On building social capital for Islamic finance

2015 ◽  
Vol 8 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Adam Ng ◽  
Mansor Ibrahim ◽  
Abbas Mirakhor
Keyword(s):  
Social Capital ◽  
Financial Development ◽  
Risk Sharing ◽  
Design Methodology ◽  
Empirical Studies ◽  
Financial System ◽  
Islamic Finance ◽  
Investment Opportunity ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this paper is to set forth seven broad recommendations and 15 specific initiatives within a four-dimensional framework for the development of social capital in Islamic finance, particularly the stock market, given its role as the first best means of risk sharing. Design/methodology/approach – The four-dimensional framework comprises dimensions of principle and value, trust-reinforcing regulation, investment opportunity and infrastructure, as well as reputational intermediaries. Findings – A web of multi-pronged initiatives that are mutually reinforcing is proposed considering the multifaceted dimensions of social capital and the various possible transmission channels by which social capital can influence the financial system. Practical implications – While empirical studies have demonstrated the importance of trust and ethics in financial development, the pressing issue remains how social capital, including trust and ethics, can be developed to achieve a trustworthy, ethical and efficient financial system. This paper attempts to address this concern. Originality/value – This paper provides a framework for building social capital in Islamic finance.

Limited purpose banking (LPB) and Islamic finance

Humanomics ◽  
2014 ◽  
Vol 30 (2) ◽  
pp. 122-135 ◽  
Author(s):  
Edib Smolo ◽  
Abbas Mirakhor
Keyword(s):  
Financial Institutions ◽  
Design Methodology ◽  
Financial System ◽  
Islamic Finance ◽  
Extensive Literature ◽  
Content Type ◽  
Finance Industry ◽  
Islamic Financial Institutions ◽  
Alternative Solutions ◽  
Practical Implications

Purpose – This paper primarily aims to review and analyze a new model for Islamic finance based on Laurence J. Kotlikoff's idea of limited purpose banking (LPB). In addition, this paper aims to highlight, explain and discuss various aspects of LPB and how it suits the original aspirations of pioneer writers in Islamic finance. Design/methodology/approach – Based on an extensive literature review, this paper aims to highlight, explain and discuss the reform of the Islamic finance industry based on Kotlikoff's model of LPB. Findings – Based on a modified LPB model, Islamic financial institutions could be established to provide specific services with clear aims and objectives. These LPB Islamic financial institutions would operate in a similar way to LPB. Research limitations/implications – As there is no perfect plan, the proposal of this paper is far from being perfect and is open to discussions and improvements. The paper will, hopefully, spark off quite a discussion on the topic; may result in a better understanding of the model; and provide some alternative solutions to the current structurally ill financial system. Practical implications – The paper provides some practical ideas for a better implementation of Shari'ah principles in financial intermediation of the Islamic financial system. Originality/value – Kotlikoff's LPB proposal for reforming the financial system is new and has been directed to the conventional financial system. This paper represents the first attempt to apply his proposal to the Islamic finance industry.

Managing employees with chronic illness

2018 ◽  
Vol 26 (1) ◽  
pp. 7-10 ◽  
Author(s):  
Maninder Singh ◽  
P.S. James ◽  
Shirshendu Ganguli
Keyword(s):  
Chronic Illness ◽  
Human Resource ◽  
Design Methodology ◽  
Empirical Studies ◽  
Chronically Ill ◽  
Human Resource Managers ◽  
Future Directions ◽  
Content Type ◽  
Resource Managers ◽  
Practical Implications

Purpose The purpose of this paper is to identify future directions for human resource managers to provide work accommodations to chronically ill employees. Design/methodology/approach The authors researched empirical studies in management, occupational health journals, and reports on chronically ill employees. Findings The paper provides research-based practical insights for human resource practitioners to deal with the growing number of chronically ill employees. Practical implications The paper highlights solutions for human resource managers to create an inclusive workplace for employees with chronic illness. Originality/value The authors identified effective human resource and health practices for chronically ill employees, which would help to increase their productivity.

Tax aggressiveness and sustainable welfare: the roles of corruption and tax allocation inefficiency

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Astrid Rudyanto ◽  
Sidharta Utama ◽  
Dwi Martani ◽  
Desi Adhariani
Keyword(s):  
Public Choice ◽  
Design Methodology ◽  
Empirical Studies ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Long Run ◽  
Sustainability Issue ◽  
Private Investments ◽  
Positive Effect ◽  
Practical Implications

Purpose This paper aims to investigate the roles of corruption and tax allocation inefficiency in moderating the effect of tax aggressiveness on sustainable welfare. Design/methodology/approach This research uses a fixed-effect multiple regression analysis for 55,438 firm-year observations covering 22 countries from 2007 to 2017. Findings For less (more) tax-aggressive observations, corruption and tax allocation inefficiency strengthen the negative (positive) effect of tax aggressiveness on sustainable welfare. The results are in line with public choice and functionalism theories that suggest that private investments can increase welfare when governments are dysfunctional. Practical implications This paper shows that the effect of tax aggressiveness on sustainable welfare depends on tax aggressiveness, corruption and tax allocation inefficiency. Social implications This paper implies that governments should reduce their corruption levels and increase tax allocation efficiency because private investments are ineffective in the long run. Originality/value Because of increasing awareness of sustainability issue, sustainable welfare is considered more relevant than traditional welfare. Hence, empirical studies on the effect of tax aggressiveness on sustainable welfare are crucial. This paper adds the literature by combining public choice and functionalism theories to investigate the moderating roles of corruption and tax allocation inefficiency in this issue.

Too tied to fail: a multidimensional approach to social capital in crowdfunding campaigns. Evidences from Italian agri-food businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ulpiana Kocollari ◽  
Alessia Pedrazzoli ◽  
Maddalena Cavicchioli ◽  
Andrea Girardi
Keyword(s):  
Social Capital ◽  
Design Methodology ◽  
Multidimensional Approach ◽  
Data Set ◽  
Content Type ◽  
Different Types ◽  
Linear Regressions ◽  
Practical Implications

PurposeThe authors investigate the contributions of social capital (SC) dimensions (bridging, bonding and linking) in crowdfunding campaigns by comparing the dynamics of agri-food businesses with those of two other sectors – cultural and technological.Design/methodology/approachThe authors develop linear regressions on a proprietary data set of 5,290 projects launched on the Italian platform “Produzionidalbasso.com”, from 2014 to 2020.FindingsThe authors’ findings suggest that combining the three social capital dimensions (bridging, bonding and linking) has a more substantial overall effect on the number of backers involved in agri-food projects than in cultural and technological projects. Agri-food entrepreneurs effectively mobilize all resources embedded in the SC dimensions and therefore create the conditions to develop new ties that financially support the project.Practical implicationsAgri-food entrepreneurs may benefit from those results improving their funding strategies. Therefore, agri-food entrepreneurs can explore and exploit the instruments available on the CFD platform – video and rewards associated with the campaign – gaining more benefit from the backers involved compared with other project categories.Originality/valueThe study proposes a broader perspective regarding SC that encompasses the proponent, the company and the campaign with three different types of ties: bonding, bridging and linking. These SC dimensions can differently shape diverse sectors and this eclectic configuration can differentiate the effects of SC in crowdfunding campaigns. This study pinpoints how crowdfunding determinants change, based on project categories.

Fake news and the willingness to share: a schemer schema and confirmatory bias perspective

2019 ◽  
Vol 29 (2) ◽  
pp. 180-187 ◽  
Author(s):  
Kelly Weidner ◽  
Frederik Beuk ◽  
Anjali Bal
Keyword(s):  
Design Methodology ◽  
Empirical Studies ◽  
Fake News ◽  
Specific Time ◽  
Confirmatory Bias ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this paper is to present a theory of how corporations and brands can address the prevalence of fake news. A matrix is proposed to examine how the transparency of the motivation of the communicator disseminating fake news interacts with how well the content of the fake news coincides with a consumer’s previously held bias. Design/methodology/approach A dichotomy is presented examining the role of “Schemer’s Schema” transparency by confirmatory bias. Findings Consumers will react differently to fake news depending on their “schemer schema” and the source of the information, as well as the believability of the story based on already existing beliefs. Research implications/limitations This paper provides readers with a strategy to address the prevalence and reality of fake news. The purpose of this paper is theoretical in nature. While this manuscript lays the foundation for future empirical studies, said studies have not been conducted. Further, given the ever-changing nature of fake news dissemination this manuscript provides a picture at a specific time and place. Practical implications This manuscript provides insights for brand managers who are forced to address fake news. Originality/value This manuscript provides marketers with a strategy to better address fake news for organizations and brand.

scholarly journals Cash Waqf risk management and perpetuity restriction conundrum

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Azniza Hartini Azrai Azaimi Ambrose ◽  
Fadhilah Abdullah Asuhaimi
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Islamic Finance ◽  
Natural Occurrence ◽  
Journal Articles ◽  
Content Type ◽  
Risk Return ◽  
Restriction Principle ◽  
Standard Operating ◽  
Practical Implications

Purpose The purpose of this paper is to comprehensively discuss the issue of risk vis-à-vis the perpetuity restriction principle inherent in waqf (Islamic endowment). Specifically, it attempts to consolidate the axioms in both conventional and Islamic finance, such as the risk-return trade-off and al-ghunm bi al-ghurm (liability accompanies gain), with the perpetual nature of waqf. Overall, this paper attempts to find a resolution to the dilemma of perpetuity restriction inherent in cash waqf against the natural occurrence of the risk. Design/methodology/approach This paper is based on the secondary research methodology; past literature encompassing journal articles, books, relevant financial axioms, fatwas (Islamic rulings) and state enactments is critically reviewed to present its case. In regard to state enactments, only Malaysian state enactments have been used, thus restricting the study to the Malaysian case only. Findings This study contends that the dilemma of the perpetuity restriction and the natural occurrence of risk can be resolved through the integration of waqf risk management, especially concerning cash waqf, with the Islamic spiritual approach. By implementing standard operating procedures that inculcate awareness on waqf risk management and Islamic spirituality in waqf stakeholders (waqif (donor), trustee and beneficiaries), the stakeholders may accept the reality of risk that is inevitable even after all efforts have been exhausted. In other words, the violation of perpetuity is exonerated given that mental faculties aligned with revealed texts have been exhaustively used beforehand. Practical implications Findings from this study may broaden the choice of investment avenues for waqf trustees while adhering to the perpetual restriction of waqf. More importantly, waqf trustees will not be forced to invest in interest-bearing securities or be involved in any usurious transactions just to obtain guaranteed returns and preserve the corpus of waqf. Originality/value This study offers a unique perspective on cash waqf risk management by re-analyzing the axioms and concepts of finance and waqf while observing the welfare of the beneficiaries.

Shari’ah-compliant benchmark and Shari’ah-based “raf’ al-haraj” benchmark on prohibition of riba

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasushi Suzuki ◽  
Mohammad Dulal Miah
Keyword(s):  
Design Methodology ◽  
Institutional Economics ◽  
Islamic Finance ◽  
Practical Relevance ◽  
Islamic Banks ◽  
Procedural Rationality ◽  
Content Type ◽  
Financial Transaction ◽  
Clear Cut ◽  
Practical Implications

Purpose This paper aims to propose two benchmarks “Shari’ah-compliant” benchmark and “Shari’ah-based” “raf’ al-haraj” (the removal of hardship) benchmark. The former benchmark can be applied to ensure that a transaction brings “profits on sales” and not “profits on loan”, and the latter benchmark should be addressed to ensure that a transaction does not exploit the customers of Islamic banks. Design/methodology/approach The authors draw upon the theory of institutional economics, in particular, instrumental and procedural rationality, to argue that the believers can pay their best effort as an exercise of ijtihad to understand and incarnate the logic and rationales implicit in the Qur’anic text. Findings Currently, there is no benchmark that determines the profit ceiling on murabaha. The authors suggest two types of “gray-zones” – the “Shari’ah-compliant but less contributing to the removal of hardship” and the “controversial on compliance but contributing to the removal of hardship in borrowers” to use as a benchmark in endorsing less shariah-compliant Islamic products. Practical implications There is no benchmark or a clear-cut demarcation that can be used to endorse less Shari’ah-compliant Islamic finance. Thus, Shari’ah-compliant’ benchmark and “Shari’ah-based” “raf’ al- haraj” benchmarks can be used to guide whether a financial transaction is acceptable or not. This guideline can be of huge practical relevance for Islamic finance. Originality/value There is no sensible study that offers such guidelines that can be used to demarcate whether a particular financial transaction, which has no clear-cut fatwa, is acceptable or not. Hence, the current research is novel and contributes to the existing literature of Islamic finance.

The substance and form of Islamic Finance instruments: an accounting perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Ebrahim ◽  
Tarek Abdelfattah
Keyword(s):  
Theoretical Analysis ◽  
Conceptual Framework ◽  
Design Methodology ◽  
Islamic Finance ◽  
Content Type ◽  
Modern Economy ◽  
Analytical Review ◽  
Comprehensive Framework ◽  
Industry Needs ◽  
Practical Implications

Purpose This study aims to critically analyze the fundamentals of the current major Islamic Finance (IF) instruments and contracts in light of both the foundations of IF and the concept of substance over form in the accounting conceptual framework. Such analysis is believed to be necessarily for the IF institutions to provide better and more genuine service to their customers. Design/methodology/approach To achieve the study purpose, the methodology is based on theoretical analysis and analytical review of the major IF contracts. Findings The IF industry needs to focus on the economic substance of the products offered to their clients. In developing and promoting their products, IF institutions need to focus on the ultimate and substantial goals of Islamic Sharia rather than re-packaging existing conventional products under different arrangements and formats to make them appear as Sharia-compliant to their clients. Both religious scholars and IF professionals need to engage in much deeper analysis and understanding of the substantial design of IF instruments and the concept of usury in modern economy. Research limitations/implications This paper does not intend to develop a comprehensive framework for the design of IF instruments to meet the economic substance and ultimate goals of IF principles or measure such economic substance. However, that is definitely a subject for further research. Originality/value By applying concepts like substance over form from other business fields such as the accounting theoretical framework to the IF instruments and contracts, we should gain better understanding and practical implications of these instruments and figure out ways to improve their design to be more consistent with and better serve the ultimate goals of the Islamic Sharia.

Resource idiosyncrasy, performance, and inter-firm small-world networks

2014 ◽  
Vol 7 (1) ◽  
pp. 19-29 ◽  
Author(s):  
Jarle Aarstad
Keyword(s):  
Path Length ◽  
Design Methodology ◽  
Empirical Studies ◽  
Small World ◽  
Small World Networks ◽  
Structural Holes ◽  
Content Type ◽  
High Degree ◽  
Practical Implications

Purpose – Many networks take a small-world structure, with a high degree of clustering and shortcut ties that reduce the path-length between the clusters. It can be argued that small-world networks have benefits that are simultaneously related to network closures and the spanning of structural holes, but research on the network members’ performance is nonetheless inconclusive. The purpose of this paper is to argue that the concept of resource idiosyncrasy can explain the mixed findings. Firm idiosyncratic resources are not easily generalizable across enterprises. Design/methodology/approach – Industries may vary in terms of resource idiosyncrasy, and the paper elaborates how this can moderate shortcut ties’ effect on performance in an inter-firm network. Findings – If resource idiosyncrasy predominates in an industry, the paper proposes that inter-firm shortcut ties may increase performance, whereas shortcut ties may decrease performance if non-idiosyncratic resources predominate. Originality/value – Applying the concept of resource idiosyncrasy as a moderating variable, the paper aims to explain shortcut ties’ effect on performance in an inter-firm network. The theory advanced here can have practical implications and also motivate future empirical studies to gain further knowledge about small-world networks’ effect on performance.

Entrepreneurial strategies in deploying social capital

2018 ◽  
Vol 34 (12) ◽  
pp. 20-22
Keyword(s):  
Social Capital ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Pertinent Information ◽  
Key Variables ◽  
Migrant Entrepreneurs ◽  
Entrepreneurial Strategies ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on two case studies that reveal a community-oriented and a market-oriented strategy pursued by migrant entrepreneurs in one US city. The ways that social capital is deployed and the skill-based resources of the entrepreneur are key variables in the financial output of a community-centric business. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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