volume = {21}, number = {Specialissue}, pages = {21 – 39}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85028658341&partnerID=40&md5=62b11516dac62321731ed3d0b1461bd2}, affiliations = {IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM), Malaysia}, abstract = {The objective of this paper is to provide the definition of shariah non-compliance risk associated with Islamic financial institutions (IFIs). Having a precise definition of shariah non-compliance risks is highly necessary for the purpose of developing a comprehensive risk management framework for an Islamic financial system. This study is conducted through a literature review on Islamic turath, regulatory provisions and existing academic journals on Islamic risk management. This paper provides an in-depth discussion on the major elements that trigger shariah non-compliance risks and hence affects the validity of Islamic contracts such as riba, gharar, taghrir, ghubn, etc. These elements of risk were identified as that emerging from the entire process of developing an Islamic financial product, starting from the structuring stage until the execution of the product in the market and hence cause severe both financial and non-financial costs to IFIs. This research may have some implications to the Islamic finance industry in Malaysia, becoming a reference for Malaysian IFIs in structuring their own comprehensive risk management and internal control system and hence enhance the effectiveness of the shariah governance practice within the IFIs.}, author_keywords = {Islamic finance; Islamic risk management; Shariah compliance}, publisher = {International Islamic University Malaysia}, issn = {13946870}, language = {English}, abbrev_source_title = {Al-Shajarah}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Bhuiyan20201245, author = {Bhuiyan, Rubaiyat Ahsan and Puspa, Maya and Saiti, Buerhan and Ghani, Gairuzazmi Mat}, title = {Comparative analysis between global sukuk and bond indices: value-at-risk approach}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {6}, pages = {1245 – 1256}, doi = {10.1108/JIABR-02-2018-0019}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85079015764&doi=10.1108%2fJIABR-02-2018-0019&partnerID=40&md5=e39f153025ba1851d71d6a41055c8ff5}, affiliations = {Faculty of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia; Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, Istanbul, Turkey}, abstract = {Purpose: Sukuk is an innovative financial instrument with a flexible structure based on Islamic financial contracts, unlike a bond which is based on the structure of a loan imposed with interest. With the notion that sukuk differs considerably from the conventional bonds in terms of risks related to investment, this study aims to examine whether the sukuk market is different from conventional bond markets based on the value-at-risk (VaR) approach. Design/methodology/approach: The VaR of a portfolio consists of sukuk and bond indices and is undertaken to determine whether there is any reduction in the VaR amount through the inclusion of the sukuk index in the portfolio. The analysis is undertaken based on the developed and emerging market bond and sukuk indices from January 2010 to December 2015. Findings: This paper examines whether the VaR of sukuk market differs from conventional bond markets by using fundamental techniques. It was observed that the VaR amount of sukuk indices is comparatively much lower than the VaR of bond indices in all the cases. Including the sukuk index with each bond index can reduce the VaR of the portfolio by around 30 to 50 per cent for all the developed and emerging market bond indices. Research limitations/implications: This research is limited to covering six years of data. Nonetheless, it is able to provide findings which are believed to be useful for the market players. Practical implications: This study unveils attractive opportunities in terms of diversification benefits of sukuk indices for international fixed-income portfolios. Originality/value: The VaR method is a useful risk management tool. This study uses this method to emphasise the significant reduction of risks and diversification benefits that sukuk investment could offer by including it in the investment portfolio. © 2020, Emerald Publishing Limited.}, author_keywords = {Bond; Islamic finance; Portfolio management; Sukuk; Value-at-risk}, correspondence_address = {B. Saiti; Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, Istanbul, Turkey; email: borhanseti@gmail.com}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 11; All Open Access, Green Open Access} } @ARTICLE{Kassim201259, author = {Kassim, Salina H. and Kamil, Saqinah}, title = {Performance of islamic unit trusts during the 2007 global financial crisis: Evidence from malaysia}, year = {2012}, journal = {Asian Academy of Management Journal}, volume = {17}, number = {2}, pages = {59 – 78}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84871895798&partnerID=40&md5=4f5fc12d8ab89b0ea0f48ed48f553b1e}, affiliations = {Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, 50728 Kuala Lumpur, P.O. Box 10, Malaysia; School of Accounting, Finance and Quantitative Studies Studies, Asia Pacific University College of Technology and Innovation (UCTI), The Mines Resort City, 43300 Seri Kembangan Selangor, A-5-2 and 3, 5th floor, Block A, The Mines Waterfront Busi, Malaysia}, abstract = {By focusing on the Malaysian Islamic unit trusts over the period of January 2000 to December 2009, this study attempts to analyse the performance of the Islamic unit trusts in various economic conditions; during a crisis period and non-crisis period. The adjusted Sharpe index, adjusted Jensen Alpha index, and Treynor index are adopted to compare the performance of the Islamic unit trusts against the market benchmark and risk-free return. In measuring risk and diversification, the study relies on the standard deviation and R2 coefficient of determination, respectively. The findings reveal that during the non-crisis period, the performance of the Islamic unit trusts is comparable to that of the market benchmark, while during the crisis period, the Islamic unit trusts perform better compared to the non-crisis period. These findings suggests that the Islamic unit trust funds can be an ideal hedging instrument during a down market and provide potential portfolio diversification benefits for the investors. Based on these findings, the investors could strategize and diversify their portfolio accordingly during different market conditions. © Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2012.}, author_keywords = {Financial crisis; Islamic finance; Malaysia; Unit trust}, correspondence_address = {S. H. Kassim; Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, 50728 Kuala Lumpur, P.O. Box 10, Malaysia; email: ksalina@iium.edu.my}, issn = {19858280}, language = {English}, abbrev_source_title = {Asian Acad. Manage. J.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 10} } @ARTICLE{Amanah201917, author = {Amanah, Nanda Karunia and Purwanto, Budi and Ermawati, Wita Juwita}, title = {Value of moral bounded: Portfolio management with Shari'a compliance paradigm (Study of Indonesian markets)}, year = {2019}, journal = {International Journal of Innovation, Creativity and Change}, volume = {7}, number = {6}, pages = {17 – 38}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85076272179&partnerID=40&md5=aafd55a1dc9bbff94e41b46b5218d556}, affiliations = {Management Sciences Department, FEM, IPB Universiity, Bogor Agricultural University, India}, abstract = {The Islamic Finance Compliant portfolio continues to receive special attention because of its enormous potential. The increasing number of requests for Shari'a financial products in the global market is an indication that Shari'a Finance Compliant is not only attractive to Muslims, but has become part of the solution of international investors. Reviewing the formation of counterparts based on Islamic principles provides an indication that products based on Shari'a Compliant can continuously reduce risk. By specifically entering Shari'a shares as part of the portfolio, it will increase the value of the portfolio optimization. Therefore, this study intends to analyze the level of compliance of Shari'a stocks which is then followed by a series of treatments including weighting, optimization with the Karush Kuhn Tucker method (KKT), and Ward's Linkage method. The results of this study are sufficient to prove that the better quality of moral bounded, have a better value at risk portfolio.. © 2019 Primrose Hall Publishing Group.}, author_keywords = {Moral bounded; Shari'a compliance; Shari'a stocks; Single index model; Ward's linkage}, publisher = {Primrose Hall Publishing Group}, issn = {22011315}, language = {English}, abbrev_source_title = {Int. J. Innov. Creat. Change}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Saif H. Al Zaabi2011158, author = {Saif H. Al Zaabi, Obaid}, title = {Potential for the application of emerging market Z-score in UAE Islamic banks}, year = {2011}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {4}, number = {2}, pages = {158 – 173}, doi = {10.1108/17538391111144498}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84947264289&doi=10.1108%2f17538391111144498&partnerID=40&md5=bdcab4aa8e009026a8d210a541b162fe}, affiliations = {Securities and Commodities Authority, Fujairah, United Arab Emirates}, abstract = {PurposeThe purpose of this study is primarily to implement the emerging market (EM) Z-score model to predict bankruptcy and to measure the financial performance of major Islamic banks in the UAE. In addition, this study aims to introduce the Z-score model to this industry as a beneficial diagnostic tool for possible causes standing behind the deterioration of financial performance. Design/methodology/approachThe methodology that has been used in this study is based on Z-score model for EMs developed by Altman. The related studies have proved that Z-score has more than 80 percent accuracy and verified it is a robust tool and is useful in assessing the business performance and prediction of potential distress of firms. The approach determined in this study is to examine the financial statements of the UAE Islamic banks by calculating the EM Z-score for the past three years and comparing it with the current year's score as an effort to measure the overall financial performance as well as the likelihood of bankruptcy of the UAE Islamic banks. FindingsThe paper finds that UAE Islamic banks should work on improving the ratios that are dragging their scores down to better understand their past performance and realize their current position in the industry; Z-score can be adopted by the UAE Islamic banks as effective evaluation approach toward financing the potential long-term partnership projects including small and medium business enterprises (SMEs); Z-score model can be adapted by Islamic banks as an independent credit risk analysis approach to measure the competencies and financial strengths of potential projects; Islamic banks in the UAE are by and large financially sound and healthy and that Z-score is a beneficial analytical tool that can be adapted by Islamic banks in the UAE to complement other financial analysis techniques to establish Islamic banking industry averages. The study also finds that the ratios used in calculating Z-score can be considered to provide valuable instrumental indicators. Research limitations/implicationsZ-score model is a valid model to measure the performance of Islamic banks and the ratios used in calculating Z-score can be considered to provide valuable instrumental indicators. Z-score can be adopted by the UAE Islamic banks to finance long-term partnership projects and SMEs. Limitations including the Islamic banking industry are still considered small size, which might has negative effect on the maximum outcomes of the study. Future studies are needed toward updating the coefficient values connected to each ratios in Z-score model as per the inputs from the Islamic banking industry. Practical implicationsZ-score model is a valid model to measure Islamic banks performance and the ratios used in calculating Z-score can be considered to provide valuable instrumental indicators. Z-score can be adopted by the UAE Islamic banks to finance long-term partnership projects and SMEs. Social implicationsThe model is believed to widen the industry exposure in order to finance more projects and companies which is believed will reflect positively on the society welfare. By adopted Z-score SMEs will be provided with all financings needed specially providing the microfinance for small projects. Originality/valueIntroducing Z-score to the Islamic banking industry as crucial credit risk measuring tool. © 2011, © Emerald Group Publishing Limited.}, author_keywords = {Business ethics banking; Finance; Islam; Risk management; United Arab Emirates}, correspondence_address = {O. Saif H. Al Zaabi; Securities and Commodities Authority, Fujairah, United Arab Emirates; email: obaidshz@eim.ae}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 16} } @ARTICLE{Kiong Kok2014242, author = {Kiong Kok, Seng and Giorgioni, Gianluigi and Laws, Jason}, title = {Derivative products and innovation in Islamic finance: A hybrid tool for risk-sharing options}, year = {2014}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {7}, number = {3}, pages = {242 – 257}, doi = {10.1108/IMEFM-07-2013-0084}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84951126561&doi=10.1108%2fIMEFM-07-2013-0084&partnerID=40&md5=268fdf8c31390a3e5424fe25461d5c08}, affiliations = {Business School, University of Wolverhampton, Wolverhampton, United Kingdom; Management School, University of Liverpool, Liverpool, United Kingdom}, abstract = {Purpose – The purpose of this paper is to highlight the possibility of structuring an Islamic option which includes an element of risk sharing as opposed to risk transfer. Design/methodology/approach – The approach adopted in this research involved a combination of a wa’ad (promise) and murabaha (cost plus sale) and examining if they could form a risk-sharing Islamic option. The payoffs were assumed to be dependent on bi-period outcomes. Findings – The paper attempted to create a hybrid risk-sharing option by combining elements of both wa’ad (promise) and murabaha (cost plus sale). The results yielded are dependent on the eventual direction of the market (in-the-money, at-the-money and out-the-money). While the results are not definitive, they do provide arguments for the adoption of a risk-sharing, as opposed to a risk-transfer, methodology when it comes to structuring risk management instruments. Research limitations/implications – One of the major limitations of this research is the inability to assess the Shariah compliance of the proposed instrument. Shariah compliance is determined by a Shariah Supervisory Board, and every effort has been made to ensure that Shariah financial principles are adhered to in the creation of this structure. Practical implications – The structure provides some interest arguments in the creation of risk management tools under a Shariah financial framework. The structure illustrates the benefits of having a risk-sharing mode over the conventional risk-transfer stances of most risk management tools. Originality/value – The paper offers a new way of structuring a risk management tool in Islamic finance. It explores the highly debated area of derivatives in Islamic finance and proposes a new way of creating a risk management tool that involves some elements of risk sharing. © 2014, © Emerald Group Publishing Limited.}, author_keywords = {Derivatives; Financial product design; Islamic finance; Risk management; Risk sharing}, correspondence_address = {G. Giorgioni; Management School, University of Liverpool, Liverpool, United Kingdom; email: G.Giorgioni@liverpool.ac.uk}, publisher = {Emerald Group Publishing Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 8; All Open Access, Green Open Access} } @ARTICLE{Abdul Wahab2021828, author = {Abdul Wahab, Hishamuddin and Zainudin, Wan Nur Rahini Aznie and Mohamad, Sharifah Fairuz Syed and Jaapar, Asmah Mohd}, title = {The Currency Exposure and Syariah Compliant Status under Different Time Domains: Insights from Maximal Overlap Discrete Wavelet Transformation (MODWT) Analysis}, year = {2021}, journal = {Universal Journal of Accounting and Finance}, volume = {9}, number = {4}, pages = {828 – 840}, doi = {10.13189/ujaf.2021.090429}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85115291424&doi=10.13189%2fujaf.2021.090429&partnerID=40&md5=95706c965d46b3e763fddf984c8fdbef}, affiliations = {Faculty of Science and Technology, Universiti Sains Islam Malaysia, N. Sembilan, Bandar Baru, Nilai, 71800, Malaysia}, abstract = {The rise of the Islamic capital market in the emerging economy of Malaysia over the past few decades motivates us to investigate the impact of the Syariah compliant status on the level of exchange rate exposure. The Syariah compliant status implies that a company should use a minimal level of debt as capital to finance its operations. Given this, it is hypothesized that Syariah compliant firms should exhibit lower levels of exchange rate exposure than their counterparts, supported by the strong theoretical connection between interest rate and exchange rate. In terms of specification, previous efforts in pricing exchange risk failed to capture the true size of exposure due to the use of single time domain in traditional model. To cater the bias in estimation, this study intends to calculate multi-horizon exchange rate exposure based on maximal overlap discrete wavelet transformation to decompose single series into multiple time domains. The financial risk analysis involves 30 listed non-financial individual stocks in Malaysia having different Syariah compliant status from November 2013 until May 2018. As a result, the study finds no significant difference in currency exposure between Syariah compliant and non-Syariah compliant stocks. Secondly, it is found that the extent of currency exposure and the percentage of exposed firms exhibit non-homogenous trend across different time scales where large amount of exposure is concentrated at higher scale. From policy implications, the study suggests that Syariah compliant firms and non-Syariah compliant firms share the same exchange risk profile where exchange risk management routine is expected to be identical for both groups. Besides, the enhanced level of exposure at higher scale requires vigorous financial risk hedging strategies especially within widened investment interval. Copyright©2021 by authors}, author_keywords = {Currency Exposure; Maximal Overlap Discrete Wavelet Transformation; Syariah Compliant Firms}, publisher = {Horizon Research Publishing}, issn = {23319712}, language = {English}, abbrev_source_title = {Univ. J. Account. Fin.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0; All Open Access, Gold Open Access} } @ARTICLE{Rainer201353, author = {Rainer, Martin}, title = {THE CONCEPT OF VALUE: TOWARDS A CONSISTENT VALUATION METHOD FOR ISLAMIC FINANCIAL ENGINEERING}, year = {2013}, journal = {ISRA International Journal of Islamic Finance}, volume = {5}, number = {2}, pages = {53 – 81}, doi = {10.12816/0002769}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85168712048&doi=10.12816%2f0002769&partnerID=40&md5=ecd3e71afc145d4a2ff86f77c20cc91f}, affiliations = {FZ Risk Management, University of Würzburg, ENAMEC Institut, Würzburg, Germany}, abstract = {Islamic finance is continuously growing in order to challenge the conventional interest-based financial system, with increasingly advanced regulatory implementations and corresponding contract engineering. However, to a large extent, the valuation methods applied in order to determine the value of assets and contracts are commonly taken from conventional finance, and this has been practically unquestioned until recently. Therefore, the purpose of this paper is to develop and propose a concept of real economic value (rather than a nominal one) and corresponding valuation methods which are more suitable for Islamic financial engineering and risk management. In this paper, valuation methods are derived rather directly from an asset-based concept of value with certain key commodities as the preferred benchmarks. First, arguments are provided to support that certain Islamic principles such as the avoidance of ribÉ (interest) and gharar (ambiguity in contracts) should be applied with respect to real economic value rather than to monetary value in terms of conventional currency. Second, motivated in particular by the desired sustainability of the monetary system, a multilevel currency is proposed on the basis of a basket of economic key assets, in particular, commodities. A suitable real economy value-reference and a corresponding asset-linked currency are proposed as a suitable numéraire for an asset-based valuation, the latter being recommended in the context of Islamic financial engineering. Third, conventional and Islamic financial engineering are compared methodically, highlighting their differences. The former is based on bank accounts and zero-bond numéraires computed from fixed-income forward contracts. The latter is proposed on the basis of certain asset-based numéraires. The latter should be chosen such that they reflect real economic value. It is argued that this approach helps to identify and disable synthetic ribā. Fourth, the valuations of bayʿ al-salam (forward sale) and forward contracts are compared, in particular from the mathematical point of view. Fifth, the mutual dependency of valuation measure and riskprofile is briefly discussed, and a possible construction of reference rates from asset-return related to ṣukūk is described. As an underlying result, most of the existing mathematical methods, such as martingale-measures and relative prices with suitable numeracies can still be employed for the alternative valuation concept presented in this paper for the purpose of Islamic finance. However, they are employed here in a different manner, as the selection of an admissible numéraire within the context of Islamic financial engineering becomes more restricted. The latter excludes, for instance, any reference to conventionally used zero-bonds. © 2013, International Shari’ah Research Academy for Islamic Finance (ISRA). All rights reserved.}, author_keywords = {asset-based valuation; fair value; Financial engineering; Islamic regulatory compliance}, correspondence_address = {M. Rainer; FZ Risk Management, University of Würzburg, ENAMEC Institut, Würzburg, Germany; email: martin.rainer@enamec.de}, publisher = {International Shari’ah Research Academy for Islamic Finance (ISRA)}, issn = {01281976}, language = {English}, abbrev_source_title = {ISRA Int. J. Islamic Finance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Anwer20201497, author = {Anwer, Zaheer}, title = {Salam for import operations: mitigating commodity macro risk}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {8}, pages = {1497 – 1514}, doi = {10.1108/JIABR-09-2018-0142}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078927122&doi=10.1108%2fJIABR-09-2018-0142&partnerID=40&md5=92a3dfb8ca045027c2b523bb6d76e812}, affiliations = {International Center for Education in Islamic Finance, Kuala Lumpur, Malaysia and School of Business and Economics, University of Management and Technology, Lahore, Pakistan}, abstract = {Purpose: This paper aims to present the idea of using classic Islamic finance instrument Salam to conduct import transactions. It documents the complete framework of the proposed model. At present, this mode is not used by Islamic Financial Services Industry although it is capable of becoming a viable risk-sharing instrument. Design/methodology/approach: First, the features of existing import financing products are explored and compared with various contractual features of Salam. Second, a discussion on why banks are reluctant in practicing Salam is included. Third, the pricing techniques, accounting treatment and collateral arrangements related to proposed product are discussed. Finally, the feasibility of this product in present industry environment is assessed. Findings: The proposed model carries certain features that make it a true risk-sharing product. For example, it suggests changing bank’s role from intermediary to entrepreneur and favours better alignment of risk between the related parties. This work has also proposed using market-based returns, instead of the existing interest-based benchmarks, for pricing the contract. To practice this product, a dedicated effort of all the stakeholders is required. The product features can contribute to the goal of practicing responsible financing, engrained in true economic reality. Research limitations/implications: The present work is a technical paper, and the product features may be improved in the light of feedback from the industry and academia. Practical implications: The proposed model views Islamic bank as a trader instead of a lender, who will assume the effective ownership of imported goods before selling them to the customers. The pricing structure will also be unique, as the margins will be decided upon the basis of market-driven returns of the underlying assets. Indeed, by entering into such contract, Islamic Banks will be exposed to market-related risks. They will be required to design their risk management frameworks accordingly. Originality/value: It is widely argued that many Islamic finance products are similar to their conventional counterparts in substance. There is a need for the instruments that carry risk sharing attributes. This paper aims to bridge this gap by investigating the potential of classical Islamic finance product Salam for conducting foreign trade transactions. © 2020, Emerald Publishing Limited.}, author_keywords = {Foreign trade; Islamic banking; Islamic finance; Salam}, correspondence_address = {Z. Anwer; International Center for Education in Islamic Finance, Kuala Lumpur, Malaysia and School of Business and Economics, University of Management and Technology, Lahore, Pakistan; email: zmanwar@gmail.com}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3} } @ARTICLE{El-Hawary2007778, author = {El-Hawary, Dahlia and Grais, Wafik and Iqbal, Zamir}, title = {Diversity in the regulation of Islamic Financial Institutions}, year = {2007}, journal = {Quarterly Review of Economics and Finance}, volume = {46}, number = {5}, pages = {778 – 800}, doi = {10.1016/j.qref.2006.08.010}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-33845635223&doi=10.1016%2fj.qref.2006.08.010&partnerID=40&md5=83eabf2a8a53f456749b10b45d98eba2}, affiliations = {George Washington University, Washington, DC, United States; World Bank, Washington, DC 20433, 1818 H Street, N.W, United States}, abstract = {More than 200 Islamic Financial Institutions (IFIs) are reported to have total combined assets in excess of US$ 200 billion with an annual growth rate estimated between 10 and 15%. The regulatory regime governing IFIs varies across countries. International organizations have been established to set standards that would strengthen and eventually harmonize prudential regulations as they apply to IFIs. The paper contributes to the discussion on the nature of the prudential standards to be developed. It clarifies risks IFIs are exposed to and the type of regulation that would help to manage them. It considers that the industry is still evolving with an anticipated convergence of the practice of Islamic financial intermediation with its conceptual foundations. Accordingly, the paper contrasts the risks and regulation that would be needed in the case of Islamic financial intermediation operating according to core principles and current practice. Implications for approaches to capital adequacy, licensing requirements and reliance on market discipline are outlined. The paper suggests an organization of the industry that would allow it to develop in compliance with its principles and prudent risk management and to facilitate its regulation. © 2006 Board of Trustees of the University of Illinois.}, author_keywords = {Islamic finance; Regulation; Risk management}, correspondence_address = {W. Grais; World Bank, Washington, DC 20433, 1818 H Street, N.W, United States; email: wgrais@worldbank.org}, issn = {10629769}, language = {English}, abbrev_source_title = {Q. Rev. Econ. Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 82} } @ARTICLE{Mokni20161367, author = {Mokni, Rim Ben Selma and Rajhi, Mohamed Tahar and Rachdi, Houssem}, title = {Bank risk-taking in the MENA region: A comparison between Islamic banks and conventional banks}, year = {2016}, journal = {International Journal of Social Economics}, volume = {43}, number = {12}, pages = {1367 – 1385}, doi = {10.1108/IJSE-03-2015-0050}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-84996835425&doi=10.1108%2fIJSE-03-2015-0050&partnerID=40&md5=a0a611404929ab9cfc7b6c3116d46e0e}, affiliations = {Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, El Manar, Tunisia; HEC Carthage Business School, University of Carthage, Carthage, Tunisia}, abstract = {Purpose - The purpose of this paper is to investigate determinants of risk-taking in Islamic banks and conventional banks located in the MENA region. Design/methodology/approach - The empirical study covers a sample of 15 conventional and 15 Islamic banks for the period 2002-2009. The authors estimate models using both generalized least square random effect and generalized method of moments system approaches. Findings - The results of the empirical analysis show that the determinants' risk-taking significance varies between Islamic and conventional banks. Originality/value - The main aim is to develop a comprehensive model that integrates macroeconomic determinants, industry-specific determinants, and bank-specific determinants. This paper performs a comparison of the risk-taking between two different banking systems in the MENA region. © Emerald Group Publishing Limited.}, author_keywords = {Islamic banking/finance; Management}, keywords = {Middle East; North Africa; banking; comparative study; finance; Islamism; macroeconomics; management}, publisher = {Emerald Group Publishing Ltd.}, issn = {03068293}, language = {English}, abbrev_source_title = {Int. J. Soc. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 17} } @ARTICLE{Ben Jedidia20201791, author = {Ben Jedidia, Khoutem}, title = {Profit- and loss-sharing impact on Islamic bank liquidity in GCC countries}, year = {2020}, journal = {Journal of Islamic Accounting and Business Research}, volume = {11}, number = {9}, pages = {1791 – 1806}, doi = {10.1108/JIABR-10-2018-0157}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85087557128&doi=10.1108%2fJIABR-10-2018-0157&partnerID=40&md5=c12108afab4e6f89dec4f63954b9b554}, affiliations = {Department of Economics, Higher Institute of Accountancy and Business Administration (ISCAE), Manouba, Tunisia; Islamic Economics and Finance Research Unit, Ez-zitouna University, Tunis, Tunisia}, abstract = {Purpose: The purpose of this paper is to empirically assess the impact of the principle of profit- and loss-sharing (PLS) on the exposure to liquidity risk of Islamic banks in Gulf Corporation Council (GCC) countries. The Islamic bank activity is distinguished by a PLS principle, which is likely to involve specificities in the bank liquidity issue. Design/methodology/approach: This paper investigates the determinants of Islamic bank liquidity over the period 2005–2016 using a panel of 23 Islamic banks in GCC. The system of generalized method of moment estimators is applied. Findings: The findings reveal that while profit-sharing investment accounts (PSIAs) are inversely proportional to Islamic bank liquidity, the PLS investment does not seem to act as a determinant of the bank liquidity. The fact that PSIAs are globally short-run accounts, but finance long-run projects leads to a substantial maturity mismatches, which limits the availability of liquidity buffer and exacerbates the bank’s exposure to liquidity risk. Moreover, capital adequacy ratio has significant and positive association with bank liquidity, as a strong capital ratio helps to strengthen the liquidity control. However, return on assets has a negative significant impact on bank liquidity. For instance, if the bank holds more cash, it deprives itself from placing funds and earning returns, which causes its profitability to decline. Practical implications: This paper gives further insights to better improve the liquidity risk management in a context of scarcity of Shariah-compliant instruments. Islamic bank needs to determine the PLS purpose and goals to be consistent with the “bank’s financing policy” and convince its depositors to use their deposits for medium and long-run investments. Originality/value: Unlike previous empirical research, this investigation tries to better grasp the Islamic bank liquidity issue by focusing on the PLS impact on liquidity risk. It aims to fill in the gap in the empirical literature on this topic. © 2020, Emerald Publishing Limited.}, author_keywords = {GCC; Islamic bank; Liquidity risk; Profits and losses sharing}, correspondence_address = {K. Ben Jedidia; Department of Economics, Higher Institute of Accountancy and Business Administration (ISCAE), Manouba, Tunisia; email: khoutembj@yahoo.fr}, publisher = {Emerald Group Holdings Ltd.}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 5} }@ARTICLE{Ishak2023, author = {Ishak, Muhammad Shahrul Ifwat and Mohammad Nasir, Nur Syahirah}, title = {The applicability of Islamic crowdfunding as an alternative funding for micro-entrepreneurs in Malaysia}, year = {2023}, journal = {Qualitative Research in Financial Markets}, doi = {10.1108/QRFM-12-2022-0202}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85169800532&doi=10.1108%2fQRFM-12-2022-0202&partnerID=40&md5=df014a98417f0c9bda3550dbb4cc7efa}, affiliations = {Faculty of Business and Management, Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia; Faculty of General Studies and Advanced Education, Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia}, abstract = {Purpose: The purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has gained traction as an alternative funding source for businesses, it is unclear how far this concept can benefit a group of micro-entrepreneurs in Malaysia. Design/methodology/approach: This study uses a qualitative research approach by using data collected through semi-structured interviews with several experts and practitioners in crowdfunding, Shariah and entrepreneurship. Prior to discussing the facets of the findings, the data were analysed based on a thematic approach. Findings: The findings reveal that while previous works of related literature suggest crowdfunding as a viable alternative financing option for entrepreneurs and their businesses, in reality, its practical implementation presents challenges. Numerous micro-entrepreneurs need more training in the areas of management and marketing. Such concerns raise questions about their ability to attract potential project backers. With the proper selection of Shariah contracts and several approaches to risk management, Islamic crowdfunding can potentially become an alternative funding source for microbusinesses. Research limitations/implications: Given the exploratory nature of this study regarding the applicability of Islamic crowdfunding as an alternative fund for micro-entrepreneurs, its findings may not fully encompass Malaysia’s context because of the limited number of participants involved. Practical implications: The findings of this study offer guidelines on how to implement Islamic crowdfunding for micro-entrepreneurs. Consequently, Islamic crowdfunding has the potential to alleviate the government’s burden of providing funds for micro-enterprises and enhance their skills and mentality to be more independent, creative and able to promote their products. Social implications: While Islamic crowdfunding can be an alternative opportunity for business enterprises and community-based projects, it promotes the spirit of cooperation and collaboration within society. Originality/value: Although Islamic crowdfunding is a topic that has been discussed previously, empirical investigations in this area remain scarce, mainly through qualitative approaches. Distinguishing from prior literature, this study analyses several potential models of Islamic crowdfunding from the perspectives of experts, practitioners and related agencies for micro-entrepreneurs. Moreover, this study bridges insights from related literature so that they offer practical applications to support micro-entrepreneurs in Malaysia. © 2023, Emerald Publishing Limited.}, author_keywords = {Entrepreneurs; Islamic crowdfunding; Islamic finance; Micro-entrepreneurs}, correspondence_address = {M.S.I. Ishak; Faculty of Business and Management, Universiti Sultan Zainal Abidin, Kuala Terengganu, Malaysia; email: shahrulifwat@gmail.com}, publisher = {Emerald Publishing}, issn = {17554179}, language = {English}, abbrev_source_title = {Qual. Res. Financ. Markets}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Sahabuddin2022, author = {Sahabuddin, Mohammad and Islam, Md. Aminul and Tabash, Mosab I. and Anagreh, Suhaib and Akter, Rozina and Rahman, Md. Mizanur}, title = {Co-Movement, Portfolio Diversification, Investors’ Behavior and Psychology: Evidence from Developed and Emerging Countries’ Stock Markets}, year = {2022}, journal = {Journal of Risk and Financial Management}, volume = {15}, number = {8}, doi = {10.3390/jrfm15080319}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85136628229&doi=10.3390%2fjrfm15080319&partnerID=40&md5=d8538b60ec6a9fb46efd241774f52d61}, affiliations = {Faculty of Business Administration, University of Science and Technology Chittagong, Chattogram, 4202, Bangladesh; Faculty of Applied Science and Humanities, Universiti Malaysia Perlis, Perlis, Arau, 02600, Malaysia; College of Business, Al Ain University, P.O. Box, Al Ain, 64141, United Arab Emirates; Higher Colleges of Technology, P.O. Box, Dubai, 25026, United Arab Emirates; Department of Business Administration, Daffodil International University, Dhaka, 1341, Bangladesh; BRAC Business School, BRAC University, Dhaka, 1212, Bangladesh}, abstract = {The issue of co-movements is still crucial and arguable in international finance. An optimum and significant level of co-movement is highly desirable to investors, and it mostly depends on investors’ decisions (behavior and psychology). We use frequency–time bands and multi-scale-based wavelet analysis to investigate the co-movement between developed and emerging countries’ stock markets for better asset allocation and portfolio diversification strategies. The results show that a significant level of co-movement is observed between conventional and Islamic stock markets in developed and emerging countries, and it varies in terms of its time–frequency domain properties. Particularly, the dependency among conventional and Islamic stock markets is strong at 4–512-band scales. However, the USA Islamic stock market illustrates a higher level of coherency with the UK, Japan and China’s Islamic stock markets, while a relatively lower level of co-movement is detected with the Chinese composite, Malaysian and Indonesian Islamic stock markets. The findings further confirm that the developed countries’ stock markets are substantially influenced by the GFC in 2007–2008 and the European debt crisis in 2012, while this trend is surprisingly not observed in the emerging markets on a similar scale. Therefore, these crises have opened the door for the grabbing of portfolio diversification benefits from the emerging countries’ stock markets. These findings give some interesting insights to policymakers, investors and fund managers for portfolio diversification and risk management strategies. © 2022 by the authors.}, author_keywords = {co-movement; developed and emerging countries stock markets; investors’ behavior and psychology; portfolio diversification}, correspondence_address = {M.I. Tabash; College of Business, Al Ain University, Al Ain, P.O. Box, 64141, United Arab Emirates; email: mosab.tabash@aau.ac.ae}, publisher = {MDPI}, issn = {19118074}, language = {English}, abbrev_source_title = {J. Risk. Financ. Manag.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 3; All Open Access, Gold Open Access, Green Open Access} } @ARTICLE{Alam202361, author = {Alam, Azhar and Ratnasari, Ririn Tri and Jannah, Isnani Latifathul and Ashfahany, Afief El}, title = {“Development and evaluation of Islamic green financing: A systematic review of green sukuk”}, year = {2023}, journal = {Environmental Economics}, volume = {14}, number = {1}, pages = {61 – 72}, doi = {10.21511/ee.14(1).2023.06}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85163686812&doi=10.21511%2fee.14%281%29.2023.06&partnerID=40&md5=15240891324c92149a8284af4dcff1b5}, affiliations = {Department of Islamic Economic Laws, Faculty of Islamic Studies, Universitas Muhammadiyah, Surakarta, Indonesia; Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Indonesia}, abstract = {The threat of the global climate crisis demands improvement and adjustment from various sides, including the financial sector. Islamic finance responds to environmental responsibility by presenting environmentally friendly financing products in green sukuk. This study aims to show the development trend of the number of publications in green sukuk and systematize the results of studies that explain the development and evaluation of the emergence of green sukuk investments. This study analyzed 15 publications on green sukuk during the 2016-2022 years indexed by the Scopus database. As for methodology, the descriptive analysis was used to explain the green sukuk data quantitatively; the synthesis analysis was used to describe data based on four directions (the development of models (10 sources), opportunities (12 sources), challenges (12 sources), and evaluations of green sukuk (10 sources). Preferred Reporting Items for Systematic Review and Meta-Analyses standard were used to choose samples for this investigation. The green sukuk challenge is dealing with the sukuk market after the pandemic. Several evaluation findings regarding managing commitment from the government and investors for the renewable energy sector and efforts to provide low-cost sukuk financing and risk minimization are found. Green sukuk demands efficient management to be more viable, competitive, and attractive to investors if the operational area supports it. Green sukuk projects face expanding green funding, global climate financing, managing renewable energy, and validating greenhouse gas emissions. The green stock market reaction requires coordination amongst economic subsectors. © 2023 LLC CPC Business Perspectives. All Rights Reserved.}, author_keywords = {descriptive analysis; Islamic bond; Islamic finance; Scopus database; sukuk; synthesis analysis environmental finance}, publisher = {LLC CPC Business Perspectives}, issn = {19986041}, language = {English}, abbrev_source_title = {Environ. Econ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0; All Open Access, Gold Open Access} } @ARTICLE{Rashid2023, author = {Rashid, Abdul and Akmal, Muhammad and Shah, Syed Muhammad Abdul Rehman}, title = {Corporate governance and risk management in Islamic and convectional financial institutions: explaining the role of institutional quality}, year = {2023}, journal = {Journal of Islamic Accounting and Business Research}, doi = {10.1108/JIABR-12-2021-0317}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85153038427&doi=10.1108%2fJIABR-12-2021-0317&partnerID=40&md5=3eff0e513a20f5c635ab2d8bbb43bf09}, affiliations = {International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan; Department of Shari’ah Compliance, MCB Islamic Bank Ltd, Lahore, Pakistan; Department of Basic Sciences and Humanities, University of Engineering and Technology (UET), Taxila, Pakistan}, abstract = {Purpose: This study aimed at exploring the differential effects of different corporate governance (CG) indicators on risk management practices in Islamic financial institutions (IFIs) and conventional financial institutions (CFIs) of Pakistan. It also investigated the moderating role of institutional quality (IQ) in shaping the effects of CG practices on financial institutions of Pakistan. Design/methodology/approach: A sample of 57 financial institutions including commercial banks, insurance companies and Modarba companies over the period 2006–2017 is used to carry out the empirical analysis. The authors applied the robust two-step system-generalized method of moments estimator, which is also called the dynamic panel data estimator. They also built the PCA-based composite index of CG and IQ by using different indicators to investigate the moderating role of IQ. They used three proxies for risk taking, five for CG and one for Shari’ah governance. To test the validity of the instruments, they applied the Arellano and Bond’s (1991) AR (1) and AR (2) tests and the J-statistic of Hansen (1982). Findings: The results provided strong evidence that several individual characteristics of CG and the composite index are significantly related to the operational risk, the liquidity risk and the Z-score (a proxy for solvency risk). The results also revealed that IQ significantly and substantially contributes in reducing the level of risks. Finally, the estimation results indicated that the effects of CG on risk management are significantly different at IFIs and CFIs. This differential impact is mainly attributed to the fundamental differences in business models, operational strategies and contractual obligations of both types of institutions. Practical implications: The findings of this study are important for enhancing our understanding of how CG relates to risk taking in Islamic and conventional financial services industries and how good quality institutions are important for formulating the governance effects on the risk-taking behavior of financial institutions. The findings suggest that a suitable size of board should be chosen to manage the risk effectively. As the findings show that the risk-taking behavior of IFIs differs from that of CFIs, the regulators and international standard setting bodies should tailor the regulatory frameworks accordingly. Originality/value: This paper is different from the existing studies in four aspects. First, to the best of the authors’ knowledge, this is the first empirical investigation in Pakistan, which does the comparison of IFIs and CFIs while examining the impacts of CG on risk management. Second, the paper constructs the composite index of CG by considering several different indicators of governance and examines the combined effect of governance indicators on risk management process. Third, this paper adds to the growing literature on the role of IQ by investigating whether it acts as a moderator between CG structures and risk management and if yes, then whether this moderating role is different for IFIs and CFIs. Finally, the paper builds upon the existing research work on the CG effects for different types of financial institutions by proposing a single regression based analytical framework for comparing the effects across two different types of institutions, harvesting the benefits of higher degrees of freedom and avoiding/minimizing the measurement error. © 2023, Emerald Publishing Limited.}, author_keywords = {Corporate governance; Differential effects; Financial institutions; Institutional quality; Islamic finance; Moderating analysis; Risk management}, correspondence_address = {S.M.A.R. Shah; Department of Basic Sciences and Humanities, University of Engineering and Technology (UET), Taxila, Pakistan; email: a.rehman@uettaxila.edu.pk}, publisher = {Emerald Publishing}, issn = {17590817}, language = {English}, abbrev_source_title = {J. Islamic Account. Bus. Res.}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Ul Hameed2023237, author = {Ul Hameed, Waseem and Basheer, Muhammad Farhan and Abdelsalam, Mohammed Khalifa and Sharif, Muhammad Suhail}, title = {Entrepreneurial finance and risk mitigation in Islamic and conventional banks: evidence from Pakistan}, year = {2023}, journal = {International Journal of Trade and Global Markets}, volume = {16}, number = {1-3}, pages = {237 – 249}, doi = {10.1504/ijtgm.2022.128114}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85147820081&doi=10.1504%2fijtgm.2022.128114&partnerID=40&md5=538ae89da382b778349cc272917bbff5}, affiliations = {School of Business, Management and Administrative Sciences (SBM&AS), The Islamia University of Bahawalpur (IUB), 6300, Pakistan; School of Economics, Finance and Banking (SEFB), Universiti Utara Malaysia (UUM), 6010, Malaysia}, abstract = {This study was carried out to explore the effects of entrepreneurial finance, market risk management (MRM), credit risk management (CRM) and operational risk management (ORM) on risk mitigation in the conventional and Islamic banks of Pakistan. In addition to this, the moderating role of entrepreneurial finance was also examined. By using the cluster sampling technique, 500 questionnaires were distributed among the employees of conventional and Islamic banks. Data were analysed through Partial Least Square (PLS). It is found that MRM, CRM, and ORM have significant positive relationships with risk mitigation. Focus on market risk, credit risk, and ORM effects positively on overall risk mitigation. Furthermore, entrepreneurial finance strengthens the positive relationship between MRM and risk mitigation. This study has valuable insights for bank professionals and practitioners to mitigate the risk. Copyright © 2022 Inderscience Enterprises Ltd.}, author_keywords = {credit risk management; CRM; entrepreneurial finance; market risk management; operational risk management; ORM}, correspondence_address = {W. Ul Hameed; School of Business, Management and Administrative Sciences (SBM&AS), The Islamia University of Bahawalpur (IUB), 6300, Pakistan; email: expert_waseem@yahoo.com}, publisher = {Inderscience Publishers}, issn = {17427541}, language = {English}, abbrev_source_title = {Int. J. Trade Glob. Markets}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Tabash202327, author = {Tabash, Mosab I. and Alnahhal, Mohammed and Bagheri, Noushin}, title = {Islamic financial institutions performance pre- and post-global financial crisis 2007/2008: empirical insights from Gulf Cooperation Council}, year = {2023}, journal = {International Journal of Business and Systems Research}, volume = {17}, number = {1}, pages = {27 – 43}, doi = {10.1504/IJBSR.2022.10036153}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85147769068&doi=10.1504%2fIJBSR.2022.10036153&partnerID=40&md5=c3cfe3f295f975e32497ead866c24106}, affiliations = {College of Business, Al Ain University, P.O. Box 64141, Al Ain, United Arab Emirates; Mechanical and Industrial Engineering Department, American University of Ras Al Khaimah, Ras Al Khaimah, United Arab Emirates; NEOMA Business School, Rouen, France}, abstract = {The current study examines the financial performance of 19 Islamic financial institutions (IFIs) in five GCC countries, namely the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, and Kuwait. Return on assets (ROA) and return on equity (ROE) were examined in the period ranging from 2006 to 2016. Micro and macro variables are used as independent variables. Some financial indicators such as size, assets management, and financial risk are used as independent variables to predict the dependent variables, namely, ROE and ROA. Multiple linear regression analysis was applied. The global financial crisis 2007/2008 has affected negatively these IFIs systems not only from 2007 until 2009 but also in 2010 and 2011 at a small scale. The predicted values were compared to the real values of ROE and ROA in the period 2007-2011. Results showed that the effect of the global financial crisis occurs in terms of lower ROE and ROA values than predicted by the model. The results of the current study are very beneficial for policy-makers and regulators who are interested in Islamic finance industry. © 2023 Inderscience Enterprises Ltd.}, author_keywords = {Financial crisis; GCC; Gulf Cooperation Council; Islamic finance institutions; regression models; systems}, correspondence_address = {M.I. Tabash; College of Business, Al Ain University, Al Ain, P.O. Box 64141, United Arab Emirates; email: Mosab.tabash@aau.ac.ae}, publisher = {Inderscience Publishers}, issn = {1751200X}, language = {English}, abbrev_source_title = {Int. J. Bus. Syst. Res.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Boubaker20231, author = {Boubaker, Sabri and Uddin, Md Hamid and Kabir, Sarkar Humayun and Mollah, Sabur}, title = {Does cost-inefficiency in Islamic banking matter for earnings uncertainty?}, year = {2023}, journal = {Review of Accounting and Finance}, volume = {22}, number = {1}, pages = {1 – 36}, doi = {10.1108/RAF-07-2022-0193}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145054373&doi=10.1108%2fRAF-07-2022-0193&partnerID=40&md5=5e9173c67ddd40219cb5991c8928b9be}, affiliations = {EM Normandie Business School, Métis Lab, Paris, France; Business School, University of Southampton Malaysia, Iskandar Puteri, Malaysia; School of Economics, Finance and Accounting, Coventry University, Coventry, United Kingdom; Management School, University of Sheffield, Sheffield, United Kingdom; International School, Vietnam National University, Hanoi, Viet Nam; Swansea University, Swansea, United Kingdom; University of Sharjah, Sharjah, United Arab Emirates}, abstract = {Purpose: This paper aims to investigate a fundamental research question of whether the Islamic banking business model makes corporate earnings more uncertain. This question arises because prior research shows that Islamic banks do well in loan performance but incur more operational costs than conventional banks, indicating the systemic limitation of Islamic banks in business risk management. Design/methodology/approach: The study used a sample of banks to conduct the panel regression analysis with 15 years of data for 532 banks (129 Islamic and 403 conventional) from 23 Muslim countries across the world. The authors estimate earnings uncertainty in two ways: the spread and standard deviation of the country-adjusted return over the sample period and applied the difference-in-difference approach interacting cost to income ratio with the Islamic bank dummy, checking if Islamic bank’s high operational costs contribute to more earning uncertainty. Findings: Islamic banks’ returns on assets are significantly more uncertain than conventional banks due to higher operational costs. Consistent with earlier evidence, the study also finds that Islamic banks generally have fewer nonperforming loans than conventional banks. The authors conclude that Islamic banks trade-off between reducing credit risk and escalating business risk. Originality/value: This study documents that the Islamic banking model helps build a safer asset portfolio but gives rise to the uncertainty of corporate earnings. Therefore, the choice between Islamic and conventional banking models involves a trade-off between credit and business risks. It is a new finding that we add to the literature body on Islamic finance. © 2022, Emerald Publishing Limited.}, author_keywords = {Corporate governance; Cost efficiency; Earnings quality and management; Earnings uncertainty; Financial intermediation; Islamic banking; Islamic finance and accounting; Islamic financial contracts; Loan performance}, correspondence_address = {S. Boubaker; EM Normandie Business School, Métis Lab, Paris, France; email: sabri.boubaker@gmail.com}, publisher = {Emerald Publishing}, issn = {14757702}, language = {English}, abbrev_source_title = {Rev. Account.Financ.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Sahabuddin2023, author = {Sahabuddin, Mohammad and Islam, Md. Aminul and Tabash, Mosab I. and Alam, Md. Kausar and Daniel, Linda Nalini and Mostafa, Imad Ibraheem}, title = {Dynamic Conditional Correlation and Volatility Spillover between Conventional and Islamic Stock Markets: Evidence from Developed and Emerging Countries}, year = {2023}, journal = {Journal of Risk and Financial Management}, volume = {16}, number = {2}, doi = {10.3390/jrfm16020111}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85148743617&doi=10.3390%2fjrfm16020111&partnerID=40&md5=48c03655fe8c9d448411e44b813e64f5}, affiliations = {Faculty of Business Administration, University of Science and Technology Chittagong, Chattogram, 4202, Bangladesh; Faculty of Applied Science and Humanities, Universiti Malaysia Perlis, Perlis, 02600, Malaysia; College of Business, Al Ain University, P.O. Box 64141, Al Ain, United Arab Emirates; BRAC Business School, BRAC University, Dhaka, 1212, Bangladesh; Faculty of Business, Higher Colleges of Technology, Abu Dhabi P.O. Box 41012, United Arab Emirates; College of Education, Humanities and Social Sciences, Al Ain University, P.O. Box 64141, Al Ain, United Arab Emirates}, abstract = {This study aims to investigate the dynamic conditional correlation and volatility spillover between the conventional and Islamic stock markets in developed and emerging countries in order to develop better portfolio and asset allocation strategies. We used both multivariate GARCH (MGARCH) and multi-scales-based maximal overlap discrete wavelet transform (MODWT) approaches to investigate dynamic conditional correlation and volatility spillover between conventional and Islamic stock markets in developed and emerging countries. The results show that conventional and Islamic markets move together in the long run for a specific time horizon and present time-varying volatility and dynamic conditional correlation, while volatility movement changes due to financial catastrophes and market conditions. Further, the findings point out that Chinese conventional and Islamic stock indexes showed higher volatility, whereas Malaysian conventional and Islamic stock indexes showed comparatively lower volatility during the global financial crisis. This study provides fresh insights and practical implications for risk management, asset allocation, and portfolio diversification strategies that evaluate stock market reactions to the crisis in the international avenues of finance literature. © 2023 by the authors.}, author_keywords = {conditional correlation; conventional and Islamic stock market; volatility spillover}, correspondence_address = {M.I. Tabash; College of Business, Al Ain University, Al Ain, P.O. Box 64141, United Arab Emirates; email: mosab.tabash@aau.ac.ae}, publisher = {MDPI}, issn = {19118074}, language = {English}, abbrev_source_title = {J. Risk. Financ. Manag.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2; All Open Access, Gold Open Access} } @ARTICLE{Jallali2022439, author = {Jallali, Safa and Zoghlami, Faten}, title = {Does risk governance mediate the impact of governance and risk management on banks’ performance? Evidence from a selected sample of Islamic banks}, year = {2022}, journal = {Journal of Financial Regulation and Compliance}, volume = {30}, number = {4}, pages = {439 – 464}, doi = {10.1108/JFRC-04-2021-0037}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85125089792&doi=10.1108%2fJFRC-04-2021-0037&partnerID=40&md5=35bedaed1d900989941608e2562890b5}, affiliations = {ISGT, LIGUE LI99ES24, University of Tunis, Tunis, Tunisia; ISCAE, LIGUE LR99ES24, University of Manouba, Manouba, Tunisia}, abstract = {Purpose: Relying on the agency theory and the financial intermediation theory, the purpose of this paper is to examine to what extent risk governance would improve corporate governance and risk management effectiveness. The paper especially investigates the mediating role that would have the risk governance mechanisms in explaining both of the following relationships: the corporate governance–the banks’ performance, and the risk management–the banks’ performance. Design/methodology/approach: This research uses the Baron and Kenny’s (1986) approach to investigate the mediating effect of risk governance; besides, the study refers to structural equation modeling in carrying out the appropriate panel regressions. The data collection was based largely on Bank scope Database, but some missing qualitative data were gathered manually from the banks’ annual reports available on the banks’ websites. Findings: The study findings illustrate the significant role of risk governance mechanisms in improving both corporate governance and risk management’s effectiveness. Especially, this paper finds that risk governance is fully explaining the corporate governance–bank performance relationship, but risk governance would explain partially the risk management–bank performance relationship. Further, findings suggest that the internal corporate governance mechanisms seem to be more relevant than the external ones in improving the sample bank performance, and that risk management mechanisms seem to impede rather the sample bank performance. Practical implications: The findings would make an important contribution to the current debate on the need to reinvent the optimal organization of the bank’s board and directorates and would allow readers to develop more cost-effective governance and risk-management thinking. Besides, the findings may help bank deciders and boards to rationalize costs and to focus only on the relevant corporate governance and risk management mechanisms. Finally, findings might illustrate to regulatory instance the importance of recommending risk governance in their coming corporate governance guidance. Social implications: The global credit crisis of 2008 caused significant difficulties to financial institutions, so it would be worth enlightening practitioners and policymakers, even regulators, on the importance of considering the level of potential risk and risk monitoring as a key component in the decision-making process, to strengthen the stability and resilience of banks in an increasingly uncertain environment. Originality/value: The issues raised in the paper are important in that Islamic banking is an integral part of the global banking and finance industry. This paper extends the knowledge of the potential importance of the new concept of risk governance with specific reference to Islamic banking industry peculiarities. It also provides a telling illustration of the need for the enhancements of the Basel Committee’s prudential requirements as well as the accounting and auditing organization for Islamic financial institutions and Islamic Financial Services Board set out especially regarding the consideration of risk in the strategic decision process. © 2022, Emerald Publishing Limited.}, author_keywords = {Corporate governance; Islamic bank performance; Mediating effect investigation; Risk governance; Risk management; Structural equation modeling}, correspondence_address = {F. Zoghlami; ISCAE, LIGUE LR99ES24, University of Manouba, Manouba, Tunisia; email: faten.zoghlamishili@yahoo.fr}, publisher = {Emerald Group Holdings Ltd.}, issn = {13581988}, language = {English}, abbrev_source_title = {J. Financ. Regul. Compliance}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 4} } @ARTICLE{Loang202328, author = {Loang, Ooi Kok}, title = {Corporate Governance and Islamic Behavioural Finance: A Review from Malaysia and GCC Countries}, year = {2023}, journal = {Indian Journal of Corporate Governance}, volume = {16}, number = {1}, pages = {28 – 51}, doi = {10.1177/09746862231178959}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85167366909&doi=10.1177%2f09746862231178959&partnerID=40&md5=49d27effbd8ee9fa105d5e7dcdbdcd54}, affiliations = {Chair of Statistics, School of Business and Economics, Humboldt-Universität zu Berlin, Germany}, abstract = {This study examines the mediating effect of investors’ sentiment on the relationship between corporate governance (CG) and herding and risk-averse behaviour in the Shariah-compliant stocks in Malaysia and Gulf Cooperation Council (GCC) countries. Panel data and quantile regressions are adopted, and the research timeframe is 2017 to 2021. The result shows that remuneration. Audit Committee, risk management and internal control and engagement with stakeholders significantly and positively correlate to Malaysia, Kuwait, Oman, Qatar, Saudi and the UAE stock returns. Board responsibility is the only variable significant in Malaysia, Saudi and the UAE. The result implies a full mediation as the CG has caused the changes in investors’ sentiment and subsequently triggered the investors to herd and become risk-averse. The impact of CG is more pronounced in the upper and lower quantiles of the returns of Malaysia, Saudi and the UAE, as well as the median quantile of Bahrain, Kuwait, Oman and Qatar. The result of this study contributes to policymakers, regulators and practitioners in identifying the best CG practices that assist the Shariah-compliant stocks in Malaysia and GCC countries to gain a better stock return, investors’ sentiment and behaviour. The results assist the governments in the impact and benefits of adopting CG in different Islamic countries. © 2023 Institute of Public Enterprise.}, author_keywords = {Corporate governance; GCC countries; herding; Islamic finance; risk-averse}, correspondence_address = {O.K. Loang; Chair of Statistics, School of Business and Economics, Humboldt-Universität zu Berlin, Germany; email: kokloangooi94@hotmail.com}, publisher = {SAGE Publications Ltd}, issn = {09746862}, language = {English}, abbrev_source_title = {Indian J. Corp. Gov.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Brahmana2023, author = {Brahmana, Rayenda Khresna and Kontesa, Maria}, title = {Does sharia-compliant debt financing reduce stock price crash risk?}, year = {2023}, journal = {Managerial Finance}, doi = {10.1108/MF-12-2022-0596}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85165587527&doi=10.1108%2fMF-12-2022-0596&partnerID=40&md5=184160334fcdf8631159e8beebc8c8f0}, affiliations = {School of Economics, Finance, and Accounting, Coventry University, Coventry, United Kingdom; Faculty of Economics and Business, Universitas Widya Dharma Pontianak, Pontianak, Indonesia}, abstract = {Purpose: This paper examines the impact of sharia-compliant debt financing on stock price crash risk. Unlike those previous studies that took Sukuk or sharia-compliant firms, this study tests the impact of the proportion reported sharia-compliant debt financing in the balance sheet on the risk of price crash of a firm. Design/methodology/approach: Using the data from 2,752 firm-year observations of 344 Malaysian non-financial listed companies from 2012 to 2019, this article used a robust panel data estimation technique for statistical inferences. This study also employs panel GMM and quantile least squares as the robustness check. Findings: This study established a negative relationship between sharia-compliant debt financing and stock price crash risk. The robustness checks with different estimation techniques confirm the results. It implies that firms with a more significant proportion of Sharia-compliant financing tend to have lower future stock price crash risk. Practical implications: Consistent with the Islamic finance literature, the present study contributes to the existing literature on Islamic capital markets from the perspective of stock price crash risk because it is vital for risk management and investment decision-making as a measure of tail risk for stocks. The findings of this research will assist investors in developing portfolio strategies that incorporate firms with higher levels of sharia-compliant debt financing in their balance sheets. Additionally, the results of this study suggest that policymakers and regulatory bodies should consider revising their monitoring approaches for publicly listed firms. Originality/value: This study is interesting and unique, as it is a pioneer in testing the impact of sharia-compliant debt financing on reducing stock price crash risk. © 2023, Emerald Publishing Limited.}, author_keywords = {Islamic finance; Sharia compliant debt financing; Stock price crash}, correspondence_address = {R.K. Brahmana; School of Economics, Finance, and Accounting, Coventry University, Coventry, United Kingdom; email: raye_brahm@yahoo.com}, publisher = {Emerald Publishing}, issn = {03074358}, language = {English}, abbrev_source_title = {Manag. Financ.}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 0} } @ARTICLE{Srairi2022644, author = {Srairi, Samir and Bourkhis, Khawla and Houcine, Asma}, title = {Does bank governance affect risk and efficiency? Evidence from Islamic banks in GCC countries}, year = {2022}, journal = {International Journal of Islamic and Middle Eastern Finance and Management}, volume = {15}, number = {3}, pages = {644 – 663}, doi = {10.1108/IMEFM-05-2020-0206}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85115807557&doi=10.1108%2fIMEFM-05-2020-0206&partnerID=40&md5=cd061074ebbe4368422708b336c817c8}, affiliations = {ESC de Tunis, University of Manouba, RIM RAF, Tunisia; University of Sousse, Sousse, Tunisia; Higher Institute of Management of Tunis, University of Tunis, Tunisia and Dubai Business School, (DBS)–University of Dubai, United Arab Emirates}, abstract = {Purpose: The motivation of the study is to shed further light on the question of whether the governance structure of Islamic banks (IBs) has an impact on the efficiency and risk of Islamic banks operating in the Gulf Cooperation Council (GCC) after the global financial crisis and during the period 2010–2018. This study aims to examine the extent of governance structure on the efficiency and risk of IBs as the effect of the financial crisis has been less on IBs. In addition, the authors are interested in the GCC region as it represents the hub of Islamic finance. Design/methodology/approach: In this study, the authors examine how the banking governance structure affects the risk-taking and performance of IBs in the GCC countries between 2010 and 2018. The authors construct a banking governance index (CGI) composed of sub-indices for the board structure, risk management, transparency and disclosure, audit committee, Sharia supervisory board and investment account holders. Unlike the majority of previous studies, bank performance is measured with technical efficiency scores using a data envelopment analysis and the authors use a comprehensive CGI. Findings: The results show that IBs in GCC countries adhere to 54% of the attributes covered in the CGI. The authors also note a lack of disclosure regarding the investment account holders and the audit committee. As well, the results indicate that bank governance is positively associated with risk-taking and bank efficiency. Banking risk is influenced by the Sharia board and risk management while bank efficiency is affected by the characteristics of the board structure and investment account holders. Originality/value: To the best of the authors’ knowledge, this is the first study that has developed a comprehensive governance index for IBs in GCC countries that includes a wide range of governance dimensions. The study contributes to the literature on governance in the banking sector by simultaneously examining its impact on the risk-taking and efficiency of IBs and recognizes the dynamic relation between these three variables for IB. © 2021, Emerald Publishing Limited.}, author_keywords = {Bank governance; Bank risk; Efficiency; GCC countries; Islamic banks; Sharia board}, correspondence_address = {K. Bourkhis; University of Sousse, Sousse, Tunisia; email: Khawlabourkhis@hotmail.fr}, publisher = {Emerald Group Holdings Ltd.}, issn = {17538394}, language = {English}, abbrev_source_title = {Int. J. Islam. Middle East. Financ. Manage.}, type = {Article}, publication_stage = {Final}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Ali2023, author = {Ali, Shoaib and Yousaf, Imran and Vo, Xuan Vinh}, title = {Comovements and hedging effectiveness between conventional and Islamic cryptocurrencies: evidence from the COVID-19 pandemic}, year = {2023}, journal = {International Journal of Emerging Markets}, doi = {10.1108/IJOEM-10-2021-1571}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85150957310&doi=10.1108%2fIJOEM-10-2021-1571&partnerID=40&md5=735cded3527c7bb4f437db88eef10ef1}, affiliations = {Department of Graduate Studies, Air University School of Management, Air University, Islamabad, Pakistan; College of Business and Public Management, Wenzhou-Kean University, Wenzhou, China; Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam}, abstract = {Purpose: This study examines the dynamics of the comovement and causal relationship between conventional (Bitcoin, Ethereum and Binance coin) and Islamic (OneGram, X8X token and HelloGold) cryptocurrencies. Design/methodology/approach: This study uses wavelet coherence approach to examine the time-varying lead-lag relationship between conventional and Islamic cryptocurrencies. Furthermore, the authors use BEKK-GARCH model to estimate the optimal weights, hedge ratio and hedging effectiveness in pre-COVID-19 and during the COVID-19 period. Findings: The authors find no significant comovement in pre-COVID-19. However, the authors find significant positive comovement in conventional and Islamic cryptocurrencies at the beginning of the pandemic, and in most cases, conventional cryptocurrencies are leading. X8X and HelloGold have no/weak correlation with conventional cryptocurrencies, implying that investors can diversify the risk by making an Islamic and conventional cryptocurrencies portfolio. The authors also calculate the optimal weights, hedge ratio and hedging effectiveness using the BEKK-GARCH model. Based on the optimal weights, for the portfolios of conventional–Islamic cryptocurrencies, investors are suggested to increase their investment in Islamic cryptocurrencies during the COVID-19 than normal period. The results of hedge ratios show that hedging costs are higher during COVID-19 than before. Practical implications: The findings of the paper offer several practical policy implications for investors, portfolio manager, Shariah advisors and policymakers pertaining to asset allocation, risk management, forecasting and diversification. Specifically, investors can maximize the risk adjusted returns of their conventional cryptocurrencies portfolio by adding some portions of Islamic cryptocurrencies. Considering the comovement is time-varying, investors/manager should adjust their investment strategies frequently. For the entrepreneurs in crypto-industry, it is advised to introduce new Islamic cryptocurrencies, as it has a huge growth potential because of their distinct features and performance. Originality/value: This is the first study that explores the linkages between conventional and Islamic cryptocurrencies, therefore this study extends the literature of Islamic finance, stablecoins and cryptocurrencies in pre-COVID-19 and during COVID-19 period. The study results provide insights to conventional crypto investor on how to manage their portfolio during normal and turbulent period. © 2023, Emerald Publishing Limited.}, author_keywords = {Comovements; Conventional cryptocurrencies; COVID-19; Hedging effectiveness; Islamic cryptocurrencies; Wavelet approach}, correspondence_address = {X.V. Vo; Institute of Business Research, University of Economics Ho Chi Minh City, Ho Chi Minh City, Viet Nam; email: vxvinh@yahoo.com}, publisher = {Emerald Publishing}, issn = {17468809}, language = {English}, abbrev_source_title = {Int. J. Emerg. Mark.}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 2} } @ARTICLE{Jatmiko2023, author = {Jatmiko, Wahyu and Iqbal, Abdullah and Ebrahim, M. Shahid}, title = {On the Ethicality of Islamic Banks’ Business Model}, year = {2023}, journal = {British Journal of Management}, doi = {10.1111/1467-8551.12703}, url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85147374503&doi=10.1111%2f1467-8551.12703&partnerID=40&md5=efba436ff41d26c694a286983de0f5ca}, affiliations = {Faculty of Economics and Business, University of Indonesia, Jawa Barat, 16424, Indonesia; Kent Business School, University of Kent, Canterbury, CT2 7FS, United Kingdom; Durham University Business School, University of Durham, Durham, DH1 3LE, United Kingdom}, abstract = {This paper scrutinizes the ethicality of Islamic banks’ (IBs’) business model by employing the ‘objectives of Islamic law’ (Maqāsid al-Sharī’ah). This necessitates developing an ethical framework to construe two primary injunctions of Islamic finance, namely ribā and gharar. The former embodies financial decoupling (aggravating risk-shifting) and unjust price gouging (provoking economic stagnation and financial exclusion), while the latter involves asymmetric information and excessive risk-taking behaviour (exacerbating financial fragility and thus systemic risk). We empirically and theoretically illustrate that these unethical issues are still prevalent in the IBs’ modes of financing, despite the Sharī’ah-compliant endorsement of religious scholars (i.e. Sharī’ah supervisory boards). This affirms that ethicality is merely an impression management exercise of IBs instead of their true business identity. The way forward is to conceptualize IBs’ modes of financing beyond just Sharī’ah compliance by scrutinizing their ethical impact on society at large. This would require updating centuries-old Islamic rulings (Fatāwā) on financial transactions and consulting finance academics and practitioners. © 2023 The Authors. British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management.}, correspondence_address = {A. Iqbal; Kent Business School, University of Kent, Canterbury, CT2 7FS, United Kingdom; email: a.iqbal@kent.ac.uk}, publisher = {John Wiley and Sons Inc}, issn = {10453172}, language = {English}, abbrev_source_title = {Br. J. Manage.}, type = {Article}, publication_stage = {Article in press}, source = {Scopus}, note = {Cited by: 3; All Open Access, Green Open Access} }