Can disclosure practices and stakeholder management influence zakat payers’ trust? A Malaysian evidence

Samargandi, Nahla; Tajularifin, Sakinah Mohamed; Ghani, Erlane K; Aziz, Asmah Abdul; Gunardi, Ardi

doi:10.15208/beh.2018.60

Cited by 13 publications

(25 citation statements)

References 22 publications

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“…Official website should ensure enough information available such as the process of zakat application, programs conducted, zakat distribution summary, method of zakat payment and other relevant data. However, there are some challenges in collecting relevant zakat information especially on the reporting aspects (Samargandi et al, 2018;Sapingi, Nelson & Obid, 2018;Sulaiman, Che Cob, & Ali 2015). A study found that only 7% of the respondent gathered zakat information through official zakat website while other channel used are through relative friends, newspaper, memo and radio (Raja Ahmad, Amiruddin Othman, & Salleh, 2015).…”

Section: Transparent Information (Zakat Institution Website)mentioning

confidence: 99%

Enhancing the Role of Zakat Institutions Through Good Corporate Governance for Economic Sustainability: A Case from Majlis Agama Islam Melaka & Pusat Zakat Melaka

Sani¹,

Samad²,

Saidina³

et al. 2021

IJAREMS

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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.

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Section: Transparent Information (Zakat Institution Website)mentioning

confidence: 99%

Enhancing the Role of Zakat Institutions Through Good Corporate Governance for Economic Sustainability: A Case from Majlis Agama Islam Melaka & Pusat Zakat Melaka

Sani¹,

Samad²,

Saidina³

et al. 2021

IJAREMS

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“…The research conducted by Mital et al (2010) andDuffy et al (2011) concluded that the level of trust in the organization depends on the quality and disclosure of financial information. Likewise, Mustafa et al (2013) and Samargandi et al (2018) at zakat institutions concluded that to increase muzakki's trust, zakat institutions must disclose financial information and other information to ensure the institution is valid and legitimate.…”

Section: Financial Reporting Qualitymentioning

confidence: 99%

“…Mustafa et al (2013) stated that zakat payers need broad-based information relating to financial matters to prove that the institution is valid and legitimate. According to Samargandi et al (2018), zakat institutions should focus on transparency in disclosing practices to increase the trust of zakat payers in them. One of the most important information for muzakki is financial information presented in the form of financial reporting as a form of transparency and accountability in the management of zakat funds by ZMO.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Amil’s Islamic Characteristics on the Quality of Financial Reporting of Zakat Management Organizations (Zmo): Good Governance as Intervening Variable

Nawas¹,

Basri²,

Mariyanti³

et al. 2021

International Journal of Islamic Business

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The objective of this research is to analyze the effect of Amil's Islamic Characteristics on Quality of Financial Reporting and Good Governance as an Intervening Variable in Zakat Management Organizations (ZMO). The research used the Structural Equation Modeling-Partial Least Square (SEM-PLS) method with SmartPLS software to analyze data from 204 samples of commissioners and administrators of Zakat Management Organization. The results show that the character of trustworthiness, professionalism, and good governance had a positive and significant effect on the quality of Financial Reporting. In contrast, Islamic religiosity has no impact on the quality of financial reporting. The results also show that Islamic religiosity, trustworthiness, and professionalism had a positive and significant effect on good governance. Good governance played a role in mediating the influence of trustworthiness on the quality of Financial Reporting. The research findings provide managerial implications for ZMO and the government to utilize Islamic religiosity and character of trustworthiness as qualitative standards in Amil recruitment. Furthermore, it allows them to create and set Amil’s professional competency standards, including the fields of accounting and management, and provide Amil professional certification as well as establish Amil Professional Associations.

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“…7. The disclosure is expected to increase the trust of Muzaki to donate in LAZ (Samargandi et al, 2018). Fundraising (F1) will be escalated, hence, maximisation of fund distribution (F3) to promote the welfare and prevent harmfulness as well as poverty alleviation (Ahmed, 2011;Zakaria et al, 2014).…”

Section: Relationship Of Perspectives and Strategic Objectivesmentioning

confidence: 99%

Performance Management in Indonesia Zakat Institutions

Annahl

2020

iconz

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Zakat management in Indonesia has developed significantly after establishment of BAZNAS (Indonesia National Board of Zakat). Number of zakat fund collected always rise each year even though it has not fulfilled the total potential of zakat collection. In order to escalate it, BAZNAS constructed National Zakat Index (NZI) to measure the macro dan micro development of zakat in Indonesia. Micro aspect deliberates institutional variables; however, there has no strategic objectives guidelines for zakat institution manager to contribute in NZI improvement. Therefore, this research applies Balanced scorecard (BSC) and Fuzzy DEMATEL approach to develop strategic objectives as well as the relationship. This exploratory research develops strategic objectives with BSC approach with aiming to help LAZs’ managers focusing on specific outcomes and reach better institutional aspect performance of NZI. The developed strategic objectives are fundraising, cost control, fund distribution, muzaki-mustahik satisfaction, muzaki-mustahik growth, community building, partnership, understanding zakat, sharia-based programs, institutional reporting, technology, knowledge management, and amil’s well-being. Furthermore, the relations are also explained in this research. Stakeholders perspective is the final aim of zakat institutions while Learning & Growth perspective become fundamental for the institutional development. Future researches can apply other data collection method and develop performance measurement which consists of outcome measure and performance drivers.

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Can disclosure practices and stakeholder management influence zakat payers’ trust? A Malaysian evidence

Cited by 13 publications

References 22 publications

Enhancing the Role of Zakat Institutions Through Good Corporate Governance for Economic Sustainability: A Case from Majlis Agama Islam Melaka & Pusat Zakat Melaka

Enhancing the Role of Zakat Institutions Through Good Corporate Governance for Economic Sustainability: A Case from Majlis Agama Islam Melaka & Pusat Zakat Melaka

The Effect of Amil’s Islamic Characteristics on the Quality of Financial Reporting of Zakat Management Organizations (Zmo): Good Governance as Intervening Variable

Performance Management in Indonesia Zakat Institutions

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