nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒03‒29
thirteen papers chosen by
Mohamed Mohamed Tolba Said

  1. Tugas 1 Sejarah Pemikiran ekonomi Islam (Ainun Musfira 90100118005) By Musfira, Ainun
  2. Islamic Human Resource Management and Turnover Intention among Employees of an Islamic Religious Council By Muhamad Khalil Omar
  3. Islamic Republic of Mauritania; Sixth Review Under the Extended Credit Facility Arrangement and Request for Waiver of Nonobservance of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Mauritania By International Monetary Fund
  4. Sukuk and bond spreads By Balli, Faruk; Ghassan, Hassan B.; Al-Jefri, Essam H.
  5. Long-run stability of money demand and monetary policy: the case of Algeria By Raouf Boucekkine; Mohammed Laksaci; Mohamed Touati-Tliba
  6. Study on the impacts of Shanghai crude oil futures on global oil market and oil industry based on VECM and DAG models By Qi Zhang; Peng Di; Arash Farnoosh
  7. Metaphorical Analysis of Discourse on Early Saudi Attempts to Include Women in Unconventional Work Environments By Shrouq Al Maghlouth
  8. The Immigrant Next Door: Exposure, Prejudice, and Altruism By Leonardo Bursztyn; Thomas Chaney; Tarek Alexander Hassan; Aakaash Rao
  9. Law, mobile money drivers and mobile money innovations in developing countries By Simplice A. Asongu; Peter Agyemang-Mintah; Rexon T. Nting
  10. Sexual Harassment Deterrent Mechanism to Safeguard the Well-Being of Sports Practitioners By Sharifah Syahirah
  11. The Influence of Regulation and Financial Performance on The Disclosure of Corporate Social Responsibility and Corporate Reputation Moderated by Ownership Structure By Median Wilestari
  12. Liquidity in the German corporate bond market: Has the CSPP made a difference? By Boneva, Lena; Islami, Mevlud; Schlepper, Kathi
  13. The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting In Malaysia By Zainab Aman

  1. By: Musfira, Ainun
    Abstract: Artikel ini memberikan pemahaman terkait sejarah pemikiran ekonomi islam yang dimulai pada zaman klasik Rasulullah SAW. sampai pada saat ini atau biasa disebut dengan zaman kontemporer. Al-Gazali adalah seorang tokoh pemikir ekonomi islam yang terkemuka. Beliau adalah seorang akademisi yang sangat hebat dan banyak menarik perhatian setiap kalangan takterkecuali yang Non-muslim. Pada saat awal kemunculannya sebagai pemikir ekonomi islam, Al-Gazali berada di zaman perbudakan dan masa feodalisme. Pada masa ini segala bentuk kegiatan perburuhan selalu diawasi dan dikendalikan oleh penguasa. Dalam kondisi lain perkembangan dan kemajuan ilmu pengetahuan dan perekonomian sangat pesat. Pesatnya perkembangan dan kemajuan dalam bidang ini sangat didukung oleh pemerintah baik dalam bentuk materi maupun non materi. Kemunculan Al-Gazali ini bisa disebut berada pada tahap atau fase ke II yang mana di latarbelakangi oleh banyaknya tindakan korupsi dan krisis moral dan kesenjangan yang banyak terjadi di masyarakat. Jika dikaji secara menyeluruh, periode sejarah pemikiran ekonomi islam ini terbagi menjadi tiga fase, Pertama, zaman klasik atau masa Rasulullah SAW atau zaman kenabian, Kedua, zaman dinasti, Ketiga, zaman kebangkitan kembali yang terhitung sampai saat ini atau zaman kontemporer. Dalam tahapan pertama merupakan fase perkembangan dari teori eknomi islam klasik yang terjadi dalam tahapan waktu yang cenderung lama yaitu sekitar 9 abad. Pada masa ini sejumlah ulama yang menjadi pemikir ekonomi islam mulai banyak bermunculan tak terkecuali Al-Gazali. Mereka muncul dengan berbagai karya yang menarik perhatian orang banyak bahkan sampai saat ini.
    Date: 2021–03–09
  2. By: Muhamad Khalil Omar (Faculty of Business and Management, Universiti Teknologi MARA, Selangor, Malaysia Author-2-Name: Nor Aidillah Jamhari Author-2-Workplace-Name: Faculty of Business and Management, Universiti Teknologi MARA, Selangor, Malaysia Author-3-Name: Yusmazida Mohd Yusoff Author-3-Workplace-Name: Faculty of Business and Management, Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia 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 - Turnover has become a worldwide problem that has puzzled organizations, researchers and experts for years. This study is focused on practices of iHRM that consist of Islamic Staffing, Islamic human resources management, Islamic performance management and Islamic compensation and turnover intention among employees at Islamic Religious Council. This study has 3 research objectives. Firstly, to identify the level of the iHRM. Secondly, to identify the level of turnover intention. Thirdly, to investigate the relationship between iHRM and turnover intention. Methodology/Technique - 300 questionnaires were distributed to all employees at one of Islamic Religious Council in Malaysia as sample for this study and a stratified random sampling method was used. Findings - The research concludes that the level of iHRM and turnover intention is high. The relationship between iHRM and turnover intention also has a positive effect. Novelty - This research is one of few studies to examine the relationship between iHRM and turnover intention. Type of Paper - Empirical.
    JEL: E24 M12
    Date: 2021–03–31
  3. By: International Monetary Fund
    Abstract: The COVID-19 pandemic is having a severe human, economic, and social impact on Mauritania. The economy is estimated to have contracted by about 2 percent in 2020 and the crisis generated large financing needs. The authorities responded swiftly to mitigate the impact of the pandemic while international partners provided grants, loans, and debt service suspension. This, compounded by higher commodity exports (iron ore and gold) and some delays in emergency spending, resulted in unexpected fiscal surpluses and an accumulation of international reserves, which may now be used to support the recovery in 2021–22. The outlook remains highly uncertain and dependent on volatile commodity markets, with sizable downside risks in case new waves of the pandemic spill over into Mauritania.
    Date: 2021–03–11
  4. By: Balli, Faruk; Ghassan, Hassan B.; Al-Jefri, Essam H.
    Abstract: Sukuk are considered as an alternative instrument in Islamic finance. However, the structures and provisions make sukuk dissimilar to bonds. Literature is having difficulty in the comparison between the performance/integration of the sukuk and bonds issued at the same time. To fill the existing literature gap on sukuk risk, we focus on the yield spread by comparing the sukuk yield to bond yield through their main determinants by using the data of financial and non-financial firms at weekly level. We use 123 firms that issued both sukuk and bond at the same period for years between 2013 and 2018. We employ sukuk and bonds data that are issued by same company and issued at the same period and market. Accordingly, we are able to minimize factors that raised from sukuk and bonds structure differences. Using the panel generalized least squares estimations, we find that global factors, such as US government yield bonds make significant impact on the sukuk-bond differences. In particular, the negative returns create more significant differences. However, on the other hand, the global shocks in sukuk markets, proxied by DJ sukuk index, are highly limited. By using the quantile analysis, we find that the effects of higher or lower bond spreads do not change.
    Keywords: Shariah compliance, Sukuk, Bond market, Global shocks, Risk
    JEL: F3 G11 G21
    Date: 2020–03
  5. By: Raouf Boucekkine (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain); Mohammed Laksaci (Ecole Supérieure de Banque); Mohamed Touati-Tliba (ESC Alger - ESC Alger - ESC ALGER - ESC Alger)
    Abstract: We estimate the demand for money for monetary aggregates M1 and M2, and cash in Algeria over the period 1979-2019, and study its long-run stability. We show that the transaction motive is significant for all three aggregates, especially for the demand for cash, reflecting the weight of informal economy "practices". The elasticity of the scale variable is very close to unity for M2 and M1, and even equal to unity for cash demand (1.006). The elasticity of inflation is also significant for all three aggregates, although its level is higher in the case of cash demand (-6.474). Despite the persistence of certain financial repression mechanisms, interest rate elasticity is significant for all three aggregates, but higher for M1 and cash. The same observation is made for elasticity of the exchange rate, reflecting the effect of monetary substitution, especially for M1 and cash. Finally, our study concludes that the demand for money in terms of M1 remains stable, the same observation being confirmed for the M2 aggregate. However, the demand for fiat currency proves not to be stable. The consequences for the optimal design of monetary policy in Algeria are clearly stated.
    Keywords: monetary policy,money demand,long-run stability,resource-rich countries,Algeria,co-integration
    Date: 2021–01
  6. By: Qi Zhang (China University of Petroleum); Peng Di (China University of Petroleum, IFP School); Arash Farnoosh (IFP School)
    Abstract: In the present study, the daily settlement data of Shanghai crude oil futures and world's major crude oils are selected. The role of Shanghai crude oil futures is studied regarding its pricing power and hedging risk. The dynamic relation analysis between Shanghai crude oil futures and international oil market is conducted by using rolling window causality test. The vector error correction model (VECM) and directed acyclic graph (DAG) are used to explore the long-term relationship and identify the contemporaneous causality structure respectively. Then Shanghai crude oil futures' impacts on other oil price fluctuations are analyzed by using variance decomposition method. The obtained analysis results show that the pricing power of Shanghai crude oil futures is limited compared with the international benchmark oil price, but it has begun to have a contemporaneous influence in the Asian oil market price transmission and better reflect oil supply and demand. Moreover, Shengli crude oil has stronger impact on the pricing mechanism after the listing of Shanghai crude oil futures. Furthermore, it also establishes an effective hedging tool for oil importers and refineries. Therefore, although the Shanghai crude oil futures is still in its initial development stage at present, it provides an important basis for becoming a regional benchmark in Asia and a useful instrument for energy market participants, influencing China's oil industry in import price and consumption.
    Keywords: Shanghai crude oil futures,price transmission,vector error correction model,directed acyclic graph,hedging risk
    Date: 2021–05–15
  7. By: Shrouq Al Maghlouth (King Faisal University, Hofuf, 31982, Al Ahsa, Saudi Arabia Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: 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 paper examines empirically the discourse on social change as represented in gender-related posts on English blogs written by Saudi bloggers. Slightly more than a decade ago, Saudi women were allowed and encouraged by the government to work in unconventional work environments (outside the fields of education and health care); this stirred controversy across the country. Methodology/Technique - This analysis is based on an understanding of discourse as both shaping and being shaped by social and cognitive contexts. In so doing, it approaches the data from a socio-cognitive perspective with a focus on the mental models underlying the discursive representations at hand. The adopted methodology is based on metaphor analysis due to the inherently cognitive nature of metaphors. Consequently, an eclectic approach combining insights from conceptual metaphor theory and critical theory analysis is used. Finding - Data analysis reveals two main findings. First, change is constructed cognitively as challenging and demanding for both women aspiring to work in unconventional professions and their supporters on authoritative and non-authoritative levels. This, however, clashes with the second finding, as in these blogs women are metaphorically constructed in an objectifying and victimizing manner. Novelty - Such a mismatch calls for a careful examination of some gender constraining cognitive constructions as they are, surprisingly, constructed and reproduced even within discourse attempting to empower women. Type of Paper - Empirical
    Keywords: Social Change; Critical Discourse Analysis; Women's Empowerment; Metaphor Analysis
    JEL: M14 Q56
    Date: 2021–03–31
  8. By: Leonardo Bursztyn; Thomas Chaney; Tarek Alexander Hassan; Aakaash Rao
    Abstract: We study how decades-long exposure to individuals of a given foreign descent shapes natives' attitudes and behavior toward that group, exploiting plausibly exogenous shocks to the ancestral composition of US counties. We combine several existing large-scale surveys, cross-county data on implicit prejudice, a newly-collected national survey, and individualized donations data from large charitable organizations. We first show that greater long-term exposure to Arab-Muslims: i) decreases both explicit and implicit prejudice against Arab-Muslims, ii) reduces support for policies and political candidates hostile toward Arab-Muslims, iii) increases charitable donations to Arab countries, iv) leads to more personal contact with Arab-Muslim individuals, and v) increases knowledge of Arab-Muslims and Islam in general. We then generalize our analysis, showing that exposure to any given foreign ancestry leads to more altruistic behavior toward that group.
    JEL: D83 D91 J15 P16 Z1
    Date: 2021–02
  9. By: Simplice A. Asongu (Yaounde, Cameroon); Peter Agyemang-Mintah (Abu Dhabi, United Arab Emirate); Rexon T. Nting (London, UK)
    Abstract: This study investigates how the rule of law (i.e. law) modulates demand- and supply-side drivers of mobile money to influence mobile money innovations (i.e. mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money) in developing countries. The following findings from Tobit regressions are established. First, from the demand-side linkages, law modulates: (i) bank accounts and automated teller machine (ATM) penetration for negative interactive relationships with mobile money innovations and (ii) bank sector concentration for a positive interactive relationship with mobile money accounts. Second, from supply-side linkages, law interacts with: (i) mobile subscriptions for a negative relationship with the mobile phone used to send money; (ii) mobile connectivity coverage for a negative nexus on the mobile phone used to receive money and (iii) mobile connectivity performance for a negative influence on the mobile phone used to send/receive money. Policy implications are discussed in the light of enhancing the rule of law as well as improving mobile phone subscription, connectivity and performance dynamics.
    Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation
    JEL: D10 D14 D31 D60 O30
    Date: 2021–01
  10. By: Sharifah Syahirah (Kolej Universiti Poly-Tech MARA (KUPTM), 68000 Kuala Lumpur, Malaysia Author-2-Name: Syarifah Fathynah Author-2-Workplace-Name: National Sports Institution (ISN), 57000 Bukit Jalil, Malaysia Author-3-Name: Bahiyah Abdul Hamid Author-3-Workplace-Name: Universiti Kebangsaan Malaysia (UKM), 43600 Bangi, Malaysia Author-4-Name: Habibah Ismail Author-4-Workplace-Name: Universiti Sains Islam Malaysia (USIM), 71800 Nilai, Malaysia Author-5-Name: Fadilah Puteh Author-5-Workplace-Name: Universiti Teknologi MARA (UiTM), 40450 Shah Alam, Malaysia Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - This article attempts to discuss an on-going sexual harassment deterrent initiative in safeguarding the well-being of sports practitioners in Malaysia. Methodology/Technique - The primary data used in this article is taken from a focus group session which consisted of a total of 35 participants. The main objective of this article is to discuss the results, specifically the recommendations made by focus group participants which consisted of government officers, members of NGOs, sports experts, and sports practitioners. The focus group participants firstly pin-pointed the inadequacy of current deterrent mechanisms that have failed to protect Malaysian athletes from sexual harassment such that more often than not many cases have been unreported or have simply been dismissed altogether. Following this, suggestions and recommendations were put forward by the focus group participants to improve on the mechanisms that would ensure a safe and supportive environment for all Malaysians in sport in order to eliminate all forms of sexual harassment, abuse, and exploitation. Finding and Novelty - Taking into consideration the suggestions and recommendations put forth by the focus group this paper suggests a 4Ps framework in order to eliminate all forms of sexual harassment and abuse in sport. Type of Paper - Empirical
    Keywords: Safeguard; Well-being; Sports Practitioners; Sexual Harassment; Deterrent Mechanism
    JEL: I31 Z32 Z28
    Date: 2021–03–31
  11. By: Median Wilestari (Economic and Business Faculty, As-Syafi'iyah Islamic University, Indonesia Author-2-Name: Akhmad Syakhroza Author-2-Workplace-Name: Indonesia University, Jakarta, Indonesia Author-3-Name: Chaerul D. Djakman Author-3-Workplace-Name: Indonesia University, Jakarta, Indonesia Author-4-Name: Vera Diyanty Author-4-Workplace-Name: Indonesia University, Jakarta, Indonesia 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 - A study by Ernst and Young (2010) found that 84% of public companies believed that Corporate Social Responsibility (CSR) was an activity that had a positive impact on companies. However, only 11% of those companies disclosed their CSR in their annual reports. This article presents the findings of a study examining the effect of CSR regulation and corporate financial performance, as measured by corporate liquidity, profitability, leverage and firm value, on the disclosure level of the CSR of public companies in Indonesia, and its impact on corporate reputation. Methodology/Technique - Hypothesis tests with multiple regression were used with nonfinancial corporate categories listed on the Indonesian Stock Exchange between 2010 to 2018. Purposive sampling was used, with results from 217 sampled companies and 1953 datasets used in the model.Findings - The study reveals that there is a significant difference in the CSR disclosure of all corporate categories after the regulation of CSR was enacted as a mandatory in 2012. Financial performance measured through Cash Flow from Operations (CFO) and Debt to Equity Ratio (DER) had a positive significant influence on CSR disclosure. However, Return on Assets (ROA) and firm value have no influence. Family ownership as a moderating variable had a negative influence and weakened the association between CFO and CSR disclosure, whereas foreign ownership as a moderating variable had a negative influence and weakened the association between ROA and CSR disclosure. CSR disclosure had a positive influence on corporate reputation from the stakeholders' perception in terms of awards received by the company and the individual stock price index as an alternative measurement for reputation.Novelty - The impact of CSR disclosure on corporate reputation was analysed based on the alternative measurement of reputation. Ownership structure consisting of family ownership and foreign ownership were taken as the moderating variables in the correlation between financial performance and the disclosure of CSR.Type of Paper - Empirical.
    Keywords: Corporate Social Responsibility; Regulation; Financial Performance; Moderation; Ownership Structure Corporate Reputation.
    JEL: M14 M41
    Date: 2021–03–31
  12. By: Boneva, Lena; Islami, Mevlud; Schlepper, Kathi
    Abstract: The Eurosystem purchased €178 billion of corporate bonds between June 2016 and December 2018 under the Corporate Sector Purchase Programme (CSPP). Did these purchases lead to a deterioration of liquidity conditions in the corporate bond market, thus raising concerns about unintended consequences of large-scale asset purchases? To answer this question, we combine the Bundesbank's detailed CSPP purchase records with a range of liquidity indicators for both purchased and nonpurchased bonds. We find that while the flow of purchases supported secondary market liquidity, liquidity conditions deteriorated in the long-run as the Bundesbank reduced the stock of corporate bonds available for trading in the secondary market.
    Keywords: Corporate Bond Market,Central Bank Asset Purchases,Market Liquidity
    JEL: E52 F30 G12
    Date: 2021
  13. By: Zainab Aman (Department of Accounting and Finance Kolej Universiti Islam Antarabangsa Selangor 43000 Kajang Selangor Malaysia Author-2-Name: Norman Saleh Author-2-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-3-Name: Zaleha Abdul Shukur Author-3-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-4-Name: Romlah Jaafar Author-4-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia 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 - The objective of this paper is to investigate the relationship between family ownership and corporate sustainability reporting to determine how the role of board independence affects the relationship between those variables within Malaysian listed companies. Methodology/Technique - The annual reports of 771 listed companies from 2014 to 2016 were analyzed using content analysis methods. The study uses agency theory to develop the hypotheses. Findings - The study found that family ownership is negatively related to corporate sustainability reporting. The finding shows that independent directors are unable to influence the relationship between family ownership and corporate sustainability reporting. The findings of this study are expected to provide insight to authorities in relation to the factors that could enhance corporate sustainability reporting primarily in family-owned companies. Novelty - Previous studies have only focused on environmental and social dimensions of corporate sustainability, whilst this study addresses all the 3 dimensions of sustainability (economic, environmental, and social). This paper is one of the first attempts to investigate the roles of board independence on the relationship between family ownership and corporate sustainability reporting in Malaysia. Type of Paper - Empirical.
    Keywords: Sustainability Reporting; Family Ownership; Corporate Governance; Independent Director
    JEL: M14 M41
    Date: 2021–03–31

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