Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Zakat


Investigating the Influence of Attitude, Knowledge, Promotional Exposure, and Self-Efficacy on Compliance Behavior of Income Zakat

YUSUF HAJI-OTHMAN, MOHD SHOLEH SHEH YUSUFF, WAN NAZJMI MOHAMED FISOL

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 6338-6348
DOI: 10.47750/cibg.2021.27.02.622

As of April 2016, out of 68,000 Muslim federal servants in Kedah, a total of 40,453
paid zakat to Kedah State Zakat Board (KSZB) through a monthly deduction scheme. It means
59.49 percent of potential Muslim federal servants working in the state of Kedah paid zakat
through a monthly deduction scheme in Kedah. However, Muslim public educators, who are part
of Muslim public servants, have higher income zakat compliance behavior than the rest of
Muslim public servants in Kedah. Despite a religious decree on the compulsory position of zakat
on employment income in Malaysia, many Muslims still fail to fulfill their religious obligation to
pay. Studies on zakat compliance have shown mixed and inconclusive evidence regarding the
determinants of income zakat compliance. Hence, this study investigates the influence of
attitude, knowledge, promotional exposure, and self-efficacy on compliance behavior of income
zakat in Kedah, Malaysia. This study employs the quantitative approach using PLS-SEM to
analyze primary data collected using a questionnaire instrument to determine significant
determinants of compliance behavior of income zakat. This study reveals that attitude and selfefficacy
have significant relationships with the compliance behavior of income zakat. However,
this study discovers that knowledge and promotional exposure are not significant determinants of
compliance behavior of income zakat in Kedah. This study is hoped to provide evidence that
could be used as guidance for suitable policy and measures by Kedah State Zakat Board to
improve zakat collection in the future.

A Re-examination of the Effect of Attitude, Religiosity, Self- Efficacy, and Moral Obligation on the Compliance Behavior of Income Zakat

YUSUF HAJI-OTHMAN, MOHD SHOLEH SHEH YUSUFF, MOHD FARID ABD. LATIB

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 6321-6329
DOI: 10.47750/cibg.2021.27.02.620

Despite a religious decree on the compulsory position of zakat on employment income
in Malaysia, many Muslims still fail to fulfill their religious obligation to pay. Although there
has been an increasing trend in the collection of business zakat, paddy zakat, and income zakat,
there were some Muslims in Kedah who have not paid zakat to Kedah State Zakat Board (KSZB)
so much so that the present increase in the collection of zakat is still not sufficient for
distribution to all zakat recipients because of the increasing number of zakat asnaf (Haji-Othman,
2017). There is a rising trend in the collection of zakat. Yet, it is still insufficient to cover all
zakat recipients, reflecting the efficiency (or the lack of it) of the Kedah State Zakat Board
(KSZB) management. Studies on zakat compliance have shown mixed and inconclusive
evidence regarding the determinants of income zakat compliance. Therefore, this study
reexamines the effects of attitude, religiosity, self-efficacy, and moral obligations on the
compliance behavior of income zakat in Kedah. This study employs the quantitative approach;
primary data is collected using questionnaires to determine significant determinants of
compliance behavior of income zakat. This study provides empirical evidence that attitude,
religiosity, self-efficacy, and moral obligation are significant determinants of compliance
behavior of income zakat in Kedah. This study is hoped to provide evidence that could be used
as guidance for suitable policy and measures by Kedah State Zakat Board to improve zakat
collection in the future.

Critical Investigation of the Impact of Religiosity, Perception towards Facility, Service Quality, and Tax Rebate on Compliance Behavior of Income Zakat

YUSUF HAJI-OTHMAN, MOHD SHOLEH SHEH YUSUFF, NORHAYATI ABDULLAH

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 6330-6337
DOI: 10.47750/cibg.2021.27.02.621

Despite a religious decree on the compulsory position of zakat on employment income
in Malaysia, many Muslims still fail to fulfill their religious obligation to pay income zakat. The
Office of the Secretary of the State of Kedah (SUK) has directed Muslim public servants who
have fulfilled the conditions of perfect title, nisab, and hawl to pay zakat to Kedah State Zakat
Board through a monthly salary deduction scheme. However, some Muslim public educators
working in Kedah are not compliant with the directive. Furthermore, the studies so far have
provided mixed and inconclusive evidence regarding the factors that determine the income zakat
compliance behavior. Therefore, this study critically investigates the impact of religiosity,
perception towards facility, service quality, and tax rebate on compliance behavior of income
zakat in Kedah, Malaysia. This study employs a quantitative method using questionnaires to
determine significant determinants of compliance behavior of income zakat. This study provides
empirical evidence that religiosity, perception towards facility, service quality, and tax rebate are
significant determinants of compliance behavior of income zakat in Kedah. This study strives to
provide evidence that could be used as guidance for suitable policy and measures by Kedah State
Zakat Board to improve zakat collection in the future.

A Critical Analysis of the Influence of Perception on Compliance Behavior of Income Zakat

YUSUF HAJI-OTHMAN, MOHD SHOLEH SHEH YUSUFF, MOHAMMADTAHIR CHEUMAR

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 6349-6358
DOI: 10.47750/cibg.2021.27.02.623

Kedah issued a religious decree making it compulsory to pay income zakat in 1997.
However, the collection of income zakat amongst Muslims who have fulfilled the conditions to
pay income zakat in Kedah has remained low. Some public educators in Kedah did not pay
income zakat to Kedah State Zakat Board because of the perception that they could pay zakat at
other zakat institution. Also, they showed a lack of confidence in the Kedah State Zakat Board's
ability to manage and distribute zakat. Studies on zakat compliance have shown mixed and
inconclusive evidence regarding the determinants of income zakat compliance. Therefore, this
study critically analyses the influence of perception towards equity in zakat distribution,
perception towards the facility, perception towards law, and perception towards service quality
on compliance behavior of income zakat in Kedah, Malaysia. This study employs a quantitative
approach where primary data is collected using a questionnaire instrument; data is analyzed
using PLS-SEM to determine significant determinants of compliance behavior of income zakat.
This study provides empirical evidence that perception towards facility and service quality has
significant relationships with income zakat's compliance behavior. However, perception towards
equity in zakat distribution and perception towards law are not significant determinants of
compliance behavior of income zakat in Kedah. This study is hoped to provide evidence that
could be used as guidance for suitable policy and measures by Kedah State Zakat Board to
improve zakat collection in the future.

The Impact Of Zakat Accounting Standard (Safs Sharia No.109) On The Performance Of Zakat Institutions In Indonesia

Mohammad Bintang Pamuncak; Bayu Taufiq Possumah; Zairihan Abdul Halim

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 3903-3918

This paper aims to examine the influence of accounting standards (SAFS Sharia No.109) for zakat on the financial performance of zakat institutions. This study has employed Difference in Difference (DiD) test and Panel data regression in order to achieve the objective of study. This study found that there is a difference in zakat institution performance between the pre and post adoption of SAFS in the DiD test. However, panel regression results show that there is no significant change in the adoption of SAFS Sharia No.109 to the zakat institution financial performance. A plausible reason for insignificant relation is that SAFS Sharia No.109 has not yet faithfully adhered by zakat institutions in their reporting, particularly with respect to the zakat for productive purpose (Alim, 2015). On the other hand, this study also found that zakat fund collection and zakat institution equity have significant impact on the performance of zakat institutions in Indonesia.

Capital Asset Pricing Model and Shariah-Compliant Capital Asset Pricing Model: Evidence from Pakistan Stock Exchange

Raja Rehan; Imran Umer Chhapra; Salman Mithani; Abdul Qadir Patoli

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 2074-2089

The key objective of this study is to recommend a novel approach in pricing Shariah based financial assets by testing Shariah-Compliant Capital Asset Pricing Models which can potentially replace the conventional CAPM in PSX. Using eighteen years extracted data from Thomson Reuters Data Stream over the period of January 2001 to December 2018 and by deploying Generalized Method of Moments (GMM), this study develops and analyses Shariah-Compliant Capital Asset Pricing Model. The returns of the stocks traded on PSX are calculated through the CAPM equation with Risk-Free Rate, without Risk-Free Rate, Zakat, NGDP and Inflation. The impact of size anomaly is also gauged in the study. The findings are surprising and specify that the Shariah CAPM can be the alternate of the conventional CAPM. The results of this study may show a new way to the investors, corporates and banks to calculate the required rate of returns of their securities.