Thesis (MBus) -- AUT University, 2009. / Includes bibliographical references. Also held in print (iv, 78 leaves ; 30 cm.) in the Archive at the City Campus (T 657.02181767 AHM)

The issues of zakah and interest for IFIs have been highlighted for several years and attracted many arguments among Islamic scholars and public. The increasing public interest on the Islamic Banking since 1970s has been driven by the increasing sensitivity among Muslims to the relationship between religion and economic activities. With the emergence of IFIs, Muslims community has demanded for an establishment of an accounting body to develop a set of accounting standards that adhere to the Islamic tenets, hence AAOIFI was established. However, the journey of AAOFI in achieving such objective has not been smooth. This paper intended to study the effectiveness of AAOIFI in dealing with the issues of zakah and riba for IFIs by examining the disclosure practice of 25 IFIs worldwide. Based on the analysis conducted, it is concluded that the extents of disclosure by the IFIs are much lower than the AAOIFI requirements. The study also found that leverage and origin factors might contribute to the level disclosures of zakah and financial products. In addition, the test performed also revealed that the adopters of AAOIFI do provide more disclosure as compared to the non-adopters. However, the mean result is relatively low to suggest full compliance with the AAOIFI standards.

The issues of zakah and interest for IFIs have been highlighted for several years and attracted many arguments among Islamic scholars and public. The increasing public interest on the Islamic Banking since 1970s has been driven by the increasing sensitivity among Muslims to the relationship between religion and economic activities. With the emergence of IFIs, Muslims community has demanded for an establishment of an accounting body to develop a set of accounting standards that adhere to the Islamic tenets, hence AAOIFI was established. However, the journey of AAOFI in achieving such objective has not been smooth. This paper intended to study the effectiveness of AAOIFI in dealing with the issues of zakah and riba for IFIs by examining the disclosure practice of 25 IFIs worldwide. Based on the analysis conducted, it is concluded that the extents of disclosure by the IFIs are much lower than the AAOIFI requirements. The study also found that leverage and origin factors might contribute to the level disclosures of zakah and financial products. In addition, the test performed also revealed that the adopters of AAOIFI do provide more disclosure as compared to the non-adopters. However, the mean result is relatively low to suggest full compliance with the AAOIFI standards.

The issues of zakah and interest for IFIs have been highlighted for several years and attracted many arguments among Islamic scholars and public. The increasing public interest on the Islamic Banking since 1970s has been driven by the increasing sensitivity among Muslims to the relationship between religion and economic activities. With the emergence of IFIs, Muslims community has demanded for an establishment of an accounting body to develop a set of accounting standards that adhere to the Islamic tenets, hence AAOIFI was established. However, the journey of AAOFI in achieving such objective has not been smooth. This paper intended to study the effectiveness of AAOIFI in dealing with the issues of zakah and riba for IFIs by examining the disclosure practice of 25 IFIs worldwide. Based on the analysis conducted, it is concluded that the extents of disclosure by the IFIs are much lower than the AAOIFI requirements. The study also found that leverage and origin factors might contribute to the level disclosures of zakah and financial products. In addition, the test performed also revealed that the adopters of AAOIFI do provide more disclosure as compared to the non-adopters. However, the mean result is relatively low to suggest full compliance with the AAOIFI standards.

The last 30 years have witnessed the appearance and rapid expansion of Islamic financial institutions operating both inside and outside the Islamic world. Islamic financial organisations are now operating in Western countries such as the UK, the US as well as most Islamic countries. The establishment of Islamic banks strengthens the need for Islamic accounting. Adopting or even modifying conventional accounting concepts, however, is insufficient to develop an accounting system which provides information that will lead to behaviour consistent with Islamic norms and objectives (Hameed, 2002). The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was established in 1990 as an independent organisation to adjust the financial reports of Islamic organisations to comply with Islamic Sharia'h requirement. By 2005, AAOIFI's membership consisted of 93 institutions spanning over 23 countries. This organisation has introduced a new system of business accounting by issuing Islamic accounting standards. AAOIFI have now issued 50 standards on accounting, auditing, governance, ethical and Sharia'h standards (Alchaar 2005). This study investigates and examines the extent of the application of the AAOIFI standards by Islamic banks in preparing their financial statements in Bahrain. Further, it explores whether the implementation of such standards provides relevant, reliable and sufficient information to the users of such information to assist them in decision-making. In addition, the awareness of the preparers of financial reports and progress in the quality of these financial reports has also been undertaken. Finally the thesis draws appropriate conclusion and following a critical reflection and recommends areas for further research.

La position actuellement dominante parmi juristes et théoriciens de la Finance Islamique penchant vers l’interdiction des produits dérivés dans les Institutions Financières Islamiques, la recherche d’une alternative à ces produits, en particulier pour la gestion des risques de marché, constitue l’un des axes de recherche fondamentaux concernant l’avenir de cette école de pensée et de ce type d’institutions. Ainsi, ce travail de thèse s’intéresse d’abord à l’inférence des significations financières contemporaines possibles du concept islamique dit de « Gharar interdit » (litt. « risque interdit ») en l’opposant notamment à la prise de risque permise, puis, à partir des résultats correspondants, à l’exploration et proposition d’instruments alternatifs aux dérivés. Sur le premier aspect, cette recherche est partie du patrimoine du Fiqh (« jurisprudence ») islamique, et a mobilisé des outils qualitatifs et numériques d’analyse, tout en s’inspirant de la méthode de l’idéaltype de Max Weber. Sur le second, elle a mis en oeuvre une enquête combinant littérature et terrain, avant de faire passer les instruments obtenus par un filtre construit à partir des résultats du premier aspect. Ce travail a principalement permis de jeter une lumière nouvelle sur les théories de la prise de risque et du Gharar en Islam, de repérer et de discuter les zones d’ombre à l’origine des débats contemporains, de dresser un état des lieux de la recherche d’alternatives, d’identifier et de comprendre un phénomène nommé trappe à réplication, et surtout, de proposer une voie générale de sortie, utilisant la théorie islamique du besoin et de l’intérêt général, l’idée de partage du risque et celle d’alternative. / The currently prevailing position among Islamic Finance’s jurists and theorists being to prohibit derivative products in Islamic Financial Institutions, the search for an “Islamic” alternative to these products, in particular for market risks’ management, constitutes one of the fundamental axes of research concerning the future of this school and type of institutions. Thus, this doctoral work deals with the inference of the possible contemporary meanings of the Islamic concept called “prohibited Gharar” (litt. “prohibited risk”) while opposing it to the permissible risk-taking, then, based on the corresponding findings, it deals with the exploration and proposal of alternative instruments to derivatives. On the first aspect, this research used texts of Islamic Fiqh (“jurisprudence”), and mobilised qualitative and numerical tools of analysis, while drawing on Max Weber’s method of the idealtype. On the second, it implemented a survey combining literature and field study, before passing the obtained instruments through a filter constructed from the results of the first aspect. This work has mainly contributed to shed a new light on the theories of risk-taking and Gharar in Islam, to identify and discuss the shadow areas behind contemporary debates, to draw up an inventory of research on alternatives, to identify and understand a phenomenon called replication trap, and especially, to propose a general way out, using the Islamic theory of need and public interest, the idea of risk-sharing and that of alternative.

Submitted by Filipe dos Santos (fsantos@pucsp.br) on 2018-11-21T08:56:51Z No. of bitstreams: 1 Ahmed Sameer El Khatib.pdf: 2940643 bytes, checksum: 15393ff70b8d636d9937d1b29dc54640 (MD5) / Made available in DSpace on 2018-11-21T08:56:52Z (GMT). No. of bitstreams: 1 Ahmed Sameer El Khatib.pdf: 2940643 bytes, checksum: 15393ff70b8d636d9937d1b29dc54640 (MD5) Previous issue date: 2018-09-20 / Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - CAPES / The main purpose of this thesis was to analyze the dissemination of Corporate Social Responsibility (CSR) and to examine its determinants and consequences for the Islamic banks of the Gulf Cooperation Council (GCC). In the fulfillment of the research objectives, 40 Islamic banks from the countries that make up the GCC were analyzed during the period from 2013 to 2017, which involved 200 observations to each group. With regard to CSR, an index was constructed to measure the level of disclosure in Islamic banks and conventional banks, based on 11 dimensions recommended by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOFI) No. 7 published in 2010 (1985), Ismail (1986), and Dusuki (2008), were used in the literature on the dissemination of CSR. Statistical analysis included econometric regressions using the Ordinary Least Squares (OLS) method to examine the determinants and consequences of CSR disclosure in the sample selection of banks. The results indicated a level of disclosure of Islamic RSC of 41.05%, higher than the level of its conventional peers in the region that reached a mark of 30.65%. Using Corporate Governance (CG) mechanisms to measure the determinants of CSR disclosure, the survey found a positive and significant association between the disclosure of CSR and the size of the Board of Directors of the Islamic banks studied. Thus, evidence is provided that stronger corporate governance is associated with a higher level of CSR disclosure. Another result found was the significantly negative relationship of the CEO's Duality (CEOD) and the Audit Committee Size (ACS) with the disclosure of CSR. However, the results did not show a significant association between disclosure of CSR and other variables of corporate governance. To examine the economic consequences of CSR disclosure in Islamic and conventional banks, the study used two different proxies (Market to Book Value and Tobin's Q) to measure the value of the firm. The study found no significant relationship between the proxies analyzed. It is suggested that there is a strong need to improve the current CSR disclosure practice, especially in the Islamic banks of the GCC, imposing additional restrictions on the characteristics of the Board of Directors. The results corroborate the global debate on the need for corporate governance reform, providing insights into the role-played by corporate governance mechanisms in encouraging and enhancing CSR disclosure practices and opens up fertile ground for studies involving the influence of religious roots on practices / O objetivo desta tese foi analisar a divulgação da Responsabilidade Social Corporativa (RSC) e examinar seus determinantes e consequências entre os bancos islâmicos do Conselho de Cooperação do Golfo (CCG). No cumprimento dos objetivos da pesquisa, foram analisados 40 bancos islâmicos e 40 bancos convencionais dos países que compõem o CCG, durante o período de 2013 a 2017, o que envolveu 200 observações em cada grupo. No tocante à RSC, foi construído um índice para mensurar o nível de sua divulgação em bancos islâmicos e em bancos convencionais, com base em 11 dimensões recomendadas pela norma nº 7 do Accounting and Auditing Organization for Islamic Financial Institutions (AAOFI), publicada em 2010. Com relação aos determinantes da divulgação, foram construídas hipóteses, com base nas lacunas identificadas na literatura precedente, nas Teorias de divulgação existentes e nos Modelos Islâmicos de divulgação da RSC: Modelos de Chapra (1985), Ismail (1986) e Dusuki (2008). A análise estatística compreendeu regressões econométricas utilizando o método dos Mínimos Quadrados Ordinários (MQO), para examinar os determinantes e as consequências da divulgação de RSC na seleção amostral dos bancos. Os resultados indicaram um nível de divulgação da RSC Islâmica de 41,05%, maior do que o nível de seus pares convencionais da região que alcançaram um índice de 30,65%. Usando mecanismos de Governança Corporativa (GC), para mensurar os determinantes da divulgação de RSC, a pesquisa encontrou uma associação positiva e significativa entre a divulgação da RSC e o tamanho do Conselho de Administração (CA) dos bancos islâmicos estudados. Com isso, são fornecidas evidências de que uma Governança Corporativa mais forte está associada a um nível mais alto de divulgação de RSC. Outro resultado encontrado foi o relacionamento significativamente negativo da Dualidade do CEO (DCEO) e do Tamanho do Comitê de Auditoria (TCTA) com a divulgação da RSC. No entanto, os resultados não mostraram associação significativa entre divulgação da RSC e outras variáveis de governança corporativa. Para examinar as consequências econômicas da divulgação da RSC nos bancos islâmicos e convencionais, o estudo usou duas proxies diferentes (Market to Book Value e o Q de Tobin) para mensurar o valor da empresa. O estudo não encontrou nenhuma relação significativa entre as proxies analisadas. Sugere-se que há forte necessidade de melhorar a atual prática de divulgação da RSC, especialmente nos bancos islâmicos do CCG, impondo restrições adicionais às características do Conselho de Administração. Os resultados corroboram com o debate global sobre a necessidade de reforma da governança corporativa, fornecendo insights sobre o papel desempenhado pelos mecanismos de governança corporativa no incentivo e aprimoramento das práticas de divulgação da RSC e abre campo fértil para estudos envolvendo a influência das raízes religiosas nas práticas de RSC