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This study aims to establish the link of key Islamic banking sustainability indicators with the United Nations’ Sustainable Development Goals (UN SDGs) as a policy recommendation for sustainable development and to mitigate the distressing impacts of the COVID-19 pandemic on the triple bottom line (people, planet, and profit). To identify the key Islamic banking sustainability indicators, the authors selected the most cited sustainability measurement indexes in Islamic banking. Initially, the indexes were divided into 10 broader themes, and then the key Islamic banking sustainability indicators were shortlisted from each theme based on their high-frequency distribution. The shortlisted sustainability indicators were then ratified to be in line with Islamic philosophy based on “Maqasid al-Shariah” (objectives of Shariah) and were subsequently grouped into the three dimensions of economic, environmental, and social sustainability based on the axial coding method. Finally, the categorized sustainability indicators were aligned with the relevant UN SDGs through the axial coding method for policy formulation, and respectively 12 propositions were developed for policy formulation. This study labeled the methodological process of this study as the ECA method (exploration, categorization, alignment). The new ECA method offers a reverse extension in the “SDG compass” developed by the Global Reporting Initiative (GRI) for aligning business policies with the UN SDGs. The process of aligning Islamic banking sustainability indicators with the UN SDGs will provide a roadmap to recovery from the COVID-19 pandemic in terms of economic, environmental, and social issues. Due to the diversity of the UN SDG framework, it covers multiples aspects for sustainable development. Therefore, considering the UN SDGs in terms of various banking instruments will mitigate the multiple distressing impacts of COVID-19 on the triple bottom line (people, planet, and profit), it will also promote a sustainable development agenda.
Amin Jan; Mário Mata; Pia Albinsson; José Martins; Rusni Hassan; Pedro Mata. Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic. Sustainability 2021, 13, 2607 .
AMA StyleAmin Jan, Mário Mata, Pia Albinsson, José Martins, Rusni Hassan, Pedro Mata. Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic. Sustainability. 2021; 13 (5):2607.
Chicago/Turabian StyleAmin Jan; Mário Mata; Pia Albinsson; José Martins; Rusni Hassan; Pedro Mata. 2021. "Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic." Sustainability 13, no. 5: 2607.
The main purpose of this study is to conceptualize a sustainable banking model for Islamic banking by blending three essential business aspects namely financial performance, Islamic corporate governance, and sustainability practices dimension. In the case of Islamic banking, evidence shows that a Shariah-based bankruptcy prediction model for apprehending the true bankruptcy prediction is over-sighted. This study offers an efficient Shariah-based bankruptcy prediction model by first, reviewing the previously applied conventional bankruptcy prediction models; secondly, by developing and proposing a robust, multidimensional model for predicting bankruptcy in Islamic banking. This framework may have profound implications on the existing bankruptcy evaluation structure of the Islamic banking industry and may provide a strong sustainability management guideline to the global Islamic banking industry.
Mehreen Mehreen; Maran Marimuthu; Samsul Karim; Amin Jan. Proposing a Multidimensional Bankruptcy Prediction Model: An Approach for Sustainable Islamic Banking. Sustainability 2020, 12, 3226 .
AMA StyleMehreen Mehreen, Maran Marimuthu, Samsul Karim, Amin Jan. Proposing a Multidimensional Bankruptcy Prediction Model: An Approach for Sustainable Islamic Banking. Sustainability. 2020; 12 (8):3226.
Chicago/Turabian StyleMehreen Mehreen; Maran Marimuthu; Samsul Karim; Amin Jan. 2020. "Proposing a Multidimensional Bankruptcy Prediction Model: An Approach for Sustainable Islamic Banking." Sustainability 12, no. 8: 3226.
This paper examines the moderating role of Islamic corporate governance on the link between sustainable business practices and the firm’s financial performance. A post-crisis period sustainability data for the decade of 2008–2017 was collected by the study. For data collection, this study used the weighted content method. The Generalized Method of Moments (GMM) statistical test was used for empirical testing. The results of the study found that the link between sustainable business practices with the firm’s financial performance measured from the shareholders’ and the management’s perspective is positive, while the subjected link measured from the market perspective was found to be insignificant. This implies that the market stakeholders of the Islamic banks are reluctant for their bank’s spending on sustainable business practices. Interestingly, the insignificant link between sustainable business practices and market performance became significant with the moderating role of Shariah governance and managerial ownership. It shows that the moderating role of Shariah governance and managerial ownership is giving confidence to market stakeholders of Islamic banks for receiving a higher financial return through sustainable business practices initiatives. These results may provide insights for several policymakers of the Islamic banking industry about integrating vital sustainability practices in their business models and about the balanced moderating role of Islamic corporate governance in the link between sustainable business practice and the firm’s financial performance. It provides a roadmap to the Islamic banking industry for efficient management of sustainability practices from an Islamic perspective and subsequently improvement of financial performance through it.
Amin Jan; Maran Marimuthu; Rohail Hassan; Mehreen. Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance. Sustainability 2019, 11, 6606 .
AMA StyleAmin Jan, Maran Marimuthu, Rohail Hassan, Mehreen. Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance. Sustainability. 2019; 11 (23):6606.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu; Rohail Hassan; Mehreen. 2019. "Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance." Sustainability 11, no. 23: 6606.
This study aims to examine the impact of boardroom gender diversity, Malaysian Code on Corporate Governance (MCCG, 2012), and firms’ specific characteristics such as age, size, and profitability, on corporate sustainability disclosures (CSD) in Malaysia. The study applied Ordinary Least Square (OLS) to a stratified random sample composed of 878 public listed companies. These companies were selected in 11 sectors of the Malaysian economy for three years i.e. 2011 to 2013. The selection of time period has a rationale that Malaysia is mostly focused on improving both the corporate sustainability and representation of women directors on the board during this time. The results indicate that women directors have an imperative role in improving CSD as evident by their significant positive association with workplace and social, environmental, and economic dimensions of corporate sustainability. In addition, the comparison of findings in pre and post contexts of MCCG 2012, it is noted that the association between boardroom gender diversity and CSD has pronounced after enactment of the code. The findings are important, particularly in connection with a fast-growing and emerging economy like Malaysia. The findings have important insights for various stakeholders i.e. government, regulatory bodies, practitioners, academia, industry, and researchers.
Muhammad Zahid; Haseeb Ur Rahman; Wajahat Ali; Musa Khan; Majed Alharthi; Muhammad Imran Qureshi; Amin Jan. Boardroom gender diversity: Implications for corporate sustainability disclosures in Malaysia. Journal of Cleaner Production 2019, 244, 118683 .
AMA StyleMuhammad Zahid, Haseeb Ur Rahman, Wajahat Ali, Musa Khan, Majed Alharthi, Muhammad Imran Qureshi, Amin Jan. Boardroom gender diversity: Implications for corporate sustainability disclosures in Malaysia. Journal of Cleaner Production. 2019; 244 ():118683.
Chicago/Turabian StyleMuhammad Zahid; Haseeb Ur Rahman; Wajahat Ali; Musa Khan; Majed Alharthi; Muhammad Imran Qureshi; Amin Jan. 2019. "Boardroom gender diversity: Implications for corporate sustainability disclosures in Malaysia." Journal of Cleaner Production 244, no. : 118683.
The purpose of this study is to examine the bankruptcy profile of the Islamic banking industry in Pakistan for the post-crisis period 2007-2008. This study used Altman’s Z-score bankruptcy evaluation model for evaluating bankruptcy rates of the sampled Islamic banks from Pakistan for the post-crisis period 2009-2015. ANOVA result shows the P-value with 0.002, which implies that the sampled Islamic banks from Pakistan do differ in their rates of bankruptcy. Regression results show that the variables liquidity and productivity ratios have a significant positive impact on the bankruptcy profile of the Islamic banking sector in Pakistan. While profitability and insolvency, ratios indicated an insignificant impact on the bankruptcy profile of the Islamic banking industry in Pakistan. The overall analysis of this study is viable to draw the attention of researchers and practitioners towards the deteriorating bankruptcy profile of the Islamic banking sector in Pakistan. The study also persuades the researchers to design a separate Shariah-based bankruptcy evaluation model for the Islamic banking industry of Pakistan.
Ahmad Ali Jan; Muhammad Tahir; Fong-Woon Lai; Amin Jan; Mehreen Mehreen; Salaheldin Hamad. Bankruptcy Profile of the Islamic Banking Industry: Evidence from Pakistan. Business Management and Strategy 2019, 10, 265 .
AMA StyleAhmad Ali Jan, Muhammad Tahir, Fong-Woon Lai, Amin Jan, Mehreen Mehreen, Salaheldin Hamad. Bankruptcy Profile of the Islamic Banking Industry: Evidence from Pakistan. Business Management and Strategy. 2019; 10 (2):265.
Chicago/Turabian StyleAhmad Ali Jan; Muhammad Tahir; Fong-Woon Lai; Amin Jan; Mehreen Mehreen; Salaheldin Hamad. 2019. "Bankruptcy Profile of the Islamic Banking Industry: Evidence from Pakistan." Business Management and Strategy 10, no. 2: 265.
This paper evaluated the nexus between sustainability practices and financial performance from the Islamic banking perspective. For the purpose, this study proposed a sustainability measurement framework for Islamic banking. A decade of sustainability data 2008–2017 was collected from the annual reports using a weighted content analysis technique. Results of the Generalized Method of Moments GMM statistical method showed that sustainability practices have a significant positive association with the financial performance indicators of the Islamic banks indicating management and the shareholders' perspective. The impact of sustainability practices on the financial performance of the Islamic banks measured from the market perspective was found insignificant. In-depth analysis revealed that the market is not interested in banks spending for its environmental and social sustainability except for their economic sustainability practices. Based on the Islamic financial index created of management, shareholders and the market financial performance indicators, the results showed that sustainability practices have a significant positive association with the Islamic financial index as well. The finding generally implies that improvement in sustainability practices will add financial values to the management, shareholder and the market financial performance indicators of the Islamic banking industry across the world. Results of this study are also providing insights to the policymakers of the Islamic banking industry around the world regarding efficient sustainability management, achieving higher sustainability ratings, and improving the subsequent financial performance through efficient sustainability practices.
Amin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd @ Mat Isa. The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. Journal of Cleaner Production 2019, 228, 703 -717.
AMA StyleAmin Jan, Maran Marimuthu, Muhammad Pisol Bin Mohd @ Mat Isa. The nexus of sustainability practices and financial performance: From the perspective of Islamic banking. Journal of Cleaner Production. 2019; 228 ():703-717.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd @ Mat Isa. 2019. "The nexus of sustainability practices and financial performance: From the perspective of Islamic banking." Journal of Cleaner Production 228, no. : 703-717.
This study used bankruptcy forecasting as a proxy for measuring economic sustainability profile of the Islamic banks in the market leading Islamic banking countries. The countries are Malaysia, Saudi Arabia, Iran, UAE and Kuwait. A sample of 29 Islamic banks with a post-crisis period data from 2009-2013 was collected for empirical testing. Results indicated that Saudi Arabian Islamic banks recorded the most minimal bankruptcy rate of 29 percent, followed by UAE with 31 percent, Kuwait with 48 percent, Malaysia with 55 percent and Iran with 68 percent respectively. The results further indicated that profitability, liquidity, insolvency, and productivity ratios have a significant positive impact on bankruptcy profile of the selected Islamic banks. This study lends credence to multiple stakeholders for taking appropriate measures regarding the deteriorating economic sustainability of the Islamic banks in the market leading Islamic banking countries. It also urges to develop a separate Shariah-based sustainability measurement framework for the Islamic banks.
Amin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd @ Mat Isa; Muhammad Kashif Shad. Bankruptcy Forecasting and Economic Sustainability Profile of the Market Leading Islamic Banking Countries. International Journal of Asian Business and Information Management 2019, 10, 73 -90.
AMA StyleAmin Jan, Maran Marimuthu, Muhammad Pisol Bin Mohd @ Mat Isa, Muhammad Kashif Shad. Bankruptcy Forecasting and Economic Sustainability Profile of the Market Leading Islamic Banking Countries. International Journal of Asian Business and Information Management. 2019; 10 (2):73-90.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd @ Mat Isa; Muhammad Kashif Shad. 2019. "Bankruptcy Forecasting and Economic Sustainability Profile of the Market Leading Islamic Banking Countries." International Journal of Asian Business and Information Management 10, no. 2: 73-90.
The renowned agency theory and thus most of the corporate governance (CG) regulations stress upon the independence of corporate boards and its various committees such as nomination and audit, among others. However, the review of the specific previous empirical literature does not fully support this public myth by unveiling that independence-related CG practices such as separate leadership structure, the majority of independent directors on the board, and independence of the nomination and audit committees could not escape the demise of Enron, WorldCom, and Global Crossing in the USA. Also, these CG practices could not avoid the fiasco of the Linear Corporation, Kenmark, and Sime Darby in Malaysia at the dawn of the twenty-first century. The review infers that despite a pivotal role, it is not only the independence of the board and its committees that avoid corporate failures. Overall, this review has important insights for governments, regulators, policymakers, corporate boards, stock exchanges, and shareholders of both the developed and developing countries around the world.
Haseeb Ur Rahman; Saeeda Rehman; Muhammad Zahid; Amin Jan; Alam Rehman. Does Corporate Governance Prevent Corporate Debacles? Handbook of Research on Climate Change and the Sustainable Financial Sector 2019, 215 -232.
AMA StyleHaseeb Ur Rahman, Saeeda Rehman, Muhammad Zahid, Amin Jan, Alam Rehman. Does Corporate Governance Prevent Corporate Debacles? Handbook of Research on Climate Change and the Sustainable Financial Sector. 2019; ():215-232.
Chicago/Turabian StyleHaseeb Ur Rahman; Saeeda Rehman; Muhammad Zahid; Amin Jan; Alam Rehman. 2019. "Does Corporate Governance Prevent Corporate Debacles?" Handbook of Research on Climate Change and the Sustainable Financial Sector , no. : 215-232.
This paper aims to propose a framework for measuring sustainability practices of the Islamic banking industry in Malaysia. Sustainability practicing and reporting has received limited attention in the Islamic banking literature. The frameworks used for measuring sustainability practices are also found inadequate. This study transformed the Global Reporting Initiative’s GRI sustainability measurement framework in light of Shariah principles to make it compatible for measuring sustainability practices in the Islamic banking industry. The posited framework illuminates the positive theoretical relationship between sustainability practices and banks financial performance from the Islamic perspective. This study lends credence to the Islamic Reporting Initiative IRI envisioned framework of building an international standard sustainability measurement framework for the Islamic banking industry in future. This study may also serve as a launching pad in the process of developing an international standards sustainability measurements framework for the Islamic banking industry in the world.
Amin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd; Mat Isa. Sustainability Practices and Banks Financial Performance: A Conceptual Review from the Islamic Banking Industry in Malaysia. International Journal of Business and Management 2018, 13, p61 .
AMA StyleAmin Jan, Maran Marimuthu, Muhammad Pisol Bin Mohd, Mat Isa. Sustainability Practices and Banks Financial Performance: A Conceptual Review from the Islamic Banking Industry in Malaysia. International Journal of Business and Management. 2018; 13 (11):p61.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu; Muhammad Pisol Bin Mohd; Mat Isa. 2018. "Sustainability Practices and Banks Financial Performance: A Conceptual Review from the Islamic Banking Industry in Malaysia." International Journal of Business and Management 13, no. 11: p61.
This study identified that accounting for endogeneity in bankruptcy forecasting models have been widely over-sighted. This study used Altman’s bankruptcy forecasting model to examine bankruptcy rates of the Islamic and conventional banks in Malaysia. Data for this study were collected from the post-crisis period 2009–2013. The results showed that the Islamic banks in Malaysia were more bankrupt as compared to the conventional banks. Hence, the claim of Islamic banks is in the stark contrast to the phenomena of being more shock-resilient to the financial crisis due to their Shariah compliance. Furthermore, the results of multiple regression analysis indicated that profitability possesses the highest explanatory power in reducing bankruptcy. However, the statistical tests Wu-Hausman and Durbin-Score identified profitability as an endogenous variable in Altman’s model, which this study addressed with an instrumental variable. Thus, this study draws a conclusion that consideration of endogeneity in bankruptcy forecasting is essential, or else the results could be misleading. The results of the study lend credence to the researchers, policy-makers, and practitioners for accurate bankruptcy forecasting.
Amin Jan; Maran Marimuthu; Muhammad Kashif Shad; Haseeb Ur Rehman; Muhammad Zahid; Ahmad Ali Jan. Bankruptcy profile of the Islamic and conventional banks in Malaysia: a post-crisis period analysis. Economic Change and Restructuring 2017, 52, 67 -87.
AMA StyleAmin Jan, Maran Marimuthu, Muhammad Kashif Shad, Haseeb Ur Rehman, Muhammad Zahid, Ahmad Ali Jan. Bankruptcy profile of the Islamic and conventional banks in Malaysia: a post-crisis period analysis. Economic Change and Restructuring. 2017; 52 (1):67-87.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu; Muhammad Kashif Shad; Haseeb Ur Rehman; Muhammad Zahid; Ahmad Ali Jan. 2017. "Bankruptcy profile of the Islamic and conventional banks in Malaysia: a post-crisis period analysis." Economic Change and Restructuring 52, no. 1: 67-87.
Amin Jan; Maran Marimuthu. Altman Model and Bankruptcy Profile of Islamic Banking Industry: A Comparative Analysis on Financial Performance. International Journal of Business and Management 2015, 10, 1 .
AMA StyleAmin Jan, Maran Marimuthu. Altman Model and Bankruptcy Profile of Islamic Banking Industry: A Comparative Analysis on Financial Performance. International Journal of Business and Management. 2015; 10 (7):1.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu. 2015. "Altman Model and Bankruptcy Profile of Islamic Banking Industry: A Comparative Analysis on Financial Performance." International Journal of Business and Management 10, no. 7: 1.
The main purpose of this paper is to analyze the economic sustainability of Islamic banking industry in the top five Islamic banking countries by global Islamic banking assets i.e. Iran, Saudi Arabia, Malaysia, Kuwait, and U.A.E. This paper applied Altman model on the selected Islamic banks with the objective to evaluate their economic sustainability, ANOVA and Regression tests are applied to examine the significance and correlations of independent variables with bankruptcy. From the selected sample Saudi Arabian Islamic banks top the sustainability profile list while Malaysian banks reserved the last place. The overall bankruptcy rate of Islamic banks is recorded 53 per cent, while, Malaysian Islamic banks registered the highest bankruptcy rate of 89 per cent, and Saudi Arabian banks retained the lowest bankruptcy rate of 29 per cent. Moreover profitability ratio is found to be insignificant with sustainability exposure. The model used in this study required retained earnings, while retained earnings is directly linked with the age of firm. However, majority of the Malaysian and Kuwaiti Islamic banks are incorporated in mid 2000, the small age of these banks lead towards their lower or negative retained earning, which ultimately reduced their sustainability rating in the evaluation process. The analysis here is viable for drawing the attention of researchers and practitioners towards the deteriorated economic sustainability of Islamic banking industry. This study also urge to develop a separate bankruptcy continuum model for Islamic banking industry, therefore, this study will also serve as a launching pad in the process of developing that model.
Amin Jan; Maran Marimuthu. Sustainability Profile of Islamic Banking Industry: Evidence from World Top Five Islamic Banking Countries. International Journal of Economics and Finance 2015, 7, p125 .
AMA StyleAmin Jan, Maran Marimuthu. Sustainability Profile of Islamic Banking Industry: Evidence from World Top Five Islamic Banking Countries. International Journal of Economics and Finance. 2015; 7 (5):p125.
Chicago/Turabian StyleAmin Jan; Maran Marimuthu. 2015. "Sustainability Profile of Islamic Banking Industry: Evidence from World Top Five Islamic Banking Countries." International Journal of Economics and Finance 7, no. 5: p125.