This paper aims to scrutinize the concept of Islamic financial literacy and propose the suitable items for its measurement. Design/methodology/approach: An exploratory study is conducted due limited existing research works are available in the area of Islamic financial literacy. The items for measurement of Islamic financial literacy in this paper consider a number of significant features of Islamic finance. Findings: A proposed measurement items of Islamic financial literacy have been developed. Several questions are constructed and grouped namely the money basics, Islamic banking, Takaful and Shariah-compliant investments.Research implications: This study attempts to contribute towards acquiring new theoretical models, especially in suggesting items to measure the level of Islamic financial literacy and personal financial behavior. Practical implications: The expected outcomes from this research will highlight an idea to the Islamic financial literacy and also act as a tool in order to improve the financial behavior as guided by Shariah. Originality/value: This study is the first of this kind to advocate the items for measurement of Islamic financial literacy level by developing test questions consist of these four main aspects in Islamic finance and four elements to be measured in personal financial behavior.
Cooperative enterprises have been recognized as a democratic entity organization. The financial statement is practically prepared for internal users (cooperative members) and for external users (The Cooperative Commission Malaysia (SKM)). The financial statement is a map to understand and measure the financial health of a cooperative. Financial ratio analysis has received the attention in determining detailed coverage of the cooperative liquidity, resources and operations. Report prepared from financial ratio analysis is extensively accepted whether it is a large or small company. This paper indicate financial and non-financial indicators that most importantly reflect business and can be used to examine the performance of cooperatives, most importantly to indicate which financial ratios that reflect business and financial position of cooperatives. Given the recent rapidly increased number of cooperative established with increased number of cooperative members and expectation of performance stability in Malaysia, it becomes a relevant subject matter to conduct this study.
Purpose of the study: This paper aims to examine the impact of capital structure and financial performance of listed insurance companies in Jordon. Methodology: This study used secondary data that was collected from Amman stock exchange and annual report of the selected insurance companies from the year 2007-2017. The static panel data analysis technique is used to examine the impact of capital structure on firm’s performance. The capital structure is measured using short-term debt, long-term debt, and equity financing. Whereas financial performance is measured using Return on Asset (ROA), Return on equity (ROE), and Tobin’s Q. Main Findings: The study findings suggest that capital structure influence the profitability of the listed insurance firms in Jordan. The results also reveal a significantly positive relation between long-term debt to total assets to profitability indicators, namely, return on assets (ROA), return on equity (ROE) and Tobin’s Q. On the other hand, the results also reveal a short-term debt has a significant positive relationship with return on equity (ROE) and returns on assets (ROA). However, a relationship between short-term debt and Tobin’s Q is not statistically significant. Applications of this study: The result of this study may assist the insurance sector in Jordon in making decisions regarding capital structure, which is to significantly rely on equity financing or debt financing to reduce financing risk such as agency cost that borne by the equity holders of the Jordanian insurance firms. Novelty/Originality of this study: The study noted that insurance firms generally play a crucial role in the economic development of every country. This study provides evidence that Jordanian insurance firms need to diversify their sources of financing and not rely significantly on debt financing, as the results prove that equity financing is a profitable source of financing.
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