Islamic Entities Research Articles

THE EFFECT OF FIRM VALUE AND FINANCIAL PERFORMANCE ON EARNINGS MANAGEMENT IN SHARIA ISSUERS: EVIDENCE FROM THE INDONESIA STOCK EXCHANGE

Earnings management is still an interesting focus of research from year to year. Research does not only focus on conventionally based entities but also moves to Sharia entities. This study aims to investigate the effect of firm value and financial performance on earning management. From the 20 sharia issuers that were successfully analyzed as samples, we found that, in general, there is no strong evidence that Islamic issuers practice earnings management, this can be seen from the positive average discretionary accruals. Referring to the discussion of the influence of firm value as measured by Tobin’s Q on the practice of earnings management, it was concluded that firm value had a significant effect on earnings management practices. This research has two contributions. Firstly this research is expected to contribute to market-based accounting research. Secondly, this study provides evidence of earnings management practices for Islamic entities.

Tradisi Politik Melayu: Analisis Pengangkatan dan Pergantian Kekuasaan di Kesultanan Palembang Darussalam

This study aims to determine and explore how Islam and Malay as an intertwined entity influence the formation of political institutions in the Sultanate of Palembang, especially influencing the appointment and succession of the Sultan. This study is the result of qualitative research based on a literature review using interpretive analysis techniques. In the practice of Islam in Indonesia, cultural values ​​of non-Islamic religions are maintained and practiced by Islamic entities such as practices in the replacement of the King and Sultan. A theoretical approach to society by looking at the evolution of kings approached to explain the history of state administration and the transition of power, combined with Elite; Political Culture, and Cultural Politics. The results of this study found that the system of appointment and change of power in the Sultanate of Palembang, namely the existence of its characteristics associated with a blend of Malay and Javanese culture. Differences in political culture greatly influence the process of succession that occurs. Malay culture which emphasizes more on its economy in the maritime field and Arabic symbols will be different from Javanese culture which is more agrarian and syncretic.

Analisis Faktor-Faktor yang Mempengaruhi Pengukuran Pengungkapan Corporate Social Responsibility (CSR) Perbankan Syariah Berdasarkan Indeks Islamic Social Reporting (ISR)

The Corporate Social Responsibility (CSR) program is an investment for companies for the growth and sustainability of the company and is no longer seen as a cost center but as a means to become a profit center.The implementation of CSR in banking industry has the goal of making CSR as one of the companies to regulate their business not only for the benefit of shareholders but for other stakeholders. In addition, Corporate Social Responsibility (CSR) is also a challenge to maintain the company's reputation in the community.The issue of Corporate Social Responsibility (CSR) sticking out along with the development of a banking sector related to the need for disclosure of social responsibility in Islamic banking today, is widely discussed about the Islamic Social Reporting Index (ISR index). The ISR index contains compilation of standard items of CSR set by AAOIFI which were further developed by researchers regarding CSR items that should be disclosed by an Islamic entity. The Islamic Social Reporting (ISR) index is believed to be the initial benchmark in terms of disclosure standards for Corporate Social Responsibility (CSR) that are in accordance with the Islamic perspective. This research was conducted on Islamic banks in the Middle East region whose annual reports were announced through banking sites using a sample of Islamic bank annual reports published during the period 2015-2017.

ANALISIS FAKTOR-FAKTOR YANG MEMENGARUHI PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (CSR) PERBANKAN SYARIAH DI TIMUR TENGAH

The implementation of the Corporate Social Responsibility (CSR) program is a form of implementation of the concept of good corporate governance so that the behavior of business people has direction that can be referenced by regulating the relationships of all stakeholders' interests. The Corporate Social Responsibility (CSR) program is an investment for the company for the growth and sustainability of the company. Corporate Social Responsibility (CSR) is the company's commitment to support the creation of sustainable development because the company is not only seen as a cost center but as a means to become a profit center. The banking industry is one of the business entities that are required to carry out Corporate Social Responsibility (CSR). The implementation of Corporate Social Responsibility (CSR) in the banking industry aims to make Corporate Social Responsibility (CSR) as one of the companies to manage their business not only for the benefit of shareholders but for other stakeholders. The development of a standard guideline framework related to the disclosure of Corporate Social Responsibility (CSR) in Islamic entities can use Islamic Social Reporting (ISR) which is guided by the provisions of sharia. Islamic Social Reporting (ISR) not only helps decision-making for Muslims but also helps banks to fulfill their obligations towards Allah SWT, employees, and society. The implementation of this index is generally done more by banks in Islamic countries. The purpose of Islamic Social Reporting (ISR) is to show accountability to God, communication to employees and the community and to increase transparency of business activities by providing relevant information in accordance with the spiritual needs of decision makers. The Islamic Social Reporting Index (ISR) contains a compilation of standard items Corporate Social Responsibility (CSR) is a measuring tool used to measure the disclosure of social responsibility in Islamic companies. The Islamic Social Reporting (ISR) index is believed to be a form of disclosure standards for Corporate Social Responsibility (CSR) that is in line with Islamic perspectives. Keywords: Corporate Social Responsibility (CSR), Islamic Banking, Islamic Social Reporting (ISR), Islamic Social Reporting Index

The Mediating Role of Return on Equity in The Influence of Intellectual Capital on The Islamic Social Responsibility

This study aimed to find empirical evidence concerning the role of Return on Equity (ROE) as the mediation variable over the influence of Intellectual Capital (IC) on the Islamic Social Responsibility (ISR). IC was measured by using all intangible assets of a corporate organization including the innovation capacity, financial and human resources within a system intended to create Value Added Service Intellectual Capital (VAIC), which is an intellectual material which has been formulated and captured in order to create wealth, resulting in a highly valued asset. As for ISR is measured by utilizing an Index consisted of a compilation of CSR standard items determined by Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) and furtherly developed by researchers concerning CSR items which should be disclosed by an Islamic entity. The ISR Index is expected to be the starting point in terms of CSR disclosure which is compliance to the Islamic perspective. Population in this research is Sharia Commercial Banks (SCB) in Indonesia in which regularly issued annual report for a period of four years (2012 to 2016). Method used to draw sample is purposive sampling with certain criterions. The total sample is 10 SCBs. Data collected via website of Indonesia Financial Service Authority (OJK) and the financial report by each SCB which consisted of annual report and company financial statements. Analysis technique used is path analysis and data is being processed by IBM SPSS program. Data were previously tested and have met all of classic assumptions. The results showed that IC has a positive and significant influence on ISR. ROE has a negative and significant influence on ISR. IC is positively and significantly influencing ROE, and ROE is able to mediate the influence of IC on the ISR. Keywords: Return on Equity, Intellectual Capital, Islamic Social Responsibility

Karstic spring wetlands of the Persepolis Basin, southwest Iran: unique sediment archives of Holocene environmental change and human impacts

Palustrine carbonates are frequently found with active and dried karstic springs in the foothills of the mountains bordering the Persepolis Basin, southwest Iran. A combination of geological conditions favours their formation, including (i) the presence of karstic limestone aquifers in the limbs of anticlines cut through by fault systems; (ii) very gentle slopes from the spring resurgence point towards the centre of the alluvial plain, creating a flat waterlogged area; and (iii) a semiarid climate with marked precipitation seasonality or significant fluctuations in water discharge and wetland water table. We suggest the term “anastomosing wetlands” or “anastomosing palustrine environments” to denote the studied karstic spring–fed carbonate wetlands, because of similarities with anastomosing river systems in aerial view. The common presence of extended anastomosing wetland carbonates in the Persepolis Basin and adjacent basins in the central and southern Zagros suggests that they can play an important role in the geological records of collision-related basin-and-range settings dominated by karstic limestones. Karstic spring wetlands are a main source of fresh water hosting a rich biodiversity, which attracts human communities, whose impact is visible in the archaeological material imbedded in the wetland stratigraphy. Fresh water availability, through these spring wetlands, partly explains why the semiarid Persepolis region was selected by successive civilizations, from Elamites to Persians until early Islamic entities, to establish regional centres throughout the period from the third millennium B.C. to the first millennium A.D. Only a few of these ecosystems have survived the intensive human activities of recent decades.

Establishment of The First WAQF Bank in Bahrain: Exploratory Study

This paper surveys awqaf over a historical and geographical trajectory as a backdrop to exploring the lineaments of a new waqf bank. The Kingdom of Bahrain is on the cusp of founding a new waqf bank but many issues with respect to creation of a waqf bank need to be threshed out and limned in detail. To this end, a survey was designed and distributed to key decision-makers in the Islamic Financial Institutions (IFIs) in Bahrain to obtain their feedback about the possibility to establish the first Waqf (Endowment) Bank of Bahrain along three axes; .1) proposed structure; 2) sources of capital and 3) recommended modes of financial transactions. 67% of IFIs responded and questionnaires filled out by 12 IFIs were analyzed in terms of descriptive statistics. The result of the survey indicate substantial support among IFIs for the creation in Bahrain of a waqf bank, organized as a domestic and international investment and development bank, with financings drawn primarily from Muslim sources and public banks (CBB) and secondarily from all corporations (be they Islamic or non-Islamic. Preferred legal status would be as an independent corporation. IFI informants suggest that the new waqf bank would be licensed to conduct a wide variety of Islamic transactions, with a strong preference in favor of direct investment with equity participation but, notably, exclusive of engaging in loans with service charges. This study should prove utile to the Central Bank of Bahrain (CBB) in determining how to set up a new waqf bank in line with a need to craft new guidelines and regulatory measures covering operations of such new Islamic financial entities. In addition, this study should be particularly relevant to central banking authorities considering in Islamic economies of whether, and how to, go about formation of waqf banks in their jurisdictions in Bahrain for strategizing and encouraging the establishment of the Waqf Bank.

Language, Identity and (In)Security in India–Pakistan Relations: The Case of Kashmir

ABSTRACTThis article revisits the Kashmir dispute by examining the interactions between language, religion and political dynamics to show how, in the post-1947 struggle, Kashmir's identity has increasingly been folded into the Indian and Pakistani language of a zero-sum conflict and nationalistic self-assertion. Paradoxically, Kashmir's position has weakened within a plural India even though Kashmir validates New Delhi's claim to religious and cultural heterogeneity. In Pakistan, Kashmir's diversity is dismissed because it disrupts Pakistan's unitary national identity centred on Islam and Urdu. By deliberately treating Kashmir as a homogenous Islamic entity, Pakistan seeks to attain legitimacy for its national imaginary as a pure Islamic state. Consequently, the capacity for Kashmir to actualise its own identity has diminished as it has been rendered hostage to the feuding of two behemoth ‘imagined communities’.

An Overview of Governance and Accountability of Tahfiz Institutions in Malaysian: Religious Councils Perspective

Tahfiz education is one of the popular streams of education in Malaysia and well accepted by Muslim community. Originally the education is being offered in “pondok”, a traditional religious school. Developing through times, it is now also being offered in tahfiz centers as well as in modern tahfiz institutions. These entities specialize in producing tahfiz graduates who can memorize and recite the whole Al-Quran and more than 91% of them are privately owned. The applicability of good governance and accountability measures is indeed highly desirable in these Islamic entities as it deals with the responsibility in fulfilling sacred religious obligation. Though the number of tahfiz education providers (TEP) has grown up tremendously from only 58 in 1999 to 278 in 2011, literatures on governance and accountability of TEP are still lacking as the areas are rarely examined directly. The lacking may lead to unfavorable inferences that TEP are behaving in the manners contrary to the interest of the stakeholders. An ideally accountable governance of tahfiz centers will gain trust from parents and various stakeholders and will indicate the achievement in fulfilling one of the objective of Maqasid Shariah to preserve and promote the religious faith through preserving the memorization and knowledge of Al Quran (the primary source of Islamic Law) by the huffaz. The objective of this research is to investigate external governance mechanism and the accountability of Tahfiz centers as viewed by religious regulatory bodies. A qualitative research approach is undertaken by interviewing representatives from selected State Islamic Religious Councils, State Islamic Foundation and National Religious Departments in Malaysia. Using thematic analysis, findings of this study revealed that there are two-tier governance infrastructures of tahfiz institutions in Malaysia. However, the enforcement of the governance structure is still at infancy level. The accountability frameworks of TEP management divulged in four dimensions; ultimate upwards, upward, parallel and downwards in organizing, teaching and learning, and compliance activities and legal requirements. The accountability can be measured using five accountability mechanisms namely report and disclosure statements, performance assessment and evaluations, participation, self-regulation, and social audit.

Islamization of Science

Previously, Muslim scholars successfully led the world with their knowledge and scientific advancements that emerged after an in-depth study, translation and foundation on the writings of the early Greek philosophers. Later in the fifteenth century, the Muslim civilization witnessed a decline in its motivation to seek knowledge, while the western civilizations, on the other hand, rose by building its intellectual base from the Muslim institutions (Setia 2007; Ahsan 2013) Niyozov & Memon (2011) argued that Islamic education has reached a crossroad lately, while Islamic scholars need to make a crucial decision to invest in the collaboration with present or western knowledge.The Islamic entities require firm and complete collaboration in future so they can lead Islamic nations to triumph and align with practices of new millennium, as it is not feasible enough to rely on the past. Due to the circumstances, which Muslim communities are experiencing, it is a perfect time now to support an interaction with modern knowledge rather than to adopt a rejectionist attitude. Collaborative approach in Islamic practices would be able to provide comparative advantage to both, Islamic and non-Islamic, schools of thoughts.Over the past decade, with an ongoing scientific advancements and breakthroughs, Muslim and non-Muslim scholars have realized that modern scientific knowledge is specific to the Western civilization in terms of values and concepts. The significant fact of knowledge influenced Muslim scholars to the principle and idea of of Knowledge (Rehman 2003). In 1997, the first international conference on Islamic Education was held in Makkah, Saudi Arabia. The conference argued and integrated knowledge from an Islamic perspective where Muslim scholars have put in huge efforts and suggested different approaches to collaborate Islamic values and ethics in various fields of modern thought (Zaidi 2006; Haneef 2005). Since then, many developments have been initiated along with the development of discipline in theory and practice. The concept of Islamizing modern sciences has been a center of interest among many Mus lims scholars and intellectuals. In fact, it is now considered as one of the most important intellectual movements of the 20th and 21st century and one of the most credible and long-standing contemporary Muslim intellectual responses towards modernity.The concept of Islamization of Science is approximately thirty years old. During this period, there have been multiple studies, discussions, books, articles and seminars were proposed widely, which aimed to clarify the idea in a conceptual and pragmatic term. As an example, The American Journal of Islamic Social Sciences has been regularly publishing articles that deal with the theme of Islamization in general and social sciences in particular.However, despite the enthusiasm, the works have stayed to a limit when counting number of proposed ideas of different individuals, institutions or school of thoughts. Furthermore, little progress has been achieved due to an un-unified agreement on the actual concept of Islamization and the lack of a professional agreement on framework, as each Muslim scholar argues from a different perspective (Setia 2005).Unfortunately, the weak economic and political position of Muslim society around the globe have instituted more pressure to follow western knowledge and modernity in all aspects (political, economic, social and educational), which resulted in the penetration of western cultural and philosophical thoughts and values (Zaidi 2006).In the field of education, there has always been a misunderstanding in the relationship between science and Islamic worldview. This aspect raised two significant questions. First, due to the misapprehension of key terms and their content by which is considered as science? Second, which is Islam? The main lesson gained from the IOK project is that Muslims did not fully discuss and understand the philosophical and methodological issues of the modern disciplines , which they continuously kept on commenting on and trying to Islamize. …

Target function and the equilibrium position of Islamic enterprises

Egotistical goals and maximizing his own pleasure are the basic postulates on which traditional and modern economic theory in the West explains microeconomic behaviour of economic entities (producers, consumers, employees, managers, company owners, investors). Expressed egoism, which is manifested through care for himself makes a basic foundation on which these theoretical approaches build models of supply, demand, explain the market equilibrium output, markets, production factors, and the like. Western microeconomic theory explains the behaviour of a rational man, the person or institution that he does not care about the interests of others and does not take it as a parameter of his action. This does not exclude the possibility that in the economic reality some of them, to a greater or lesser extent, do not respect the interests of others, but such an approach does have its institutional foundations, from an Islamic perspective. Reasons for altruistic actions of un- Islamic entities, entities whose behaviour is not in line with Islamic principles and norms, can be of human, political or social nature. The aim of this study is that, if not in its entirety, then at least in certain fragments indicate the economic implications of firm behaviour based on Islamic principles and favouring altruistic goals of the economic position of decision-making in them.

Las relaciones entre el Estado y las confesiones religiosas

It is analyzed in a general way the content of the Agreements between the Spanish State and different religious entities in our country like the Catho- lic Church and some Evangelical, Jewish and Islamic entities. The signature of these Agreements with the representatives of the above mentioned minorities represents an authentic novelty in the field of the Spanish Ecclesiastical Law.

PANDANGAN PEMILIK BADAN USAHA ISLAM TERHADAP AKUNTABILITAS DAN MORALITAS

In this accounting, it is aimed at providing economic information that is used as one basis fordecision making. Many academics and practitioners tend to ignore that accounting is also amedia for accountability. It is shown from the widespread practice of earnings managementin various economic entities. Islamic accounting is considered a new discourse in the scienceof stating the consistency of accounting for accounting purposes as a media ofaccountability. Such condition enables this researcher to conduct research in deep analysison the view of the owner of a Islamic business entity for the aspects of accountability andmorality. This research is a qualitative research using phenomenological approach which isto examine the awareness of one's perspective about things. This study used a simplequalitative analysis of the process of data reduction, data display, and conclusion drawing.Views of the owner of a business entity towards accountability and morality of Islam are fair.It is also the fact that they do not regard the abuse of trust and responsibility is a naturalthing. It is assumed that accountability and morality are important and they should beimplemented. With a view from the respondents, it is believed that Islamic accounting isproved to be a suitable alternative for solving the problem of accountability and morality ofconventional accounting

Il Corano e l'arabo: la fine del binomio secolare

- Arabic has always played a strategically important role in the Islamic Umma, a composite and variegated entity in geographical, political and theological terms. On one dimension, the borders of the Islamic world do not coincide with those of the Arab world or the geographical borders of the Middle East. On another, Islam is characterised by the absence of a monopoly on the interpretation of the divine precepts, which is the cause of divisions and internecine conflicts. Within this context there hasbeen a deliberate exploitation of the Arabic language and its centuries-old association with the Koran by the Al Sau'ud dynasty since the 1970s.