Financial Cash Research Articles

Pengaruh Arus Kas Operasi, Arus Kas Investasi, Arus Kas Pendanaan dan Laba Akuntansi terhadap Return Saham

The capital market is a place where investors invest their capital in the hope of a return in the form of a return on investment. Investors use financial reports in investing but cannot analyze the stock returns that will be received starting operating cash flow, investment cash flow, and funding cash flow. The method used is a quantitative method with multiple linear regression tests using the eviews data processing application. The results of this study. The coefficient X1 (cooperative cash flow) is 0.170479413211 which means that if the cooperative's cash flow increases, it will cause an increase in stock returns with no positive effect with a significant value of 0.7170 > 0.05. The coefficient X2 (Investment Cash Flow) on stock returns (the dependent variable Y) has no effect with a significant value of 0.3113 > 0.05. The X3 coefficient (Funding Cash Flow) on stock returns (Y dependent variable) has no effect 0.6658 > 0.05 and the X4 coefficient (Accounting Profit) is 0.352300 which means that if accounting profit increases once it will cause an increase in Stock Return (dependent variable Y) or has a positive effect of 0.964377644814 when other variables are constant with a significant value of 0.000 <0.05.

Implementation of Determination of Families Recipients of Direct Cash Assistance Through Village Funds (DCA-VF) in Nagrak Village, Sukabumi Regency in 2022

This study aims to determine the implementation of the Direct Cash Assistance program implementation starting from the socialization of RT/RW and Musdesus to the implementation of the program. This study uses qualitative methods and determines the informants used to obtain information for the correctness of the data and validation of the data. Collecting data using the method of observation, interviews, and documentation. Data analysis techniques use the theory of Miles and Huberman. This study uses the implementation theory approach of the George Edwards III model. The success of this theory is measured by communication, resources, disposition, and bureaucratic structure. The results of the study showed that several obstacles occurred in the program, namely (1) several beneficiary families did not meet the program's criteria. (2) there are some invalid KPM data. In this case, the village government as the executor of the DCA-VF Program is looking for solutions and alternatives to overcome these problems so that the Village Fund Direct Cash Assistance Program can be implemented in Nagrak Village, namely, the Village government is more thorough in recording KPM criteria. It is necessary to re-emphasize socialization to the local RT/RW regarding the direct village fund cash assistance program (DCA-VF) as an effort to minimize social jealousy among the people of Nagrak Village, Cisaat District, Sukabumi Regency.

The Effect of Stock Selection Ability, Market-Timing Ability, and Fund Cash Flow on the Performance of Sharia Equity Mutual Funds (Study During the Covid-19 Pandemic, 2020-2021)

Abstract: The Coronavirus pandemic has had an extraordinary impact on the economies of countries in the world, including Indonesia. This economic condition was reflected in the collapse of the stock market index in Indonesia. Mutual funds are an investment alternative that has convenience for investors who want to invest but need more investment skills and time. Islamic stock mutual funds are one of the choices in investing because Sharia values guide their management. The performance of Islamic equity mutual funds during the Covid-19 pandemic has declined; the number of Islamic equity mutual funds looks stagnant, while the NAV value has fallen. This study aimed to test the effect of stock selection ability, market-timing ability, and fund cash flow on the performance of Islamic equity mutual funds during the Covid-19 pandemic. The population in this study is all Islamic equity mutual funds traded during the 2020-2021 period. The sampling technique in this study used purposive sampling. The samples obtained were 39 Sharia equity mutual funds that reported monthly NAV on the OJK website. The data were tested using regression with the help of Eviews software version 12. The results of this study indicate that stock selection ability, market-timing ability, and fund cash flow partially have a positive and significant effect on the performance of Islamic equity mutual funds. Abstrak: Pandemi Coronavirus berdampak luar biasa bagi perekonomian negara-negara di dunia termasuk Indonesia. Kondisi ekonomi tersebut tercermin pada runtuhnya IHSG pasar modal di Indonesia. Reksa dana merupakan salah satu alternatif investasi yang memiliki kemudahan bagi para investor yang ingin berinvestasi tetapi memilliki keterbatasan keahlian investasi dan waktu. Reksa dana saham syariah dijadikan salah satu pilihan dalam berinvestasi dikarenakan pengelolaannya yang berpedoman pada nilai-nilai syariah. Kinerja reksa dana saham syariah pada masa pandemi covid-19 terlihat menurun, jumlah reksa dana saham syariah terlihat stagnan sedangkan nilai NABnya turun. Tujuan penelitian ini untuk menguji menguji pengaruh stock selection ability, market timing ability, dan fund cash flow terhadap kinerja reksa dana saham syariah pada masa pandemi covid-19. Populasi dalam penelitian ini adalah seluruh reksa dana saham syariah yang diperdagangkan selama periode 2020-2021. Teknik pengambilan sampel pada penelitian ini menggunakan purposive sampling. Sampel yang diperoleh sebanyak 39 reksa dana saham syariah yang melaporakan NAB bulanan di website OJK. Data diuji dengan menggunakan regresi dengan bantuan software Eviews versi 12. Hasil penelitian ini menunjukkan bahwa stock selection ability, market timing ability, dan fund cash flow secara parsial berpengaruh positif dan signifikan terhadap terhadap kinerja reksa dana saham syariah.

Effectiveness Of Direct Cash Assistance Policy Village Funds On Economic Recovery During The Covid-19 Pandemic

Village funds are a mandate from the law as stipulated in article 72 paragraph 2 of Law Number 6 of 2014. As one of the village revenues, the central government is obliged to allocate village funds in the state budget (APBN), in 2022 policies and distribution village funds by taking into account village characteristics and village performance in managing village funds. Meanwhile, the mechanism for channeling village funds for 2022 will remain the same as for 2021. Where, village funds will be transferred directly from the central account to the village account. This study aims to determine the management of direct village fund cash assistance and the effectiveness of village fund cash direct assistance policies in economic recovery during the Covid-19 pandemic in Wanio village. As for the data collection techniques used in this study, namely observation, interviews and documentation. The sample in this study consisted of 9 people, namely 1 village head, 1 financial officer, 1 BPD chairman and 6 members of the community. The data analysis technique in this research is descriptive research. Direct village cash assistance during the pandemic in 2021 based on regulations issued by the Ministry of Village Permendes PDTT No. 7 of 2021 regarding the priority policy on the use of Village Funds has been fully implemented in accordance with existing regulations.

Pengaruh Bantuan Langsung Tunai Dana Desa (BLT DD) Terhadap Kesejahteraan Masyarakat Desa Parenring, Kecamatan Lilirilau, Kabupaten Soppeng

This study aims to determine how big the Influence of Direct Village Fund Cash Assistance (BLT DD) on the Welfare of the People of Parenring Village, Lilirilau District, Soppeng Regency, using survey research, namely only a portion of the population is used as a sample. The population in this study were 71 people, then to determine the sample used the Yamane taro formula and produced a sample of 42 people, the sample used was random sampling (random sample). Data collection techniques using observation, questionnaires and documentation. For data analysis techniques used are quantitative descriptive analysis techniques and quantitative associative analysis techniques.
 The results showed that there was a fairly strong influence between BLT DD on community welfare in Parenring Village, Lilirilau District, Soppeng Regency with a correlation value (R) of 0.511. This shows that the percentage contribution of the BLT DD variable to community welfare is 26.1%, while the remainder is 100% - 26.1% = 73.9% which is influenced or explained by other variables.

ANALISIS PENGENDALIAN INTERNAL PENGELUARAN KAS DANA BANTUAN OPERASIONAL PENYELENGGARAAN (BOP) DI RA AN-NAJM BEKASI UTARA

The Operational Assistance Fund (BOP) is provided by the government for each school unit entity that meets the criteria. This program is provided by the government to improve the quality of school education, reduce the cost of non-personnel operational activities, as well as help ease the burden on underprivileged people who want to send their children to school. BOP fund management can be channeled well if fund managers in the internal control system run as well as possible. Internal control must protect school coffers and cash expenditure documents so that the objectives of BOP funding can be achieved by school units. The purpose of this study is to test and analyze whether the internal control of BOP fund cash expenditure running in An-Najm RA Bekasi-Utara has been effective or not. This type of research is a case study with the object of research Proof of Cash Out in the period 2018 and 2019. Data in this study were obtained by means of documentation, interviews, observations. The data analysis technique used is stop or go sampling. The results of this internal control analysis research show the authorization of cash expenditures, lack of completeness of documents, and incompatibility of information with other documents. In the data collection technique through interviews, it can be concluded that the internal control running in the An-Najm Bekasi-Utara RA has not been in accordance with COSO. The 5 components imposed by COSO have not been fulfilled by RA An-Najm North Bekasi.

Combination of AHP and SMART Methods in Determining Recipients of Direct Village Fund Cash Assistance

Village Fund Direct Cash Assistance (BLT-DD) is cash assistance provided by the government to eligible residents through Village Officials whose recipients are determined based on many criteria. The process determine who is the most eligible citizen to be the recipient of BLT-DD takes a long time because of the large number of residents and the existence of several criteria used. There is a need for a decision support system that can assist village officials in choosing who is entitled to receive BLT-DD assistance. In this study, the application uses the Analytical Hierarchy Process (AHP) and Simple Multi Attributee Rating Technique (SMART) methods. The criteria used are, get assistance, income, floor area, type of floor, type of wall, and education. By using the AHP method, it is possible to optimize the weighting of the criteria and the SMART method to produce a ranking of residents who are entitled to receive BLT-DD. The results of the study indicate that this application can be used to provide recommendations to village officials in determining BLT-DD recipients.

Comparing the Performance of Private and Public Sector Mutual Funds: An Analysis of Factors Influencing Returns

Increasing interest towards mutual funds has significantly attracted attentions of the researchers, investors in mutual fund scheme. Similarly, investment opportunities and interest towards mutual funds have also increased in Pakistan. Therefore, the aim of the research was to empirically analyse and understand the changes in performance of private and public sector of Pakistan Mutual fund. For conducting this research, researcher has relied on secondary quantitative information, and data has been derived from MUFAP on 1 private company (i.e. Al Meezan Investment Management Limited) and 1 public company (i.e. ABL Cash Fund). For data analysis, statistical tools including correlation, and T-test were used through using SPSS software. Findings show that there is a significance difference in performance of both private and public sector. As NAV and return in private sector is found to be statistically different from public sector. Additionally, risk in mutual fund of private sector is also found to be statistically different from public sector. Further, findings in the current research have also shows a negative association between return and risk of both private and public mutual funds. Findings in the current research can be used to fill a gap in previous studies. Further, findings in the current research can also be used in future studies through increasing sample size, and other factors. Moreover, it can also be used for cross countries, companies, and region.

Village Head Leadership Optimization During COVID-19 Pandemic in Sula Regency: Study of Handling Direct Cash Funds in Falahu Village

The Village Head has the position of Head of Village Government who is in charge of administering Village Government, carrying out development, community development, and community empowerment. The village head as the formal leader of the village acts as a motivator, facilitator and mediator who is very important for the success of each planned development program and plan. The purpose of study is to find out village head leadership optimization during COVID-19 pandemic in sula regency regarding study of handling direct cash funds in Falahu village. This research is a type of descriptive research with qualitative analysis which is a problem-solving procedure investigated by describing and describing the state of an object at the time of research based on the facts that appear as they are. This information is needed to find out the Optimization of Village Head Leadership in Handling Direct Cash Assistance Funds During the Covid-19 Pandemic in Falahu Village, Sanana District, Sula Islands Regency. Research data was collected either through data collection instruments, observation, interview guidelines, documentation. From the results of the research and discussion that has been carried out, it can be concluded that the leadership factor plays an important role because it is the leader who will move and direct the community in achieving goals and at the same time is a task that is not easy because you have to understand the behavior of each subordinate and the different people. In general, and as a whole has optimized his leadership role both starting from the role of responsibility, communication, interpersonal, informational and decision-making.

Analisis Kinerja Reksa Dana

The purpose of this research is to determine the effect of fund cash cash flow, fund size, fund age, and expense ratio variables on mutual fund performance. The population in this research is stock mutual fund products that are recorded and supervised by the OJK in 2019-2020. This research method is quantitative. The sample determination technique used purposive sampling, and produced 25 samples. The analysis technique in this study used multiple linear regression in SPSS software. The results showed that the calculated F test = 22.812 and a significance value (Sig.) = 0.000 <0.05. In conclusion, there is influence between the variables of fund cash flow, fund size, fund age, and expense ratio on the performance of mutual funds.
 Keywords: Expense Ratio, Fund Age, Fund Cash Flow, Fund Size, Mutual Fund Performance

Pengaruh Arus Kas Operasi, Arus Kas Investasi, Arus Kas Pendanaan Dan Laba Akuntansi Terhadap Return Saham (Studi Kasus Pada Perusahaan Manufaktur Sektor Industri Barang Konsumsi Sub Sektor Makanan Dan Minuman Periode 2015-2019)

This Study aims to test partially and simultaneously the effect of operating cash flow, investments cash flow, financing cash flow, and accounting profit on stock returns in the food and beverage sub-sector consumer goods industry companies 2015-2019. The type of data used in this research is secondary data. The sampling technique in this research is purposive sampling.while the data analysis used is descriptive statistics and multiple regression with the help of the SPSS 16 for windows program.Based on the results of this study, it can be concluded that operating cash flow and investment cash flow have no effect on stock returns which are partially tested (t test). Funding cash flow and accounting profit affect stock returns which are partially tested (t test). While the simultaneous testing (jointly) concludes that there is a joint (simultaneous) influence between operating cash flow, investment cash flow, financing cash flow and accounting profit on stock returns. Test of the coefficient of determination (adjusted r square) of 0,309, it means that 30,9 % of the independent variables consist of operating cash flow, investment cash flow, financing cash flow and accounting profit to the dependent variable, namely stock returns. While 69,10 % is influenced by other variables which are not included in this study.

Analisis Kinerja Dinas Pemberdayaan Masyarakat Dan Desa (Dpmd) Dalam Proses Penyaluran Bantuan Langsung Tunai Dana Desa (Blt-Dd) Kepada Pemerintah Desa

This study aims to analyze the performance of employees of the community and village empowerment offices of Simeulue Regency in distributing direct cash assistance for village funds (BLT-DD). The method used in this research is descriptive qualitative with the acquisition of data sources through observation methods, interviews, and documentation. The results of the research obtained based on aspects of productivity, service quality, responsiveness, responsibility, and accountability, show that the performance of the Community and Village Empowerment Office in Distributing Village Fund Cash Direct Assistance to Village Governments in Simeulue Regency shows maximum results. . This is based on the five aspects of standards that are indicators of the performance of government agencies that can be fully met. Although there are still some things that need to be addressed. However, overall, the performance of the Simeulue Regency Community and Village Empowerment Office (DPMD) can be said to be optimal.

Management of cash waqf fund generation through the implementation of istibdal in Kedah

PurposeThe purpose of this study is to examine the management of cash waqf fund generation through the implementation of istibdal in Kedah.Design/methodology/approachThe data are obtained through literature and empirical data. The authors first review the literature on the importance of waqf fundraising, the implementation factors of istibdal waqf and the relevance of istibdal method as a waqf fund generation medium to understand the extent to which the scholarly articles have discussed these topics. Furthermore, the authors conducted face-to-face interviews with two Kedah Islamic Religious Council (Majlis Agama Islam Kedah [MAIK]) officers, who were directly involved in the affairs of istibdal waqf to obtain holistic information regarding implementing istibdal waqf properties in Kedah. As a result, several themes are defined from the interview data before being analysed based on the content analysis method.FindingsThe results of the study show two istibdal implementation processes outlined by the Kedah Islamic Religious Council (MAIK), namely, the istibdal implementation process for waqf land registered title deed, and waqf land registered as reserve certificate for religious use like mosque and cemetery. The results also showed three factors in implementing istibdal in Kedah: the acquisition of waqf land by the state authority (PBN), istibdal application by the state education department (JPN) and istibdal application by the mosque committee. Out of eight cases of istibdal implementation, four have generated cash funds for MAIK through investment methods from the sale of waqf lands and rental of replaced shophouses that are able to cover the expenses of managing waqf properties in Kedah. Several suggestions are also recommended for MAIK to improve its istibdal policy, thus enabling the institution to generate cash waqf funds at the maximum rate.Research limitations/implicationsThis study only focused on the implementation factors and the generation of cash waqf funds through istibdal in Kedah, while it can be expanded to other states like Terengganu, Kelantan and Penang. Furthermore, this study only interviewed officers who manage matters related to the affairs of waqf properties, as the session can actually be extended to other respondents, such as those specialising in cash fund generation investments and others.Practical implicationsThis study proposed some improvements to the policy and guidelines of istibdal waqf property to MAIK after a few shortcomings were identified throughout this study. If improved, these proposals will have a significant impact, especially on the waqf properties involved in the implementation of istibdal, where it has the potential to bring cash generation and ensure the constant economic value of waqf properties.Social implicationsThis study has a tremendous impact on society, in which their areas have cash waqf funds that can be developed. It can benefit the needy and increase funds for the welfare expenditure of Muslims through rental income, investment and development. Progress on waqf property provides a high indication of the efficiency of an organisation in managing the waqf property. Thus, the public, especially the rich, is motivated to fulfil their charitable practices through waqf mechanism and share their wealth with the needy.Originality/valueThis study contributes to comprehensive field data on the implementation factors and generation of cash waqf funds through the implementation of istibdal in Kedah. The results of this study are significant to be used by waqf property management.

YIELD ACHIEVEMENT AND GAP COMPLIANCE AMONG THE PARTICIPANTS OF OIL PALM REPLANTING (TSSPK) & NEW PLANTING (TBSPK) SCHEME

The Malaysian government has set up various incentives to help farmers, including the Oil Palm Replanting (TSSPK) and New Planting Schemes (TBSPK) for oil palm independent smallholders (OPISH) which were implemented in 2011 under the 10th Malaysia Plan. It is an Entry Point Project 1 (EPP1) under the National Key Economic Area (NKEA) of oil palm commodities. The schemes provided farmers with high-quality seedlings, agricultural inputs such as fertilizers and chemicals, as well as a cash fund for the preparation of land and planting of the seedlings. The farmers who participated in the scheme were also given advisory services on various aspects of the management of oil palm by the extension officers of MPOB (TUNAS). A total of 400 participants were involved and responded to the survey, with the proportion of respondents from Peninsular, Sabah, and Sarawak. The study found that the average age of the participants is mostly above 59 years old (37.3%) and 44.3% of the participants were owners of oil palm farms. The main objectives of the study were to determine the current yields achieved by the participants in the scheme and their compliance with the GAP guidelines. This is a quantitative study, which applied the questionnaire approach in gathering data. It was found that 61.0% of farmers categorized as medium yield of FFB production who produced 21.5 - 28.9 ton/ha/year with average income received RM1500 - RM3000 per month, while 32.5% of farmers produced in a lower category (< 21 ton/ha/year), and there were 6.5% farmers produced more than 29 ton/ha/year that was considered as the higher yield of FFB production. This study also showed that most of the respondents complied with Good Agriculture Practice (GAP) after joining the scheme. Participants responded well to the services given by the TUNAS officers. Most of the participants were satisfied with the implementation of the schemes and services provided by TUNAS officers. As a recommendation, several improvements were suggested, such as agriculture input distribution, clustering of the farmers into cooperatives, and continuity of GAP implementation.

About Currency Restrictions in 2022, Introduced in Respect of Individuals

The focus of this article is the currency restrictions imposed by the Russian Federation on resident individuals in response to the deployment by foreign states and their unions of a policy of sanctions pressure on the national banking system. First, the authors identify regulatory windows and types of country sanctions: freezing of reserves and assets of the Bank of Russia, a ban for the Bank of Russia on access to the capital market and a ban on the sale, supply, transfer or export of cash euros and US dollars to Russia. Further, the domestic legal order is analyzed in terms of the introduction and operation of currency restrictions that apply to resident individuals. It is revealed that the main restrictions consisted in the forced conversion of part of foreign currency deposits, prohibitions on crediting currency to foreign accounts and providing loans to non-residents, setting thresholds for crossborder transfer of non-cash and cash funds; prohibition of electronic money transfers with the help of foreign payment service providers and transactions with persons of foreign states committing unfriendly acts or included in the sanctions list by the Government of the Russian Federation. The legality of the establishment of these currency restrictions and the practice of their application are investigated. Based on the results of the analysis, ways to improve domestic legislation are proposed.

Sistem Informasi Akuntansi Kas Kecil Pada Yayasan Kria Yudha Nusantara

The need for information quickly encourages companies or organizations to create new services in order to obtain information accurately and efficiently. The problem found in the research object of the Kria Yudha Nusantara Foundation is that it has not been able to produce the presentation of accounting reports related to petty cash disbursements quickly, precisely and accurately because the report management process is carried out manually using Microsoft Ecxel 2010 which makes it difficult to find, display and print report data every month. Therefore, a petty cash accounting information system is needed to facilitate the admin of the Kria Yudha Nusantara Foundation in managing petty cash reports. Using an object-oriented approach (Object Oriented Analysis and Design) using UML (Unified Modeling Language) to produce a prototype of a petty cash accounting information system design with a fluctuating method designed to manage adequate petty cash receipts and disbursements in order to monitor and control cash funds small.

The Influence of Cash Ownership on Financial Performance: An Examination of Disruptors and Acquirers

Cash ownership emits a powerful positive signal. We examine four sources of cash in firms, i.e., cash flows, cash holdings, cash proceeds from debt, and cash proceeds from equity. We examine the effects of cash ownership for firms growing by disruption, and firms growing by acquisition. Information signaling theory maintains that free cash flows may be used to increase shareholder wealth. Two-stage least squares regressions determined the impact of cash funding on disruptors and size of acquisition in the first stage, and cash-funded disruption or cash-funded acquisition in the second stage, for a US sample of 832 disruptor firms and 924 acquirers, from 2000–2020. Disruptions funded by cash holdings, cash flow, and cash proceeds from debt, significantly increased stock returns. A size effect was observed, with small disruptors showing significant effects. Acquisitions funded by cash holdings, cash flow, and cash proceeds from debt, significantly increased stock returns and return on assets. Agency costs significantly reduced returns and profits. Results for disruptions and acquisitions support signaling theory with free cash flows signaling higher share prices for both disruptors and acquirers, and higher profits for acquirers.

UTILISATION OF THE FINANCIAL SYSTEM AND PROFILE WEBSITE OF THE AL-KHOIRIYAH MOSQUE BANYU URIP

This PPM report aims to provide an effective solution in overcoming the main problems faced in the process of recording Infaq Reports and going in and out of the mosque treasury, namely the Al Khoiriyah Mosque. The manual recording process takes quite a lot of time and uses a ledger to write down incoming cash flows. Apart from that, the problem of conveying information is still simple. The specific goals and targets to be achieved in this community service activity are the Implementation of the Al Khoriyah Mosque Financial System: The Al Khoiriyah Mosque Financial System will be used by the Al Khoiriyah Mosque to record financial reports such as infaq reports and incoming and outgoing mosque cash funds. This system replaces the manual method of using the mosque cash book which is currently used. The methods that will be used to achieve goals and targets are information collection, financial system preparation, outreach or training, evaluation and system improvement.

EFEKTIVITAS BANTUAN LANGSUNG TUNAI BAGI MASYARAKAT TERDAMPAK COVID 19 DI DESA BALAHU KECAMATAN TIBAWA KABUPATEN GORONTALO

This article aims to determine and describe the effectiveness of the direct cash assistance process for people affected by covid 19 in balahu village, tibawa district, gorontalo regency. the research method used is a qualitative method. the data analysis used is an interactive model analysis consisting of three analysis components, namely: 1) data reduction; 2) data presentation; 3) data verification and conclusion drawing. The results of the study show that: (1) in the context of handling the impact of covid 19, especially the economic impact, the balahu village government provides direct cash assistance sourced from village funds which are then distributed to the community through the specified mechanism and time; (2) the effectiveness of the blt program from the aspect of timeliness of blt distribution is on time and follows the existing mechanism. meanwhile, in terms of the accuracy of making choices, the village government has worked according to the procedure. the aspect of targeting accuracy, that the provision of direct village fund cash assistance is right on target.

Application of tawarruq in Islamic banking institutions in Somalia

PurposeThe purpose of this study is to examine the acceptability of tawarruq in the banking industry in Somalia, focusing on awareness, need, compatibility, relative advantage, behavioral attitude and the role of Shariah scholars. This study is governed by the Theory of Islamic Consumer Behavior.Design/methodology/approachA questionnaire survey was conducted involving 150 customers of Islamic banks in Mogadishu, Somalia. This research adopts a quantitative methodology, using descriptive and survey analyses by employing SPSS 23. Smart-PLS-4 SEM was used to test the six hypotheses established in the study.FindingsThis study provides evidence that the customers of Islamic banks in Somalia are looking forward to Islamic banks offering tawarruq in the country. Respondents viewed tawarruq as a very attractive product compared to other existing products of Islamic banks in the country. The need for tawarruq, its compatibility and relative advantage have a positive and significant influence on the intention to use tawarruq products for cash financing purposes, whereas customer awareness, behavioral attitudes and the role of Shariah scholars have insignificant influence.Practical implicationsThe findings of this study can be beneficial to all Islamic financial institutions in Somalia by applying tawarruq contract to facilitate cash financing.Originality/valueThis study contributes to the literature by enhancing the awareness of tawarruq in Somalia. The study also shed light on the need of Islamic banks’ customers on tawarruq for cash financing purposes in Somalia.