The application of venture capital strategies to musharakah financing

2020 ◽  
Vol 11 (3) ◽  
pp. 827-844
Author(s):  
Aisyah Abdul Rahman ◽  
Shifa Mohd Nor ◽  
Mohd Fadzli Salmat
Keyword(s):  
Venture Capital ◽  
Initial Step ◽  
Primary Data ◽  
Islamic Banks ◽  
Content Type ◽  
Risk Monitoring ◽  
Country Analysis ◽  
Regulatory Bodies ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to explore the strategies used by venture capital (VC) firms in assisting entrepreneurs who have business potential but lack capital. The study also aims to investigate whether the VC strategy can be adopted by Islamic banks through musharakah financing. Design/methodology/approach Apart from content analysis, primary data were gathered from several interview sessions with the management of three VC firms and two Islamic banks. Findings Islamic banks in Malaysia have great potential to offer musharakah financing and mitigate risk by adopting the following five VC strategies: method of selection, channelling of funds, monitoring, non-capital assistance and period of investment. We propose the channelling of corporate social responsibility funds for musharakah financing as an initial step in applying VC strategy. Research limitations/implications Given the limited number of willing and eligible respondents in Malaysia, the scope of this study can be widened to a cross-country analysis where musharakah financing is widely adopted. Practical implications This study motivates regulatory bodies and Islamic banks to consider musharakah financing using the risk monitoring strategy adopted from the VC industry. Originality/value This study is the first to empirically explore the strategy adopted by VC companies and evaluate whether such a strategy is suitable for the concept of musharakah financing.

Disclosing CSR by Islamic banks: does Jaiz Bank Nigeria, Plc adopt the practice of Islami Bank Bangladesh Limited?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umar Habibu Umar ◽  
Sulaiman Musa
Keyword(s):  
Financial Regulation ◽  
Technical Assistance ◽  
Advisory Council ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
The Poor ◽  
Corporate Social ◽  
The Needy ◽  
Practical Implications

Purpose This paper aims to establish whether Jaiz Bank Nigeria, Plc (JBNP) adopts the corporate social responsibility (CSR) practice and disclosure of Islami Bank Bangladesh (IBBL) as the latter provided managerial and technical assistance to the former. Design/methodology/approach The data were extracted from the annual reports and accounts of the banks from 2013 to 2017. Findings The study established that over the period, IBBL had clearly disclosed sector-wise CSR expenditures and the number of beneficiaries, such as humanitarian and disaster relief, education, health and environment, among others, for the welfare of the poor and the needy in the country. However, the CSR practice and disclosure of IBBL have not yet been adopted by JBNP. It only discharges CSR activities through its foundation called Jaiz Foundation, with unlawful income based on the doctrine of necessity, as approved by the Financial Regulation Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN). Further, the total amount to expend for CSR activities is located in the statement of sources and uses of charity funds. Research limitations/implications The study covered only two Islamic Banks. Besides, only CSR aspects for the community service and development over five years were examined. Practical implications It is suggested that JBNP should adopt the CSR practice and disclosure of IBBL for the welfare of the poor and the needy in Nigeria. Social implications Adopting the IBBL CSR practice and disclosure by JBNP would contribute to the minimization of the incidence of poverty in Nigeria. Originality/value This study, to the best knowledge of the researchers, is among the few of its kind that deeply evaluated the CSR expenditure of Islamic banks solely for the welfare of the poor and the needy of the society.

Whether Shari’ah compliance efficiency is a matter for the financial performance

2018 ◽  
Vol 9 (2) ◽  
pp. 183-200 ◽  
Author(s):  
Md. Hafij Ullah ◽  
Ruma Khanam
Keyword(s):  
Financial Performance ◽  
Qualitative Method ◽  
Islamic Banks ◽  
Content Type ◽  
Financial Outcomes ◽  
Leading Position ◽  
Regulatory Bodies ◽  
The Relationship ◽  
E Mail ◽  
Practical Implications

Purpose Shari’ah is the foundation of Islamic banks. Although all the Islamic banks required complying with the Shari’ah requirements fully, the level of compliance differs among the Islamic banks. At the same time, Islamic banks have been performing well, but all do not demonstrate similar financial performance. This paper aims to explore whether Shari’ah compliance efficiency makes any difference in financial performance of Islami Bank Bangladesh Limited (IBBL). Design/methodology/approach This study used IBBL as a case. For exploring the issue of study, this paper applied an e-mail interview approach and interviewed 24 interviewees including financial analysts, IBBL clients and executives of regulatory bodies, the IBBL and other Islamic- and interest-based traditional banks. Interview opinions are then analyzed and interpreted for a deeper understanding of the topic. Findings The study observed that some other factors influence the financial performance of IBBL, but Shari’ah compliance is the dominant instinct of acquiring the leading position. Superior Shari’ah compliance creates internal strengths and external opportunities that facilitate IBBL in achieving higher financial performance. Most interviewees argued that Shari’ah is the only disposition that makes IBBL unique. Moreover, the bank that considerably follows Shari’ah gets better financial outcomes. Research limitations/implications The study used a qualitative method using interview responses only for evaluating the relationship between Shari’ah compliance and financial performance. Further study may be conducted based on a quantitative approach. Practical implications This paper expects to uphold the significance of Shari’ah in improving the financial performance of IBBL and simultaneously motivating the parties associated with the Islamic banks in enhancing the level of Shari’ah compliance. Moreover, this study provides new insights into the importance Islamic banks and their performance in relation to the choice of customers. Originality/value This study explores the significance of Shari’ah compliance in creating avenues for greater financial performance and develops a model showing the ways how Shari’ah compliance leads Islamic banks to achieve higher financial positions.

Implementation of the AAOIFI index on CSR disclosure in Indonesian Islamic banks

2019 ◽  
Vol 17 (3) ◽  
pp. 365-382 ◽  
Author(s):  
Peni Nugraheni ◽  
Erlinda Nur Khasanah
Keyword(s):  
Supervisory Board ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
The Government ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Positive Effect ◽  
Practical Implications ◽  
Suitable Measure

Purpose The purpose of this study is to discuss the extent to which Indonesian Islamic banks (IBs) disclose corporate social responsibility (CSR) according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) index. It also empirically examines the determinants of CSR disclosure in Indonesian IBs, based on disclosure from AAOIFI index, which is based on Islamic principles. Design/methodology/approach The determinant used in this paper is the corporate governance (CG) mechanism, which focuses on the board of commissioners (BOC) and Sharia Supervisory Board (SSB) and their characteristics. The paper uses multiple regression analysis to examine the influence of these variables on CSR. Findings The results indicate that the level of CSR disclosure of IBs measured by the AAOIFI index continues to be low. The statistical results reveal that CSR disclosure has an insignificant relationship with BOC size and SSB qualifications, while the other results show a negative association between the composition of independent BOCs and CSR disclosure, and the frequency of BOC and SSB meeting has a positive effect on this. Research limitations/implications The study focuses on Indonesian IBs. The variables of the CG mechanism are limited to the BOC and SSB, while the BOC exists only in countries that adopt two-tier boards. Practical implications IBs should provide a wider range of information to be disclosed. The government should establish specific items that need to be disclosed by IBs, considering there are no specific CSR disclosure regulations for IBs in Indonesia. Originality/value This study uses the AAOIFI index, which may be a suitable measure of CSR in IBs. The study also analyzes why certain items in the index have a high disclosure level and others do not.

scholarly journals Factors influencing PLS financing: the perspective of Indonesian Islamic banks employees

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peni Nugraheni ◽  
Istiqomah Nur Alimin
Keyword(s):  
Process Analysis ◽  
Positive Influence ◽  
Financial Statement ◽  
Primary Data ◽  
Islamic Banks ◽  
Screening Process ◽  
Content Type ◽  
Practical Implications

Purpose This study aims to examine the factors that influence profit–loss sharing (PLS) financing in Indonesian Islamic banks from the perspective of Islamic banks’ employees. Islamic banks have important role in influencing the amount of PLS financing distribution through their screening process. Design/methodology/approach This study uses questionnaires in collecting data that are distributed to the employees who process or handle PLS financing in Islamic banks in Yogyakarta, Indonesia. The independent variables are risk, financing screening process, analysis of financial statement and competency of the employees of Islamic banks. The data are processed using multiple regression. Findings This study finds that risk, the quality of financing screening process and the analysis of financial statement have positive influence on the PLS financing, whereas competency of employees of Islamic banks does not influence PLS financing. Practical implications The results of this study are expected to give contribution to increase the role of Islamic banks in encouraging PLS financing. The adequate screening, controlling and monitoring system in Islamic banks should be strengthened to encourage the quality of financing distributed. Originality/value Primary data are used in this study to know the perspective of Islamic bank employees in the financing division on the PLS financing. This study attempts to identify the perspective of employees who have direct relationship with the decision of financing in Islamic banks.

Corporate social responsibility and firm performance of Ghanaian SMEs

2017 ◽  
Vol 8 (1) ◽  
pp. 47-62 ◽  
Author(s):  
Otuo Serebour Agyemang ◽  
Abraham Ansong
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Primary Data ◽  
Firm Reputation ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the influence of corporate social responsibility on financial performance of small and medium-sized enterprises (SMEs) in Ghana by using access to capital and firm reputation as mediating variables. Design/methodology/approach The authors collected primary data from 423 SMEs within the Accra Metropolis. Partial least squares estimation technique was used to analyze the data. Findings The authors documented evidence for a mechanism through which corporate social responsibility results in financial performance of firms: SMEs with improved corporate social responsibility practices are better positioned to achieve enhanced reputation, which translates into improved financial performance. Even though this study did not document a significant relationship between corporate social responsibility and access to finance by Ghanaian SMEs, the authors contend that looking at the positive relationship between them, SMEs can minimize their capital constraints by embarking on CSR practices, which can eventually translate into financial performance. Practical implications The authors recommend that for SMEs to enhance their reputation and increase their access to capital, which will eventually result in enhanced financial performance, corporate social responsibility practices should be a major part of their operations. Originality/value It contributes to our knowledge on how CSR practices lead to financial performance of SMEs in developing countries. In addition, this is the first of its kind to establish the relationship between CSR practices and financial performance of SMEs in Ghana by using access to capital and firm reputation as mediating factors.

Implications of CSR initiatives on employee engagement

2021 ◽  
Vol 17 (2) ◽  
pp. 149-163
Author(s):  
Shweta Bapat ◽  
Pooja Upadhyay
Keyword(s):  
Employee Engagement ◽  
Large Scale ◽  
Stock Exchange ◽  
Specific Area ◽  
Employee Participation ◽  
Primary Data ◽  
Content Type ◽  
Industrial Sectors ◽  
Corporate Social ◽  
Practical Implications

Purpose This paper aims to study the implications of corporate social responsibility (CSR) on employee engagement in selected Indian business giants to which CSR spending is mandatory as per the Companies Act 2013. Researcher also has an intention of preparing working model for increasing employee engagement through CSR. Design/methodology/approach Researcher has collected the primary data from HR officials, CSR officials and employees of 23 organisations belonging to 10 main industrial sectors of India. The organisations selected for the data collection belong to India’s top 100 organisations as per Bombay Stock Exchange fulfilling a particular criterion. The effect of employee participation in CSR on employee engagement is been studied by identifying four parameters of employee engagement on which the employee participation in CSR may have some effect. The data are analysed with the help of Z test for proportion. Findings The major findings of the paper of the study includes that employee participation in CSR positively effects the employee engagement, as it helps in increasing four specifically identified parameters of employee engagement. Research limitations/implications The study is limited to the specific area of the effect of employee participation in CSR on employee engagement that too with respect to selected Indian business giants. Practical implications On the basis of this study, a theoretical model of CSR and employee engagement is proposed at the end of this paper. The model is expected to work as a guideline to the organisations, which want to improve employee engagement through CSR. Originality/value This research is one of its kinds that study the effect of employee participation in CSR on employee engagement. Moreover this research study considers the selected large-scale businesses of India which is the only country having 2% mandatory CSR spending to the organisation fulfilling the specific criteria.

Measuring the service gaps in the roles of quantity surveyors in the emerging market

2016 ◽  
Vol 23 (5) ◽  
pp. 1111-1131 ◽  
Author(s):  
AbdulLateef Olanrewaju
Keyword(s):  
Emerging Markets ◽  
Construction Industry ◽  
Design Methodology ◽  
Emerging Market ◽  
Supply And Demand ◽  
The Other ◽  
Primary Data ◽  
Content Type ◽  
Practical Implications ◽  
Survey Questionnaires

Purpose – The opportunities that the emerging markets present to the players in the construction industry means that the players need to expand on the scope and size of their responsibilities and duties to the stakeholders. Each of the professionals now demands more specialised and sophisticated services from one another. The other players in the construction industry now require more emerging responsibilities and duties from the quantity surveyors. The purpose of this paper is to examine the roles that “modern” quantity surveyors play by measuring the gaps that exist in the services that the quantity surveyors provide. Design/methodology/approach – Primary data are collected through survey questionnaires. In total, 23 roles played by modern quantity surveyors are identified and addressed to the respondents to rank the rate at which quantity surveyors provide these “emerging” services. The collected data were analysed statistically. Findings – The results of the findings led to the conclusion that the quantity surveyors were not meeting the expectations of other players. Therefore, for competitiveness, quantity surveyors need to better meet demand expectations. Research limitations/implications – This findings of this research are constrained to the services or functions that the quantity provide in the construction industry. Practical implications – This knowledge is valuable to academic institutions that offer quantity surveying programmes, to practicing quantity surveyors, governments, and other players in the construction industry. It will allow quantity surveyors to reconcile supply and demand expectations. Originality/value – There is no known conclusive empirical study on services offered by quantity surveyors in any emerging markets. Therefore, the findings offer a fresh understanding on the services of quantity surveyors not only in Nigeria but elsewhere. While some of the services are common, others are peculiar to emerging markets.

The identity crisis of sustainable development

2014 ◽  
Vol 11 (1) ◽  
pp. 4-15 ◽  
Author(s):  
Catalin Ratiu ◽  
Beverlee B. Anderson
Keyword(s):  
Sustainable Development ◽  
Design Methodology ◽  
Identity Crisis ◽  
Primary Data ◽  
Future Research ◽  
Clear Understanding ◽  
Content Type ◽  
The Public ◽  
Larger Sample ◽  
Practical Implications

Purpose – There are many different conceptualizations to sustainable development and these different approaches may have led to confusion amongst the public. The purpose of this paper is to explore the identities of the term and how the confused identity may be leading to problems for sustainable development efforts. Design/methodology/approach – The design is exploratory, using both secondary and primary data to understand the different sustainable development concepts. Findings – There is no consistent understanding or use of the term “sustainable development” among various groups. Research limitations/implications – Future research should include a larger sample that is more representative of people from different backgrounds and geographical areas. Practical implications – The public is generally willing to support only projects that it understands. Without a clear understanding of sustainable development, the public will be less inclined to support these efforts. Originality/value – This study examines the perceptions and understandings of the term by the general public representing different generations.

Structuring and financing private equity and venture capital transactions in Luxembourg

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bertrand Géradin
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Private Equity ◽  
Corporate Law ◽  
Efficient Manner ◽  
Equity Investment ◽  
Content Type ◽  
Key Issues ◽  
Practical Implications ◽  
Optimum Balance

Purpose Luxembourg is the jurisdiction of choice for many private equity and venture capital investors/funds. Though the optimum balance of financing instruments in relation to any structure varies according to its particular circumstances, one factor that all Luxembourg domiciled FDI structures have in common is the requirement for an appropriate level of equity investment. This article intends to summarize some of the topics frequently encountered in relation to equity structuring choices. Design/methodology/approach Author details the different steps and choices available to investors and funds. The article offers answers to questions to provide a broad, yet detailed, overview of the process and journey; from selecting the vehicle right through to distributing to investors, governance, and compliance. Findings To avoid an expensive mistake, it is paramount that the private equity or venture capital investors and management team receive detailed advice to ensure: (i) the deal is structured in the most tax efficient manner possible and the commercial deal is suitable for all parties, and (ii) the deal is structured in a manner which is effective under Luxembourg law, for both tax and legal purposes. Practical implications It is important that non-Luxembourg lawyers are able to identify key issues when negotiating the terms of the investment documents, in particular, the articles of association and shareholders' agreement. Originality/value Practical guidance from Luxembourg lawyer specializing in corporate law, mergers and acquisitions, venture capital and private equity transactions.

Conformity or differentiation? A U-shaped relationship between peers’ CSR and focal firms’ CSR

2021 ◽  
Vol 15 (2) ◽  
pp. 305-327
Author(s):  
Xianyi Long ◽  
Ting Zhang
Keyword(s):  
Design Methodology ◽  
Least Squares Method ◽  
Environmental Uncertainty ◽  
Generalized Least Squares ◽  
Content Type ◽  
Differentiation Strategy ◽  
Generalized Least Squares Method ◽  
Academic Researchers ◽  
Corporate Social ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the influence of peers’ corporate social responsibility (CSR) on focal firms’ CSR from an integrated perspective. The current study aims to explore whether as peers’ CSR increases focal firms’ CSR would first decrease and then increase. Design/methodology/approach This study is based on a sample consisting of Chinese listed manufacturing firms from 2010 to 2016. Hypotheses are tested by generalized least squares method to minimum heterogeneity and autocorrelation concern. Findings The results show that focal firms’ CSR would first decrease and then increase with the increase in peers’ CSR. Furthermore, this paper found that corporate visibility would stress more value on CSR differentiation strategy and environmental uncertainty would stress more value on CSR conformity strategy, such that the U-shaped relationship would be more pronounced in high corporate visibility or low environmental uncertainty situation. Practical implications The findings may be of interest to the academic researchers and managers. For researchers, it is important to understand how focal firms would practice CSR in response to peers’ CSR, especially through an integrated perspective. For managers, the results show that the best way to invest in CSR activities in response to peers’ CSR follows a U-shaped curve, and corporate visibility and environmental uncertainty are important factors to be considered to make CSR decisions. Originality/value This study contributes to the literature by proposing and examining a U-shaped relationship between peers’ CSR and focal firms’ CSR, which stresses the conformity and differentiation value of CSR simultaneously. Besides, to fully map the effects of peers’ CSR and focal firms’ CSR, this paper considers the moderating roles of internal and external contingencies on this non-linear relationship between the peers’ CSR and focal firms’ CSR.

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