nep-isf New Economics Papers
on Islamic Finance
Issue of 2026–06–15
three papers chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi


  1. Islamic Governance and Modern Diplomacy; A comparative study of Foreign Policy in Contemporary OIC Nations. By Pinok, MD Nayeem Aktar
  2. Moderating Role of Shariah Committee Quality in the Effect of Board of Directors Effectiveness on Performance of Takaful Companies in Pakistan By Ahmed, Abrar; Siddiqui, Danish Ahmed
  3. The Effect of Emotional Finance, along with Investors Protection, Fee, Risk, and Past Performance, on the Investment Decision in Islamic Mutual Funds of Pakistan: The Complementary Role of Market Knowledge and Religiosity By Asad, Khwaja; Siddiqu, Danish Ahmed

  1. By: Pinok, MD Nayeem Aktar
    Abstract: This review paper explores the intersection of traditional Islamic governance principles and modern diplomatic practices within Contemporary Muslim-majority nations, specifically focusing on select members of the Organisation of Islamic Cooperatio (OIC) such as Qatar, Saudi Arabia , and Malaysia.In an increasingly globalized world , these nations are unique in their attempts, to synthesize classical Islamic concepts of statecraft -such as Shura( Consulation), Adalah(justice)and. Amanah(trust) with contemporary international relations frameworks.The study utilizes a comparative qualitative methodology to examine how these countries employ soft power economic diplomacy, and international mediation to advance their foreign policy objectives while maintaining their Islamic identity Special attention is given to Qatar's role as a global mediator Saudi Arabia's diplomatic leadership within the Arab-Islamic world, and Malaysia''s progressive approaches to Islamic economy and diplomacy.The preliminary findings suggest that Islamic governance principles do not contradict modern diplomacy;rather , they provide a engagement, dispute resolution and international cooperation .This. paper contributes to the broader academic discourse on non-western international relations theories and offers valuable insights for policy makers and researchers interested in Middle Eastern Politics , Islamic Political Systems , and Global diplomacy.
    Keywords: Islamic Governance. , Modern Diplomacy, OIC Foreign Policy., Middle Eastern Politics, Soft Power , Comparative Politics.
    JEL: Z12 Z13
    Date: 2026–05–19
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:129167
  2. By: Ahmed, Abrar; Siddiqui, Danish Ahmed
    Abstract: Objective: This study examines the effect of Board of Directors (BOD) effectiveness on the performance of Takaful companies in Pakistan, with a focus on the moderating role of Shariah Committee quality. It aims to assess how governance elements influence firm performance in the Islamic finance context. Sampling: The study uses panel data from 14 Takaful firms in Pakistan, covering a five-year period (2018-2022). Data were sourced from annual reports and official governance disclosures. Methodology: A quantitative approach is used, employing multiple regression analysis with interaction effects to test the relationships between BOD effectiveness, Shariah committee quality, and firm performance (measured by ROA, ROE, and Tobin's Q). Results: The findings reveal that Board Independence, Shariah Committee Expertise, and Shariah Committee Independence significantly improve firm performance. Conversely, CEO Duality, Shariah Committee Size, and Meeting Frequency show no significant impact. Implications and Significance: The results highlight the importance of board independence and Shariah competence over structural factors. This study offers empirical guidance for regulators, policymakers, and Takaful firms to strengthen governance frameworks and enhance performance through high-quality dual governance.
    Keywords: Takaful, Board of Directors, Shariah Committee Quality, Corporate Governance, Firm Performance, Islamic Insurance, Islamic Finance
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:341015
  3. By: Asad, Khwaja; Siddiqu, Danish Ahmed
    Abstract: The study intended to examine the effects of investor protection, emotional finance (including factors like anxiety, optimism, and happiness), fee (price value), perceived risk, and past performance (performance expectation) on actual use behavior through the mediating role of behavioral intention in Islamic mutual funds in Pakistan. It also explores the moderating effects of market knowledge and religiosity on the relationship between these factors. The study targeted Islamic mutual fund consumers in Karachi, collecting 303 responses via purposive sampling and analyzed the data using PLS-SEM. The results have shown that anxiety, happiness, investor protection, and optimism positively influence emotional finance and behavioral intention, while perceived risk negatively impacts behavioral intention. Fee (price value) has an insignificant negative effect. Behavioral intention significantly mediates investor protection, past performance, and actual use behavior but shows insignificant mediation for emotional finance. Market knowledge negatively moderates perceived risk and emotional finance, while religiosity positively moderates fee (price value) and past performance. Other effects are insignificant. The study has recommended that managers should focus on strengthening investor protection, and mitigating perceived risks to boost behavioral intention and actual use of Islamic mutual funds. This study enriches the understanding of how emotional and cognitive factors, along with market knowledge and religiosity, shape investor behavior in Islamic mutual funds, offering valuable insights for both theory and practice.
    Keywords: Purchase Behavior, Islamic Mutual Funds, UTAUT, Pakistan, PLS-SEM
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:341012

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