The life-cycle hypothesis, financial planning and the household demand for financial assets : an analysis of the Malaysian experience

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Financial Performance and Identify Affecting Factors in this Performance of Non-oil Manufacturing Companies Listed on Libyan Stock Market (LSM)

The major objective of this study to assess the financial performance level and identify affecting factors  in this performance of non oil manufacturing companies listed on Libyan stock market (LSM), for the years from 1999 to 2008. Many previous studies examined the subject of financial performance in the various economic sectors, such as industrial, service, commercial, banking, and tourism from developed and developing countries. Researchers have studied in these subjects on evaluating the financial performance such as Medhat Tarawneh, 2006, Liargovas and Skandalis, 2008, Amalendu Bhunia (2010), Almajali, et al, 2012, and many more. The sample of this study consists of eight companies which were selected based on the criterion of size of the capital.  This study is based on the secondary data obtained from the balance sheets and profit and loss accounts. This study used the financial ratio analysis to measure the level of liquidity, operational efficiency and profitability, while the statistical method used to identify the variables that affect on financial performance. The model of this study consists of nine variables; including the dependent variable is financial performance measured by the return on assets (ROA) and eight  independent variables namely current ratio (CR), quick ratio (QR), net working capital (NWC), inventory turnover ratio (ITR), account receivable turnover ratio (ARTR), general administrative expenses ratio (GAER), company size (CZ) and company age (CG). The data collected was analyzed using financial ratio analysis approach and a number of basic statistical techniques such as descriptive statistics, correlation test (Pearson’s correlation) and regression analysis (Multiple Regression Analysis). the findings of the study, first with regarding of financial ratio analysis approach , the study concluded that there is a high liquidity, this makes these companies have the capacity to meet its financial obligations in the short term, while operational efficiency indicators were unsatisfactory, such inventory turnover ratio and accounts receivable turnover ratio. While regarding the statistical analysis it can be conclude that there are significant relations between liquidity variables and operational activity variables with return on assets as findings suggested that, working capital components and financial performance (ROA) in selected companies disclose both positive and negative association. three variables are negative significant relations with return on assets (ROA namely current ratio (CR), quick ratio (QR) and account receivable (ARTR)) illustrate negative significant relations with return on assets (ROA), while five variables positive significant relations with return on assets (ROA), namely net working capital (NWC), inventory turnover ratio (ITR), general administrative expenses ratio (GAER), company size (CZ) and company age (CG). Keywords: manufacturing industry, financial performance, financial ratio analysis

Measuring the Banking Performance Based on Balanced Scorecard for Conventional (State) Banks in Indonesia

This study, we measured of banking performance based on four perspectives  balanced scorecard namely job satisfaction, internal business process, customer satisfaction and financial, where each variable is affected by the five indicators as follows: (1) Job satisfaction is affected by indicator achievement, recognition, work It’s self, responsibility and advancement. (2) Internal business process is affected by the operating indicator of queuing systems, speed and responsiveness staff, staff skills and competence, customer complaints and self services technology. (3) Customer satisfaction is influenced by the indicator tangible, reliability, responsiveness, assurance, and empathy. (4) Perspective financial consists of capital adequacy ratio, productive asset quality, earnings, liquidity and sensitivity. Research result the performance of conventional bank as follows: Firstly, partially that job satisfaction, internal business process and customer satisfaction has a very strong relationship and its positive direction. Secondly, conventional bank simultaneously is proven a significant relationship between the variables of job satisfaction, internal business process and customer satisfaction towards financial perspective. Structure Equation Model (SEM) was obtained as follows: financial = 0,308 JS + 0,519 IBP + 0,197 CS. Keywords: Balanced scorecard, State Banks , Performanc

Perceptions of shariah scholars on shariah audit in Malaysian takaful industry

Takaful is shariah compliant insurance scheme which become an important component in the Islamic financial system in Malaysia. Takaful industry in Malaysia is relatively young compared to other sectors in the financial industry, but it has enjoyed robust growth. However, despite the robust growth, Takaful industry also continues to face several challenges such as ineffective governance practices. Ineffective governance practice will lead to the possibility of facing shariah risk and incident of shariah risk in their activities and operation. Shariah audit function is one of the component of governance that play a role in ensuring the takaful operator to have a sound and effective internal control system of shariah compliance. This study aim to examine the shariah scholars’ perception on current shariah audit process and scope particularly in Takaful industry. Semi-structured interviews was conducted with shariah scholars who are members of the Shariah boards in various Takaful Operators. The finding discovers that there are different points of view demonstrated by the Shariah scholars. This study may provide relevant guidelines for future development of shariah audit practices in Islamic financial institutions in achieving maqasid shariah

Understanding the planning process and challenges in Shariah audit execution: the case of Malaysian takaful operators

This study conducts a cross-sectional, case-based field study comparing the planning processes in Shariah audit for three takaful operators in Malaysia. A case study is an empirical enquiry to investigate facts in their context, and states that its unique strength is its ability to deal with various pieces of evidence (documents and interviews), and to detect missing constructs (Yin, 2003). Three takaful operators were selected in this study. The backgrounds and characteristics of the takaful were shown in Figure 3.0. These three takaful companies were selected because of their similarities as they also provide conventional insurance services. Hence, the comparison can be made whether they are doing a separate audit for takaful or they just conduct the audit at the group level

The Impact of Shariah Governance to Financial and Non- Financial Performance in Islamic Financial Institutions (IFIs): A Literature Survey

The main objectives of Islamic Financial Institutions (IFIs) are to achieve Shariah compliance and to fulfil Muslims requirement towards obedience and worship to Allah (SWT). In relation to that, the Shariah governance framework was introduced by Bank Negara Malaysia (BNM), who acts as the regulator, to ensure that proper Shariah governance is practiced by IFIs. It is vital to highlight the Shariah governance practice in relation to IFIs performance. This is to demonstrate the significance of its adoption for the measurement of financial and non-financial performance so that the performance criteria could be easily monitored within IFIs to ascertain the entire operations and all transactions comply with Shariah. The main aim of the paper is to highlight Shariah governance factors affecting the performance of IFIs as discussed in the literature. The literature survey discovered that Shariah Committee (SC), Shariah risk, Shariah audit as well as disclosure and transparency were identified as governance measures linked to IFIs performance. However, little research exists on the role of Shariah review function. Despite that, the regulator has made the function compulsory for adoption within IFIs. This study aims to benefit the industry players to better understand the impact of each Shariah governance functions on their performance as financial industry works within defined financial and non-financial indicators