Purpose The purpose of this study is to investigate the nature and integration of Islamic stock markets across the Association of Southeast Asian Nations (ASEAN-5) countries for economic community (AEC) development. Design/methodology/approach Using samples of daily closing prices from 2009 to 2014 across ASEAN-5 countries, co-integration and Granger-causality tests were applied. Findings This research finds that Islamic capital markets across ASEAN-5 countries remain highly integrated despite the global financial crisis of 2008, and it also finds the integration strength between Jakarta Islamic Index -Indonesia and Bursa Malaysia Emas Sharia-Malaysia Islamic capital markets to be the most influential across ASEAN-5 countries, while MSCI-Philippine Islamic capital market is the most vulnerable across ASEAN-5 Islamic capital markets. Research limitations/implications The overwhelming benefit of Islamic stock market integration across ASEAN-5 countries, and, even in a broader context, awaits further inquiry. Originality/value Islamic capital markets across ASEAN-5 countries are integrated regardless of the post-global financial crisis. This contributes to confirming cross-border integration policies, especially for AEC development.

Islamic Capital Market is important part of Financial System in ASEAN countries especially in the context of AEC. The objective of this paper is to investigate interconnection long run equilibrium of Islamic Capital Market in ASEAN Countries. Using daily closing price for from September 2007 to October 2012, this study examine five Islamic Capital markets in ASEAN namely Indonesia, Malaysia, Philippines, Singapore and Thailand. This study examines on Integration among these Islamic Capital markets by relies a simple correlation test, Granger causality test and co-integration test using error correction model. This research documents some interesting finding. First, Using Johansen estimation technique, there is co-integration between the considered Islamic indices namely; Indonesia, Malaysia, Philippines, Singapore and Thailand. Second, Since the co-integration exists, granger causality test shows that there is three bi-directional causalities namely; between Malaysia Islamic Capital Market and Singapore Islamic Capital Market; between Thailand Islamic Capital Market and Singapore Islamic Capital Market; and between Singapore Islamic Capital Market and Philippines Islamic Capital Market. However, there is a unidirectional between Indonesia Islamic Market (MCIINA) and Malaysia Islamic Market (MCIMY), MCIINA and Philippines Islamic Market (MCIPhil), MCIINA and Thailand Islamic Market (MCITHAI), it implies that MCIINA affects MCIMY, MCIPhil, and MCIThai but not vice versa. Third, based on VECM suggest that all Islamic indexes are inter-related in the long run that can be explained due to the similarity of structure bring about by its stock as required by shariah in the process stock screening.

<p>The number of sharia-approved companies in the Indonesia Stock Exchange is growing rapidly. It is important to see how the social performance of these companies, using Islamic Social Reporting Index (ISR Index). Financial Distress as an early sign of a company’s failure is also important to study. This study examines the relation between ISR Index and financial distress in list of sharia securities. The control variables apply in this research are SIZE, ROA, CR, WCTR, DER, and RETA. By using a sample of 129 companies from financial statements and annual reports (2014-2018), three models were built with the Modified Altmans Z-Score, Ohlson O-Score and Zmijewski Zm-Score as a proxy of financial distress. Based on ISR index calculation, the theme of products and services has the highest disclosure score. The lowest disclosure score is corporate governance theme. Panel data regression results show that ISR Index affects financial distress in the Modified Altman’s model. It means the higher the ISR index value, the greater the likelihood of companies run into financial distress. Whereas in Ohlson’s and Zmijewski’s model, ISR Index has no effect on financial distress.</p>

This study aims to analyze the perception of either students of higher education institutions of Islamic economics, or

In Indonesia, the most populer contract used by Islamic bank is murabahah contract, which is very close to the debt based financing. Many researchers argue that, this phenomenon is due to the risk faced by Islamic bank particularly related to the moral hazard by mudarib. This paper aims to explore the lack of musharakah and mudarabah contract in perspective of agency problems theory. The important issue in this paper is whether agency problem also underlies between customer as an agent and Islamic bank as a principal in financing contract. By employing holistic paradigm, namely by combining Islamic value and conventional theory, this study find two conclusion. First, agency problem in the scheme of Islamic banking products is due to the asymmetric information between agent and principal. Strict procedures and higher criteria cause mudarabah amount of financing contract of Islamic bank can not reach it optimum level. Second, agency problems which is happen in Islamic bank can be solve by optimizing the profit sharing ratio aimed to know the customer characters. Optimal sharing ratio can press the moral hazard problem, since the customer should be able to run his business with a maximum level of effort and be able to maximize the revenue generated to match the expectations of the bank and the customer. If the profit-sharing scheme is not optimal, it will lead bank suspicion, thus, banks will increase their control that it will directly have an impact on the rising of cost of monitoring and verification.   Di Indonesia, kontrak yang lumayan tenar yang paling banyak digunakan oleh bank syariah adalah akad murabahah, yang sangat dekat dengan pembiayaan berbasis utang. Banyak peneliti berpendapat bahwa, fenonema ini karena risiko yang dihadapi oleh bank syariah khususnya terkait dengan moral hazard. Tulisan ini bertujuan mengeksplorasi kurangnya musharakah dan mudarabah kontrak dalam perspektif masalah agensi teori. Isu penting dalam tulisan ini adalah apakah masalah keagenan juga mendasari antara pelanggan sebagai agen dan bank syariah sebagai utama dalam kontrak pembiayaan. Dengan menggunakan paradigma holistik, yaitu menggabungkan nilai Islam dan teori konvensional, penelitian ini menemukan dua kesimpulan. Pertama, masalah keagenan dalam skema produk perbankan syariah adalah karena informasi asimetris antara agen dan principal. Prosedur yang ketat dan kriteria yang lebih tinggi menyebabkan jumlah mudarabah kontrak pembiayaan bank syariah tidak dapat mencapai kepada tingkat optimal. Kedua, masalah keagenan yang terjadi di bank syariah dapat terpecahkan dengan mengoptimalkan nisbah bagi hasil yang bertujuan untuk mengetahui karakter pelanggan. Nisbah bagi yang optimal dapat menekan masalah moral hazard, karena pelanggan harus mampu menjalankan bisnisnya dengan tingkat maksimum usaha dan mampu memaksimalkan pendapatan yang dihasilkan sesuai dengan harapan bank dan nasabah. Jika skema bagi hasil tidak optimal, hal itu akan menyebabkan kecurigaan Bank, dengan demikian, bank akan meningkatkan kendali mereka bahwa itu akan langsung berdampak pada meningkatnya biaya monitoring dan verifikasi.

One of the efforts made to measure the stability of the economy in a country is by looking at the performance of its stock market. The stock market can be said to have a good performance, if it is able to reflect prices that are relevant to the news that is developing in the community. The purpose of this study was to examine the influence of the Islamic capital market in 5 ASEAN countries in the era of the Covid-19. This study uses a quantitative approach with daily data in 2020 as the database. The analysis model uses panel data regression with the Common Effect Model (CEM). The results showed that the Singapore, Philippines, and Thailand sharia stock indexes had a significant positive effect on the Indonesian sharia stock index, while the Malaysian sharia stock index had a significant negative effect on Indonesiaan sharia stock index in the era of the Covid-19 Pandemic.

Shariah stocks is one of the financial sectors that experienced with most significant growth in recent years. the most important issue in Shariah stock is Stock screening mechanism. The aim of this study is to examine the screening models of Shariah stocks in ASEAN countries. This study is very crucial especially in the era of ASEAN economic community (AEC). In addition, this study aims to examine some of the factors that contribute to the differences in screening models applied in five ASEAN countries. By using descriptive method and literature studies approach, this study found a few things. Firstly, there are various models of Shariah stock screening in Indonesia, Malaysia, Singapore, Thailand and Philippines. In this context, the model screening in ASEAN countries have two tendencies, namely; for the country in the majority of the population is Muslim whereby there are many Sharia expert, then they will use the specific screening model and applied only in the country, while for the country that the majority is not Muslim, then they will tend to use models of screening that has been used globally for example DJIM, FTSE, etc. This second pattern has been applied by Singapore, Thailand and Philippines. Secondly, differences in shariah screening models influenced by several factors, namely; differences in social structure of a country where the Islamic stock market is located; the difference in the financial industry that exist in the country will affect on the difference of screening models; and differences sect embraced by most scholars in a country is one of the fundamental factors in determining stock screening model of sharia in 5 ASEAN Countries.Saham syariah merupakan salah satu sector yang mengalami pertumbuhan paling siginifikan pada beberapa tahun terakhir ini. Salah satu elemen penting dalam saham syariah yang sampai saat ini masih memiliki banyak isu adalah screening saham syariah. Tujuan dari penelitian ini adalah mengkaji model screening saham syariah yang ada di negara-negara ASEAN. Hal ini sangat penting dalam upaya menghadapi masyarakat ekonomi ASEAN 2015. Selain itu penelitian ini bertujuan untuk mengkaji beberapa factor yang mempengaruhi adanya perbedaan model screening yang ada di 5 Negara ASEAN. Dengan menggunakan metode diskriptif dan dengan pendekatan studi literature, penelitian ini menemukan beberapahal. Pertama, terdapat berbagai model screening saham syariah yang ada di Indonesia, Malaysia, Ijtihad, Jurnal Wacana Hukum Islam dan Kemanusiaan

All this time, both in academic discourse and the reality of legal practice in the field tend to show a lack of attention to the rule of judges as an instrument of legal reform. Generally, the law is regarded as the main instrument of legal reform. Therefore, instilling an understanding of the law enforcement officers, especially the judges through their decision, is a very urgent thing to do. The main issue to be discussed in this paper is: How is the contribution of the Judge's decision to legal reform in Indonesia? This study used the perspective of the School of Sociological Jurisprudence, mainly the philosophical mind of Roscoe Pound. The results of this study show that the effort to make a judge's decision as a means of legal reform is a necessity. This can be realized through a progressive legal paradigm. The presence of a progressive legal paradigm is very important in order to give birth to a progressive type of judge who has a legal decision that qualifies maturity of law. The product of a progressive judge's decision is expected to become a jurisprudence that can be used as a reference in solving the next case so that judges will be able to make the law, not merely as a tool of social control as well as a tool of social engineering. These conceptions of legal function are essentially about to reveal that the nature of the law is dynamic rather than static. The legal philosophy of the sociological jurisprudence school offers a holistic understanding and a holistic view of the law, that is, the law applied must pay attention to the values, the living law, and the local wisdom of society. This holistic understanding of the law will ultimately be able to unify the law and society as its sociological basis.