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EFFICIENCY DETERMINANTS OF ZAKAT INSTITUTIONS IN INDONESIA

Tanggal Publikasi: 22 Des 2022

Abstrak

The purpose of this study is to examine the relative efficiency of national zakat organizations in Indonesia. Data was collected from decision-making units (DMU) consisting of 14 national zakat institutions in Indonesia listed on the BAZNAS website and selected using purposive sampling technique. The information was derived from the DMU's publicly accessible financial reports. This study utilized the Data Envelopment Analysis (DEA) output-oriented approach to maximize output with the same level of input when analyzing the data. In selecting input variables, this study consulted previous research. In addition, it utilized Tobit regression based on the outcome of Maximum Likelihood (ML) to evaluate the determinants of the efficiency value (dependent variable) as the score ranges from 0 to 100. The result indicates that the efficiency of zakat institutions fluctuates slightly throughout the observation period. In addition, the significant efficiency determinants are size and community membership. Therefore, zakat organizations must maintain and increase their donors' loyalty. It is anticipated that the findings will contribute to the advancement of practice and knowledge regarding the study of zakat literature.

Keyword

Zakat Institution, efficiency, Data Envelopment Analysis, Tobit Regression