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on Islamic Finance |
| By: | Sabur Mollah (School of Management, Swansea University); Michael Skully (Monash University); Eva Liljeblom (Hanken School of Economics) |
| Abstract: | This paper examines whether variations in strong boards explain the differences between risk-taking in Islamic and conventional banks. From an analysis of a pooled sample of Islamic and conventional banks, we find that strong boards in general serve their shareholders through engaging in higher risk-taking activities across both types of banks. In Islamic banks, however, the Shari'ah Supervisory Board (SSB) is found to mitigate risk-taking when integrated with a strong board, as religiosity restrains risk-taking. |
| Keywords: | Strong Board, SSB, Religiosity, Risk-Taking, Islamic Banks, and Conventional Banks. |
| JEL: | G01 G21 G34 |
| Date: | 2018–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:swn:wpaper:2018-08&r=isf |
| By: | Novi Puspitasari (Economic Faculty, Universitas Riau, Pekanbaru, Indonesia Author-2-Name: Devi Hardiyanti Rukmana Author-2-Workplace-Name: University of Jember, Jl. Kalimantan 37 Jember, 681121, Jember, Indonesia Author-3-Name: Hari Sukarno Author-3-Workplace-Name: University of Jember, Jl. Kalimantan 37 Jember, 681121, Jember, Indonesia) |
| Abstract: | Objective – This research aims to analyse the efficiency of Islamic banking in Indonesia and Malaysia based on the maqashid shariah approach. Methodology/Technique – This research uses individual education, creation of justice, and achievement of welfare to measure the efficiency variable. The research period covers the period from 2011 to 2015, using data envelope analysis (DEA). Findings – The result show that there are three (3) Islamic banks that achieve maximum efficiency in Malaysia. These are: Affin Islamic Bank Berhad, which achieved maximum efficiency in terms of distribution and profitability output, CIMB Islamic Bank, which achieved maximum efficiency in terms of distribution output, and RHB Islamic Bank Berhad, which achieved maximum efficiency in terms of distribution output. Meanwhile, two (2) Islamic banks which were considered to be efficient, although not at the maximum level. Novelty – This study shows that Bank Panin Syariah achieves maximum efficiency with respect to distribution output, and that Bank Mega Syariah is considered efficient with respect to profitability output and personal revenue output. |
| Keywords: | Islamic Banks; Efficiency; Maqashid Shariah; DEA; Indonesia; Malaysia. |
| JEL: | G20 G21 |
| Date: | 2017–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr134&r=isf |
| By: | Salamah Wahyuni (Faculty of Economics and Business, Universitas Sebelas Maret Surakarta Author-2-Name: Arif Lukman Santoso Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret Surakarta Author-3-Name: Yacob Suparno Author-3-Workplace-Name: Faculty of Economics and Business, Universitas Sebelas Maret Surakarta) |
| Abstract: | Objective – This study examines the factors affecting the quality of Islamic banking services in Indonesia, and its impact on customer satisfaction. Methodology/Technique – Questionnaires were distributed to 300 people, with 286 respondents having completed and returned the questionnaires. A descriptive analysis was conducted to ascertain the elements of Islamic banking services. Further, multiple regression analysis was used to analyze the influence of the quality of Islamic banking services on customer satisfaction. The results show that all elements of banking services are not in accordance with the expectations of the respondents as customers, particularly with respect to Automatic Teller Machine ('ATM') services. Findings – The results show that, with respect to all elements examined, the value of expectations was higher than the service received by customers. In addition, not all of the study hypotheses were accepted. The expectations of banking services were not influenced by Word of Mouth ('WOM'), personal characteristics or experience. Further, the source of information obtained, the age or income of the respondents, and their education and experience, did not have an effect on the expectations of Islamic banking services. Novelty – A high quality of Islamic banking services significantly affects customer satisfaction. In an effort to improve services in that industry, Islamic banking in Indonesia would benefit from placing more attention on all elements of the services provided to customers, particularly ATM services. Further, based on the findings of this study, the elements of customer service should be addressed regardless of the characteristics of the customers, such as age, income, education or experience. |
| Keywords: | Service Quality; Customer Satisfaction; Islamic Banks; Indonesia |
| JEL: | G20 G21 G29 |
| Date: | 2017–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr138&r=isf |
| By: | Jaelani, Aan |
| Abstract: | Economic behaviour in the study of Islamic economics is the basis for the government to portray political ethics and ethical economic functions of individuals in functioning as a member of society. Secular ethics and religious ethics, according to al-Mawardi, as the code of conduct in conducting economic practices by the government and every member of society to uphold the principle of goodness. In the context of economic behaviour, the world ethics (adab al-dunya) and the religious ethics (adab al-din) became guidelines for economic actors in conducting business activities including other forms of cooperation or other muamalah practice. |
| Keywords: | Philosophy of economics, behavioral economics, ethics, religion, Islamic Economic |
| JEL: | B31 B41 D01 D1 D6 H1 H5 N01 N25 N3 N35 |
| Date: | 2017–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84488&r=isf |
| By: | Jaelani, Aan; Firdaus, Slamet; Jumena, Juju |
| Abstract: | This study confirms that renewable energy sources become the solution for energy development in Indonesia due to the increasingly depleted use of fossil-based energy, due to an increase in the population that increases energy consumption and waste in fuel consumption. The Qur'an has provided simple concepts and illustrations about renewable energy sources that can be utilized by humans, energy conservation, and energy enrichment. With the codification and content analysis approach to energy policy in Indonesia and energy themes in the Qur'an, this paper asserts that the Government of Indonesia's renewable energy policy focuses on providing and developing renewable energy as part of sustainable development. This renewable energy policy can be proven scientifically with the implementation of scientific Qur'anic terms about renewable energy sources such as water, geothermal, ocean, vegetation, and wind. The policy on energy conservation through energy saving becomes a religious obligation for every person, institution, and government because to meet the needs of consumers, maintain the survival of the community, and preserve the environment. |
| Keywords: | renewable energy, energy conservation, energy efficiency, energy economy |
| JEL: | Q20 Q28 Q42 Q48 Q58 |
| Date: | 2017–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84622&r=isf |