PurposeThe purpose of this paper is to evaluate and measure the business model of the state welfare organization in assisting and ensuring the business success of its entrepreneurs or zakat recipients.Design/methodology/approachA survey was employed to obtain feedback from the recipients of zakat for small businesses under the scheme of entrepreneurial asnaf zakat.FindingsThe respondents, in general, agree that the variables for the study – capital, courses or training and knowledge or know‐how – are important to them in helping the zakat recipients to succeed in their businesses, which then translates into a better standard of living. Positive correlation is shown for the three variables in determining the success rate of the programme and regression analysis shows that only capital and an asnaf's knowledge is significant in determining an asnaf's entrepreneurial success, which leaves training as insignificant.Research limitations/implicationsThis paper explores the other side of zakat distribution, in the sense that many studies focus on the distribution of zakat collection from the zakat payers to the asnaf whereby the distinction of this study is that it evaluates the asnaf that want to transform their condition through the entrepreneurial asnaf programme. This is rarely investigated due to the lack of a similar programme in other places, even within Malaysia. The limitation for the study is in terms of solid support from the respective parties. This includes the management of Lembaga Zakat Selangor, due to the bureaucratic process, albeit understandable, to protect certain confidential information, and also unfavourable respondents' attitude when being questioned, which is a normal phenomenon in survey study.Practical implicationsThis paper provides insights into the implementation of entrepreneurial zakat, which can be emulated by other zakat collection agencies to develop similar or better innovative programmes for the benefit of the community.Originality/valueThis paper is unique since the feedback is given by the entrepreneurs who receive financial assistance from the state zakat organization in Malaysia, which means the information is derived from the original source. The findings provide good information for practitioners as well as for academicians and students.

The failure of companies to remain profit incurred gradually over several years. Market value of a company under financial distress will reduce; as suppliers prefer cash basis payment on the delivery terms and this may cause a cancellation of order from the customer since the anticipated items would not be delivered on time. Several factors can lead to the failure of a company and determinants of financial distress are important to the company, bankers, investors, the asset manager and rating agencies. Early signs of financial distress can help the manager to take preventive actions to save the company from falling prey to distress. Any economic agent that has any interest with the company namely shareholders, managers, employees, bankers and clients will be affected with the company's failure. Therefore, the main objective of this study is to determine financial distress among the companies Practice Note 17 (PN17) listed in Bursa Malaysia by using the Altman Z-Score Model as a proxy to financial distress. Panel data from 18 companies listed in PN17, Bursa Malaysia for a period of eight (8) years, from 2009 to 2016 were analysed using Fixed Effects Model. This research used the Financial Statement from specific variables that are not used in Altman Z-Score model as potential determinants financial distress. The findings indicate that leverage and profitability are significant determinants of financial distress.

This paper aims to investigate the impact of liberalisation move by Bank Negara Malaysia (BNM) towards the efficiency of domestic and foreign Islamic banks (IBs) in Malaysia. This is consequence of decision of BNM that awarded licenses to three international IBs, namely Kuwait Finance House (KFH), Al Rajhi Bank, and Asian Finance Bank in 2005. In addition, this study takes into consideration the existing foreign banks in the country that operate via Islamic banking subsidiaries as part of foreign IBs. The research evaluates the impact of foreign Islamic banks in Malaysia by measuring their contribution to the growth of the Malaysian Islamic banking industry. Using a sample of 16 IBs in Malaysia from 2008 to 2015, the study uses Data Envelopment Analysis (DEA) in measuring the efficiency level of each bank and comparative between the performance of domestic and foreign IBs in the country. The paper also employs the Malmquist Productivity Index to gauge the changes in its components between the same subjects and timeframe. The DEA results showed that the domestic Islamic banks are considered more efficient than most domestic Islamic banks outperforming the foreign Islamic banks. Banks like Hong Leong Islamic, Maybank Islamic, Public Islamic, and RHB Islamic are considered among the top performers for technical efficiency and scale efficiency. The study also found that based on the Malmquist Productivity Index, the least efficient banks based on DEA have improved in technical efficiency, technology, and total factor productivity (TFP).

This paper is aimed at advancing empirical indications on micro variable factors determining systematic risk in Shariah complaints firms listed on Bursa Malaysia. This paper also attempts to identify whether the Shariah compliant firms are showing the same micro variables factors that determine systemic risk. The systematic issues have become the main concern to many related parties such as policy makers, investors and stakeholders as systematic risk is unable to be removed through diversification. Shariah compliant firms have their own unique systematic risk owing to their difference in business philosophy. A hypothesis between the relationship of the firms-specific micro variable factors and systemic risk are established on foregoing studies and theoretical framework respectively, and analyzed using the Fixed Effects Model tested on the data from 80 listed companies covering a period from 2009 to 2018. The results show that leverage and growth are the most significant factors of the systematic risk of Shariah compliant firms. Therefore, high leverage and growth firms are considered to be high risk for investment in Malaysia capital market.

Purpose -The purpose of this paper is to measure the sensitivity of the banks' customers towards the adoption of Arabic terminology in the Islamic banking industry. Design/methodology/approach -A sample of 100 respondents who were mainly banks' clients was surveyed through personally administered questionnaire and only 60 questionnaires are usable for the study. The remaining 40 questionnaires were rejected due to incomplete answers and error. The survey executed based on convenience sampling method. The study was conducted at Shah Alam for nearly two and a half months and the city chosen due to the exclusivity of the city's demographic; significant availability of white collar employees as its residents which illustrate a high income population, high literacy and high academic qualification. Findings -The majority of the respondents agree that Arabic terminology gives competitive edge to the Islamic banks but at the same time they indicate that the catchy Arabic name will give them difficulty in gaining fast information about and comprehension of the product. The trend depicted by the non-Muslims respondents when answering the questionnaire indicates that, in many cases, they are at the negative side on every statement given. Thus, it signifies a need from the Islamic banking side to manage this issue, since the non-Muslims are majority clients of the industry in Malaysia.Research limitations/implications -The response rate of 60 per cent for this study is considered good. However, the availability of more respondents would give higher rate of representation. Practical implications -This paper provides insights for the interested parties to know the banks' clients' needs from the Islamic banking sector and will help to increase the number. Originality/value -This paper measures the responses of banks' customers towards the adoption of Arabic terminology, in a multi-racial society in which limited study has been done.