The introduction of Balanced Score Card (BSC) as one of the management accounting tool to measure the performance of companies in both aspect of financial and non-financial position has been predominantly used since 1992 and had resulted positive energies for the profit making companies. Hence, the extension of the BSC is also required to help the social business organisation in delivering their multiple bottom lines in the most effective ways and provide organisations a mechanism to track their performance holistically through both quantitative and qualitative information. The growing of Islamic Philanthropy Institutions (IPI) especially in Malaysia with the objective to promote social development based on the charitable activities has been acknowledged by the society. Therefore, in order to ensure the sustainability of these institutions, a proper measurement system is required to ensure the final goal of the institutions is achievable and successful. Thus, the objective of this paper is to formulate the main indicators and variables that are suitable to measure the IPIs based on BSC system in four main perspectives which are financial perspective, stakeholder's perspective, internal process perspective and learning and growth perspective. The uniqueness of the establishment of IPIs would require different indicators and variables which are more appropriate as compared with the profit sector organisations. The outcome of this study could provide clear picture and guidelines in designing a proper performance measurement system to be implemented by current IPIs in Malaysia in order to maintain the sustainability and competitiveness of this institutions in future.
Waqf, a non-profit voluntary sector, have an important and integral role in developing communities during various phases of Islamic communities' development. Recently, voluntary sectors are increasing their presence felt in development of communities. Current reports suggest a surge in the role of voluntary sectors in communities' development. This development also leads to the formation of Social Business (SB) which is hybrid in nature. SB is an entity that incorporates both features of profit sector and non-profit sector. SB model has been presented as a viable model in ensuring organization's longevity. This is evident in the case studies discussed. SB while operates on a business-like conduct, however its main objective is still dedicated for the betterment of society. The trend can also be observed in Islamic based voluntary sectors with the creation waqf-based SB (WSB). Issues regarding sustainability and impact of activities to beneficiaries are of concern to stakeholders. Furthermore, for Islamic based voluntary sector such as WSB, they are bound by Maqasid al-Shariah (MS) or objectives of the shariah. Based on MS index developed for the Islamic banking sector, this paper proposed a conceptual framework that could assist in determining the performance of WSB from the perspective of MS.
Other than debt financing, Initial Public Offerings (IPO) become a common method of capital raising among firms for various purposes. Prospectus is issued on the pre-issuance of the IPO disclosing various mandatory and non-mandatory voluntary information to help the potential investors in their decision making process. Other than financial information on previous and forecasted future performance, the intended use of the IPO's proceeds information is one of the crucial information for the stakeholders especially the investors as they will be the financial contributor for the purposes. In one hand, the issuers may decide to issue highly priced IPO to fulfil their financial needs and other going-public motives. In the other hand, the investors willing to subscribe for the IPO to meet their investment target. The gap between the objectives of these two main stakeholders create uncertainties that may jeopardize the interest of the investors. Thus, the objective of this paper is to investigate the relationship between the intended uses of the IPO's proceed disclosed in the prospectus and their subsequent performance of the stocks. The result of the study can provide input for the investors and other stakeholders for their decision making process to meet their respective objectives.
Zakat institutions play a crucial role within the Islamic financial system to maintain the prosperity in Muslim communities. However, inefficient zakat management and low zakat payment compliance identified as main obstacle faced by the institutions. Thus, good governance implementation is noteworthy to alleviate the problems for long-term economic sustainability. Hence, the purpose of this study is to examine the implementation of good governance framework in zakat institution which comprise of their accountable board and leadership (in zakat administration), information transparency (in zakat institution website), disclosure practices (in financial reporting) and stakeholder management (in zakat distribution practices) of Majlis Agama Islam Melaka (MAIM). This study uses content analysis and descriptive method by analysing information disclosed in MAIM's 2015 to 2019 annual report and Pusat Zakat Melaka (PZM) website. The result of this study shows that both institutions generally embraced good governance practices but not at their optimum level. There are deficiencies in zakat information on website to demonstrate their validity in ensuring effective and efficient zakat management and distribution. The implication of this study could deliver positive impact in zakat institutions when good governance is being practiced at optimum level and enhance higher zakat compliance in alleviating poverty among Muslim society.
The study examines the relationship between women on board and firm performance in Malaysian Capital Market amidst Covid-19 outbreak. The study also aims to investigate the effect of different types of industries namely Environmentally Sensitive Industry (ESI) and Customer Proximity Industry (CPI) on firm performance. The study employs OLS regression on top 100 companies listed under Bursa Malaysia for the year 2020. The findings reveal that gender diversity has a favorable and significant effect on the firm's performance measured by Profit Margin (PM), Return on Asset (ROA) & Return on Equity (ROE) and ESI significantly affect firm performance. Meaning that the market places a high value on the involvement of women on boards of directors since it boosts the board's independence and profitability and the different types of industry play significant roles in firm performance. The findings of this study suggest the policymakers to enact suitable legislation requiring a diverse representation of genders on the board of directors.
The introduction of Balanced Score Card (BSC) as one of the management accounting tools to measure the performance of companies in both aspects of financial and non-financial positions has been predominantly used since 1992 and has resulted in positive energies for the profit-making companies. Hence, the extension of the BSC is also required to help the social business organisations in delivering their multiple bottom lines in the most effective ways and providing organisations a mechanism to track their performance holistically through both quantitative and qualitative information. The objective of this paper is to identify and evaluate the indicators used in the BSC as a performance measurement tool for the Islamic Philanthropy Institutions (IPI)s mainly in Pusat Zakat Melaka (PZM) under four main perspectives which are financial perspective, stakeholder’s perspective, internal process perspective and learning and growth perspective in order to achieve the institute’s vision and mission. The findings show that the indicators available for all of the perspectives can be measurable and consistent with the institute’s mission and vision. The outcome of this study could provide a guideline in designing a proper measurement system that can be implemented by the other IPIs in Malaysia in order to maintain its sustainability and competitiveness in future. Keywords: Performance measurement, balanced scorecard, philanthropy
Islamic philanthropy in Malaysian education system has been well rooted in religion-based traditional educational institutions. Currently, Waqf and Endowment (WAE) grow rapidly at higher education institutions as an income generation and a long-term financial sustainability initiative. The initiative is as a result of budget cut by 20 percent for public universities since 2016 and 2017 but no raise in fee is allowed. This initiative is in line to recommendation in the University Transformation Programme (UniTP), Purple Book shift No 5, the Malaysia Education Blueprint 2015-2025 (Higher Education). Being a non-profit organization, the performance of WAE in Malaysian public universities is expected to be different as compared to commercial entities. The importance of having WAE performance measurement may include the economy, effectiveness and efficiency aspects of its activities towards the intended objectives. The method of the study is based on documents review on performance although the literatures on WAE performance measurement in higher education institution is still lacking. As such, the need to develop a holistic model that covers both aspect of performance measurement and good governance are required consistent with the vision of establishment of WAE to act as one of a perpetual financial source for universities. Hence, this research aimed to propose Waqf Performance Measurement and Governance Model used to evaluate WAE's reliability and performance in Malaysian public universities. Future research is required to test and verify this model on the initial sample from waqf institutes in public universities. The expected finding of this study is this model can become as a main reference in measuring the performance of WAE in Malaysian public universities embedded with good governance principles, that could result the positive implications in strengthening the WAE's credibility and stakeholder confidence for universities financial sustainability.
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