Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia

Purpose: Mosques play a vital role in strengthening Islamic values among community members through programs and activities. An appropriate amount of funding is required to carry out such activities. This paper focuses on the ability of appropriate accounting practices in ensuring increased donations...

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Main Authors: Zakariyah, Luqman, Mohd Noor, Azman, Sarif, Suhaimi Mhd
Format: Article
Language:English
Published: Serials Publications Pvt. Ltd 2017
Subjects:
Online Access:http://irep.iium.edu.my/58325/
http://irep.iium.edu.my/58325/
http://irep.iium.edu.my/58325/1/Published%20Version.pdf
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spelling iium-583252017-11-05T17:53:52Z http://irep.iium.edu.my/58325/ Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia Zakariyah, Luqman Mohd Noor, Azman Sarif, Suhaimi Mhd BP1 Islam BP173 Islamic sociology BP173.63 Islam and civil society BP173.75 Islam and economics BP174 The Practice of Islam BP50 History Purpose: Mosques play a vital role in strengthening Islamic values among community members through programs and activities. An appropriate amount of funding is required to carry out such activities. This paper focuses on the ability of appropriate accounting practices in ensuring increased donations that will enable mosques to practice the Maslahah principles of Maqasid, i.e. ensuring public interest. Methodology: This paper proposed a conceptual model to analyse the impact of accounting practices on donations by stewardship and resource-based theory. The sample of 287 respondents consists of key personnel of Tabung Masjid in Malaysia. Structural equation modelling was used to test the validity of the proposed model. Findings: The main findings of this paper show that governance mechanisms influence reporting and individual donations. Reporting practices do not have a mediating effect, but indirectly affect the relationships between governance mechanisms and individual donations in Tabung Masjids. A negative association between governance mechanisms and donations indicates that higher level of internal auditing reduces public trust in mosques which results in decreased donations. Transparent reporting practices, on the other hand, have a positive influence on donations. Research Limitations: This study has focused only on one aspect of governance mechanism (auditing), but several other internal governance mechanisms could provide better estimates. Practical Implications: The results indicate the significance of external auditing and reporting that may increase individual donations in mosques. Thus, from a policy perspective, bodies that regulate mosques in Malaysia should consider implementing appropriate governance and disclosure mechanisms in order to increase the ability of mosques in serving public interests. Originality: To date, this is the first research that has been conducted to analyse the impact of governance mechanisms on reporting and donations in the context of mosques in Malaysia. The study also validates the applicability of stewardship theory in studying Islamic Religious Charitable Institutions. Serials Publications Pvt. Ltd 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/58325/1/Published%20Version.pdf Zakariyah, Luqman and Mohd Noor, Azman and Sarif, Suhaimi Mhd (2017) Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia. International Journal of Applied Business and Economic Research, 15 (16). pp. 495-514. ISSN 0972-7302 http://www.serialsjournals.com/serialjournalmanager/pdf/1503993668.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic BP1 Islam
BP173 Islamic sociology
BP173.63 Islam and civil society
BP173.75 Islam and economics
BP174 The Practice of Islam
BP50 History
spellingShingle BP1 Islam
BP173 Islamic sociology
BP173.63 Islam and civil society
BP173.75 Islam and economics
BP174 The Practice of Islam
BP50 History
Zakariyah, Luqman
Mohd Noor, Azman
Sarif, Suhaimi Mhd
Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
description Purpose: Mosques play a vital role in strengthening Islamic values among community members through programs and activities. An appropriate amount of funding is required to carry out such activities. This paper focuses on the ability of appropriate accounting practices in ensuring increased donations that will enable mosques to practice the Maslahah principles of Maqasid, i.e. ensuring public interest. Methodology: This paper proposed a conceptual model to analyse the impact of accounting practices on donations by stewardship and resource-based theory. The sample of 287 respondents consists of key personnel of Tabung Masjid in Malaysia. Structural equation modelling was used to test the validity of the proposed model. Findings: The main findings of this paper show that governance mechanisms influence reporting and individual donations. Reporting practices do not have a mediating effect, but indirectly affect the relationships between governance mechanisms and individual donations in Tabung Masjids. A negative association between governance mechanisms and donations indicates that higher level of internal auditing reduces public trust in mosques which results in decreased donations. Transparent reporting practices, on the other hand, have a positive influence on donations. Research Limitations: This study has focused only on one aspect of governance mechanism (auditing), but several other internal governance mechanisms could provide better estimates. Practical Implications: The results indicate the significance of external auditing and reporting that may increase individual donations in mosques. Thus, from a policy perspective, bodies that regulate mosques in Malaysia should consider implementing appropriate governance and disclosure mechanisms in order to increase the ability of mosques in serving public interests. Originality: To date, this is the first research that has been conducted to analyse the impact of governance mechanisms on reporting and donations in the context of mosques in Malaysia. The study also validates the applicability of stewardship theory in studying Islamic Religious Charitable Institutions.
format Article
author Zakariyah, Luqman
Mohd Noor, Azman
Sarif, Suhaimi Mhd
author_facet Zakariyah, Luqman
Mohd Noor, Azman
Sarif, Suhaimi Mhd
author_sort Zakariyah, Luqman
title Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
title_short Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
title_full Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
title_fullStr Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
title_full_unstemmed Accounting practices and charitable giving: Integrating Maqasid al-Shariah framework for Tabung Masjid in Malaysia
title_sort accounting practices and charitable giving: integrating maqasid al-shariah framework for tabung masjid in malaysia
publisher Serials Publications Pvt. Ltd
publishDate 2017
url http://irep.iium.edu.my/58325/
http://irep.iium.edu.my/58325/
http://irep.iium.edu.my/58325/1/Published%20Version.pdf
first_indexed 2023-09-18T21:22:28Z
last_indexed 2023-09-18T21:22:28Z
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