Professionalizing the role of Shari'ah auditors: How Malaysia can generate economic benefits

Najeeb, Syed Faiq; Ibrahim, Shahul Hameed Mohamed

doi:10.1016/j.pacfin.2013.10.009

Cited by 27 publications

(24 citation statements)

References 11 publications

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“…The study by Najeeb and Mohamed Ibrahim (2013) provides another fascinating discussion pertaining to the professionalization of Malaysian Shariah auditors, as well as about establishing Malaysia as a hub for the professional certification of Shariah auditors. In this paper, the possibility of Malaysia playing a key role in producing Shariah auditors who are professional is discussed.…”

Section: Important Of Education On Internal Shariah Auditmentioning

confidence: 99%

Exploring Undergraduate Students’ Awareness of Internal Shariah Auditing in Malaysia

Khalid

Halim

Sarea

2019

HSSR

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Purpose of the study: It is the goal of this study to explore selected Malaysian public universities undergraduates’ awareness and knowledge level of internal Shariah audit. Methodology: The research used the quantitative approach of the survey. A survey was administrated to undergraduate students in accounting and finance programs in selected Malaysian public universities. Main Findings: The results of this research may indicate the level of knowledge and awareness among accounting students in selected Malaysian public universities. The outcomes of this research could serve as a reference point for the public universities, regulatory and professional bodies in evaluating the execution of a complete internal Shariah audit’s framework. This research will help to enhance the accounting courses offered by selected Malaysian public universities. Applications of this study: This research may provide the accounting students and professional accountants the understanding of the importance of internal Shariah auditing in Malaysian IFIs. Novelty/Originality of this study: Awareness of Internal Shariah Auditing in public universities in Malaysia has not been extensively studied.

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Section: Important Of Education On Internal Shariah Auditmentioning

confidence: 99%

Exploring Undergraduate Students’ Awareness of Internal Shariah Auditing in Malaysia

Khalid

Halim

Sarea

2019

HSSR

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“…Further, when a sukuk issue is approved by a large number of shari'a scholars, a positive signal is likely to be conveyed to the market in the sense of congruence or uniformity of the pronouncement on the acceptability of the financial instrument. The importance of shari'a congruence is evident in the delays in issuance of liquidity instruments by the recently established International Islamic Liquidity Management Corporation in Malaysia, which has seen a reduction in shareholding membership thereby conveying lack of consensus on product acceptability (Najeeb and Ibrahim, 2013). Under these conditions, when more scholars affix their names to a sukuk issue, we expect that market participants will be more confident that the newly-issued investment vehicle is in compliance with shari'a.…”

Section: H2mentioning

confidence: 99%

“…Bank Negara Malaysia introduced in 2011 a shari'a Governance Framework for greater transparency, specifying four functions to support shari'a compliance: shari'a review, shari'a risk management, shari'a audit, and shari'a research(Najeeb and Ibrahim, 2013).©International Monetary Fund. Not for Redistribution…”

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confidence: 99%

Do the Type of Sukuk and Choice of Shari'a Scholar Matter?

Godlewski

Ariss²,

Weill³

2014

IMF Working Papers

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Sukuk, the shari'a-compliant alternative mode of financing to conventional bonds, have expanded considerably over the last decade. We analyze the stock market reaction to two key features of this financial instrument: sukuk type and characteristics of the shari'a scholar certifying the issue. We use the event study methodology to measure abnormal returns for a sample of 131 sukuk from eight countries over the period 2006-2013 and find that Ijara sukuk structures exert a positive influence on the stock price of the issuing firm. We observe a similar positive impact from shari'a scholar reputation and proximity to issuer. Overall our results support the hypotheses that the type of sukuk and the choice of scholars hired to certify these securities matter for the market valuation of the issuing company. JEL Classification Numbers: G14, P51

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“…Moreover, there are just a few recent papers investigating Islamic corporate governance (Najeeb & Ibrahim, 2014;Ullah et al, 2014;Wooi & Ali, 2017). The only studies attempting to evaluate the impact of Shariah scholar reputation on Islamic finance involve sukuk (Godlewski et al, 2014) and banks (Grassa, 2016;Mollah & Zaman, 2015;Mollah et al, 2017).…”

Section: Te Ra Tu R E Re V I Ew a N D Re S Ea R Ch Qu Esti Onmentioning

confidence: 99%

The effects of Shariah board composition on Islamic equity indices' performance

Hassan

Miglietta

Paltrinieri

et al. 2018

Business Ethics: A Eur Rev

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Based on a sample of 54 Islamic indices over the period 2007–2014, we investigate the effect of Shariah board members' educational background on Islamic indices' risk and return characteristics via the screening criteria. Using a capital asset pricing model benchmark analysis, we assess the sensitivity of Islamic indices to their conventional peers in terms of beta and derive a measure of return (Jensen's alpha). First, we observe that the higher the number of members in common among the boards, the higher the risk–return profile of Islamic indices. Second, commonalities among board members lead to standardization of the screening criteria and to similar Islamic indices' performance. Third, we show that different betas across providers depend on the screening criteria, while the economic educational background of board members affects performance in terms of Jensen's alpha. Our study aims at contributing to the governance literature related to board composition and its importance as a possible driver of performance. In addition, given the impressive growth that Islamic finance has experienced during the last decade, this topic is of great interest to the asset management industry.

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Professionalizing the role of Shari'ah auditors: How Malaysia can generate economic benefits

Cited by 27 publications

References 11 publications

Exploring Undergraduate Students’ Awareness of Internal Shariah Auditing in Malaysia

Exploring Undergraduate Students’ Awareness of Internal Shariah Auditing in Malaysia

Do the Type of Sukuk and Choice of Shari'a Scholar Matter?

The effects of Shariah board composition on Islamic equity indices' performance

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