Wealth Preservation Research Articles

External corporate venturing in family firms: a behavioural perspective

ABSTRACT The purpose of this study is to investigate the proclivity of family businesses to engage in external corporate venturing, specifically investments targeted at exploratory searches in ventures in their early stages of development. From a behavioural perspective, we investigated whether family control influences the likelihood of engaging in such risky initiatives and to what extent key organizational contingencies, i.e. financial slack and risk-taking endeavours, shift socioemotional wealth preservation as a reference point. We tested our hypotheses on a sample of 12,320 firm-year observations gathered from 2,548 European listed firms in the period 2011–2018. We found that despite family firms engaging less than nonfamily firms in external corporate venturing, their risk attitudes change under both extremely favourable and uncertain organizational contingencies.

An Empirical Analysis of Motivating Factors Behind Purchase of Gold Investment

This study is based on a sample of 613 respondents chosen using judgement cum convenience sampling to understand the gold-buying behaviour of individual investors. The paper attempts to explore the various attributes that investors consider important while investing in gold. Six underlying factors of importance are extracted, namely, family and cultural influence, diversification properties, safe haven properties, financial security, wealth preservation and liquidity. The influence of family and culture is evident from the results, with buying at weddings and festivals being a major reason to purchase gold, followed by investment purposes. Furthermore, the attitude of investors towards the imposition of taxes and tariffs on gold by the government is found to be negative, which could adversely affect investment in gold. Taking the findings into consideration, regulatory authorities could devise strategies to formulate a comprehensive gold policy to help gold contribute more to the exchequer instead of adversely affecting the current account.

The inclination of the Sri Lankan Sinhalese Village Community Towards Hela Medicine and Traditional Food and Drinks During the Post-COVID Pandemic Period

The ancient village society lived with a focus on local Hela medicine and traditional food and drinks. The current village society is a group of people who live collectively while maintaining their ancient identity claiming a self-sufficient lifestyle. Against this background, the objective is to study the past situation and the modern nature and the impact of the COVID-19 epidemic on it. Relevant information was obtained by using the data obtained through interviews with 58 rural households in Alagalla village belonging to Hatharaliyadda Divisional Secretariat Division and from the records of the village officer and the records of the local medical hall. According to these data, it was revealed that there is a wide knowledge and use of the traditional hand medicine of the past villagers in the sample of 10 people over 60 years old. But in the later period, it is possible to identify the distance from this due to leaning towards the Western medicine system, focusing on fast food, and not paying much attention to local medicines. With the after-effects of the Corona epidemic and people's attention being focused on local medicines and food and drinks, the focus was again on this. This is 100% according to the data. The temptation to grow local foods of the past can be identified. It is 80 days according to the data. Among those crops, turmeric, figs, dandila, milk yam, cassava, herbs, and vegetables are the main ones. In the post-COVID pandemic period, trust in local food and Hela medicine has been gained due to Western doctors advising on the use of local herbs, rural people turning to Hela medicine due to the side effects of vaccinations, and increased media awareness. Among the local medicines, the use of a decoction of katupila, Nelli, Aralu, Bulu, Rasakinda, Honey, Nika, Tumba, etc. can be mentioned. Based on this background, introducing Hela medicine as a successful treatment method in the post-Corona period and improving local medicine are the main tasks to be done here. It is correct to say that there is a timely need to discuss the preservation of this valuable wealth of knowledge in Hela medicine as an intangible cultural heritage and its use in current practices. The study revealed that in the wake of the post-COVID epidemic, there is a renewed understanding of Hela medicine and local food and drinks among the rural people.

Poland: Tax labyrinths and legal landscapes—the odyssey of family foundations in Poland

Abstract The Polish Family Foundation Law, introduced in May 2023, was designed to facilitate the preservation and management of family wealth. Its success has exceeded expectations with over 1,500 foundations established in its first year. This article examines the law’s impact, its reception, and the practicalities of establishing a Polish foundation. It also explores the implications for existing foreign foundations, analyzing the challenges posed by the exit tax regulations, Controlled Foreign Corporation rules and withholding tax developments. The article further discusses potential legal adjustments needed to align the law with European Union principles and the opportunities for foreign foundations related to it.

Maqāṣid Sharīah Paradigm in Wealth Preservation and Regional Stability Through Local Currency Protection within ASEAN

The use of Local Currency Settlement (LCS) which was decided at the conclusion of the 42nd Asean Summit in Labuan Bajo is a policy that will facilitate trade transactions between Asean countries and can increase the use of each country's local currency and reduce dependence on the US dollar. The purpose of this study is to find out and describe why Indonesia encourages ASEAN countries to use the LCS in the region and to analyze the results of the 42nd Asean Summit in the perspective of maqāṣid sharīah through the concept of hifẓ al-māl (wealth preservation). The design used in this study is a literature review and field research. A literature review study is a method applied to collect data or sources related to a particular topic which can be obtained from various sources such as journals, books, the internet and other literature. While field research by adding interviews with Islamic economists or academics or religious and government leaders. The results of this study indicate that Local Currency Settlement (LCS) agreements can realize economic independence and stability in the ASEAN region through the ease and efficiency of settlement of transactions carried out bilaterally and regionally by using each country's local currency and increasing trade, investment, and other transactions between Asean Countries. The agreement in the LCS policy is in line with the basic principles of maqāṣid sharīah through hifẓ al-māl which also implements the qiyām or qawām system (balance within self, family and society) in protecting wealth so as to achieve independence and economic stability in a broader scope both nation, state, region and globally.

KECERDASAN BUATAN DALAM PENJAGAAN KESIHATAN: ANALISIS DARI SUDUT PANDANG MAQASID AL-SHARIAH

Artificial Intelligence (AI) is a growing technology especially in the health sector. This technology promises to improve the quality of effective and efficient work in diagnosing, providing treatment and managing diseases. The rapid growth in technology also creates ethical and justice risks and can lead to potential violations of the principles of Maqasid al-Shariah. Maqasid al-Shariah includes the care of hifz al-nafs (preservation of the soul), hifz al-maal (preservation of wealth), hifz al-nasl (preservation of offspring), hifz al-'aql (preservation of reason), and hifz al-din (preservation religion). Therefore, this study aims to analyze the relationship between Artificial Intelligence (AI) and Maqasid al-Shariah in the context of health. This study will focus on the perspective of Islamic health and how the application of AI in this field can affect the achievement of those goals. The methodology used in this study is based on a qualitative design. The data collection method is by conducting a library study to understand the current situation, latest developments, and issues related to the study. Related materials are analyzed with the application of artificial intelligence in the field of health and relevance to the principles of Maqasid al-Shariah. The results of the study may produce recommendations and guidelines for the development of technology that is in line with Islamic principles, including an emphasis on ethics, justice, and the preservation of religious values.

Private Foundations in the United Arab Emirates: Empowering Family Wealth Management Strategies

Abstract Private Foundations have become an indispensable tool for ultra-high-net-worth individuals (“UHNWIs”) and their families in the United Arab Emirates (“UAE”) seeking to optimize their wealth and legacy planning strategies. In the dynamic landscape of wealth management, Middle Eastern entrepreneurial families have long relied on foreign offshore Trusts and Foundations as an essential tool for safeguarding assets and preserving intergenerational continuity. These structures, while effective for assets located abroad, have encountered limitations when it comes to regionally based assets such as shares in core businesses or real estate. However, following a dramatic revamp and expansion of its regulatory framework during the past decade, the United Arab Emirates currently offers arguably the most comprehensive and sophisticated tool chest of wealth structuring/business continuity solutions in the world. Private Foundations in the UAE have marked a significant milestone in the UAE legal framework with over 1,000 Foundations under management. This article delves into the landscape of Private Foundations in the UAE, focusing on their role in asset protection and portfolio restructuring for family wealth preservation. Drawing upon the unique characteristics of Trusts & Trustees’ approach, the authors provide valuable insights into the recognition, regulation and operational dynamics of Private Foundations within the country’s business-oriented framework.

National wealth in the context of the transformation of the socio-economic system

The subject of the research is the functions of national wealth, considered in the context of the transformation of the socio-economic system. National wealth in the context of the transformation of the socio-economic system is one of the fundamental indicators that reflects the totality of tangible and intangible resources at the disposal of the nation. During the transformation of the socio-economic system, there is a redistribution of national wealth between sectors of the economy. Transformation requires reforming state institutions, legal systems and management structures - this can affect the efficiency of using national wealth, increasing or decreasing economic stability, national security and investment attractiveness of the country. In modern conditions, special attention is paid to sustainable development, which involves the rational use of natural resources and minimization of environmental risks. Transformation of the system aimed at sustainable development contributes to the preservation and increase of national wealth in the long term. The purpose of the work is to determine the content and structure of national wealth in the context of the transformation of the socio-economic system. The research methodology is based on the generalization of information from domestic and foreign sources, statistical data on the issues considered in the work. The scientific novelty of the study consists in identifying qualitative changes in the characteristics of national wealth in the modern conditions of transformation of the socio-economic system. The article highlights the following stages (phases) in the development of the socio-economic system: crisis phase (destabilization phase), phase of awareness of the need for change, reform base (transformation phase), phase of adaptation and stabilization, phase of growth and development, phase of consolidation and institutionalization. The results of the study can be considered as an increase in scientific knowledge in economic theory.

Rulings on Excess Wealth of Unknown Sources According to Islamic Law

Islamic law places a paramount emphasis on safeguarding wealth and preserving it from loss, and it deems its preservation as one of the objectives of Sharia. Islamic law views wealth in a general sense and regards unexplained surplus wealth from a humanitarian perspective. The aim is to elucidate the comprehensiveness, adaptability, and relevance of Islamic Sharia, demonstrating its capability to address contemporary needs by providing rulings that uphold benefits, prevent harm, and contribute to enlightening people about the principles of wealth preservation. Contemporary and emerging issues are numerous and require clarification of their legal rulings, particularly new forms such as the treatment of abandoned funds in customs, the status of deposits in commercial banks, the handling of profits in banks with unknown owners, funds in the possession of money changers, and those held in exchange centers. These issues fall under the purview of Islamic jurisprudence, akin to the concept of "lost property," due to their significant importance in jurisprudential deliberations and contemporary practical applications. The resultant conclusion is that surplus funds of unknown origin are treated akin to lost property. Contemporary and emerging matters necessitate a legal ruling, and if the owner of such funds cannot be found, they are generally allocated to charitable causes, which are broader than the concept of Muslim interests. These causes encompass various charitable endeavors, such as aiding the poor and constructing mosques, as they are considered avenues of charity.

The Performance of Islamic Organizations Based on Maqasid Sharia Disclosure

This study aims to construct a performance measurement of Maqasid Sharia for Islamic organizations both profit-oriented and non-profit. This study used content analysis to construct performance measurement, which is to find the appropriate Maqasid Sharia concept and then describe the Maqasid Sharia concept into dimensions and elements. This research construct 5 ideal goals based on Al-Ghazali's concept: preservation of religion, life/soul, reason, heredity, and wealth. Furthermore, describe the ideal goals into 12 dimensions, 20 elements, and 74 items of disclosure.

WEALTH WHISPERERS: A Financial LLM

In an era of continually evolving financial markets, the demand for sophisticated financial advisory models tailored to the unique landscape of the Indian market is more prominent than ever before. This Paper offers a comprehensive model designed to address the nuances and complexities of the Indian financial ecosystem, empowering financial advisors with a culturally relevant and powerful toolset to effectively serve their clients. The Financial Advisory LLM Model, customized specifically for the Indian market, seamlessly integrates Legal, Financial, and Management (LLM) expertise into a unified and cohesive platform. Leveraging cutting-edge technologies such as artificial intelligence and machine learning, this model significantly enhances the advisory process, making it more efficient and precise. This project report delves into the extensive range of solutions provided by the Financial Advisory LLM Model, specifically tailored to address various financial challenges within the Indian context. These solutions encompass areas such as investment management, wealth preservation, and tax optimization. By incorporating these elements into the model, the report aims to empower financial advisors to meet the diverse needs of their clients effectively and efficiently. Key Words: Financial Advisory LLM Model, Indian financial ecosystem, Artificial intelligence and machine learning, Cutting-edge technologies, Financial technology (FinTech), Investment management

The impact of family ownership on tax avoidance: International evidence

Motivated by the global interest on tax avoidance and the unique nature and contribution of family firms to the global economy, this study examines the impact of family ownership on the tax behaviour of firms listed in 38 capital markets from 2008 to 2019. The study is the first to investigate both conforming and nonconforming tax avoidance practices across family and non-family firms using an international setting. The empirical findings document that family ownership is associated with lower conforming and nonconforming tax avoidance. The result is attributed to the reputation cost of tax avoidance that is higher in family firms due to socioemotional wealth preservation considerations that discourage tax avoidance practices. In addition, eponymy serves as a disciplining mechanism that further reduces tax avoidance in family firms. Finally, the cultural dimension of power distance -the societal belief that the members of an organization are not equal- attenuates the restraining effect of family ownership on tax avoidance.

Rethinking Mu’âsyarah bil Ma’ruf: A Maqâshid Syari’ah Cum-Mubâdalah Approach

This article contends that the principle of mu'âsyaroh bil ma'rûf has been inadequately interpreted, primarily due to its frequent application solely to men, resulting in the neglect and discrimination against women in conceptual formulation and validation. By positioning both men and women as equal participants in defining maqâshid al-syarî'ah, a fairer understanding of mu'asyaraoh bil ma'ruf can be achieved. This qualitative research seeks to redefine the interpretation of mu'âsyarah bil ma'rûf in the Qur'an through the Maqâshid Syarî'ah cum-Mubâdalah approach, integrating the critical concept of mashâlih al-'ibâd in kulliyât al-khams and the Mubâdalah perspective. The Maqâshid al-Syarî'ah cum-Mubâdalah methodology entails merging Maqâshid al-Syarî'ah theory with a perspective emphasizing mutual respect between genders. This study adopts a library research methodology. The findings reveal that, through the Maqâshid al-Syarî'ah cum-Mubâdalah approach, it can be inferred that: 1) mu'asyarah bil ma'ruf extends beyond marital relations to encompass interactions that uphold human values for all individuals; 2) apart from hifdz al-nafs (preservation of life), mu'asyarah bil ma'ruf also encompasses other elements including hifdz al-din (preservation of religion), hifdz al-mal (preservation of wealth), hifdz al-'aql (preservation of intellect), and hifdz al-nasl (preservation of lineage); 3) adherence to the five elements of maqashid sharia is obligatory for both parties engaging in interactions, rather than being imposed solely on one party.

Nurturing family business resilience through strategic supply chain management

PurposeThe study aspires to enhance comprehension of the intricate interplay between supply chain management (SCM) and resilience in family businesses, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.Design/methodology/approachCommencing from the premise that family businesses (FBs) prioritize the preservation of socio-emotional wealth (SEW) when formulating strategic decisions, this study endeavours to advance understanding of supply chain practices adopted by FBs and their direct impact on resilience during crisis situations or economically challenging periods. Through an exploratory case study of nine FBs, the present research reveals four pivotal strategies in SCM that contribute to their resilience: (i) reorganization of inventory management; (ii) cultivating close relationships with suppliers; (iii) emphasizing product quality and customer retention; and (iv) implementing cost reduction measures to bolster resilience. The aim of the study is to provide an in-depth understanding of the intricate interplay between SCM and resilience in FBs, thereby offering valuable insights to managers and policymakers endeavouring to foster resilience in uncertain environments.FindingsOur approach offers a theoretical framework for SCM aligned with prior research on the interplay between characteristics of family businesses and resilience strategies. Furthermore, this paper illustrates how factors such as the emphasis on high-quality products and services by family businesses contribute to achieving non-economic objectives that owners adopt to reconcile family and business needs, creating intrinsic added value for the company. It reveals various challenges in SCM, including inventory organization changes, supplier closures and the significance of customer retention. Family businesses are implementing product and technology enhancements and leveraging digitization to enhance supply chain processes.Originality/valueThis paper contributes significantly to the field of FBs by highlighting the crucial role of SCM in enhancing business resilience during crises. It empirically examines how the SEW characteristics of FBs influence the reconfiguration of their supply chains to enhance resilience, presenting a theoretical model for this context. Our theoretical framework employs an SEW perspective to elucidate how FBs respond to the challenges posed by the COVID-19 pandemic by adapting their SCM processes to safeguard their social and emotional legitimacy, organizational visibility and reputation. These adaptations gain particular relevance during crises or turbulent conditions, potentially leading to alterations in how FBs formulate their supply chain strategies and manage supply chain-related processes.

Study on the Impact and Response of the Implementation of Property Tax and Estate Tax on the Worldwide Asset Allocation of Chinese High Net Worth Individuals in the Context of Global Tax Reform

This paper examines the impact of property tax and estate tax implementations on high-net-worth individuals in China, offering insights into effective asset allocation and tax planning strategies to achieve legal tax optimization. It explores global asset diversification, the establishment of offshore trusts, family offices, strategic immigration planning, and philanthropy as mechanisms to mitigate tax liabilities while ensuring wealth preservation and compliance with evolving tax regulations. This analysis aims to provide a comprehensive framework for navigating the complexities of wealth management in the face of significant fiscal policy changes.

Analisis Maqashid Syariah dalam Transaksi Akad Qiradh

Buying and selling is one of the most important activities in a human's life. Imam Madzahib Arba'ah has a very deep concern in the problem of buying and selling, including to the Qiradh. This study aims to determine the implementation of maqashid sharia contained in the implementation of the qiradh, In the view of Imam Madzahib Arba'ah, they are Imam Abu Hanifah, Imam Malik, Imam Syafi'i and Imam Ahmad. This type of research is qualitative research, while the analysis method used is content analysis, that way researchers can be find the concept of Maqashid Sharia contained in the Qiradh. The results of this study indicate that in this Qiradh contract, there are two concepts of maqashid sharia, firstly is preservation of the offspring and secondly is preservation of wealth. The conclusion of this study is that the preservation of the offspring is described in the willingness of the muqrid to help others, with their wealth. And in the preservation of wealth, it is discribed in the distribution of assets carried out by the muqrid to the muqtarid. This research is expected to be a contribution to the development of micro and macro financial institutions by prioritizing the Qiradh contract as one of the superior products.

IPOs as Catalysts for Retail Investor Wealth Creation: Evidence from the Indian Stock Market

The study delves into the dynamics of wealth creation for retail investors in the context of Initial Public Offerings (IPOs) within the Indian equity markets. Against the backdrop of a burgeoning retail investor base, the research offers a comprehensive analysis spanning April 2012 to December 2022, evaluating short-term and long-term IPO performance metrics. The study reveals nuanced insights into wealth creation dynamics by scrutinizing listing day returns, first-week to third-year returns, and market-adjusted returns vis-à-vis the Nifty50 Index. Notably, the research suggests that while IPOs exhibit promise with positive listing day returns, sustaining growth over extended horizons poses challenges. The hypothesis of inflation serving as a pragmatic hurdle rate for retail investors is explored, offering a novel perspective on wealth preservation. It also sheds light on the significant variability in the Real Rate of Returns (RRRs) among IPOs, with some contributing to wealth generation while others result in wealth erosion. This underscores the importance of retail investors carefully assessing and managing risks, emphasizing the need for prudent portfolio diversification and effective risk mitigation strategies, particularly over longer investment horizons.

Trend Analysis for Daily Gold Price in Malaysia

The awareness of gold price trends is essential for promoting financial stability, wealth preservation, diversified investments, preserving cultural practices and economic stability. However, there is a noticeable absence of studies utilizing least square models to analyze the daily gold price trend (RM), highlighting a gap in research on this crucial financial aspect. This study aims to uncover trends in daily gold prices over time, examine the correlation between gold prices and time, and develop a least squares model for analyzing daily gold price (RM). The dataset consists of 1569 daily gold price observations in Malaysia from August 2018 to November 2022, obtained through the secondary data collection method from the Public Gold website. The study discovered a positive correlation between Gold Price (RM) and Time (Day) with Pearson Correlation Coefficient of 0.879. This implies that, over the specified time frame, there is a consistent upward trend in gold prices, a critical insight for investors and financial decisionmakers. Furthermore, the developed least squares model features an intercept of 182.801 and a slope of 0.074. This slope signifies that for each day's increase in time, the gold price is anticipated to rise by RM0.074. The daily gold price analysis not only provides valuable insights into gold price patterns but also offers a practical tool for making informed financial decisions and predicting future gold prices, thereby contributing to economic stability, and fostering responsible and sustainable gold practices.

PERFORMANCE ASSESSMENT OF ISLAMIC BANKS IN THE LIGHT OF MAQASID AL-SHARIAH: A GLOBAL EVIDENCE

As an “Islamic” entity, Islamic banks are expected to fulfill the purposes of Islamic law. This study aims to assess the performance of Islamic banks beyond traditional yardsticks, to emphasize their ethical, social, and environmental role in accordance with the higher goals of Islamic law namely Maqasid al-Shariah. Based on Imam al-Ghazali’s concept of Maqasid al-Shariah, we develop a Maqasid al-Shariah index including the 5 objectives of Shariah (Preservation of Life, Religion, Intellect, Posterity, and Wealth). Sekaran’s operationalization method is used to transform the theoretical concept of Maqasid al-Shariah into measurable indicators. The originality of this study stems from two factors: First, we build on previous research to develop a new Maqasid al-Shariah index with 12 dimensions, 25 elements, and 25 indicators. Second, we provide fresh insight into the Maqasid al-Shariah performance of 10 large and well-established Islamic banks from 2017 to 2021. The results of the 5-year study show that Meezan Bank in Pakistan performed the highest score, while Dubai Islamic Bank received the lowest. Furthermore, when comparing the performance of the sampled Islamic banks across the five objectives, we find that they earned the lowest score in the objective of intellect due to their failure to disclose the required information in their annual reports.

Pemenuhan Nafkah Keluarga Buruh Nelayan Pasca Pandemi Covid-19 ditinjau dari Hifz Al-Maal Dan Hifz Al-Nasl Menurut Jasser Auda

This research discusses the concept of Family Livelihood Fulfillment for Fishermen Labor Post Covid-19 Pandemic (Case Study in Kedungrejo Village, Muncar Sub-district, Banyuwangi Regency) in terms of Hifz Al-Maal and Hifz Al-Nasl according to the perspective of Jasser Auda. This researchaddresses two crucial questions. First, what efforts have been made to fulfill the livelihood of fishermen labor families post the Covid-19 pandemic in Kedungrejo Village, Muncar Sub-district, Banyuwangi Regency? Second, how is the fulfillment of livelihood for fishermen labor families viewed through the Sharia objectives of Hifz Al-Maal and Hifz Al-Nasl according to Jasser Auda?The endeavor to answer these questions is an initial step in the academic world to examine the livelihood fulfillment later evaluated from Hifz Al-Maal (preservation of wealth) and Hifz Al-Nasl (preservation of progeny) according to Jasser Auda (Contemporary Fiqh Scholar). This journal reveals two main findings. First, the families of fishermen laborers have been fulfilling their daily livelihood needs by engaging in various efforts (work). Second, the efforts made by these families have successfully met the objectives of Hifz Al-Maal and Hifz Al-Nasl, particularly for the well-being of family members. The fulfillment of daily needs encompasses not only financial aspects but also basic necessities (clothing, food, shelter), health, and education.