Global Review of Islamic Economics and Business
The scope or coverage of this International journal will include but are not limited to: Islamic Economics, Islamic Business, Islamic banking, Islamic capital markets, Islamic wealth management, Issues on shariah implementation/practices of Islamic banking, Zakat and awqaf, Takaful, Islamic Corporate Finance, Shariah-compliant risk management, Islamic derivatives, Issues of Shari`ah Supervisory Boards, Islamic business ethics, Islamic Accounting, Islamic Auditing.
Articles
168 Documents
<![CDATA[Factors Affecting Capital Structure of Conventional and Islamic Banks: Evidence from MENA Region ]]>
<![CDATA[Ahmad Al-Harby]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 7, No 2 (2019) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2019.072-02
<![CDATA[This study aim is to investigate and compare the factors affecting conventional and Islamic bank’s capital structure choice as well as their financial characteristics. According to the best of my knowledge, this is the first paper that mainly concentrated in comparing the determinants of capital structure of conventional and Islamic banks using a cross-country data and for a long period of time (20 years). The study revealed several findings. Firstly, descriptive statistics (equality of means test) showed that conventional banks more leveraged and liquid than Islamic banks. In contrast, Islamic banks are larger and more profitable (ROA) than conventional banks. The results also indicated that Islamic banks are not riskier than conventional banks. Secondly, the regression results showed that all variables, except tax-shield, had the same impact on both banking types capital structure. It been found that profitability, tangibility, business risk and age correlated negatively and significantly with capital structure. In the other direction, size, liquidity and inflation had significant and positive relation with capital structure. Vis-à-vis tax-shield, this variable had a weak impact (positive) on Islamic bank’s capital structure but had no effect on conventional banks and this attributed to Islamic banks sample.]]>
<![CDATA[Analysis of Influence Financial Ratios on Sharia Banking Performance in Indonesia (Empirical Study at Bank Muamalat Indonesia, Bank Syariah Mandiri, and Bank Mega Syariah) ]]>
<![CDATA[Shulhah Nurullaily]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 4, No 2 (2016) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2016.042-06
<![CDATA[This study aims to examine the performance of Sharia Banking in Indonesia after experiencing slowing growth due to the impact of the United States crisis in 2008/2009. Factors used to measure the performance of sharia banking represented by ROA are CAR, NPF, BOPO, NM and FDR. This research uses multiple linear regression analysis with sample of research of Bank Muamalat, Bank Mega Syariah, and Bank Syariah Mandiri with the period of research from the first quarter 2008 to the fourth quarter 2011. The result of this research that is NM and FDR have positive significant effect on ROA, while BOPO has a significant negative effect on ROA, CAR and NPF have no influence on ROA.]]>
<![CDATA[The Critical Aspect on Fair Value Accounting and its Implication to Islamic Financial Institutions ]]>
<![CDATA[Safri Haliding]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 1, No 3 (2014) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2014.013-05
<![CDATA[Recently, fair value measurement and its implication in accounting standards have been increasing (Ramanna, 2006). One of the important aspects of financial reporting is measurement (Barth, 2007). Barlev and Haddad (2003) state that the fair value accounting(FVA) paradigm replaced the historical cost accounting (HCA) in the development of accounting standards that FVA is more value relevant that HCA probably did not provide the real financial information and income. However, previously studies mention that fair value accounting suffers from some serious limitations and disadvantages such as issues in market approach, income approach, and cost approach. Al-Yassen and Al-Khadash (2011) argue that accounting standard setters such as the International Accounting Standards Board (IASB) UK and the Financial Accounting Standards Board (FASB) U.S as well as other national accountingstandard setters provide high attention and long-term ambition to use fair value accounting as full measurement in all financial instruments. Islamic Financial Institutions (IFIs) that have different objectives and principles as well as have different financial products with conventional financial institution. This paper tries to explore critical aspects of the fair value accounting andits implications to Islamic Financial Institutions implications. This study concludes that that fair value accounting measurement provides many critical aspects to be implemented to Islamic Financial Institutions (IFIs). Additionally, AAOIFI proposed cash equivalent value as respond to fair value measurement that cash equivalent value when the attribute condition are present such as the relevance, reliability and understandability of the resulting information. Furthermore, fully adopting International Financial Reporting Standards (IFRS) issued by IFRSIASB, there will no specific standards for unique functions of Islamic Financial Institutions. Inaddition, the paper may be recommended to work together among Muslim countries to unity the potential harmonizing one set accounting standards for Islamic Financial Institutions such as AAOIFI?s standards.]]>
<![CDATA[FEASIBILITY OF BAY SALAM FINANCE: A SURVEY OF THE OPINIONS OF STAKEHOLDERS ]]>
<![CDATA[Muhammad Tahir Manoori]]>;
<![CDATA[Atiq-ur-Rehman Atiq-ur-Rehman]]>;
<![CDATA[Muhammad Jamil]]>;
<![CDATA[Muhammad Ishfaq]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 6, No 1 (2018) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2018.061-01
<![CDATA[The present study aims to explore the potential application of Bai Salam (forward sale agreement) as substitute financial instrument in the agriculture sector of Pakistan. The conclusion is drawn through a survey questionnaire from 300 farmers and bankers in a district of Punjab. For analysis, we use SPSS software and presented the results by using descriptive methods. This study overall concludes the banker’s and farmer’s awareness, willingness, risks, hurdles and the role of institutions in the Salam promotion. The majority of the farmers are not aware of the Salam contract because the Islamic bank’s branch network is limited to urban areas and there is no proper promotion campaign launched by the Islamic banks for awareness about Salaam among the farmers. Bankers are reluctant to finance the tenants, orchards due to more operational risk for the bank. Bankers opinion that small farmers do not have personal securities which is not a solid reason because half of the sampled farmers take a loan from the formal system if they can provide securities to conventional interest-based institution why they can’t provide securities to Islamic financial institutions? There is a vast market for the Islamic Banks if they sincerely pay their attention towards forward sale contracts. The concept applies to all areas of agriculture and livestock farming to overcome financing problems and boost production. ]]>
<![CDATA[Philosophy behind Islamic Economics: Limited Desires and Unlimited Resources ]]>
<![CDATA[Malik Shahzad Shabbir]]>;
<![CDATA[Husnain Ahmed]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 2 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.082-05
<![CDATA[The most famous definition of economics among modern academicians and economists is a branch of science which deals with the study of the relationship between limited resources and unlimited wants or desires. Under the shadow of this definition, there are different types of conventional economic systems included relativism, utilitarianism, and universalism, etc. This study has been introduced in the economic world through an evolution process. There is a dominant feeling within the Muslim elites that either Islam is unable to respond to complex contemporary challenges in the fields of trade and economics or its economic concepts are old and outdated. Both of these perceptions are incorrect. The real philosophy, concept, and definition of Islamic economics are based on limiting desires and unlimited resources which are supported by Quran and Hadith. The beauty of Islamic economics is based on limited desires and unlimited resources. This concept of Islamic economics can share the risk of profit and loss in their business. Islamic banks with this revolutionary approach will feel at ease in implementing Shari’ah-based finance and offer risk-sharing products and services.]]>
<![CDATA[The Effect of Funding Policy, Investment Policy, and Dividend Policy on the Firm Value through Good Corporate Governance as an Intervening Variable ]]>
<![CDATA[Muhammad Sulhan]]>;
<![CDATA[Puji Endah Purnamasari]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 1 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.081-05
<![CDATA[The company’s main objective is maximizing the firm value which means it increases shareholder prosperity. This can be achieved by combining funding policy, investment policy, and dividend policy optimally. The application of good corporate governance (GCG) is used to direct and control the company to be able to run the company’s operations following stakeholder’s expectations. This study aims to determine the influence of funding policies, investment policies, and dividend policies on firm value by using GCG as a mediating variable.This study uses a quantitative approach. In this study, the population is all companies listed in the banking sub-sector on the Indonesia Stock Exchange in 2013-2017, with a total of 43 companies. The samples are taken by purposive sampling technique with 12 companies. The method of data analysis used in this study was descriptive analysis and path analysis using Partial Least Square (SmartPLS3).The result of the study shows that the investment policy has a positive effect on firm value. The funding policy and dividend policy do not affect firm value. While investment policy has a positive effect on GCG. Furthermore, the funding policy and dividend policy do not affect GCG. GCG successfully mediates the relationship of investment policy with the firm value. That is, the higher profitability will affect the GCG so that it will affect the firm value. However, GCG as an intervening variable does not succeed in mediating the relationship of funding policy and dividend policy with the firm value.]]>
<![CDATA[Identifying a Convergence between Non-Financial Information and Islamic Accounting for Islamic Decision Usefulness: A Review and Synthesis ]]>
<![CDATA[Ibnu Qizam]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 2 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.082-01
<![CDATA[This study aims to explore a framework of developing the Islamic decision usefulness (IDU) concept through a review of non-financial information and Islamic accounting under the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) literature for convergence and the extent to which this convergence will inspire future empirical-research opportunities for the increased Islamic decision usefulness (IIDU). Exploring and delineating historically non-financial information literature to be linked with Islamic accounting trends through content analysis, this study suggests that decision usefulness of non-financial information has flourished from being complementary to the strategic role of information, adopting the ideas of creating shared value (CSV), and sustainable value-creation (SVC). To this point, the enhancement of decision usefulness emitted from non-financial information and Islamic accounting literature points to the same pole (convergence), exposing the firms’ relevant-sustainable shared-value for 3Ps (profit, people, and planet) blended with Islamic accounting concepts, whereby welcoming many future empirical-research opportunities for the increased Islamic decision usefulness (IIDU).]]>
<![CDATA[Mediating Effect of Islamic Social Reporting on the Relationship between Good Corporate Governance and Company Value: The Case of the State-Owned Enterprises ]]>
<![CDATA[Indah Yuliana]]>;
<![CDATA[Farahiyah Sartika]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 1 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.081-01
<![CDATA[The concept of Good Corporate Governance (GCG) is related to the disclosure of Islamic Social Reporting (ISR) which guarantees that the funds invested in the company are well managed and will provide adequate returns so that this can attract investors and indirectly can increase the company value. This research aims to analyze the indirect effect of GCG rating on company value through the disclosure of ISR and it also attempts to analyze the direct effect of GCG and ISR toward company value, and the effect of GCG towards ISR. This research used quantitative and descriptive approaches with secondary data. The state-owned enterprises in the manufacturing and mining sector listed in the Indonesian Sharia Stock Index (ISSI) were selected as the sample of the study. The method used in this study includes descriptive statistical analysis, partial least square, and mediation test. The result shows that GCG has a positive effect on company value and ISR disclosure, while ISR disclosure does not affect company value. However, GCG does not affect company value through ISR disclosure. This indicates that ISR disclosure has no mediation effect on the relationship between GCG and company value.]]>
<![CDATA[Sacrificial Worship (Qurban) Motivation Determinant Factors of Tuatunu Population in Pangkalpinang City ]]>
<![CDATA[Hendra Cipta]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 2 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.082-02
<![CDATA[This article intends to find an answer to the high level of community participation in Tuatunu Urban Village in the City of Pangkalpinang, Bangka Belitung Islands Province in the sacrificial worship (qurban) motivation during the Eid al-Adha feast day. Tuatunu Urban Village only has a population of approximately 9,000 inhabitants and the average livelihood of its inhabitants is as pepper, rubber, and pineapple farmer. But in Eid al-Adha 2019, the level of participation of the people who follow the sacrificial worship from the five mosques in this area is highest when compared to the seven sub-districts in the Municipality of Pangkalpinang. Tuatunu Urban Village sacrifices approximately 32 cows at Eid al-Adha 2019, where seven people bear one cow. This urban village celebrates Eid al-Adha like Eid al-Fitr where residents visit each other's neighbors. This article is the result of quantitative research with the dependent variable is a sacrificial worship motivation and the independent variables are religiosity, generosity, avoid harm, and social status. This study found that the variables that influence the motivation to sacrificial worship the people of Tuatunu Urban Village are the factors of religiosity, social status, and avoid harm while the elements of generosity do not significantly influence the motivation to sacrifice.]]>
<![CDATA[The Impact of Credit Diversification on Credit Risk and Performance of Indonesian Banks ]]>
<![CDATA[Iin Emy Prastiwi]]>;
<![CDATA[Anik Anik]]>
<![CDATA[ Global Review of Islamic Economics and Business Vol 8, No 1 (2020) ]]>
Publisher : <![CDATA[Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga ]]>
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DOI: 10.14421/grieb.2020.081-02
<![CDATA[This study aims to identify the effect of credit diversification in the economic sector on credit risk and performance of commercial banks in Indonesia. Multiple linear regression is used to determine the effect of credit diversification on credit risk and banking performance. The data used in this study is the aggregated financial statements of commercial banks inIndonesia during the 2015-2018. The results indicate that credit diversification based on the economic sector has a significant effect on increasing the profitability of commercial banks in Indonesia. The credit diversification based on the economic sector also has a significant effect in reducing credit risk. Two control variables, namely company size and banking liquidity have a significant negative effect on profitability respectively. In the case of credit risk, the company size hasapositive effect, while the banking liquidity has no effect. These findings support the traditional banking theory which states that banks that diversify their credit portfolios can reduce the credit risk and increase profitability.]]>
