scholarly journals Developing a fair currency system

2020 ◽  
Vol 12 (3) ◽  
pp. 325-345
Author(s):  
Muhammad Hanif
Keyword(s):  
Critical Evaluation ◽  
Financial System ◽  
Core Values ◽  
Central Banking ◽  
International Reserve ◽  
Equitable Distribution ◽  
Content Type ◽  
Distribution Of Wealth ◽  
Just Society ◽  
Historical Developments

Purpose This study aims to evaluate the role of the prevailing currency systems in achieving (or departing from) the socio-economic objectives of a progressive and just society; i.e. featuring stability and equitable distribution of wealth. Design/methodology/approach After documenting historical developments in currency systems, the study reviews the Islamic perspective on the matter. Features of an ideal currency system are listed and then a critical evaluation of existing currency systems – fiat, banking and cryptocurrency – is undertaken. Findings It is found that existing currency systems – fiat, banking and cryptocurrency – are not compatible with the socio-economic objectives of a forward-looking, progressive society, which upholds transparency and justice as its core values. The study documents that Sharīʿah norms have no preference or dislike for any of the existing currency systems. Any prudent currency system compatible with the objectives of the Islamic financial system (i.e. stability and equitable distribution of wealth) is acceptable. A single international reserve currency (with country-specific legal tendering) is subject to the risk of destabilisation across global markets. Practical implications This paper recommends autonomy of central banking, the spending of seigniorage for the welfare of community members, development of asset-backed currencies (following ṣukūk structures), as well as multiple international reserve currencies and joining of hands by professionals and Sharīʿah scholars to design a currency system compatible with the Islamic financial system. This paper’s recommendation is against the adoption of cryptocurrency that lacks the backing of real assets. Originality/value The study contributes to the literature by evaluating the compatibility of existing currency systems in the achievement of socio-economic objectives of a welfare state which seeks to uphold justice and equitable resource distribution as core values in the financial system.

Islamic mortgages: principles and practice

2019 ◽  
Vol 14 (5) ◽  
pp. 967-987
Author(s):  
Muhammad Hanif
Keyword(s):  
Financial Stability ◽  
Islamic Finance ◽  
Real Economy ◽  
Credit Expansion ◽  
Equitable Distribution ◽  
Market Pricing ◽  
Content Type ◽  
Distribution Of Wealth ◽  
Risk Return ◽  
Practical Implications

Purpose The purpose of this paper is to present an analysis of current practices of Islamic mortgages in the light of the principles of Islamic financial system, to document divergences – if any. A subsidiary goal is to develop an Islamic Mortgage Model (IMM) based on Musharakah principles. Design/methodology/approach The author documents theoretical underpinnings of risk-return sharing from the Shari’ah perspective. A comparative study of conventional and Islamic mortgages is completed; existing practice of Islamic mortgages analyzed in the light of Musharakah principles and divergences identified. IMM is developed after taking divergences and Musharakah principles into considerations. A housing case is used to highlight differences (in financial terms) under multiple methods and scenarios. Findings Study documents multiple divergences from Musharakah principles in the existing practice of Islamic mortgages including ignorance of market pricing in the negotiation of rentals and trading of equity units, and transfer of all ownership risks and rewards (vacancy, damage, destruction and market) to one partner (i.e. customer). Practice is divergent from principles in the area of economic substance. Modified IMM is developed by taking into account Musharakah principles; and differences highlighted by calculating financial figures – to determine financial rights and liabilities of the parties. Practical implications Divergence from the principles of risk-return sharing leads to failure in the achievement of Islamic finance objective of equitable distribution of wealth. Moreover, protection of capital for financier reduces the market abilities to achieve financial stability by matching credit expansion with the rise in the real economy. Shari’ah boards and regulators, as well as, management of Islamic banking industry are expected to incorporate proposed changes in-practice for the realization of Islamic finance objectives. Originality/value This study contributes to Islamic finance literature in the area of risk-return sharing. Based on important objectives of Islamic finance – equitable distribution of wealth and financial stability – divergences identified and a modified IMM in the light of Musharakah principles is presented. Descriptive rules are transformed into financial figures to document financial rights and liabilities of the concerned parties.

Methodology of institutional analysis and its implication for contemporary framework of Islamic banks

Humanomics ◽  
2015 ◽  
Vol 31 (2) ◽  
pp. 183-200 ◽  
Author(s):  
Omar Javaid
Keyword(s):  
Islamic Law ◽  
Institutional Analysis ◽  
Institutional Framework ◽  
Methodological Error ◽  
Islamic Banks ◽  
Cultural Changes ◽  
Content Type ◽  
Distribution Of Wealth ◽  
History Of Evolution ◽  
History Of

Purpose – This paper aims to investigate the possibility of a methodological error made by the concerned scholars and academics of Islamic finance & economics to understand and study the modern framework of financial institutions, where they intend to practice Islamic law of contract. This error has led them to expect something which the institutional modern framework of banks, adopted by Islamic banks (for e.g.), wasn’t designed to accomplish, hence the disappointment. Design/methodology/approach – This study reviews the literature on history of evolution of banking industry and the corresponding ideological and cultural changes in the European society which drove this evolution; this is followed by a conceptual analysis to identify the institutional components inconsistent with ethos of Islamic norms and ethos. Findings – After review of history and evolution of modern banking framework, in the light of Hollingsworth frame of institutional analysis, it is inferred that the said framework was designed for a secular, liberal and capitalist society to efficiently and effectively enhance freedom and accumulate capital and wealth, without much regard for equitable distribution of wealth and economic justice. These goals are very much in contrast with the normative premise of Islamic Economics, which cannot be efficiently used to achieve the related objective. This indicates that framework of banking was narrowly understood by the concerned scholars and academics, without considering its history of evolution and intended objectives, before adopting for IBs. Practical implications – The disconnect between the Western institutional framework and ethos of Islam implies that the concerned need to look deeper and holistically while adapting Western institutions, so that necessary alteration is done in advance, if such an adoption is inevitable. Originality/value – This study introduces a new dimension for the concerned scholars, academics and practitioners to reanalyze the institutional framework adopted from the West, so that necessary adjustments can be worked out to make the said framework compatible with the ethos of Islamic economics.

Contemporary psychosurgery and a look to the future

2001 ◽  
Vol 95 (6) ◽  
pp. 944-956 ◽  
Author(s):  
Robert P. Feldman ◽  
Ronald L. Alterman ◽  
James T. Goodrich
Keyword(s):  
Modern Science ◽  
Psychiatric Disease ◽  
Content Type ◽  
Current State ◽  
Mind And Brain ◽  
Patient Selection Criteria ◽  
Definition Of ◽  
Historical Developments ◽  
The Mind ◽  
Fine Print

Object. Despite a long and controversial history, psychosurgery has persisted as a modern treatment option for some severe, medically intractable psychiatric disorders. The goal of this study was to review the current state of psychosurgery. Methods. In this review, the definition of psychosurgery, patient selection criteria, and anatomical and physiological rationales for cingulotomy, subcaudate tractotomy, anterior capsulotomy, and limbic leukotomy are discussed. The historical developments, modern procedures, and results of these four contemporary psychosurgical procedures are also reviewed. Examples of recent advances in neuroscience indicating a future role for neurosurgical intervention for psychiatric disease are also mentioned. Conclusions. A thorough understanding of contemporary psychosurgery will help neurosurgeons and other physicians face the ethical, social, and technical challenges that are sure to lie ahead as modern science continues to unlock the secrets of the mind and brain.

Financial battle against climate change – assessing effectiveness using a scorecard

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Candauda Arachchige Saliya ◽  
Suesh Kumar Pandey
Keyword(s):  
Climate Change ◽  
Financial Risk ◽  
Financial System ◽  
Regulatory Agencies ◽  
Theoretical Frameworks ◽  
Content Type ◽  
Banking Regulations ◽  
And Control ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to investigate how and to what extent the Fijian sustainable banking regulations or guidelines are designed, communicated, implemented and monitored within the financial system in Fiji. A scorecard is introduced for this purpose to assess the effectiveness of Fiji’s financial battle against climate change (FBACC). Design/methodology/approach This study uses a mixed-method methodology. Data were collected mainly from a survey and supplemented by interviews, observations and documents. The scorecard was developed by building on existing two theoretical frameworks, namely, the Sustainable Banking Assessment and Climate Change Governance Index, to make them more appropriate and practically applicable to less developed financial systems in emerging economies such as Fiji. This FBACC scorecard consists of four perspectives, eight critical factors and 24 criteria. Findings The results show that the overall FBACC score averages 40.75%, and all the perspectives scored below 50%, the benchmark. Only the CF “policy” scored 54.25% because of a high positive response of 82.3% for the “political leadership” criterion. The relative contributions of each perspective in constructing the overall score are distributed as 28%, 25%, 24% and 23% among planning, action, accountability and control, respectively. Research limitations/implications These results were complemented by the information shared during the interviews and confirmed that the existing political initiatives need to be effectively communicated and/or implemented in the financial system by the regulatory agencies. Practical implications This FBACC scorecard can be applied to other underdeveloped systems in emerging countries to assess the effectiveness of the sustainable banking regulations and/or guidelines in those countries in relation to the FBACC. It can also be applied to individual firms to assess their contribution to the FBACC. Originality/value To the authors’ best knowledge, this might be the first study in Fiji that considers the impact of climate-related financial risk on the Fijian financial system.

A recipe for sustainable development: assessing transition of commercial foodservices towards the goal of the triple bottom line sustainability

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hien Thu Bui ◽  
Viachaslau Filimonau
Keyword(s):  
Design Methodology ◽  
Critical Evaluation ◽  
Triple Bottom Line ◽  
Well Being ◽  
Research Gaps ◽  
Bottom Line ◽  
Content Type ◽  
Sustainability Performance ◽  
Academic Publications ◽  
Inductive Thematic Analysis

Purpose This study aims to critically evaluate the factual triple bottom line (TBL) sustainability performance of commercial foodservices as featured in peer-reviewed academic publications. Design/methodology/approach The commercial foodservices’ sustainability performance-related articles were collected for a systematic review. An inductive thematic analysis was applied to the eligible articles. Findings The contribution of the commercial foodservice sector to the TBL sustainability is highlighted through eight themes: food waste management; food safety and hygiene; food allergy management; provision of healthy meals; local food use; employment of the disadvantaged; well-being of (non)managerial personnel; and noise level management. Originality/value The critical evaluation of the actual TBL sustainability measures adopted by commercial foodservice providers highlights the feasibility of the measures, thus calling for their broader industry uptake. Research gaps and issues for future investigations are accentuated for scholars to support the industry in its progress towards the goals of the TBL sustainability.

Rule of law and preventing fraud in Nigeria’s capital market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uchechukwu Nwoke ◽  
Ibenaku Harford Onoh
Keyword(s):  
Rule Of Law ◽  
Capital Markets ◽  
Capital Market ◽  
Critical Evaluation ◽  
Subject Area ◽  
The Body ◽  
Content Type ◽  
The Rule Of Law ◽  
Body Of Knowledge ◽  
Fresh Insight

Purpose The purpose of this paper is to critically analyse the correlation between the rule of law and the efficient functioning of capital markets. It attempts to examine the Nigerian capital market and how the rule of law can be used to prevent fraud and promote the proper functioning of the market. Design/methodology/approach The paper adopts the doctrinal approach through a critical evaluation of concepts. Using existing literature in the subject area, it evaluates the inter-connectedness between law and the capital market and how the rule of law is an important instrument in capital market development. Findings The paper finds that there have been numerous infractions of the rule of law by capital market actors, leading to stultification in the growth and development of this sector of the Nigerian economy. Originality/value The paper offers a fresh insight into the correlation between the rule of law and capital markets. By critically assessing the inter-connectivity between the two concepts, it extends the body of knowledge in this area by showing how the operations of the Nigerian capital market could be improved through the proper application of the rule of law.

scholarly journals Accountability reporting objectives of Māori organizations

2018 ◽  
Vol 30 (4) ◽  
pp. 433-443 ◽  
Author(s):  
Russell Craig ◽  
Rawiri Taonui ◽  
Susan Wild ◽  
Lũcia Lima Rodrigues
Keyword(s):  
New Zealand ◽  
Design Methodology ◽  
Indigenous Communities ◽  
Core Values ◽  
Annual Reports ◽  
Content Type ◽  
Cultural Activities ◽  
The Core ◽  
Regional Associations

Purpose This paper aims to highlight the accountability reporting objectives of four Māori-controlled organizations. The examples cited reflect the core values of the indigenous Māori people of New Zealand (Aotearoa) and help demonstrate how these values are manifest in the accountability reporting of Māori-controlled organizations. Design/methodology/approach Narrative sections of ten annual reports of two small and two large Maori organizations, drawn variously from their financial years ending in the calendar years 2009 to 2014, are read closely. These organizations represent diverse tribal and regional associations in terms of size, scope and structure; and in terms of the business, social and cultural activities they pursue. Findings Three core Māori values are identified: spirituality (wairuatanga); intergenerationalism and restoration (whakapapa); and governance, leadership and respect (mana and rangatiratanga). The commitment to these values and the way this commitment is reflected in accountability reports of Maori organizations, is presented. Originality/value The examples provided, and the associated discussion, should help inform reporting initiatives of organizations that are seeking better accountability in terms of their long-term engagement with indigenous communities, the environment and broader society.

scholarly journals Reforming accounting to support the shift towards a sustainable financial system

2018 ◽  
Vol 2 (2) ◽  
pp. 148-161 ◽  
Author(s):  
Nihel Chabrak
Keyword(s):  
Financial System ◽  
Regulatory Reform ◽  
Well Being ◽  
Equity Capital ◽  
United Nations Environment Programme ◽  
Content Type ◽  
The Board Of Directors ◽  
Accounting Model ◽  
Material Information

PurposeConsidering the growing importance of finance in shaping corporate and human activities, the purpose of this paper is to focus on the United Nations Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System that aims to align the financial system with sustainable development, with a focus on environmental aspects. Following the inquiry call for better disclosure approaches of material information on the “sustainability impacts” of the financial system as one of the areas of improvement to move toward a sustainable financial system, the author argues for a reform of the accounting model to better reflect the compliance of businesses with “quality of growth” imperatives.Design/methodology/approachThe paper rests on the entity theory of Littleton (1934).FindingsThe new accounting model requires creating a new equity capital account for the entity that is separate from the shareholders equity account. Valuation as well as other related issues on the functioning of this account is briefly explored in the paper. The reform also requires entrusting the responsibility of answering questions related to valuation, capital maintenance and income distribution to the board of directors that should be composed of representatives of the different capitals which have accrued, temporarily or indefinitely, to the business firm.Research limitations/implicationsThis paper calls researchers to explore the theoretical avenues proposed in the paper to develop the model in practice.Practical implicationsThe implementation of this reform requires a regulatory reform and the redesign of the economic coordination mechanisms which could be challenging in practice.Social implicationsThe accounting model proposed in the paper contributes to a new quality of growth, which is a growth based on well-being and inclusiveness.Originality/valueThe paper draws on the UNEP framework, which has not been investigated in other research studies.

Dynamic interactions between stock markets and the real economy

2016 ◽  
Vol 11 (4) ◽  
pp. 715-746 ◽  
Author(s):  
Nikiforos T. Laopodis ◽  
Andreas Papastamou
Keyword(s):  
Economic Development ◽  
Stock Market ◽  
Methodological Approach ◽  
Financial System ◽  
Cointegration Analysis ◽  
Policy Implications ◽  
Real Economy ◽  
Dynamic Interactions ◽  
Content Type ◽  
The Real

Purpose The purpose of this paper is to re-examine the relationship between a country’s aggregate stock market and general economic development for 14 emerging economies for the period from 1995 to 2014. Design/methodology/approach The methodological approach of the paper is multifold. First, the authors use cointegration analysis to determine the simple dynamics among the variables. Second, the authors utilize vector autoregression analysis to study the dynamics among the variables for the 14 countries. Third, the authors employ panel analysis to determine common variations among the variables and across countries. Findings When examining the linkage between the stock market and economic development, proxied by gross domestic product growth or with gross fixed capital formation growth, the authors did not find a meaningful relationship between them. However, when the authors included additional control variables strong, dynamic interactions between the two magnitudes surfaced. Specifically, it was found that the stock market is positively and robustly correlated with contemporaneous and future real economic development and, thus, it directly contributed to a country’s economic development either through the production of goods and services or the accumulation of real capital. Thus, it can be inferred that the stock market alone is not capable of boosting economic development in these countries unless being part of a comprehensive financial system (which includes banks) as well as investment in real capital. Research limitations/implications The policy implications are clear. Government authorities must recognize that the stock market alone is not a driver of economic development and that a sound, efficient financial system (which includes banks) must be present in order to contribute and foster economic development. Originality/value The study is original in the sense that it examines various financial and economic variables to determine the degree of (or dynamic interactions among) the stock market and the real economy for each and all emerging markets in the sample.

Spirituality and social responsibility performance

2017 ◽  
Vol 8 (1) ◽  
pp. 63-82 ◽  
Author(s):  
Katelin Barron ◽  
Shih Yung Chou
Keyword(s):  
Social Responsibility ◽  
Design Methodology ◽  
Conceptual Analysis ◽  
Core Values ◽  
Time Orientation ◽  
Spiritual Values ◽  
Socially Responsible ◽  
Religiously Affiliated ◽  
Content Type ◽  
Higher Power

Purpose This paper aims to discuss how religiously and non-religiously affiliated individuals may view the three core workplace spiritual values: transcendence, existence of a higher power and interconnectedness. Additionally, this paper studies how the contrasts between the views of religiously and non-religiously affiliated individuals about the three core spiritual values affect their performance of social responsibility initiatives. Design/methodology/approach A conceptual analysis was used. Findings This paper suggests that religiously and non-religiously affiliated individuals view the three core spiritual values differently. Drawing upon the three core spiritual values viewed by religiously and non-religiously affiliated individuals, this paper proposes the following. First, religiously affiliated individuals will focus on implementing social responsibility initiatives for a longer time orientation compared to non-religiously affiliated individuals. Second, when engaging in social responsibility, religiously affiliated individuals will focus on implementing a smaller scope of social responsibility initiatives than non-religiously affiliated individuals. Finally, religiously affiliated individuals will focus on implementing a larger scale of social responsibility initiatives than non-religiously affiliated individuals. Originality/value This paper is one of the very first studies addressing how religiously and non-religiously affiliated individuals view core values of spirituality. Additionally, this paper advances the literature by contrasting how religiously and non-religiously affiliated individuals engage in socially responsible initiatives in accordance with how they view spirituality.

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