An exploration of mobile money transfer service adoption among Islamic bank customer in Somalia = Penerimaan perkhidmatan pemindahan wang mudah alih antara pelanggan bank Islam di Somalia

The world is changing rapidly due to technology, which is becoming an increasing necessity in the daily lives of people. Mobile Money Transfer Service (MMTS) is an alternative form of cash money that demonstrates the concept of electronic payment. Dahabshiil Bank International and Salam Somali Bank adopted MMTS in Somalia in partnership with a telecommunication company provider for MMTS. There has been no prior study conducted on the important factors affecting the adoption of MMTS among Islamic banking customers in Somalia. Based on the extended Theory of Technology Acceptance Model (TAM), perceived usefulness, perceived ease of use, perceived trust and perceived risk are used as predictors. The main objective of this study is to explore the customer acceptance on the important factors that influence the MMTS adoption among Islamic bank customers in Somalia. The target population of the study is Somali residents who use the MMTS and have bank accounts. This research, using statistical methods, collected data from 404 customers. The result of this study shows that the factors that influence the adoption of MMTS are perceived ease of use, perceived usefulness, perceived trust, which were found to be positive and significant while perceived risk was negative and significant. ********************************************************** Dunia berubah dengan pesat disebabkan oleh teknologi, yang menjadi keperluan yang semakin meningkat dalam kehidupan harian setiap orang. Perkhidmatan Pemindahan Wang Mudah Alih (MMTS) adalah bentuk wang tunai alternatif yang menunjukkan konsep pembayaran elektronik. Dahabshiil Bank International dan Salam Somali Bank mengamalkan MMTS di Somalia dengan kerjasama syarikat penyedia telekomunikasi MMTS. Tidak ada kajian terdahulu yang dijalankan terhadap faktor-faktor penting yang mempengaruhi penggunaan MMTS di kalangan pelanggan perbankan Islam di Somalia. Berdasarkan kepada Teori Penerimaan Teknologi (TAM) yang diperluaskan, kegunaan yang dirasakan, mudah difahami, diyakini dan dipercayai serta penerimaan risiko, digunakan sebagai peramal. Objektif utama kajian ini adalah untuk meneroka penerimaan pelanggan terhadap faktor-faktor penting yang mempengaruhi penerimaan MMTS di kalangan pelanggan bank Islam di Somalia. Penduduk sasaran kajian ini adalah penduduk Somalia yang menggunakan MMTS dan mempunyai akaun bank. Kajian ini, menggunakan kaedah statistik, mengumpul data daripada 404 pelanggan. Keputusan kajian ini menunjukkan bahawa faktor-faktor yang mempengaruhi penggunaan MMTS adalah mudah digunakan, dilihat sebagai kegunaan, kepercayaan yang dirasakan didapati positif dan signifikan manakala penerimaan risiko dianggap negatif dan signifika

The scantness of the effect of corporate governance mechanisms on executive directors’ remuneration in small listed companies: evidence from Malaysia

Purpose – This study extensively aims to investigate the effects of different aspects of corporate governance (CG) mechanism, including board size, executive directors’ shareholdings, Chief Executive Officer (CEO) duality, a family member as the CEO and/or chairperson of the board, independent directors in remuneration committee and number of board meeting, on executive directors’ remuneration in small firms listed on Bursa Malaysia (BM). Design/methodology/approach – The sample of this study consists of 173 bottom-listed companies from Bursa Malaysia in Year 2010. The Year 2010 was chosen because the disclosure of remuneration committee activities and directors’ pay structure is required under the revised Malaysia Code of Corporate Governance, 2007. Furthermore, the period selected is after the global economic crisis (2008), which may have an effect on the remuneration structure in small firms. The ordinary least squares regression was used to estimate the relationship between remuneration as dependent variable and other independent variables. Findings – A finding from this study reveals that there is a significant positive relationship between executive ownership and executive remuneration, and between board size and executive remuneration. The results provide evidence that the family members manipulate power and control remuneration in small firms. This indicates that the independent directors are not truly independent to monitor and control the firm activities, including minimizing the excessive remuneration. Research limitations/implications – This study examines how the corporate governance (CG) affects remuneration among 173 small firms in Malaysia based on market capitalization, for one year, 2010. Hence,the results may not be generalizable to other periods or types of the companies. This shows the possibility of the absence of some additional variables in the research model and hence a limitation to the findings of the study. Although the study is being parsimonious in the choice of relevant variables, prior literature serves the guide in the selection of the used variables. This therefore gives room for future research using the potential omitted variables. Furthermore, the study focuses on total remuneration, such as fees, salaries, bonuses and benefits in kind, which makes aggregate directors’ remuneration. However, this study did not consider the remuneration related to stock options. Finally, this study only uses secondary data; hence, it could be interesting to use other instruments to collect data like a questionnaire to add more weight to the research. This study only uses one-year data; therefore, impact of changes between years cannot be analysed. Originality/value – Results of the study provide evidence that the family members manipulate power and control remuneration in small firms. They reduce the effectiveness of non-executive directors because most of them are appointed by a family member and not socially responsible to their stakeholders

Critical financial analysis of Islamic bank in the Philippines: case study of Amanah Islamic bank

The inspiration to delve into the contemporary status of Islamic banking and finance in the Philippines has led this study to analyze the financial condition of Amanah Islamic Bank (AIB) and recommend improvements in its financial performance. This secondary databased study utilizes library research and content analysis, particularly using the capital, asset, management, earnings, and liquidity parameters. AIB is the rebranded version of Al-Amanah Islamic Investment Bank of the Philippines. At present, AIB has nine branches and is the only authorized bank in the Philippines to offer Islamic banking products and services. Presidential Decree No. 542, which was signed in 1974, directed the AIB to implement an Islamic model of banking and financing, particularly following the "no interest principle" and partnership mechanisms. However, this order was not completely implemented because "conventional banking" dominated the AIB's operation. This study contributes to the continuing effort to convert AIB into a full-fledged Islamic bank and simultaneously contend with the emerging growth of the banking industry. © 2018, Kolej University Islam Sultan Azlan Shah

An investigation into the financial sustainability of Islamic Saving, Credit Cooperative Society (SACCOS) in Tanzania

The purpose of this paper is to assess the financial sustainability of Islamic Saving Credit Corporative Society (SACCOS) and the factor(s) affecting their financial sustainability in the Tanzanian context.The data set used in this study comes from four SACCOS audited financial reports from the year 2010 to 2014 and from interviews with SACCOS’s management.The study found that the IMFIs in Tanzania are not financially sustainable. Additionally, having responsible staff members, regular review of financial guidelines, education to members, cooperation between employees and management and staff training are found to be highly contributing factors towards SACCOS’s financial sustainability. Moreover, the findings reveal that depending on the single source of income, i.e., charges on members contributed much in these SACCOS’s not being financially sustainable.Only two available registered Islamic SACCOS was used. Additionally, conventional SACCOS have been in service provision for a long time as compared to Islamic ones; hence, caution must be taken for comparison purposes. Based on these findings, the Islamic SACCOS needs to initiate productive projects that can enable them to have other income sources apart from charges on members. This study traces the financial trend of Islamic SACCOS in Tanzania since its establishment in 2010. Such trace enables Islamic SACCOS and other stakeholders to be aware on the financial progress of Islamic SACCOS and act accordingly to ensure sustainability

The effect of the demographic factors of micro-entrepreneur on financial literacy: case of Amanah Ikthiar Malaysia (AIM)

Financial literacy is very important in the success of any business venture. Amanah Ikhtiar Malaysia (AIM) formed in 1987 is the largest microfinance institutions that assist in the poverty eradication for Micro Small and Medium Enterprises (MSMEs) in Malaysia. The purpose of this study is to investigate whether demographic factors such as gender, age, marital status and education have an effect the financial literacy on micro-entrepreneurs. AIM micro-entrepreneur can be an engine for the financial growth and development of economy in Malaysia. However, we need to identify demographic factors on financial knowledge, financial socialisation agents, financial attitude, financial skills and accounting practice so that appropriation actions can be taken to ensure the success of their business. This research is conducted using a survey method whereby 312 selfadministered questionnaires were collected from AIM micro-entrepreneur throughout Malaysia. The analysis adopts a quantitative research approach with a descriptive research design. A random sampling technique was used for this study. Data are analysed using the Statistical Package for Social sciences (SPSS). The results showed that entrepreneurial businesses fail because they have got unsatisfactorily low financial literacy. Therefore, recommendations include awareness and usage of authorities support programmes to improve the financial literacy of micro-entrepreneurs. MSMEs are also motivated to enrol for a certificate in financial literacy to improve and enhance their financial management to run their businesses effectively. This study would guide policies and guidelines for the adoption of by the regulators and government

The effect of zakat programs on the social impact of microfinance institutions in Bangladesh

The purpose of this paper to measure the effectiveness of the central for zakat management (CZM) efforts in utilising zakat funds for promoting microfinance among poor rural people in Bangladesh.Thisstudyassessesthe effectivenessofzakatonaspectssuch asincome, household expense and fixed asset accumulation of the poor client based on the before and after approach groups comprising to impoverished individuals and families are given equity capital and are encouraged to set on small businesses according to their liking and ensure sustainable development goals (SDGs). The group are supervised for a period in 2010 to 2018, ensure all individualswithin the group can continue with their activities and ultimately, free themselves from the shackles of poverty and graduate into a sustainable livelihood and social impact. Results indicate a significant nominal and real increase in average monthly income, an increase in fixed assets and an increase in monthly average household expenditure before and after receiving zakat money. The findings from this paper shed light on the effectiveness of the zakat-based approach in alleviating poverty and ensuring sustainable economic empowerment of the poor rural people. This research is significant as it could be useful in future discussions on the potential ways to improve zakat-based MFIs and SDGs in Bangladesh. The outcomes from the discussions

Is microfinance program in Malaysia really effective in helping the poor?

Microfinance1 program is becoming more significant as the main contributor in creating new job opportunities and generating income for increasing social well-being and economic status of the poor and eradicating poverty. Basically, the microfinance program in Malaysia has been administered by various institutions and non-banking government agencies. The most important institutions for this study are Lembaga Zakat Selangor (LZS), Yayasan Basmi Kemiskinan (YBK) Selangor, Amanah Ikhtiar Malaysia (AIM) and Yayasan Tekun Nasional (TEKUN). The focus of this study is to evaluate the effectiveness of YBK Selangor, AIM, TEKUN and LZS microfinance programs in increasing the participants’ income and eradicating poverty by conducting microenterprise businesses through the adoption of entrepreneurial concept. Based on the univariate and multivariate analysis, the results show that AIM is the most effective microfinance program as it enables the poor to increase their income and improve their social well-being. The study also shows that monitoring, fund size, purpose of loan usage and total income before participating in the microfinance program are the main factors which influence the level of income that poor people can generate. In addition, Islamic microfinance program which is based on Syariah and Islamic Finance concept has a very high potential in helping the poor people to expand and diversify their economic activities, increase their income and improve their social well-being

Governance Structure of Microfinance Institutions: A Comparison of Models and Its Implication on Social Impact and Poverty Reduction

Bu makalenin amacı Mikro Finans Bankaları, Mikro Kredi Programları ve kırsal kalkınma planları gibi farklı Mikro Finans Kurumları (MFK) modellerini yönetişim yapılarına odaklanarak karşılaştırmak ve akabinde bunlara ilişkin sosyal etki ve yoksulluğun azaltılması konusunda yapılacak çıkarımların analiz edilmesidir. Her biri farklı bir model olmak üzere üç farklı MFK, Bangladeş örneği üzerinden ele alınacaktır. Bangladeş sosyal haklardan mahrum insanların girişimcilik kapasitesini arttırmak için onlara mikro kredi sağlama konusunda öncü rol oynayan bir ülke olarak değerlendirilmektedir. Bu çalışma metodolojik olarak Porter’ın Rekapetçi Strateji Teorisine (1979) dayanmaktadır. Bu teori bir piyasanın çekiciliğini ve rekabetin yoğunluğunu belirleyen beş temel etken yaklaşımını esas almakta; temelde MFK'ların yıllık raporlarından ve Mikro Kredi Düzenleme Ajansı (MKDA) raporundan derlenen ikincil veriye dayanmaktadır. Bu çalışma sosyal etkiyi arttıran ve fakirliği azaltan MFK'ların sosyal sorumluluk, hesap verebilirlik, şeffaflık, finansal performans üzerindeki güçlü etkisi göz önüne alındığında, bu kurumlardaki iyi yönetişim uygulamalarına katkı sağlamayı amaçlamaktadır. Çalışmanın bulguları kamu politikaları tercihleri ve küresel kalkınma söylemlerinde yerini almış olan mikro finans yapılarının değerlendirilmesine dönük ciddi katkılar sağlamaktadır. Genel anlamıyla çalışma kısıtlı sayıda değişkenin sosyal etkiyi arttırıcı ve yoksulluğu azaltıcı etkisinin olduğunu göstermektedir. Çalışmanın kısıtı olarak makaleye konu olan yatırım fonunun sadece gelişmekte olan ve gelişmiş MFK'larına yatırım yapmasını zikredebiliriz. Bu nedenle çalışmanın sonuçları sadece bu tür MFK'ları için genellenebilir. Mikro finans yönetişim konusu diğer paydaşlara ve bir MFK'daki karar verme sürecine uygulanabilir. MFK'ların daha iyi bir sosyal sorumluluk ve yoksulluk ile mücadele seviyesine ulaşması, yoksulların güçlendirilmesi ve finansal kaynaklara ulaşımlarının iyileştirilmesi yoluyla finansal katılımcılığın olumlu yönde gelişmesine katkı sağlayacaktır.The purpose of this paper is to compare three different models of MFIs, namely microfinance banks (MFB), Microcredit programme (MCP) and rural development scheme (RDS), by focusing on their governance structures, and subsequently analyse their implications on social impact and poverty reduction of the MFIs. Three MFIs, one from each model, will be considered, using Bangladesh as the case study. Bangladesh is a country which is considered to be a pioneer in providing micro-finance to the underprivileged people to improve their entrepreneurial capacity.  In methodology, the study relies on Porter’s Competitive Strategy Theory (1979). This theory is based on the concept that five forces determine the competitive intensity and attractiveness of a market which assesses five forces. The study relies on secondary data collected mainly from the annual reports of the three MFIs, and Microcredit Regulatory Authority (MRA) report. This study aims to contribute towards better governance practices of the MFIs given its strong implications on social responsibility, accountability, transparency, financial performance, increasing their social impact and poverty reduction of the MFIs. Findings of this study provide essential inputs on the way forward for the evolution of microfinance, as framed by the global development discourse and subsequent public policy choices. Overall, the study shows that only a limited number of variables influence the social impact and poverty reduction of an MFI. The limitation of the studied investment fund is that it invests in expanding and mature MFI’s. So the results of this research can only be generalised to expanding and mature MFI’s. The approach to microfinance governance should be broadened by focusing more on stakeholders and the decision making process in an MFI. Better social responsibility and poverty reduction of the MFIs contribute positively to financial inclusion through poverty alleviation, empowerment of the poor and better financial access, leading to sustainable economic growth

The positive effect of Malaysia government corporate tax reduction initiative on public listed companies’ revenue: a longitudinal study

The policy of gradual reduction in the corporate tax rate in Malaysia, which commenced since 1988 and continued till today, has become a cause for concern, as the benefits of such reduction have not been established at least empirically. The present study thus investigates the impact of the reduction of the corporate tax rate on the corporate tax revenue. The study adopts the theory of taxation by Ibn Khaldun – depicted as laffer curve. The analysis of the time series data for period between 1996 and 2014, using the ARDL approach, shows that the corporate tax rate has a dual effect on the corporate tax revenue over the study period. It shows an inverted U-shape relationship between corporate tax rate and corporate tax revenue and further reveals that the optimal tax rate is 25.5156%. Inferentially, a positive relationship existed between the two variables prior to the optimal tax rate and a negative relationship afterward. A further test of causality also shows a long-run unidirectional causality from corporate tax rate to corporate tax revenue. Thus, the policy of the gradual reduction of the corporate tax rate is suspected to have positive impacts on the productivity of Malaysia companies in term of increase in corporate tax revenue