nep-isf New Economics Papers
on Islamic Finance
Issue of 2019‒08‒12
ten papers chosen by

  1. Payout policy and ownership structure: The case of Islamic and conventional banks By Aziz Jaafar; Andi Duqi; Mohammed Warsame
  2. Kritik atas Sistem Bunga Perbankan Konvensional dan Solusi Moneter Islam By Mutaqin, Diana Agustina
  3. Media Sosial Perilaku Konsumen dan Strategi Pemasaran Implikasi Halal tentang Operasi Pemasaran Islam By Apdi, Ferdi Ansyah
  5. Price Control in Islamic Economics By Kusnadi, Jamaludin
  6. Fashion in Islamic Perspective By Pancarini, Ans Shinta
  7. Halal recreation potential in Indonesia in improving tourists and the global economy By Lahny, Moh Abduttawwab
  8. Dinar and Dirham As One Alternative Inflation Control Solution in Indonesia By Martono, Budi
  9. Surplus Dutch Colonial Big Profits in Indonesia 1878-1942 By Sumardi
  10. Pengelolaan Tabungan Wakaf Indonesia (Management of Indonesian Waqf Savings) By Pancarini, Ans Shinta

  1. By: Aziz Jaafar (Bangor University); Andi Duqi (University of Bologna); Mohammed Warsame (University of Sharjah)
    Abstract: Using a sample of Islamic and conventional financial institutions domiciled in 16 countries for the period 2000-2015, we examine how ownership structure affects dividend policy. Our main findings indicate that ownership identity is important in explaining dividend policy in these banks, albeit in different patterns. In particular, the results suggest that government ownership seems to exert negative effects on dividend payouts in both types of banks, which is in line with the preference of governments towards bank stability. With respect to family ownership, the impact is negative for conventional banks but positive for Islamic ones, consistent with agency theory. These results are to some extent similar in the case of foreign ownership where it is associated with a higher payout policy in Islamic banks, but not significant in conventional ones. Our results are robust to an array of additional analyses including propensity score matching.
    Keywords: Agency theory, Islamic banking, ownership structure, payout policy.
    JEL: G21 G35
    Date: 2019–03
  2. By: Mutaqin, Diana Agustina
    Abstract: The purpose of this study is to review some of the criticisms of the Bank's interest system. Issues related to whether bank interest including usury or not usury has been debated and is still being discussed to date by Islamic economists. But now there has been criticism from Western or Conventional Economists of the negative impact of the Bank's interest in the economy. The method used is a qualitative method using descriptive analysis and literature review. From these experiences, the Islamic Monetary System which is free from interest can be a solution to realize prosperity and guarantee economic injustice. this system is expected not only to increase the money in circulation but how to be able to improve the performance of the real sector in accordance with Islamic sharia. Because basically in the Islamic monetary system, it is not only aimed at material welfare but aims at moral well-being. There are at least five values of Islamic economic instruments that can be integrated into the economic system, namely zakat, waqf, social security, the justice system in resolving economic disputes and sharia financial institutions.
    Keywords: criticism, interest system, Islamic monetary
    JEL: A10 E42 P43 P51
    Date: 2019–07–11
  3. By: Apdi, Ferdi Ansyah
    Abstract: This paper extensively examines the role of social media in the development of Islamic marketing strategies in Indonesia in the context of the reported shift towards a more relationship-oriented approach to marketing. Social media platforms have emerged as the main communication tool in relationship marketing in part because of their ability to facilitate ongoing two-way communication between organizations and mass audiences, while maintaining the push-messaging capabilities of traditional marketing. Therefore growing academic interest explores the factors that influence the adoption and use of social media for business development purposes. There is a growing interest in the field of Islamic marketing, in part because of its thin size, and the relatively significant influence Islam has on Muslim consumption behavior and the operation of business managers. The purpose of this paper is to describe the role that social media platforms play as a brand communication tool in the context of Islamic marketing. We began a paper with a brief explanation of the concept of Islamic marketing, highlighting several factors influencing academic development in the field. Next, we discuss the main ways social media use by marketers and consumers alike influences Muslim consumer behavior. Finally, we conclude the paper by examining the effectiveness of the role of social media platforms that develop as tools by which marketing managers can influence the buying behavior of Muslim customers.
    Keywords: Halal, Islamic Marketing, Marketing Strategy, Social Media.
    JEL: D1
    Date: 2019–07–06
  4. By: Nugraha, Asep
    Abstract: This paper wants to explore more about the prospects and challenges of the development of Islamic insurance in Indonesia. Islamic insurance industry in Indonesia has very good prospects for growth, the demand for insurance products based on shariah will continue to increase. This is supported by a large population of Indonesia and also as the largest Muslim country in the world. However, this industry will also experience a very strong obstacle because of the global economic downturn, as it also conditions the people are not educated about insurance, the free market has begun to be applied, resources are less about Islamic insurance, lack of capital and other on.Therefore it needs the government's role to help to continue to grow, with regulations that support this industry.
    Keywords: Islamic insurance, Challenges, Global Economic.
    JEL: G22
    Date: 2019–07–13
  5. By: Kusnadi, Jamaludin
    Abstract: In economics, we often hear the word price and its scope. In this case, the relation is how the value that becomes the transaction between the seller and the buyer is the replacement of the goods or services exchanged. The economy is one of the teachers in the country's life. The strength and weakness of a country's economic system are determined by pricing so that price stability occurs. But it is not easy to create an economy at a stable price because sometimes the demand level is higher than the supply and vice versa.
    Keywords: Price, Price Control, Islamic Economics, Market Mechanism
    JEL: A10 A11 B10 E6 E64
    Date: 2019–07–01
  6. By: Pancarini, Ans Shinta
    Abstract: The need clothes that bring benefit serves as a cover nakedness, over the times fashion became an icon for Muslim identity as identity, nation and civilization. Islamhas instilled the values of philosophy as well as being bargading position for Muslims.
    Keywords: Fashion, Islamic Law
    JEL: A1 A14 E2 E20 E3 E39 K0
    Date: 2018–10–27
  7. By: Lahny, Moh Abduttawwab
    Abstract: This study confirms that halal recreation is one form of the tourism industry that has contributed to the growth in the number of tourists and the national economy, even contributing to the improvement of the world economy, with evidence that Indonesia has topped the Mastercard-Crescent Muslim Global Travel Index (GMTI) 2019 together with Malaysia. With a phenomenological approach, this study concluded that halal recreation in Indonesia has an important role in increasing the number of tourists and the global economy.
    Keywords: Recreation, Halal, Tourist, Economy
    JEL: L83 Z12
    Date: 2019–07–06
  8. By: Martono, Budi
    Abstract: The phenomenon of soaring inflation and the depreciation of a country's currency has become a factual discussion on several discussions of economic disciplines. In the context of the rupiah exchange rate, an empirical fact explains that in some periods, the currency of the Republic of Indonesia, the rupiah, continued to weaken against the currencies that became references such as USD and Euro. It becomes interesting when you notice that some countries have the same profile as Indonesia, a currency issue becomes a global issue. Especially when we notice that the weakening of a country's currency will correlate in line with the soaring increase in inflation in a country. The economic growth of a country is influenced by several factors including the positive trade balance, significant GDP growth, and in some areas, a stable currency. It is common knowledge, that Indonesia as a country that has a high dependence on imports, always faces endless conditions when its import payments must be made using the dollar or euro. The amount issued by IDR to buy 1 USD is now almost reaching Rp. 15,000. Inevitably, the country's foreign exchange reserves as a barometer of a nation's economic strength when facing a crisis become a challenge. The need for a very high USD currency from large corporations and profit-seeking individuals from currency buying and selling transactions, adding to the burden of the IDR became even more severe which in turn also affected the soaring inflation.
    Keywords: Dinar and Dirham, Alternative, Inflation Control Solution.
    JEL: E25 E4 E41 E42 E52 G2
    Date: 2019–07–12
  9. By: Sumardi (Universitas Jember, Jalan Kalimantan No. 37 Tegalboto, 68121, Jember, Indonesia Author-2-Name: Aryni Ayu Author-2-Workplace-Name: Universitas Jember, Jalan Kalimantan No. 37 Tegalboto, 68121, Jember, Indonesia Author-3-Name: M. Naim Author-3-Workplace-Name: Universitas Jember, Jalan Kalimantan No. 37 Tegalboto, 68121, Jember, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - This study aims to analyse the Colonial Drain process to prove the colonial land profits based on the theoretical framework. The Surplus Colonial Profit is conceptualized through the term "colonial drain". The study uses historical economics based on the theories of Lenin Imperialism and Gramsci's Hegemony. Methodology/Technique - This research will draw upon both primary and secondary sources. The primary sources include official and organizational publications including The Netherlands-Indies. The secondary sources include all relevant published and unpublished materials collected from diverse sources. Finding - The calculation of the surplus of colonial profits is scrutinized using historical causality by Gramsci's Hegemony theory to strengthen the data where the profits are obtained from public and private companies, and beyond predictions, "private profits" became the biggest commodity. Research Limitations / Implications - This research provides a basis for determining the direction of Indonesia's future economic development, and can also be a consideration of recent Indonesian lawsuits regarding Dutch debt, and can be a useful for reference material for further research. Novelty - Royal Dutch wealth was obtained from international trade and shipping of goods to Europe and ranges from 5.29 billion in 1878-1939 in the trade, services, international shipping sectors for and from Indonesia. This means that about 1 billion guilders missed from the recording of previous research that was around 4.12 billion.
    Keywords: Colonial Drain; Profits; Surplus; Metropolitan Economics; Dutch.
    JEL: N00 N
    Date: 2019–06–18
  10. By: Pancarini, Ans Shinta
    Abstract: The basic problem of waqf is management, especially cash waqf management. Institutions that play a role in managing cash waqf have specific characteristics and management patterns. This article focuses on managing Indonesian waqf savings.
    Keywords: Cash Waqf, Management of Cash Endowments, Indonesian Waqf Tubes.
    JEL: A1 A12 G0 G2 G29 H0 M0 P0
    Date: 2019–06–07

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