Abideen Adeyemi Adewale

Financial stability of Islamic banks: a review of the literature

The recent global financial crisis that began in the US and spread sporadically to other parts of the world has been a sort of awakening that financial stability of financial institutions has to be on check from time to time. This scenario has called for a concerted effort that may possibly be geared towards introducing a framework or policy that tends to promote and sustain economic growth and stability. The present paper therefore reviews financial stability of banks by surveying the extant literature on the subject. It employs library method to gather information and further analyse it by way of comparative, inductive and deductive methods. The paper establishes that while some Islamic banks are relatively stable in terms of their financial activities, some banks are not.

Preparedness for hospital practice in assuring quality of care

Purpose The purpose of this paper is to identify the dimensions of preparedness for hospital practice among newly graduated medical officers in Malaysian hospitals who are undergoing their housemanship training; and to compare the level of preparedness among the different curricula and predict the dimensions of preparedness for hospital practice. Design/methodology/approach A national study was carried out and data collection was by means of self-administered questionnaire. Data obtained (n=1,213) were subjected to exploratory factor analysis using Statistical Package for Social Sciences version 18 in extracting the dimensions of preparedness for hospital practice. Findings Nine dimensions of hospital practice were identified which were access to information and IT skills, interpersonal skills, basic skills, and continuing professional development, holistic skills, coping skills, ethic and legal skills, patient management skills, scientific knowledge, and clinical skills. Overall, the respondents felt their medical schools prepared them for hospital practice. The strongest predictor for preparedness for hospital practice is coping skills. Holistic skill and preparedness for hospital practice was found to be negatively associated. Those who graduated from twining programmes between Malaysian and overseas universities were found to be better prepared for hospital practice. Social implications An understanding on preparedness for hospital practice among newly graduated medical officers is a step forward in assuring patient safety and quality of care. Originality/value Although of significant importance, however, a study of this nature is rarely researched and the first for Malaysian houseman.

Investment decision behaviour of the Malaysian retail investors and fund managers: A qualitative inquiry

This study aims to investigate the Malaysian retail investors and fund managers’ investment decision behaviours. The study offers an important opportunity for understanding the investors’ experiences, how they understand the Malaysian economy and their priorities for company selection. Other main aspects of this study are how investors mitigate the influence of emotions and psychological biases and challenges faced during investment decisions.,The researchers have mainly adopted an interpretivist approach for the present study. Qualitative data elicited through semi-structured interviews conducted with four retail investors and four fund managers were subjected to qualitative thematic analysis.,The results reveal that the investment decision processes of fund managers are more comprehensive than those of retail investors. Although both fund managers and retail investors acknowledge the influence of psychological biases on their investment decisions, the former use different and comprehensive approaches to mitigate such influences during investment decisions compared with the latter. Other important findings are how investors understand the Malaysian economy, their priorities for company selection and challenges faced during investment decisions.,The researchers have interviewed eight carefully selected interviewees across retail investors and fund managers divide. Adopting other grouping criteria, focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviours of Malaysian retail investors and fund managers.,This study could be used as a guide by both retail investors and fund managers when making investment decisions.,This research has included both retail investors and fund managers; it has also increased literature on investment decision and behavioural finance, particularly in the context of Malaysian investors and managers.

The feasibility of online dispute resolution in the Islamic banking industry in Malaysia: An empirical legal analysis

Purpose The paper examines the perceptions of three major stakeholders - bankers, lawyers and customers, in the Islamic banking industry in Malaysia in order to assess their behavioural intention to use the proposed Online Dispute Resolution (ODR) mechanism. Design/methodology/approach The study modifies the unified theory of acceptance and use of technology (UTAUT) within the context of ODR and its feasibility in the Malaysia Islamic banking industry. The model was extended to include trust in technology and trust in bank, which might have significant influence on the intentions of the major stakeholders to use ODR for banking–related disputes. Actual use of the ODR was not included in the model as specified in the original UTAUT. Based on an internet survey, responses were obtained from about 109 respondents. The data obtained were subjected to multivariate statistical analyses. Findings Results obtained indicate that ‘trust in technology’ and ‘effort expectancy’ are the most influencing determinants of...

Measuring efficiencies of Bangladeshi and Indonesian microfinance institutions: A data envelopment analysis and latent growth curve modeling approach

Purpose The purpose of this paper is to measure the technical efficiency and growth trajectory of Bangladeshi and Indonesian microfinance institutions (MFIs). The motivation for this study was derived from crucial roles that these institutions play in the socio-economic transformation of any nations, especially Bangladesh and Indonesia which are at least prominent in the Asian context in this regard. Rather than “proving” impact, research endeavors have shifted to focusing on “improving” the impact of MFIs, because the ability to improve their impact as socio-economic transformation platform may be hinged on their efficiency over time. Design/methodology/approach Data were obtained from MIX market database covering a five-year period from 2007 to 2011 for 20 Bangladeshi and 11 Indonesian MFIs. The data obtained were subjected to both efficiency and trajectory analysis using data envelopment analysis (DEA) based on Malmquist productivity index, independent t-test, and latent growth curve modeling (LGCM). Findings Overall, DEA results indicate that both Bangladeshi and Indonesian MFIs are approximately efficient under constant returns to scale, variable returns to scale, and scale. There has been an improvement in the management practices of Bangladeshi MFIs, while Indonesian MFIs have increased in optimum size. Independent t-test result shows that Bangladeshi MFIs are significantly efficient in terms of performance and firm’s size compared to Indonesian MFIs, but there is no significant difference in their efficiencies with regard to technology. The intercept and the slope of the regression weight in the estimated model using LGCM are not significantly different. Research limitations/implications This study measures technical efficiency and growth trajectory of Bangladeshi and Indonesian MFIs over a five-year period. However, future studies could explore this in greater depth by incorporating more data. Practical implications The research findings have great implications for the Bangladeshi and Indonesian MFIs. Since this study is among the first of its kind, the researchers have paved ways for further investigation in this area. Moreover, the study encourages the Bangladeshi and Indonesian MFIs to be more concerned of their efficiencies. Originality/value This study measures technical efficiency and growth trajectory of the Bangladeshi and Indonesian (MFIs). These have never been examined together in this way before.

Are Malaysian Islamic banks’ corporate social responsibilities effective? A stakeholders’ view

Purpose The purpose of this paper is to investigate the effectiveness of Islamic banks’ corporate social responsibility (CSR) using data collected from stakeholders in Malaysia. While Islamic scholars have developed the Islamic CSR from the Qur’anic verses, the Sunnah of the Prophet (SAW) and from the western ideologies, the focus of this paper is to assess the effectiveness of the developed Islamic CSR practices. Design/methodology/approach Quantitative research design was adopted for this study. Exploratory factor analysis, confirmatory factor analysis, and other analyses are performed on the data collected from 193 stakeholders in Malaysia. Findings Based on the data collected and analyzed, the results show that stakeholders view the Malaysian Islamic banks’ CSRs as effective. Research limitations/implications This study investigates the effectiveness of Malaysian Islamic banks’ CSR based on the survey data collected. However, future studies could explore this in greater depth using mixed methods. Practical implications The research findings have great implications for researchers. Since this study is among the few research studies that investigate the effectiveness of Islamic CSR, the researchers have paved ways for further investigation in this area. In addition, the study encourages the Malaysian Islamic banks and other Islamic financial institutions to contribute more to the society. Originality/value The study examines the effectiveness of Islamic banks’ CSR and contributes to the growing discussions on the Islamic CSR. The study has opened up this area for further investigations by other researchers.