ISLAMIC FINANCIAL DEVELOPMENT IMPACT ON ENERGY INTENSITY: EVIDENCE FROM ISLAMIC BANKS

The relationship between financial development and energy intensity is yet firmly established as the literature is emerging, and the few empirical studies that have been done provide conflicting results. Whereas some conclude a U-shaped relationship between financial development and energy intensity, others show a linear relationship between the two variables. This study investigates the relationship between financial development and energy intensity by focusing on the role of Islamic financial development. The study covers 30 countries where Islamic banks are present. Using the fixed-effects panel model, the empirical results suggest that Islamic banking development significantly increases energy intensity in the sample countries. We also identify other important factors that increase energy intensity. These include carbon emissions, renewable energy use and energy imports. The findings point to the importance of designing policies to incentivize Islamic banks and Shari'ah-compliant investors to finance clean energy technologies as a potent tool for reducing energy intensity, achieving sustainable development, and greening Islamic finance.

SUKUK AND ISLAMIC BANKING FINANCING : HOW THE IMPACT FOR REAL SECTOR ?

Indonesia continues to strive to develop Islamic finance especially its Islamic banking and sukuk to support the real sector. The growth of Islamic finance in Indonesia is expected to encourage the development of the national economy. This study aims to investigate the impact of Islamic banking financing and sukuk financing on Indonesia’s industrial output. Applying the Autoregressive Distributed Lags (ARDL) framework to monthly data from January 2011 to December 2018, we find Islamic bank financing to contribute positively to the real sector in both the long and short term. In addition, we also document positive long run contribution of sukuk financing to industrial output . Indeed, over the long run, sukuk financing tends to have a greater real impact than Islamic banking financing. The results of the study implies that Islamic banking and sukuk play a vital role in supporting the real sector in Indonesia. Accordingly, recent initiatives by Indonesia to further develop its Islamic finance are steps in the right direction.

REVITALIZING INDONESIAN ISLAMIC BANKING PERFORMANCE: A STAKEHOLDER ANALYSIS

This paper examines views of Islamic banks’ stakeholders, which can be used as bases for measuring and improving bank performance. Taking Indonesia as a case study, we compile information and data from both internal and external stakeholders through in-depth interview and FGD, code them using N-Vivo, and finally apply the stakeholder management framework for data analysis. The results we obtain suggest that the Internal stakeholder's view on IIB performance is relatively positive. Meanwhile, the external stakeholders tend to have varied views on Islamic banking performance. This research finds that the religious values ​​promoted by Islamic banks can increase the company's value but at the same time it can also reduce the interest in Islamic banking. Based on these findings, it is necessary to investigate further how to strategize the religious values for the promotion of Islamic banking.

DEA WINDOW ANALYSIS FOR INDONESIAN ISLAMIC BANKS’ EFFICIENCY

This study measures the efficiency of Islamic banks in Indonesia using Data Envelopment Analysis (DEA) window methods for 14 Indonesia’s Islamic banks covering the period spanning from 2011 to 2020.. The results show that the efficiency of Islamic banks averages 80% and exhibits increasing trend over the period 2011-2020. Based on stability measures, which are standard deviation (SD), Long Distance per Window (LDW), Long Distance per Period (LDP), and Long Distance per Year (LDY), we find the efficiency of PT Bank BRI Syariah (BSI) and PT Bank Syariah Mandiri (BSI) to be relatively stable.

HALAL COSMETICS REPURCHASE INTENTION: THE ROLE OF MARKETING ON SOCIAL MEDIA

This research aims to study the effects of social media marketing strategies on the repurchase intention among suppliers of halal cosmetics in the context of Malaysia. The study, based on the theory of social media marketing, identifies these ties, and considers the mediating functions of word-of-mouth brand recognition and electronic word-of-mouth communication (e-WOM). The work takes a holistic view of brand recognition and e-WOM with reference to the two main relations, social media marketing strategy and repurchasing intention. The partial least squares structural equation modelling (PLS-SEM) method was employed and data collected from 300 respondents (followers) via an online questionnaire. The results indicate that there is a significant influence of social media marketing (SMM) on repurchase intention, brand awareness, and e-WOM; the impact is higher on brand awareness, followed by repurchase intention and eWOM. These results demonstrate that efficient brand management of the use of social media platforms will help increase brand awareness among halal cosmetics buyers. When used correctly, SMM may assist the distribution and communication of the most up-to-date information on cosmetic products and brands, resulting in increased awareness and repurchase intent. At the same time, eWOM is a useful tool for their respective followers to disseminate information. The research has important implications for the halal cosmetics sector, as it contributes to the theoretical and management literature on social media marketing strategy.

IMPACT OF PSYCHOLOGICAL CHARACTERISTICS ON BUSINESS PERFORMANCE OF MUSLIM WOMEN ENTREPRENEURS IN SRI LANKA

Women entrepreneurship is a highly stressful initiative which requires mental efforts related to psychological characteristics. In some Islamic families, women are less empowered, as their mobility is constrained and certain traditions and values observed by society affect their achievement in business. Therefore, this study aims to investigate the effects of several psychological capital (PC) factors on the business performance (BP) of Muslim women entrepreneurs (MWEs) in Sri Lanka. The measurement of PC entails the factors of need for achievement (NA), risk taking (RT), internal locus of control (ILC), and independent motives (IM). Data were collected using a structured questionnaire; the study sample involved 260 MWEs from Sri Lanka’s Eastern Province selected via the simple random sampling technique. The structural equation modeling (SEM) method with AMOS was used to test the proposed hypotheses. The findings show that only RT had a significant and positive impact on BP, whereas NA, ILC, and IM did not significantly influence the BP of MWEs in Sri Lanka. In short, those who were risk takers were able to make positive achievements in their business ventures. The study findings provide evidence of the significance of family members, spouses and social stigma on the MWEs’ psychological state and ultimately their business performance.

UNDERSTANDING THE IMPACT OF INSTITUTIONAL FACTORS ON ASNAF’S SUSTAINABILITY: A PLS-SEM APPROACH

This study examines the impact of zakat on the life sustainability of individuals. The data were collected from 427 returned questionnaires from zakat recipients in eleven districts of Kedah. Using PLS-SEM, it was found that asnafs’ receiving offers a very low level of assistance that provides little empowerment. The results support the notion that institutional contributory performance has a positive effect and that the level of sustainability does increase after receiving zakat, but there are issues that need to be addressed carefully. The study further examines the moderating role of demographic factors, such as earnings, age, marital status and gender. It initiated a newer dimension through incorporating before-zakat and after-zakat scenarios in examining their comparative impact on sustainability.

AN ASSESSMENT OF THE INTENTION TO ACCEPT SHARIAH COMPLIANT CROWDFUNDING MODE OF FINANCING IN BORNO STATE, NIGERIA

Micro-, small and medium-sized enterprises (MSMEs) face numerous obstacles, such as a lack of funding, which hinder their growth and expansion. They must have access to long-term funding to improve and modernise their operations competitively. This study aims to incorporate Shariah-compliant crowd funding among MSMEs in Borno state of Nigeria. It applies partial least squares structural equation modelling (PLS-SEM) on a sample of 341 MSMEs and recommends the need to educate and enlighten them about the benefits of Islamic crowdfunding. The study also recommends the need to produce guidelines that will help in developing a legal and regulatory framework for the incorporation of crowdfunding into corporate financing structures. Finally, it is recommended that religious leaders at various levels organise educational programmes on the importance of Shariah-compliant crowdfunding.

MODES OF ISLAMIC FINANCING AND ECONOMIC GROWTH: EVIDENCE FROM INDONESIA

Financing is expected to positively support economic growth, especially using Islamic contracts, which are strictly obliged to link the monetary and real sectors. Crises can devastate the financial and economy sectors, and also shock the real sector. This study aims to analyse the effect of Islamic-based financing on economic growth in Indonesia using the ARDL method. Gross fixed capital formation, household expenditure, government expenditure, exports, imports and the consumer price index, together with Islamic financing, are analysed in terms of their effect on economic growth in Indonesia during the period 2003-2018, in which the 2008 crisis is set as a dummy variable. Musharaka financing, which is based on profit-loss sharing, has a relationship with economic growth in the short run, but not in the long run. Furthermore, mudaraba financing unpredictably shows a negative relationship with economic growth, while Murabaha does not have significant effect in either short- or long-run estimation. The results imply that the prevailing economy system, which accommodates household expenditure, leads to an increase in economic growth, so is recommended as a priority sector for development. This study supports the notion that the current traditional economic stance may not suit the measurement of Islamic finance implication towards economic growth. The Maqasid sharia inclusiveness measurement is considered as an alternative estimation of the effect of modes of financing on economic growth.

ISLAMIC ENDOGENOUS MONEY: EVIDENCE FROM ISLAMIC BANKING SYSTEM IN INDONESIA AND MALAYSIA

This research is conducted due to the un-ware contemporary Muslim economists on the feature of money whether exogenous or endogenous. Arguing that money in Islam should be endogenous, Choudhury (1997) asserts that fiat and fractional reserve systems makes money exogenous. If it is true, this condition leads to the un-oriented development of Islamic monetary and financial systems that are basically is fiat and fractional reserve systems. Accordingly, the empirical studies on Islamic monetary policy in Islamic financial system that is based on exogenous money concept cannot reveal the true money supply for the economy. This paper aims to propose the theoretical model of endogenous Islamic money and conduct an empirical study of the model on Islamic banking that is based on fiat and fractional reserve systems. The empirical method used is based on the ARDL and ECM. The result of the research gives evidence that the profit and loss sharing system is a core feature of the Islamic endogenous money system in the fractional reserve requirement system. Other evidence reveals that the development of the Islamic financial system can minimize the existence of exogenous money in a fiat monetary system. By these results, this study argues that Islamic endogenous money system can be developed in fiat and fractional reserve banking systems through the profit and loss sharing systems.