This study aims to examine the determinants of zakat payers’ (muzakki) interest to pay zakat through Zakat Management Organization (ZMO). The respondents were muzakki (Zakat payers) who paid their zakat on profession/income through ZMOs in Indonesia. The number of respondents is 100 muzakki who were selected randomly. Using the structural equation modelling (SEM) method, this study found that transparency of zakat management, ZMO promotions through public figure involvement, and the supporting regulation which imposes zakat as a tax deduction have a significant impact on muzakki's interest to pay zakat through ZMO. Meanwhile, improvement of digital services and socialization of zakat through social media do not have a significant effect on the muzakki's interest. However, using sub-sample who are active users of social media, this study discovered a negative effect of the use of social media for ZMOs marketing on muzakki’s interest. This finding reinforces the suitability of the theory of planned behavior (TPB) in the context of muzakki's behavior of paying zakat that is influenced by the quality of ZMO services.

Market failures in the financial system may be indicated by the absence of opportunities for the poor to get financial services. This also happens in the practice of Islamic banking. For this reason it is popping up a lot of non-market institutions - Islamic Microfinance Institutions (IMFi) is one of them - which tried to cover up the weaknesses of banking practices. However, the development IMfi is not effective in alleviating poverty and not much different from most banks. In turn, Islamic Microfinance-based groups emerged in the hope of further empowering the poor and ensure that financial services can be viable for them and they are able to repay their loans with three main approaches that implemented simultaneously; (1) spiritual approach (2) financial approach and (3) social approach. This study is expected to empirically test whether Islamic Microfinance-based groups can ensure that the poor can get financial services and are able to repay their loan on time. Using Structural Equation Model the study proved that social capital values which embedded within the Islamic Microfinance-based groups influence the behavior of the poor in repaying their debts. As a policy recommendation, Islamic Bank should consider to prefer Islamic Microfinance-based groups as partners in the realization of their linkage program for the poor so that poverty alleviation program can be optimally implemented.

This paper highlights the policies and institutional setting of Small and Medium Enterprises (SME) development in Indonesia, followed by a discussion on the players in Islamic microfinance. Emphasis has been given to the potential role of Baitul Mal wa Tamwil (BMT, Islamic cooperative) as a strategic community-based micro lending initiative. The importance of Islamic microfinance initiatives as part of national program for the development of SMEs in Indonesia is also discussed. This paper argues that Islamic microfinance initiatives in Indonesia could represent an alternative source of finance for SMEs. The role of SMEs, especially after the Asian monetary crisis, was considered a safety valve for the national economic recovery both in enhancing economic growth as well as in reducing the unemployment rate. Credit distributed to SMEs has minimum risk and has sounder and better performance compared to larger enterprises. However, although having a significant role, SMEs actually have serious problems particularly as related to their capability in accessing formal financial institutions. This paper concludes by identifying the potential linkages between players in Islamic microfinance and highlights some critical points in their activities

The purpose of this study is to compare the cost efficiency of takaful and its conventional insurance counterparts in Malaysia. The study measures the cost efficiency scores of takaful and conventional insurance companies in Malaysia over the period 2009-2011 using non-parametric Data Envelopment Analysis (DEA) based on selected multiple input and output variables. Output variables used are gross premium and investment income while input variables are management expenses, fees and commission expenses. The study finds that conventional insurance companies in Malaysia performed better efficiency than takaful companies in 2011. The finding is consistent with study by Ismail, et al (2011) and Saad (2012). The study suggests that takaful and conventional insurance companies should allocate input more efficiently and improve the quality of services as the average scale efficiency is higher than the average of overall and technical efficiency. Takaful must also be more alert towards external factor costs as the scale of efficiency continuously decreased. In order to be more focused, the study only compares the efficiency of takaful and conventional insurance companies from an input oriented approach. The study is also limited to 7 takaful operators and 19 conventional insurance companies and, as such, the finding is most probably indicative, but does not reflect the overall performance of the takaful industry. As part of a policy recommendation, the study provides data on cost efficiency of conventional insurance and takaful companies in Malaysia, which is valuable for regulators in formulating appropriate policy to enhance the competitiveness of the takaful industry in Malaysia.

This study attempts to examine the short-term and long-term relationship among selected global anddomestic macroeconomic variables fromeach country (Fed rate, crude oil price, Dow Jones Index, interest rate, exchange rate and inflation) for Indonesia and Malaysia Islamic capital market (Jakarta Islamic Index (JII) and FTSE Bursa Malaysia Hijrah Shariah Index (FHSI). The methodology used in this study is vector error correction model (VECM) for the monthly data starting from January 2006 to December 2010. The result shows that in the long-term, all selectedmacroeconomic variables except Dow Jones Index variable have significantly affect in both Islamic stock market FHSI and JII, while in the short-term there is no any selected macroeconomic variables that significantly affect FHSI and only inflation, exchange rate and crude oil price variables seem to significantly affect JII

The discourse on the presence of Islamic banking in the global era went broadly and extensively. It is because the society has begun realizing the existence of Islamic banking. Islamic banking does able to show its resilience and endurance facing the global financial crisis. A part from its positive growth, there exist a critical issue related to it performance measurement. For the time being, the performance measurement of Islamic banking industries merely uses the financial ratio measurement (shareholder oriented). Indeed, this financial ratio measurement is necessary but unfortunately not sufficient. Therefore, Islamic banking that is different from conventional banking both in theory and practice, needs a shifting paradigm in term of their performance measurement which not only limited to the financial ratios (stakeholders oriented). This paper would like to apply Maqashid Index approach for the measurement of Islamic banking industry performance. The object of this research is Islamic banking industries in Indonesia (Bank Syariah Mandiri and Bank Muamalat Indonesia) and Jordan (Jordan Islamic Bank and Islamic International Arab Bank Jordan)). Using Maqashid Index approach with SAW (Simple Additive The weighting) method, it can be concluded from the first measurement using Maqashid Index that Islamic banking industries in Indonesia which represented by BMI (0.17839) and BSM (0.16190) show better performance in comparison with Islamic banking industries in Jordan, namely IIABJ (0.10295) and JIB (0.08152).

This paper is the first to examine whether the loan loss provisioning behavior of Islamic banks is procyclical. From a dynamic panel data methodology, the empirical results show that loan loss provisioning in Islamic banks is indeed procyclical, as higher economic growth leads to a decline in loan loss provisions. A closer investigation is also conducted to examine whether capital management, income smoothing, or signaling behavior can alter the procyclicality of loan loss provisions. Specifically, our results document that only capital management behavior can overcome the procyclicality of loan loss provisions. This paper therefore advocates the importance of strengthening discretionary behavior in Islamic banks in terms of capital management using loan loss provisions, particularly during economic boom.

This research aims to find out how much the effect of the governance and sharia compliance implementation towards the level of customer trust in Islamic bank in Bogor. There were 159 customers of Islamic banks selected as sample. The analytical method used in this research is Structural Equation Modeling (SEM). The results presented that governance does not significantly affect the level of Islamic bank’s customer trust, while conversely sharia compliance has a significant positive effect on the level of Islamic bank’s customer trust. Thus, to increase customer trust in Islamic banks, it is necessary to improve sharia compliance.

Tujuan penelitian ini adalah menganalisis penerapan akuntansi pada pesantren mitra kerja BI dan menganalisis faktor internal eksternal yang mempengaruhi penerapan pedoman akuntansi pesantren. Objek penelitian adalah pesantren mitra kerja BI yang telah mengikuti sosialisasi dengan sampel sebanyak 31 pesantren menggunakan metode purposive sampling. Metode penelitian kuantitatif dengan pengolahan data menggunakan Structural equation Modelling (SEM) PLS. Hasil penelitian menunjukkan 84% sampel melakukan pencatatan nilai perolehan tanah, bangunan (masjid, madrasah, kantor), dan kas kecil dan 94% sampel tidak melakukan revaluasi terhadap nilai aset tersebut. Faktor internal yang meliputi kesadaran pencatatan secara syariah, komitmen organisasi, ketersediaan perangkat teknologi, kompetensi sumber daya manusia, struktur pendanaan pesantren, struktur organisasi, dan kemampuan manajerial pimpinan secara bersama-sama mempengaruhi penerapan pedoman akuntansi pesantren. Faktor eksternal yang meliputi kebijakan otoritas, kebijakan pihak pemberi bantuan/kerjasama, sosialisasi pedoman, pelatihan teknis dan pendampingan teknis secara bersama-sama mempengaruhi penerapan pedoman akuntansi pesantren. Untuk mendukung penerapan pedoman akuntansi tersebut selain perlu adanya sosialisasi, perlu juga diadakan pelatihan pendampingan teknis pembuatan pencatatan keuangan.

Rapid development of Islamic banks leads to the requirement to compete in order to show the best performance. Performance assessment can be seen from the profit information. Income smoothing through the use of Financing Loss Provision (FLP) is one method that can be applied in Islamic banking in an attempt to get income based on their goals. This research aims to investigate income smoothing practice by using FLP at both Indonesia and Malaysia’s Islamic banks by applying mixedmethod approach. In this regard, quantitive method was used to measure panel regression by using Eviews in order to analyze income smoothing practice through FLP in both Indonesia and Malaysia than qualitative method was used through interviews with practitioners and sharia supervisors in Indonesia to get the data about the practice. The data in this research were taken from 11 Islamic banks in Indonesia and 19 Islamic banks in Malysia from 2011 to 2016. The results of the research reveal that Islamic banks in both Indonesia and Malaysia apply income smoothing by using FLP. The findings imply that Earning Before Taxes and Provision (EBTP) has significant positive effect on FLP. Moreover, the results of interviews indicate that Islamic banks in Indonesia do not apply income smoothing. However, there is an indication that they will lead to this condition. Therefore, it is suggested that the regulators will supervise the application of FLP by developing the investigation of this account in financial statement of the Islamic banks.

The purpose of this study is to examine and analyze the effect of financial performance as measured using Return On Assets (ROA), Current Ratio (CR) and Earning Per Share (EPS), macroeconomic indicators using the BI rate, exchange rate and inflation as well as adding systematic risk as the intervening variable on sharia stock returns in the manufacturing sector on the Indonesian Sharia Stock Index (ISSI). The research sample was 51 companies with a range of observations from 2016 to 2020, using the Structural Equation Modeling (SEM) method and IBM AMOS (Analysis of Structural Moment) V.22 software for testing the available data. The findings of the direct test results show that financial performance and systematic risk have an effect on Islamic stock returns, while macroeconomic indicators have no effect. The test results through the intervening variable found that financial performance had an effect, but macroeconomic indicators still had no effect on Islamic stock returns through systematic risk. Activities in the consumer goods industry and basic industry which have always been the main needs are the reason why issuers in the manufacturing sector at ISSI are not affected by changes in macroeconomic indicators.

Materialitas dalam proses audit baik audit entitas konvensional maupun entitas Syari’ah sangat signifikan pengaruhnya, dimana hal ini dapat memengaruhi efektifitas dan efisiensi dari proses audit tersebut. Di sisi lain, di dalam nash-nash terdapat perintah dan anjuran untuk melakukan kegiatan muamalah secara sempurna dan tidak ada yang dirahasiakan, menjadikan materialitas dalam audit ini dipertanyakan ke-Syari’ah-annya. Sementara itu, dalam ilmu ushul fiqh, jika terdapat kasus yang hukumnya tidak tertulis jelas dalam nashnash, maka dapat diambil kesimpulan hukumnya melalui beberapa pendekatan diantaranya yaitu dengan dalil istihsan. Penelitian ini bertujuan untuk mengetahui bagaimanakah dalil istihsan terkait aspek materialitas dalam praktek audit Syari’ah? Metode yang dipakai dalam penelitian ini adalah kajian literatur dan juga indepth-interview kepada para pakar di bidang regulator, akuntansi Syari’ah dan hukum Islam (Syari’ah). Hasil penelitian ini menunjukkan bahwa, dengan menggunakan dalil istihsan, maka praktik materialitas dalam audit Syari’ah halal/boleh untuk dilaksanakan.

This research will examine Sharia Accounting specifically which deals with the analysis of Zakat based on comparative analysis of PSAK 109 with FAS (9) AAOIFI and makes a draft of Zakat Accounting Guidelines based on comparison of PSAK 109 with FAS (9) AAOIFI which can be applied in Indonesia. The research used in this research is a descriptive qualitative research that is a method that describes, describes, compares a data and a situation and explains a situation in such a way that a conclusion can be drawn, with in-depth interviews, discussions and literature studies in order to obtain information from primary and secondary sources, using content analysis, literature review and SWOT.

This research will analyze the Sharia Accounting as specifically which deals with the Zakat based on comparative analysis of PSAK 109 with FAS (9) AAOIFI. The method that used in this research is qualitative research and comparative descriptive that is a method which describes, compares a data and a situation and explains a situation so that a conclusion can be drawn, with in-depth interviews.

One of the problems that occur in the development of cash waqf in Indonesia is the managerial system and financial reporting. Currently, the safety of waqf data is not guaranteed and is not integrated yet between Islamic Financial Institution – Cash Waqf Recipient/LKS-PWU (Lembaga Keuangan Syari’ah – Penerima Wakaf Uang), Nazir, and BWI (Badan Wakaf Indonesia). The blockchain system comes with changing a centralized approach to being decentralized. The use of the blockchain system in managing waqf funds can be a solution to the problem of waqf that occurs. Therefore, this study aims to examine the implementation of blockchain technology in increasing the accountability and transparency of cash waqf in Indonesia. This study adopts an interview technique with seven practitioners and academics in collecting data and using thematic analysis in the analysis. The research finds that the level of accountability in the waqf management by the LKS-PWU of the Islamic bank is quite acceptable, as evidenced by the fulfillment of five accountability indicators by the LKS-PWU. However, it must be improved in several aspects such as data security, data integration, and real-time reporting. Strategies for increasing accountability include the blockchain implementation in the waqf management both in collecting and distributing waqf by LKS-PWU. The opportunity to apply blockchain to waqf management is very potential because the blockchain system has several advantages such as speed, transparency, and a higher level of security than the conventional system

This study is to examine and analyze the effect of financial performance as measured by Return On Assets (ROA), Current Ratio (CR) and Earning Per Share (EPS), macroeconomic indicators using the BI rate, exchange rate and inflation as well as adding systematic risk as an intervention variable to the Islamic stock returns in the manufacturing sector on the Indonesian Sharia Stock Index (ISSI). The research sample was 51 companies with observations from 2016 to 2020, using the Structural Equation Modeling (SEM) method and IBM AMOS (Analysis of Structural Moment) V.22 software to test the available data. The direct test results show that financial performance and systematic risk have an effect on Islamic stock returns, while macroeconomic indicators have no effect. The test results through the intervention variables show that financial performance has an effect, but macroeconomic indicators still have no effect on Islamic stock returns through systematic risk. The activities of the consumer goods industry and basic industry which have always been the main needs are the reason why issuers in the manufacturing sector at ISSI are not affected by changes in macroeconomic indicators

Penelitian ini bertujuan untuk menganalisis pengaruh ukuran perusahaan, muslim di dewan direksi, wanita di dewan direksi, usia perusahaan, kepemilikan asing, efek syariah perusahaan, profitabilitas, likuiditas, leverage, terhadap pengungkapan Islamic Social Report pada industri barang konsumsi yang terdaftar di Indonesia Sharia Stock Index (ISSI) dalam rentang tahun 2011-2017. Sampel terdiri dari 23 industri barang konsumsi yang terdaftar di Indeks Syariah Indonesia (ISSI) rentang waktu 2011-2017. Laporan tahunan dianalisis dengan content analysis dan Model Analisis Regresi Data Panel digunakan untuk menguji hipotesis. Analisis menunjukkan bahwa ukuran perusahaan, usia perusahaan, profitabilitas, berpengaruh positif signifikan terhadap pengungkapan Islamic Social Report (ISR) pada industri barang konsumsi. Sementara itu, muslim di dewan direksi, wanita di dewan direksi, kepemilikan asing, efek syariah perusahaan, likuiditas, leverage tidak berpengaruh signifikan terhadap pengungkapan Islamic Social Report pada industri barang konsumsi.

This study aims to determine the effect of Sharia Compliance (SC) on the performance of Islamic banking in Indonesia. This type of research is a descriptive verification study, with the method of collecting secondary data obtained from annual reports or annual reports published by Islamic Commercial Banks (BUS) for the 2014-2018 period. Sampling was using by purposive sampling. The number of samples used was 11 BUS in Indonesia with five study periods, so that 55 observant data were obtained. The statistical analysis used is descriptive analysis and simple linear regression analysis, preceded by a normality test and a linearity test, then a regression test using the F test and t test with a significance level of 5%. The results of the study using simple linear regression showed that SC has a positive effect on Sharia banking performance in Indonesia. This means that the higher the SC level, the BUS performance level will also increase.

This study aims to investigate the effect of the implementation of internal control, the use of information technology and audit on good amil governance. The respondents are the chairman and amil (employees) of the National Board of Zakat of South Kalimantan. This research employs explanative approach using questionnaires as the data collection technique. A Structural Equation Modeling (SEM) with the SmartPLS 3 software is used to analyse the data. This study finds that the variables of internal control, information technology, and audit have significant and positive impact on good amil governance.

Purpose – This study aims to test whether loan loss provisions in Islamic banks is procyclical by explicitly examining the link between non-discretionary provisions and loan growth. In the next stage, this paper tests whether the link between non-discretionary provisions and loan growth is conditional on bank capitalization and lending. This is to identify whether bank-specific factors affect the procyclicality of non-discretionary provisions and whether such procyclicality can be explained by income smoothing in banks with different capitalization and loan profiles. Design/methodology/approach – This study is conducted in four stages. The first stage identifies the determinants of loan loss provisions. The second stage investigates whether income smoothing is affected by capitalization and lending activities. In the third stage, the link between non-discretionary provisions and loan growth is examined. In the fourth stage, this paper tests whether the link between non-discretionary provisions and loan growth is affected by bank capitalization and lending. A two-way panel-fixed effect model is used. Findings – Non-discretionary provisions are procyclical, particularly for banks with lower capitalization and lending activities, because such banks do not conduct income smoothing. Specifically, banks with lower capitalization experience a decline in loan growth when non-discretionary provisions to cover credit risk increase. Research limitations/implications – The dataset used in this study follows Soedarmono et al. (2017) and does not enable to differentiate types of financing products in Islamic banks that may exacerbate or mitigate the procyclicality of non-discretionary provisions. Originality/value – This paper extends prior literature on the procyclicality of loan loss provisions by specifically investigating the influence of non-discretionary provisions on loan growth in Islamic banks and whether such relationship depends on the role of income smoothing undertaken by banks with different levels of capitalization and lending. This paper builds on the work of Soedarmono et al. (2017) in which they do not explicitly examine the relationship between loan loss provisions and loan growth.