Towards Developing a Disclosure Index for Malaysian Zakat Institutions

Raedah Sapingi; Siti Normala Sheikh Obid; Sherliza Puat Nelson

doi:10.12816/0028810

Article Details

Towards Developing a Disclosure Index for Malaysian Zakat Institutions

Authors:

Raedah Sapingi | Siti Normala Sheikh Obid | Sherliza Puat Nelson

Publisher:

The Faculty of Economics and Muamalat

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

The Journal of Muamalat and Islamic Finance Research 2014 Vol.11 Issue 1, pp.7-31

Document Type:

Article

Publication Date:

1/2014

Document Language:

English

Document ID (Org No.):

90272

Frequency:

Annual

pISSN:

1823075X

DOI:

10.12816/0028810

Descriptors:

Keywords:

Abstract:

 In view of understanding zakat reporting practices, this paper aims to develop a Zakat Disclosure Index (ZkDI) for Zakat Institutions (ZIs) in Malaysia. This is due to the finding of previous studies that highlighted zakat payers’ dissatisfaction on the insufficient information especially on zakat distribution part. The paper uses holistic accountability concept as a conceptual lens in developing the index. In developing the index; this paper starts by reviewing past literature and conducting semistructured interviews with zakat payers and recipients. Which then, it is reconciled and validated by a panel of experts to obtain the final ZkDI. Based on the discussions with the respondents, the results indicated that the institutions shall give more emphasis especially on financial and non-financial categories in their reporting as to ensure accountability is discharged effectively and consequently the religious obligation is fulfilled. A suggestion that annual report of zakat institutions shall be disclosed to the public was another interesting findings revealed in this paper. Since the paper focuses solely in Malaysia, thus applicability of the ZkDI to other Muslim countries which have different laws and regulations needs to be further examined. For future research, there is a possibility that the index can be improved by inviting more respondents to participate and eventually a better disclosure index can be created.

Article Details

Towards Developing a Disclosure Index for Malaysian Zakat Institutions

Authors:

Raedah Sapingi | Siti Normala Sheikh Obid | Sherliza Puat Nelson

Publisher:

The Faculty of Economics and Muamalat

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

The Journal of Muamalat and Islamic Finance Research 2014 Vol.11 Issue 1, pp.7-31

Document Type:

Article

Publication Date:

1/2014

Document Language:

English

Document ID (Org No.):

90272

Frequency:

Annual

pISSN:

1823075X

DOI:

10.12816/0028810

Descriptors:

ISLAMIC SCIENCES

ALMS TAX

FINANCIAL INSTITUTIONS

ECONOMIC ASPECTS

MALAYSIA

Disclosure Index

Zakat Institutions

Accountability

Reporting Practices

Issues

Article Details

Authors: Raedah Sapingi | Siti Normala Sheikh Obid | Sherliza Puat Nelson

Publisher: The Faculty of Economics and Muamalat

Main Topics: Islam, Bábism & Bahá"í Faith

Journal: The Journal of Muamalat and Islamic Finance Research 2014 Vol.11 Issue 1, pp.7-31

Document Type: Article

Publication Date: 1/2014

Document Language: English

Document ID (Org No.): 90272

Frequency: Annual

pISSN: 1823075X

DOI: 10.12816/0028810

Descriptors:

Issues

Authors:

Raedah Sapingi | Siti Normala Sheikh Obid | Sherliza Puat Nelson

Publisher:

The Faculty of Economics and Muamalat

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

The Journal of Muamalat and Islamic Finance Research 2014 Vol.11 Issue 1, pp.7-31

Document Type:

Article

Publication Date:

1/2014

Document Language:

English

Document ID (Org No.):

90272

Frequency:

Annual

pISSN:

1823075X

DOI:

10.12816/0028810