Predicting Zakah Compliance Intention Towards Zakah on Land Intended for Sale in Makkah

This study has been done to examine the relationship between attitude, subjective norm, perceived behavioral control and zakah compliance intention on land intended for sale in Makkah by using the Theory of Planned Behavior (TPB). Seventy seven completed questionnaires were returned that measured respondents' attitude (ATT) toward zakah on land intended for sale, subjective norm (SN) about zakah on land intended for sale, perceived behavior control (PBC), and intention (ITT) to pay zakah on land intended for sale. The findings of the study show that attitude (ATT) and perceived behavior control (PBC) are not significantly influence intention to comply with zakah on land intended for sale. Only subjective norms (SN) significantly influence zakah compliance intention toward zakah on land intended for sale. In general, the study proved that the theory of planned behavior is applicable in zakah area. The findings of the present study are important to Department of Zakat and Income Tax (DZIT) and policy makers such as Majlis Ash-Shura to enhance the compliance of zakah payers toward zakah on landed intended for sale

Factors influencing zakah on business compliance behavior among sole proprietors in Saudi Arabia

Zakah is a financial worship imposed by Allah (SWT), and it is considered within Muslims’ communities a major source for funding the poor and needy. However, the amount of zakah collected from businesses in Saudi Arabia is not satisfactory, nor is the level of compliance among sole proprietors. The main objective of this study is to investigate the factors that influence zakah business compliance behavior. The research framework was developed based on the theory of planned behavior (TPB), predominating factors in deterrence theory, and fairness from equity theory, as well as guided by past studies. Partial least squares structural equation modeling was used for relationships analysis. The questionnaires were distributed to survey sole proprietors in Saudi Arabia. Several statistical techniques for data analysis were used. The results of this study confirm the applicability of the TPB in the context of zakah on business in Saudi Arabia, more specifically suggesting that compliance intention and penalty magnitude predict compliance behavior significantly. Moreover, fairness, attitude, subjective norms, and penalty magnitude are significant predictors of compliance behavior through the compliance intention. Besides, business peers and religious leaders were found to be significant referent groups. Moreover, the influences of fairness and subjective norms on compliance intention were partially mediated by attitude. In addition, the zakah system’s perceived fairness was found to be multidimensional, consisting of eight dimensions. However, the detection risk found in this study insignificant. Overall, the model shows the significance of integrating audits and penalties perceptions with fairness, attitude, and norms in explaining and predicting zakah on business compliance behavior, which would be a guide for a successive compliance strategy that zakah authorities could implement. Implications for the literature and practice were discussed, and the limitations pertaining to the study outcome and suggestions for future research were discussed as well

Measurement models of zakah on business fairness: A proposed model

Abstract: Purpose – the purpose of this paper is to contribute to literature by proposing measurement models for zakah on business fairness based on relevant tax fairness dimensions.It proposes modeling the dimensions of zakah fairness and its measurement items.The study aims to expand the domain of zakah fairness by adapting established and relevant tax fairness dimensions. Design/methodology/approach – a review and analysis of the recognized tax fairness dimensions and its measurement in order to arrive at most potentially important dimensions of zakah on business fairness while keeping in mind the unique values of zakah.Findings – the major finding of this study is the model of fairness measurement of zakah on business, which vitally contribute in the growing body of knowledge.In addition, zakah authorities instructed about the importance of zakah fairness dimensions.Research limitations/implications – this research paper is conceptual that lack the empirical evident and, consequently, the generalization.Thus, researchers are encouraged to empirically test the proposed model in different contexts of zakah.Furthermore, identified dimensions of zakah fairness in this study are not necessary the lone, henceforth, researchers are advised to investigate further possible dimensions underlie zakah fairness. Originality/value – this paper contributed by identifying the critical dimensions of zakah system fairness along with its measurement

Fintech, Board of Directors and Corporate Performance in Saudi Arabia Financial Sector: Empirical Study

On a global scale, the Fintech sector has become increasingly important for keeping abreast of developments and progressions in the financial field. This study aimed to examine the impact of Fintech on the financial sector of Saudi Arabia and the role of Fintech in the relationship between the board of directors and corporate performance among Saudi financial firms listed on the stock market. Data were obtained from financial sector firms, covering banks and insurance firms from 2014 to 2020. The results revealed that board size, board independence, board meeting, board experience, and Fintech have a significant relationship with corporate performance. In relation to additional analyses, this study found that the board of directors’ score has a significant association with performance. Moreover, this study found that Fintech does not moderate the relationship between the board of directors’ score and corporate performance. This study sheds light on the effect of Fintech on the financial sector of Saudi Arabia, contributing new information to the literature. The study results are expected to have implications for several stakeholder groups. First, the study findings can be beneficial to academics, in terms of new knowledge and understanding of Fintech in the context of Saudi Arabia, a country that represents the Gulf region and the Arab World. The findings also have implications for policy-makers and practitioners in the Saudi and Middle-Eastern countries, Asia, and developing nations that have a similar culture, socio-economic institutions, or socio-economic environments

Fundraising Appeals for the COVID-19 Epidemic Fight: A Cross-Country Study of Donor Responses

This research explores the intrinsic and extrinsic motivations driving donors to engage in fundraising appeals launched through social networking sites (SNSs) to mitigate COVID-19’s impact on vulnerable communities from a cross-national perspective. The research adopted a quantitative approach through a web-based survey; a total of 801 donors were obtained from Kuwait and Bahrain and were useable for the analysis. Smart PLS structural equation modelling was used to validate the research model and derive significant insights. In the Kuwaiti sample, we found that humanitarian projects, internet technology, SNSs and religiosity significantly drive donor attitudes towards online donation. All these relationships are indirectly related to the intention to give via SNS through the mediating role of attitudes. As for the Bahraini sample, humanitarian projects, non-profit organizations (NPOs), SNSs, and religiosity significantly influence donors’ attitudes. Attitudes, on the other hand, have a visible mediating role in the relationships between these predictors and behavioral intentions. The findings could be useful for the development of appropriate policies that boost online monetary donations to support emergency aid for communities crushed by the pandemic. This research differs from the existing literature in that its multi-national study scrutinizes the incorporation of both internal and external predictors of fundraising activities into a distinctive related context such as SNSs, particularly in a time of epidemiological crises such as COVID-19