A Comparative Analysis between Shariah Audit and Shariah Review in Islamic Banks in Malaysia: Practitioners’ Perspective

This paper compares Shariah audit and Shariah review in Islamic banks in Malaysia based on reporting structure, independence, the scope of duties, technology used, guideline and methodology, coverage period, and officers’ qualification. The study employs a qualitative method by utilizing semi-structured interviews with nine (9) key industry players. Data gathered from a series of interviews have been transcripted and analyzed using Atlas.ti. This study uncovers that Shariah review and Shariah audit have apparent differences and play their roles as a second and third line of defense, respectively, that eventually could provide a stimulus to Shariah governance and strengthen market confidence.  Keywords: Shariah audit, Shariah review, Islamic banks, qualitative method. eISSN: 2398-4287© 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v5i14.220

Does Financing Decision Influence Corporate Performance in Malaysia?

This paper examined the impact of financing decision on performance among Malaysian public listed firms in Bursa Malaysia. Previous studies did not examine the relationship between selection of capital structure and performance in the perspective of firms that implement industrial diversification strategy. This research comprised of 76 firms and covering balanced panel data series for the period of 1994-2007. The study observed that capitals structure has insignificant relationship with performance. However, it is recommended that firms should wary in using debt financing to finance business operation as it could lead to performance discount. Finding of the research contributed in explaining the capital structure decision made in the firms that implement industrial diversifications. Future research should investigate the option of firms that implement international diversification and its impact on corporate performance.  Keywords: Financing Decision, Performance JEL Classifications: G30, G3

The relationship between target costing method and pricing - development of products in industrial companies

This study aimed at identifying the relationship between target costing method in product pricing, as well as identify the relationship of target costing in products development in industrial companies operating at Al-Hassan industrial zone located in Irbid. The population of this study was 51 companies which implement the target costing method. Out of those 51 companies, 35 companies were randomly chosen to participate in this study. The questionnaire has been prepared and distributed to financial managers, production managers, marketing managers, and accountants, where each company got 4 questionnaires. One sample T-test in SPSS was used to examine the hypotheses of this study. The results revealed that the application of target costing method leads to pricing products, as well as that the application of target costing system leads to the development of products in industrial companies operating at Al-Hassan industrial zone.peer-reviewe

Causal Link between Financial Globalisation Uncertainty, Economic Growth, Environmental Degradation and Energy Consumption in ASEAN+3 Countries

This paper aims to examine the causal linkage of financial globalisation uncertainty, Environmental Degradation, economic growth and energy consumption for ASEAN+3 countries using second-generation approach for the period between 1970–2019. The results of second-generation unit root test revealed that economic growth and financial globalisation uncertainty were stationary at level, while energy consumption and environmental degradation were stationary at first difference. In addition, the Larson cointegration test showed that long-run cointegration exists between the variables. Similarly, we found that economic growth and environmental degradation have significant positive influence on energy consumption. However, financial globalisation uncertainty has insignificant influence on energy consumption. The results of causal relationship indicated a bidirectional causal relationship between financial globalisation uncertainty and energy consumption; environmental degradation and energy consumption; and economic growth and energy consumption

METHOD OF ZAKAT ASSESSMENT ON SHARES IN MALAYSIA: AN OVERVIEW

ABSTRACT The main purpose of this paper is to identify the method of zakat assessment on shares in Malaysia. Shares is a form of wealth currently in Malaysia in which zakat is permissible. The method of zakat assessment on shares is still debated among scholars. The question is, what is the method of shares zakat assessment discussed among scholars? What is the method of zakat assessment on shares practiced in Malaysia? Based on content analysis, various methods of zakat assessment on shares have been identified in Malaysia. This variability is caused by the zakat management authorities including determining the method of zakat assessment which falls under the jurisdiction of the various states in Malaysia