Anna Che Azmi

Challenges to Shariah equity screening, from Shariah scholars’ perspective

Purpose This paper aims to examine the challenges of applying Shariah law in the equity market by engaging in narratives with Shariah screeners and advisors on how they conduct their screening responsibilities despite the low levels of Islamic-related disclosure made by companies in their annual reports. The Shariah screening processes in three countries with different Islamic equity markets – Malaysia, Saudi Arabia and the United Kingdom – are examined. Design/methodology/approach The authors interview 19 Shariah screeners and advisors in three different Islamic equity markets – Malaysia, Saudi Arabia and the United Kingdom. Findings Overall, the findings in this study show that despite the differences in the regulatory environment, companies still make Islamic-related disclosures on a voluntary basis. However, the lack of Islamic-related disclosures presents various challenges for Shariah screeners, particularly when identifying the operations that constitute the main activity of the company in screening for prohibited activities. Research limitations/implications Shariah screeners can play an important role in increasing the level of understanding and perhaps increasing Islamic-related disclosures in annual reports by establishing a set of effective guidelines or practices for Shariah screeners to use when screening companies for their Shariah-compliant status. Originality/value The paper identifies a gap in the Shariah screening literature and voluntary Islamic disclosures literature. By identifying this gap, the paper highlights the challenges Shariah screeners and advisors face because of the low level of Islamic-related disclosures.

Trust and justice in the adoption of a welfare e-payment system

Purpose The purpose of this study was to examine the interaction between citizens’ perception of justice and their trust in the government agency that provides e-services, in particular, those e-services with users who are particularly sensitive towards their interaction and exchanges with the government. Design/methodology/approach Analysis of 102 surveys completed by users of e-BR1M was conducted. Partial least squares regression, a form of structural equation modelling, was used for the data analysis. Findings This study found that distributive justice and procedural justice positively influence trust in government. Trust in government and convenience were also found to significantly influence the adoption of e-BR1M. Research limitations/implications Understanding the interaction between perceptions of justice (procedural and distributive justice) and trust can contribute to the willingness to adopt e-government services by a particular group of users who are particularly sensitive towards interactions with the government. Practical implications Findings from this study can help policymakers improve the way in which they interact with citizens so that the citizens’ perceptions of procedural and distributive justice are improved. This, in turn, will improve trust in government and will lead to an improved willingness of citizens to use e-government services. Originality/value This study examined the interaction between citizens’ perceptions of trust and justice in an e-government service, which users are particularly sensitive towards in their interactions with the government.

Trust, justice and the continued use of e-filing

This exploratory study examines the influence of trust and justice dimensions towards the government and the continued usage of the e-filing system. Partial least squares were used for the data analysis. The results provide evidence that trust and distributive justice are important factors in the continued use of e-filing systems. However, distributive and procedural justice does not have any influence on the perceptions of trust of users of the e-filing systems. Thus, to establish a high level of trust and distributive justice with the citizens who use their e-filing systems, government authorities need to establish good communication with them, and offer honest justifications and explanations to them. The government also needs to tailor their online services such as e-filing to accommodate the needs of different user groups.

The Sharia-compliance of Financial Reporting Practices: A Case Study on Waqf

Purpose – This study aims to examine whether the financial reporting practices of organisations managing waqf (Islamic endowed trust funds) are Sharia-compliant. Design/methodology/approach – This paper reports on a case study of two Islamic-based organisations that manage waqf. The financial statements of these organisations are analysed using content analysis to assess their compliance with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) Sharia Standard No. 33 (SS 33) on waqf. Findings – The authors found that both Islamic-based organisations use different sets of accounting procedures and practices, but that these accounting practices do not contradict the Sharia requirements prescribed in the SS 33 on waqf. However, the SS 33 on waqf requires that waqf funds to be utilised as stipulated by the waqif (donor) and that the accounting practices of both organisations do not adequately address this disclosure requirement. This study also found that the existing accountin...

Sharia disclosures: An exploratory study from the perspective of Sharia-compliant companies and professional users

Purpose This paper aims to examine the reasons behind the low level of Sharia-related disclosures, particularly Sharia-compliant companies, to gain an understanding on how these companies disclose Sharia-related information in their annual reports, and how professional users of these reports search for such disclosures. Design/methodology/approach The study is an exploratory research based on structured interviews with individuals involved in the preparation of annual reports of Sharia-compliant companies and professional users of annual reports. Findings Most Sharia-compliant companies and professional users interviewed agree that the most relevant Sharia-related information is most commonly understood as the information found in the financial statement and its notes (accounting-related disclosures). Their responses indicate that there is a disjoint between the conventional disclosure practices on corporate social responsibility items and the Sharia-related information. Research limitations/implications The idea of full disclosure needs to be further understood from the perspectives of Sharia. This study provides insights into the types of Sharia-related information that are important for disclosure. Future research should focus on examining a larger number of companies and interviewing more professional users from different jurisdictions to generate more knowledge about the nature of Sharia information and its disclosure. Practical implications Users of the Sharia screening methods, especially regulators, such as the Securities Commission Malaysia should encourage the disclosure of the required aspects of Sharia in the annual reports of Sharia-compliant companies, as professional users are interested in this type of information. Originality/value This study offers insights into the reasons behind low Sharia disclosures in annual reports of Sharia-compliant companies.