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

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

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Abstract

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.

Item Type: Article (Journal)
Additional Information: 6964/58325
Uncontrolled Keywords: Maqasid al-ShariahMaslahah, Public Interest, Mosque, Governance, Reporting, Donation
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam
B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173 Islamic sociology
B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.63 Islam and civil society
B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.75 Islam and economics
B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP174 The Practice of Islam
B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP174 The Practice of Islam

B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP50 History
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Kulliyyah of Economics and Management Sciences > Department of Business Administration
Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fiqh and Usul al-Fiqh
Depositing User: Dr Luqman Zakariyah
Date Deposited: 13 Sep 2017 10:16
Last Modified: 06 Nov 2017 01:53
URI: http://irep.iium.edu.my/id/eprint/58325

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