Financial management practices and performance of Zakat institutions in Malaysia

In Malaysia, critics have raised concerns over mismanagement and goal achievement in zakat institutions. In the light of this, zakat institutions have responded to these concerns by adopting greater transparency to show their accountability. This study examines the current financial management pract...

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Main Authors:	Anuar, Fatimah Sakeenah, Mohd Alwi, Norhayati, Mohd Ariffin, Noraini
Format:	Article
Language:	English
Published:	Institut Perakaunan Negara, Jabatan Perakaunan Negara 2019
Subjects:	BPH Islamic Economics BPH531 Zakat HB126.4 Islamic Economics HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/78548/ http://irep.iium.edu.my/78548/ http://irep.iium.edu.my/78548/1/78548_Financial%20Management%20Practices.pdf

id	iium-78548
recordtype	eprints
spelling	iium-785482020-02-28T01:52:43Z http://irep.iium.edu.my/78548/ Financial management practices and performance of Zakat institutions in Malaysia Anuar, Fatimah Sakeenah Mohd Alwi, Norhayati Mohd Ariffin, Noraini BPH Islamic Economics BPH531 Zakat HB126.4 Islamic Economics HF5601 Accounting. Bookkeeping In Malaysia, critics have raised concerns over mismanagement and goal achievement in zakat institutions. In the light of this, zakat institutions have responded to these concerns by adopting greater transparency to show their accountability. This study examines the current financial management practices and performance in zakat institutions. Six elements of the Financial Management Accountability Index (FMAI), i.e. organisational management, budget, receipts, expenditures, assets and reporting, were used as a benchmark. The study also attempts to find a relationship between financial management practices and financial performance. It employed the census method where all 14 zakat institutions were enumerated, and a sample of 140 employees and 140 customers responded to performance questionnaires. Empirical data were collected mainly through three sets of questionnaires. The data were analysed using descriptive analysis and bivariate correlation. The findings show that receipts, disbursements and asset management are the most crucial areas reflecting a ‘good’ level of practice by zakat institutions. The results also show that there is a positive relationship between financial management and financial performance. This study is significant as it highlights areas for improvement and hence spurs the institutions to achieve their goal. The results may guide zakat institutions on the means to adopt greater transparency and accountability to the public in future. Institut Perakaunan Negara, Jabatan Perakaunan Negara 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/78548/1/78548_Financial%20Management%20Practices.pdf Anuar, Fatimah Sakeenah and Mohd Alwi, Norhayati and Mohd Ariffin, Noraini (2019) Financial management practices and performance of Zakat institutions in Malaysia. IPN Journal of Research and Practice in Public Sector Accounting and Management, 9 (1). pp. 1-26. ISSN 2180-4508 E-ISSN 2682-9347 http://jurnal.ipn.gov.my/1.%20Financial%20Management%20Practices%20and%20Performance%20of%20Zakat%20Institutions%20in%20Malaysia.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	BPH Islamic Economics BPH531 Zakat HB126.4 Islamic Economics HF5601 Accounting. Bookkeeping
spellingShingle	BPH Islamic Economics BPH531 Zakat HB126.4 Islamic Economics HF5601 Accounting. Bookkeeping Anuar, Fatimah Sakeenah Mohd Alwi, Norhayati Mohd Ariffin, Noraini Financial management practices and performance of Zakat institutions in Malaysia
description	In Malaysia, critics have raised concerns over mismanagement and goal achievement in zakat institutions. In the light of this, zakat institutions have responded to these concerns by adopting greater transparency to show their accountability. This study examines the current financial management practices and performance in zakat institutions. Six elements of the Financial Management Accountability Index (FMAI), i.e. organisational management, budget, receipts, expenditures, assets and reporting, were used as a benchmark. The study also attempts to find a relationship between financial management practices and financial performance. It employed the census method where all 14 zakat institutions were enumerated, and a sample of 140 employees and 140 customers responded to performance questionnaires. Empirical data were collected mainly through three sets of questionnaires. The data were analysed using descriptive analysis and bivariate correlation. The findings show that receipts, disbursements and asset management are the most crucial areas reflecting a ‘good’ level of practice by zakat institutions. The results also show that there is a positive relationship between financial management and financial performance. This study is significant as it highlights areas for improvement and hence spurs the institutions to achieve their goal. The results may guide zakat institutions on the means to adopt greater transparency and accountability to the public in future.
format	Article
author	Anuar, Fatimah Sakeenah Mohd Alwi, Norhayati Mohd Ariffin, Noraini
author_facet	Anuar, Fatimah Sakeenah Mohd Alwi, Norhayati Mohd Ariffin, Noraini
author_sort	Anuar, Fatimah Sakeenah
title	Financial management practices and performance of Zakat institutions in Malaysia
title_short	Financial management practices and performance of Zakat institutions in Malaysia
title_full	Financial management practices and performance of Zakat institutions in Malaysia
title_fullStr	Financial management practices and performance of Zakat institutions in Malaysia
title_full_unstemmed	Financial management practices and performance of Zakat institutions in Malaysia
title_sort	financial management practices and performance of zakat institutions in malaysia
publisher	Institut Perakaunan Negara, Jabatan Perakaunan Negara
publishDate	2019
url	http://irep.iium.edu.my/78548/ http://irep.iium.edu.my/78548/ http://irep.iium.edu.my/78548/1/78548_Financial%20Management%20Practices.pdf
first_indexed	2023-09-18T21:50:40Z
last_indexed	2023-09-18T21:50:40Z
_version_	1777413746960891904

Financial management practices and performance of Zakat institutions in Malaysia

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