Internal Auditing And Governance

The success of any organization greatly depends on the collective performance of teams working under that umbrella. Therefore to measure/monitor the effectiveness of a team is of vital importance for both practitioners and researchers. Many researchers have presented their models explaining how to respond to this concern. This study critically analyzes the existing methods of assessing effectiveness of teams and found two main deficiencies in the current models (lack of accountability and satisfaction). The current study provides 'team management and the Islamic paradigm' (TMIP) instrument to measure the effectiveness of team performance, thus filling the gap in contemporary approaches. Although TMIP instrument is based on the Islamic perspective, it provides a unique blend of Islamic and existing ways of measuring the effectiveness of team management. TMIP instrument analyzes team effectiveness from three dimensions including values, environment and rewards and accountability. This is a seminar work from an Islamic perspective; however, future research opportunities, given at the end of this paper, can open new horizons of research for Islamic scholars.

The success of any organization greatly depends on the collective performance of teams working under that umbrella. Therefore to measure/monitor the effectiveness of a team is of vital importance for both practitioners and researchers. Many researchers have presented their models explaining how to respond to this concern. This study critically analyzes the existing methods of assessing effectiveness of teams and found two main deficiencies in the current models (lack of accountability and satisfaction). The current study provides ‘team management and the Islamic paradigm’ (TMIP) instrument to measure the effectiveness of team performance, thus filling the gap in contemporary approaches. Although TMIP instrument is based on the Islamic perspective, it provides a unique blend of Islamic and existing ways of measuring the effectiveness of team management. TMIP instrument analyzes team effectiveness from three dimensions including values, environment and rewards and accountability. This...

Purpose-The objective of this paper is to explore the Islamic principles and law and formulate a conceptual framework of corporate social responsibility (CSR) based on Islamic values and beliefs. An Islamic CSR (i-CSR) framework is vital in guiding the CSR strategies, policies and practices of Islamic institutions. Design/Methodology/Approach-This notion of CSR in Islam is proposed by incorporating the concept of tawhid and integrating the principles of Maqasid Syariah (Islamic Law) and Maslahah (public good) which completes the mission of mankind on earth i.e. the absolute submission to his obligations in the performance of ibadah, dakwah and as a khalifah. Practical Implications-The establishment of the framework provides a holistic guidance based on Islamic beliefs, values and concepts which should be integrated with and embedded as part of the overall governance and accountability of institutions. This model is practical not only for Islamic organizations and institutions but also for other entities that subscribe to the beliefs that the function of business is a manifestation of the act of devotion to God, i.e. promoting good deeds. Originality/Value-A comprehensive model of Islamic CSR (i-CSR), which includes the elements of governance, accountability, prioritisation of activities and practices and disclosures. Paper type-Conceptual paper

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

This study discusses the performance of stocks of technology companies and food companies in South Korea in the period January 2019-November 2024 which are attractive to foreign investors due to their strategic position in the global economy. However, companies do not always show good performance. Therefore, a careful investment strategy is needed, including the preparation and management of portfolios. In compiling the portfolio, this study uses a smart beta strategy that has been proven to provide superior returns compared to traditional portfolios. Portfolio management involves two strategies, namely a passive approach and an active approach. This quantitative descriptive study uses open prices from stock data prices that form a portfolio based on selected betas. Weighting is adjusted for higher beta stocks in receiving a larger allocation in the portfolio. This study compares three beta groups (high, medium, and low) and two investment strategies (active and passive) using the Sharpe index.The results of this study indicate that the medium beta group and passive strategy have better performance with competitive return values ​​without having to face too much risk. The passive strategy provides a balance between risk return and maintaining stability without dependence on market movements that tend to be volatile.

The purpose of this research is to analyze effect of macroeconomic , commodity market, and asian stock index on composite stock price index, 2018 to 2022. This type of research is descriptive quantitative. The type of data in this study is time series data taken from January 2018 to December 2022 so that a target population of 60 (5 years x 12) monthly report data is obtained for the sample data in this study. This is due to research that the sample used uses census research techniques. Data collection techniques through library research and field survey. The data analysis used in the study uses error correction model (ECM). The results show that in long and short term, inflation has a negative and significant effect on composite stock price index. Exchange rate has a negative and insignificant effect on composite stock price index. Interest rate has a negative and significant effect on composite stock price index. World oil price has a negative and significant effect on composite stock price index. Gold price has a negative and significant effect on composite stock price index. Nikkei 225 has a positive and insignificant effect on composite stock price index. KLCI has a negative and insignificant effect on composite stock price index. KOSPI has a negative and insignificant effect on composite stock price index. Hang seng in long term has a negative and insignificant effect on composite stock price index, but in short term has a positive and insignificant effect on composite stock price index.

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Most research on corporate social responsibility disclosure (CSRD) describes its relationships with external factors such as financial performance and corporate reputation. There are relatively few studies that have focused employee's behaviours towards CSRD. This paper examines the relationship between CSRD on employee commitment. An exploratory approach is used in this paper by this study. This study utilizes interview method to collect data from 31 financial managers and information managers of 22 organisations; Miles and Huberman (1994) approach is used to analyse the qualitative data. The researchers have chosen the Libyan context as one of the world's developing countries that has undergone many changes over a short period of time in terms of economic, environmental and social changes. The majority view of managers interviewed is that as CSRD related to employee activities and consumer activities increases employee commitment towards its company increase. However, there is no relationship between CSRD related to environmental and employee disclosures and employee commitment in Libyan companies. The study discusses and explains important implications regarding uses of CSRD for enhancing employee's commitment.

Despite the fact that Islam is one of the major religions, the frameworks of this faith are yet to be fully understood. As a consequence, it is being confused with activities contrary to its teachings. Islam has an elaborate treatment for almost every aspect of life including the affairs of business. Business is an acceptable and dignified occupation, which has to be conducted within the given frameworks. Islam encourages the creation, acquisition and consumption of wealth, and the fulfilling of certain conditions in so doing. Wealth is held in trust as a gift from God. The terms of reference of this trust are to be complied with. Ethical principles do play a major role in shaping the behavior of a Muslim, in or out of business. In an era of globalization, the need for a better understanding of the premises of Islamic faith cannot be overemphasized.

Purpose: This article aims to investigate the extent to which State-Owned Enterprises (SOEs) in Indonesia disclose their Corporate Social Responsibility (CSR) programs to the general public. Design/Methodology/Approach: Quantitative design is used as the main method in the study. Corporate profiling is used for analyzing SOEs profile and program profiling is used to analyze the profile of CSR programs implemented by SOEs. Findings: The study concludes that, first, SOEs under study disclose their CSR programs to the general public. In terms of indicators it is difficult to conclude that CSR programs disclosed by SOEs signify corporate virtuous citizenship embedding the initial ideas of CSR. Practical implications: Practical implications of the study are two-folds. First, that SOEs in Indonesia, need to strengthen the institutional drivers of CSR, and put pressure on companies to move beyond philanthropy, rhetoric, legitimization, imagery, and public relations to substantive engagement in CSR and genuine attempts at change and development. Second, the implementation of CSR programs by SOEs is judicially liable to public auditing. Originality/Value: The value of this study strengthens arguments which hold that the implementation of CSR, even implemented by SOEs, functions more as corporate survival mechanism rather than for solving social and environmental problems.

Towards realizing Malaysia’s Vision 2020,Corporate Social Responsibility (CSR) has been viewed as an important part for a business to succeed.With the increasing awareness and global demand for better CSR practices, companies need recognize and adopt them into their management practices.However, in today’s emerging market, several factors could influence the adoption of CSR as part of their business strategy. This research aims to identify the focus level of Corporate Social Responsibility Disclosure (CSRD) in Malaysia Meanwhile, four identified factors such as company size, profitability, share return, and industry type were tested to the CSRD.Secondary data obtained from 100 public listed companies across industries were analysed and reported in this study. Constructed CSRD checklist was used to identify the focus level of CSRD, and multiple regression analysis was employed to test the relationships of the above stated variables.In conclusion, the highest and least disclosures wer...

Islam is a comprehensive religion which covers every single aspect of human activity. Islam is not a religion that only focuses on the private life of individuals, but also covers and guides humans' interaction and activities in their daily lives. Despite the comprehensiveness of the Islamic teachings, limited studies have been conducted to examine the practice of Islam in the management of business processes in Muslim organizations. Therefore, this paper aims to investigate the understanding of Muslim managers regarding Islamic management in their organization. The study utilizes a qualitative research design by means of in-depth interviews with the selected Muslim managers from the prominent Muslim organizations in Malaysia. The findings of this study indicate that Muslim managers in Malaysia have great understanding of Islamic management practices and they have implemented these practices in their organizations. However, there is a great opportunity for improvement in the future with regards to Islamic management practices. The implication of this study is also discussed.

Islam is a comprehensive religion which covers every single aspect of human activity. Islam is not a religion that only focuses on the private life of individuals, but also covers and guides humans' interaction and activities in their daily lives. Despite the comprehensiveness of the Islamic teachings, limited studies have been conducted to examine the practice of Islam in the management of business processes in Muslim organizations. Therefore, this paper aims to investigate the understanding of Muslim managers regarding Islamic management in their organization. The study utilizes a qualitative research design by means of in-depth interviews with the selected Muslim managers from the prominent Muslim organizations in Malaysia. The findings of this study indicate that Muslim managers in Malaysia have great understanding of Islamic management practices and they have implemented these practices in their organizations. However, there is a great opportunity for improvement in the future with regards to Islamic management practices. The implication of this study is also discussed.

Ethical misconduct and business scandals caused millions of dollars in losses, left behind damaged organizations, forced them to close their business and left thousands employees jobless without any future guarantee or security. This incident has left scholars and managers asking what role they might have played to curb these ethical scandals and what role they can play in the solutions. Scholar and managers collectively have responded to the ethical challenges that we face in organizational life. Some scholarship assesses the current state of ethics in management education, helping us to diagnose and tackle the realities of unethical behavior. Part of the solution to this problem is to design and develop courses and programs in a better way, integrate business and management learning with ethical conduct. Scholars should focus on which standards should be advanced. Indeed, what connects these diverse discussion is a clear recognition that educational components designed to solve th...

Business scandals and ethical misconduct caused millions of dollars in losses, left behind damaged organizations, forced them to close their business and left thousands of employees jobless without any future guarantee or security. This incident has left scholars and managers asking what role they might have played to curb these ethical scandals and what role they can play in the solutions. Scholar and managers collectively have responded to the ethical challenges that we face in organizational life. Some scholarship assesses the current state of ethics in management education, helping us to diagnose and tackle the realities of unethical behavior. Part of the solution to this problem is to design and develop courses and programs in a better way, integrate business and management learning with ethical conduct. Scholars should focus on which standards should be advanced. Indeed, what connects these diverse discussions is a clear recognition that educational components designed to solv...

Project management is a combination of both science and art as the merger of the terms of 'project' reflects to the technical knowledge, skills and competencies and 'management' refers to the human related components such interpersonal and leadership capabilities. Leadership is identified as central and core to successful business outcomes and prevails as crucial in any group or collective tasks. Project management is a business and an organisation, and the need to have an effective project leadership in place at all project phases is salient to ensure successful project outcomes, that fulfils project objectivesas well as adhering to the objectives from the lense of Islam; to seek the pleasure of Allah (Mardhatillah) and His reward and eventually to achieve success in this world and in the Hereafter. With the increasing leadership challenges in leading construction projects nowadays, as complexity, stakeholders' requirements and project failure grows, as well as continuous ethical issues and malpractices, project management awaits divine guidance that has its sources from and accord to the principles and values as prescribed in the Qur'an and the Sunnah. This paper aims to highlight, compare and discuss the Western modern perspective of project leadership with the one from the proposed Islamic perspective and also attempts to demonstrate some points on the merits of imbuting Islamic principles of leadership into projects.

Problem statement: This article enhances the ethical issues consider the relationship between religious life and work ethics. Approach: Malaysia aim to achieved full developed nation's, requires a professional workforce, not only educated and innovative, but ethically, with integrity, accountability, dynamic and committed to continuously increasing Muslim professionalism. In the context of the development of Muslim professionals with a holistic and integrated, Muslims needs to withholding Tawheed, the fundamentals of faith, based on Al-Quran and Hadith. Manifestations in life of the practice which accounts for worship and morality need to be implemented. Results: Islamic moral character requires the emphasize that following five key parameters of Islamic behavior which is justice, trust, righteousness, the struggle towards self-improvement and keeping promises. Conclusion: The properties of trust at work, honesty, responsibility and integrity should be established in each of the Muslims. Each institution needs to be continued in the religious education and level of consciousness must be nurtured and enhanced.

The purpose of this paper is to explore the director's work ethics particularly on Islamic perspectives and prophetic character towards sustaining the performance of the Islamic business organisations. The paper highlights the corporate scandals that occurred in Malaysia. Then, it examines and reviews prior studies on directors' work ethics, ethics from religious viewpoint and Islamic work ethics. Next, it also discusses the directors' work ethics based on prophetic characters and present a theoretical framework for directors' work ethics that applicable in modern business activities. The proposed theoretical framework contains four fundamental characters of directors which are siddiq (truthfulness), fatanah (intelligent), tabligh (deliver) and amanah (trustworhtiness). This framework is hoped to increase the integrity and moral behaviours of the directors and eventually preventing them from involve in various unethical conduct especially in business activities that will tarnish the economic development and growth of a country.

Problem statement: This article enhances the ethical issues consider the relationship between religious life and work ethics. Approach: Malaysia aim to achieved full developed nation's, requires a professional workforce, not only educated and innovative, but ethically, with integrity, accountability, dynamic and committed to continuously increasing Muslim professionalism. In the context of the development of Muslim professionals with a holistic and integrated, Muslims needs to withholding Tawheed, the fundamentals of faith, based on Al-Quran and Hadith. Manifestations in life of the practice which accounts for worship and morality need to be implemented. Results: Islamic moral character requires the emphasize that following five key parameters of Islamic behavior which is justice, trust, righteousness, the struggle towards self-improvement and keeping promises. Conclusion: The properties of trust at work, honesty, responsibility and integrity should be established in each of the Muslims. Each institution needs to be continued in the religious education and level of consciousness must be nurtured and enhanced.

Corporate has right to conduct business without harming community and environment. The responsibility of the financial institute is more than other industry since financial institutes are working as like as blood in our complex economic system. Without financial institute, no one can reckon about any business and for example if the financial institute stops funding for the cigarette industry, the industry will collapse. The responsibility of Islamic Bank is even higher than other conventional bank, since the Makasid (objective) of Islamic Bank is not only providing interest free service (like, Halal Chicken) but also act as Khalifatullah (representative of Allah swt.) for this world. This paper develops a conceptual framework that shows how Islamic Bank can behave responsibly using the social contract theory of CSR. Social contract theory urges that in an absence of the right, the life of human will be poor, nasty, brutish and short. Thus, human life is no longer “a war of all again...

Problem statement: This article enhances the ethical issues consider the relationship between religious life and work ethics. Approach: Malaysia aim to achieved full developed nation's, requires a professional workforce, not only educated and innovative, but ethically, with integrity, accountability, dynamic and committed to continuously increasing Muslim professionalism. In the context of the development of Muslim professionals with a holistic and integrated, Muslims needs to withholding Tawheed, the fundamentals of faith, based on Al-Quran and Hadith. Manifestations in life of the practice which accounts for worship and morality need to be implemented. Results: Islamic moral character requires the emphasize that following five key parameters of Islamic behavior which is justice, trust, righteousness, the struggle towards self-improvement and keeping promises. Conclusion: The properties of trust at work, honesty, responsibility and integrity should be established in each of the Muslims. Each institution needs to be continued in the religious education and level of consciousness must be nurtured and enhanced.

Purpose-The research on the role of corporate social responsibility in investors' decision process has proliferated over the past few decades. This paper aims to explore the mediating role of financial performance in the relationship between corporate social responsibility and institutional investors. Design/methodology/approach-Panel regression was performed on a sample of 29 commercial banks nine years from 2009 to 2017. Findings-The initial findings of the study show that that corporate social responsibility has a positive and significant impact on institutional investors. However, when the interaction term (financial performance) was incorporated, the relationship between CSR and institutional turns out to be neutral. The study concludes that financial performance plays a pivotal role in the selection of investment avenues. Originality/value-In Indian context, there is a dearth of research work which studies the impact of sustainable practices on investors' decision process. This topic has received wider attention but lacks insights from developing countries, like India. This article presents a new approach to verify the relationship through the mediating variable (financial performance).

Purpose-The research on the role of corporate social responsibility in investors' decision process has proliferated over the past few decades. This paper aims to explore the mediating role of financial performance in the relationship between corporate social responsibility and institutional investors. Design/methodology/approach-Panel regression was performed on a sample of 29 commercial banks nine years from 2009 to 2017. Findings-The initial findings of the study show that that corporate social responsibility has a positive and significant impact on institutional investors. However, when the interaction term (financial performance) was incorporated, the relationship between CSR and institutional turns out to be neutral. The study concludes that financial performance plays a pivotal role in the selection of investment avenues. Originality/value-In Indian context, there is a dearth of research work which studies the impact of sustainable practices on investors' decision process. This topic has received wider attention but lacks insights from developing countries, like India. This article presents a new approach to verify the relationship through the mediating variable (financial performance).

Problem statement: This article enhances the ethical issues consider the relationship between religious life and work ethics. Approach: Malaysia aim to achieved full developed nation's, requires a professional workforce, not only educated and innovative, but ethically, with integrity, accountability, dynamic and committed to continuously increasing Muslim professionalism. In the context of the development of Muslim professionals with a holistic and integrated, Muslims needs to withholding Tawheed, the fundamentals of faith, based on Al-Quran and Hadith. Manifestations in life of the practice which accounts for worship and morality need to be implemented. Results: Islamic moral character requires the emphasize that following five key parameters of Islamic behavior which is justice, trust, righteousness, the struggle towards self-improvement and keeping promises. Conclusion: The properties of trust at work, honesty, responsibility and integrity should be established in each of the Muslims. Each institution needs to be continued in the religious education and level of consciousness must be nurtured and enhanced.

This study constructs active Islamic portfolios using a multi-style rotation strategy, derived from the three prominent styles, namely, momentum, value, and quality investing. We use the stocks that are consistently listed in the U.S. Dow Jones Islamic index for a sample period from 1996 to 2012. We also include two macroeconomic mimicking portfolios to capture the premiums of industrial production growth and inflation innovation, accommodating the economic regime shifts. Based on the information coefficients, we find the six-month momentum and the fractal measure as momentum factors; the enterprise yield (gross profit/TEV) and the book to market ratio as valuation factors; the gross profit to total assets, the return on capital, and the scaled total accruals as quality factors. We further construct active portfolios using the augmented Black Litterman (ABL) factor model to avoid the factor alignment problem, with the factor views predicted using Markov Switching VAR, MIDAS, and Bayesian Model Averaging. The out-of-sample performance of our portfolios can produce information ratios of 0.7-0.8 over the composite indices, and information ratios of 0.42-0.48 over the style indices, with the annualized alphas of 10-11%. Even when we put the constrained tracking error of 1% over the benchmark, our portfolios still produce information ratios of 0.9-1.2 before transaction costs, and 0.6-0.8 after transaction costs. We provide intuitive explanations for each premium changing over time, and suggest the promising strategy for Islamic equity investors to outperform the market.

The corporate social reporting field, which has been mainly developed in the West, presents theories that neglect the perspective of religion, while the models of corporate social reporting in the current Islamic literature discuss Islamic ethical principles, obligations and social relation system in isolation and are unclear. This article provides a holistic conceptual model of Islamic corporate social reporting by adopting and modifying the models in the literature. Furthermore, it integrates the holistic conceptual model with an explanation of the theories that are common in the West, i.e. Stakeholder Theory and Social Contract Theory, in order to bridge the gap between Western and Islamic perspectives on corporate social reporting.

Environmental protection is the practice of protecting the environment for the betterment of humans and the natural environment with the assistance of individuals, organizations or states. The main objective of this research is to evaluate the level of environmental awareness among Muslims in Ampara District of Sri Lanka. Primary data were collected by administering a questionnaire to 384 selected participants from the total Muslim population residing in Ampara District. All the data from received questionnaires were analyzed through a descriptive method using SPSS software. In addition, research articles, web publications, books, journals, and Islamic sources such as the Qur'an, Sunnah, and the opinions of contemporary Islamic scholars were used as secondary sources in this study. According to results, the model shows that the informants were well aware of environmental protection, and 96.3% of them eagerly acknowledged the relationship between Islam and environmental protection. About 94% of them accepted the link between environmental protection and physical health, and were concerned with protecting the environment in which they live. Moreover, approximately 33% of them had the habit of keeping their environment clean on a daily basis. In summary, awareness of environmental protection in the sample is at a healthy level, and this knowledge is influenced by their religious guidelines. However, despite the sufficient awareness of participants in protecting the environment, they did not show much interest in practicing it. This research will help strengthen environmental protection by voluntary organizations and assist policymakers in the country to take the necessary measures. The study could serve as a starting point for future research to guide the general public on environmental protection.

Purpose: The paper examines auditors' experiences with corporate governance (CG) in general and audit committees (ACs) in particular in the setting of a Polish two-tier board system and a capital market characterized by high ownership concentration, which therefore extends the research on CG practices of an economy beyond the well-researched Anglo-American model. Methodology: This study adopts a qualitative research approach by using interview data from fifteen interviews with auditors working with large publicly-listed companies in Poland to examine the relationships among auditors, Audit Committees, and CG. Findings: The auditors indicate that the CG environment has changed. However, the institutionalization of an AC in Poland generally is the subject of coercive isomorphic pressures, which lead to its decoupling and transition toward a ritualistic role. Moreover, auditors report only some reliance on CG information in the planning phase and none in the field-testing or review phases. Originality: The findings differ from those of prior studies conducted predominantly in the USA and the UK, in which auditors reported far greater reliance on CG in all phases of the audit process. The two possible reasons for this difference in findings could be the different development stages between capital markets and different CG systems.

This paper investigates audit committee (AC) practices in relation to the oversight of financial reporting and external auditors. We conducted semi-structured interviews of Polish public interest entities to explore AC processes in a different environment from the widely researched Anglo-American model of corporate governance. The results of the study highlight the complexity and contradictory nature of solving governance issues in an environment characterized by a high concentration of ownership. Monitoring is stronger for companies whose dominant shareholder is a foreign investor. Local firms are generally slower to embrace an AC as an effective tool of oversight for financial reporting and external auditors. In general, the processes utilized by ACs are similar to those reported in the literature. The collected evidence does not provide support for a single dominant theory that explains the actual practices of ACs. In fact, multivocality proves to be a more useful approach for explaining various aspects of AC practices.

Introduction No one really understands how limited an audit committee is in its work. In big companies it is virtually impossible to know what is going on without relying on management, the internal auditor, and the external auditor. NYSE audit committee chair Audit committees are increasingly responsible for the quality of financial reporting and oversight of the audit processes in U.S. public companies (e.g.. Blue Ribbon Committee [BRC] 1999; New York Stock Exchange [NYSE] 2004; Sarbanes-Oxley Act [SOX] 2002), but as noted in the quote above, it is often challenging to provide effective oversight, especially in large, complex organizations. The intense focus on greater audit committee responsibility has led to a number of studies on audit committee performance (for reviews of the academic literature on audit committees,

Purpose: This article aims to investigate the extent to which State-Owned Enterprises (SOEs) in Indonesia disclose their Corporate Social Responsibility (CSR) programs to the general public. Design/Methodology/Approach: Quantitative design is used as the main method in the study. Corporate profiling is used for analyzing SOEs profile and program profiling is used to analyze the profile of CSR programs implemented by SOEs. Findings: The study concludes that, first, SOEs under study disclose their CSR programs to the general public. In terms of indicators it is difficult to conclude that CSR programs disclosed by SOEs signify corporate virtuous citizenship embedding the initial ideas of CSR. Practical implications: Practical implications of the study are two-folds. First, that SOEs in Indonesia, need to strengthen the institutional drivers of CSR, and put pressure on companies to move beyond philanthropy, rhetoric, legitimization, imagery, and public relations to substantive engagement in CSR and genuine attempts at change and development. Second, the implementation of CSR programs by SOEs is judicially liable to public auditing. Originality/Value: The value of this study strengthens arguments which hold that the implementation of CSR, even implemented by SOEs, functions more as corporate survival mechanism rather than for solving social and environmental problems.

Manuscript type: Research paper Research aims: This research is based on an experiment which is conducted to examine the effects of financial information and corporate social responsibility (CSR) disclosure on investment decision. Design/Methodology/Approach: The research employs the laboratory experiment design which involves 45 graduate students as subjects. The independent variable, financial information, is manipulated by favourable and unfavourable financial information while the CSR disclosure is manipulated by prevention focus and promotion focus. The dependent variable, investment decision, is manipulated by using the 10-point Likert scale. Subjects are randomly assigned to one of four treatments (favourable or unfavourable financial information and promotion focus or prevention focus of CSR disclosure). Research findings: The results show that CSR disclosure affects investment decision. The results also show that subjects decide on

Theories underlying the CSR concept only takes side of secular world because it is based on materialistic world view which directs CSR practice at pragmatic goals. Therefore, CSR needs conceptual development which is able to balance material and spiritual worlds. The objective of this research is to develop CSR concept through elaboration of divine values based on liberation theology. Liberation theology presents three main principles, namely, 1) Equitable distribution of wealth, 2) Managing earth as mandate of creation, and 3) Fulfilling basic human rights. The principle is taken as the basis to arrange the deliberative CSR concept that is able to promote a civil society. This research employed a qualitative approach with critical paradigm to interpret the phenomena and reconstruct CSR concept. The results of this research are: 1) The concept of tazkiah or soul purification in economic case, that is purifying human by spending their wealth in the way of Allah; 2) The concept of justice, as the basis to settle poverty issue; 3) Natural balance as the basis of utilizing natural resources; 4) Social welfare, which is the Prophet's revolutionary mission through liberating human from ignorance, oppression, slavery, and poverty. The implication is that deliberative CSR liberates CSR from materialism's capitalistic worldview. Deliberative CSR makes entity perform CSR beyond the obligation; which is as human necessity to actualize their duties as God's representative on earth as the consequence of devotion to Allah SWT.

Project management is a combination of both science and art as the merger of the terms of 'project' reflects to the technical knowledge, skills and competencies and 'management' refers to the human related components such interpersonal and leadership capabilities. Leadership is identified as central and core to successful business outcomes and prevails as crucial in any group or collective tasks. Project management is a business and an organisation, and the need to have an effective project leadership in place at all project phases is salient to ensure successful project outcomes, that fulfils project objectivesas well as adhering to the objectives from the lense of Islam; to seek the pleasure of Allah (Mardhatillah) and His reward and eventually to achieve success in this world and in the Hereafter. With the increasing leadership challenges in leading construction projects nowadays, as complexity, stakeholders' requirements and project failure grows, as well as continuous ethical issues and malpractices, project management awaits divine guidance that has its sources from and accord to the principles and values as prescribed in the Qur'an and the Sunnah. This paper aims to highlight, compare and discuss the Western modern perspective of project leadership with the one from the proposed Islamic perspective and also attempts to demonstrate some points on the merits of imbuting Islamic principles of leadership into projects.

Business scandals and ethical misconduct caused millions of dollars in losses, left behind damaged organizations, forced them to close their business and left thousands of employees jobless without any future guarantee or security. This incident has left scholars and managers asking what role they might have played to curb these ethical scandals and what role they can play in the solutions. Scholar and managers collectively have responded to the ethical challenges that we face in organizational life. Some scholarship assesses the current state of ethics in management education, helping us to diagnose and tackle the realities of unethical behavior. Part of the solution to this problem is to design and develop courses and programs in a better way, integrate business and management learning with ethical conduct. Scholars should focus on which standards should be advanced. Indeed, what connects these diverse discussions is a clear recognition that educational components designed to solv...

Hajj is the fifth pillar of Islam. Every year, during the hajj season, millions of pilgrims came from different countries and gathered in Mecca to perform hajj. The huge numbers of pilgrims have made the management of pilgrims became too complex. The management itself is also not reasonable if it not based on the Islamic philosophical basis. In other words, the most suitable management practice in managing pilgrims in Mecca is the management from the Islamic philosophical perspectives. Therefore, this paper aims to identify and to analyze the philosophy of hajj pilgrim's management from Islamic perspectives. This paper employed document research method and was analyzed with content analysis method. The result found that the philosophy of hajj pilgrim's management from Islamic perspective can be identified based on four elements. The first element is epistemological aspect by referring to Qur'an and hadith as the authoritative source of knowledge. Secondly, ontological as...

In the literature, a plethora of research conducted has approved the significant relation between organizational culture and effectiveness. Various variables of culture including values and norms based on industry or nationality have been studied. However, these studies provide less attention to religious influence in organizational culture and its subsets. In certain localities, such as Malaysia, religion is crucial in shaping organizational culture. This can be verified from various policies and slogans established depicting Malaysian government initiatives to consistently nurture and inculcate Islamic values in administration. This chapter proposes a conceptual framework of the Islamic value system’s influence on organizational effectiveness, with special reference to quality management effectiveness by summarizing the linkage between the two. Prior to that, this chapter elaborates on the concept of organizational culture and values. This chapter also summarizes the linkage between organizational culture and effectiveness based on previous studies. This is followed by an explanation of the Islamic value system and its uniqueness. Finally, this chapter concludes with some future research agenda.

The linkage between organizational culture and organizational effectiveness has been elaborated by some empirical studies. Yet, organizational culture which includes shared values, philosophy, rules and habits are found to be varied across different continents, race, belief and others. However, little reference has been made to relate organizational culture with religion, specifically, the religion of Islam. So far, instruments developed and employed are also found lacking with religion influence which is somehow crucial in certain countries. This article conceptualizes organizational effectiveness in light of Islamic value system. Prior to that, the article elaborates the concept of organizational culture and organizational effectiveness, before elaborating on the linkage between the two. Consequently, the uniqueness of Islamic value system is explained as it may act as a motivation towards values adherence in organizational context. Finally, some suggestions for future research are also included in this article.

This paper aim at exploring Religion, Justice and Human rights in Islamic persp ctive. It will evaluate some challenges facing religion especially Islam in advo cating for justice and human rights. The paper also establish the impact of religion in advocating for justice and human rig hts in society. In some instances it explore how Is lamic teachings can be implemented to promote Justice and Human rights. Th e paper will help both the religious and political leaders to promote Justice and Human rights. Islam has Five Pillars of religion. These pillars r otate around faith and practice. Analyzing the pill ars, one realize that Justice and human rights are highly emphasized in Islam. Muslims believe that there can be no rea l justice except as an aspect of submission to Allah who is the source of justice. Although Allah is beyond comprehension or analysis, the Holy Qur’an teach about His attributes through what are sometimes called “the 99 attributes of Allah” and o ne of these is al...

This study constructs active Islamic portfolios using a multi-style rotation strategy, derived from the three prominent styles, namely, momentum, value, and quality investing. We use the stocks that are consistently listed in the U.S. Dow Jones Islamic index for a sample period from 1996 to 2012. We also include two macroeconomic mimicking portfolios to capture the premiums of industrial production growth and inflation innovation, accommodating the economic regime shifts. Based on the information coefficients, we find the six-month momentum and the fractal measure as momentum factors; the enterprise yield (gross profit/TEV) and the book to market ratio as valuation factors; the gross profit to total assets, the return on capital, and the scaled total accruals as quality factors. We further construct active portfolios using the augmented Black Litterman (ABL) factor model to avoid the factor alignment problem, with the factor views predicted using Markov Switching VAR, MIDAS, and Bayesian Model Averaging. The out-of-sample performance of our portfolios can produce information ratios of 0.7 -0.8 over the composite indices, and information ratios of 0.42 -0.48 over the style indices, with the annualized alphas of 10 -11%. Even when we put the constrained tracking error of 1% over the benchmark, our portfolios still produce information ratios of 0.9 -1.2 before transaction costs, and 0.6 -0.8 after transaction costs. We provide intuitive explanations for each premium changing over time, and suggest the promising strategy for Islamic equity investors to outperform the market.

Effective audit committees provide numerous public benefits including better financial reporting and reduced corporate fraud. Prior to the passage of the Sarbanes–Oxley Act (SOX), research identified specific features of audit committee effectiveness, many of which were subsequently included in SOX Sections 301 and 407 regulations on audit committees. Using survey methodology, this study examines the extent to which public company

The purpose of this paper is to investigate the impact of voluntary disclosure about corporate social responsibility (CSR) 1 on firm's financial performance. First, a state of the art about corporate social responsibility and social reporting is presented. After that, the problems of measurement of CSR are indicated and the hypotheses are proposed. In the empirical analysis, regression models are developed to test the impact of social reporting on return on assets (ROA) 2 and return on equity (ROE) 3 , over a period of 11 years from 2000 to 2010 for 201 big French companies. The results showed that there is no significant relation between CSR disclosure and financial performance for French companies, but a positive effect of time on this relation is discerned when there is a lag of one year for the observations. The contribution of this work to the CSR literature is the elucidation of temporal impact of social and environmental disclosure on firm's value.

This study, based on six case studies within a Belgian context, provides a qualitative assessment of the interaction between internal auditors (IA) and audit committees (AC), by analysing their expectations and perceptions. It became clear that both groups have high expectations vis-à-vis each other, although perceptions of IA-AC interactions are not universally positive. Our empirical data indicate that audit committee members want internal auditors to be an important information provider. Therefore they expect internal auditors to demonstrate and communicate, as much as possible, their contribution to the monitoring and functioning of the organisation, and to play both an active and proactive role in risk management. It became clear that, in most cases, due to a mismatch of interests, there is an under-emphasis on the internal audit oversight role of the audit committee, which is more perceived by the internal auditors than by audit committee members. In order to reduce this misma...

Islamic history has given us undeniable proof on the contributions of the Muslims to the welfare of the public, achieving honour and economic prosperity in this worldly life, governed by the Qur'an and the Sunnah. Today, the situation has shifted, where the deviation of Muslims from Islamic teachings is a direct cause of their decline.

The purpose of this paper is to explore the director’s work ethics particularly on Islamic perspectives and prophetic character towards sustaining the performance of the Islamic business organisations. The paper highlights the corporate scandals that occurred in Malaysia. Then, it examines and reviews prior studies on directors’ work ethics, ethics from religious viewpoint and Islamic work ethics. Next, it also discusses the directors’ work ethics based on prophetic characters and present a theoretical framework for directors’ work ethics that applicable in modern business activities. The proposed theoretical framework contains four fundamental characters of directors which are siddiq (truthfulness), fatanah (intelligent), tabligh (deliver) and amanah (trustworhtiness). This framework is hoped to increase the integrity and moral behaviours of the directors and eventually preventing them from involve in various unethical conduct especially in business activities that will tarnish the...