Journal of Islamic Accounting and Business Research最新文献

{"title":"Navigating uncertainty: a study of the S&P GCC composite index’s connectedness during times of crises","authors":"Muneer M. Alshater, Rim El Khoury, Bashar Almansour","doi":"10.1108/jiabr-01-2023-0024","DOIUrl":"https://doi.org/10.1108/jiabr-01-2023-0024","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to investigate the dynamics of return connectedness of the Standard &amp; Poor’s (S&amp;P) Gulf Cooperation Council (GCC) composite index with five regional equity indices, three global equity indices and other different asset classes during the COVID-19 pandemic period.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study uses daily data spanning from January 2, 2018, to December 23, 2021. A subsample analysis is conducted to determine the role of uncertainty in modifying the connectedness structure during the ongoing pandemic period.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The results of this study show that the nature of connectedness is time-frequent, with clear evidence for a higher level of connectedness during stress periods, especially after the onset of the pandemic. The GCC index is found to be a net receiver of shocks to other assets, with an increase in magnitude during the COVID period.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study is limited by the use of only daily data, and future research could consider using higher frequency data.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>The results of this study confirm the disturbing effects of the pandemic on the GCC index and its connectedness with other assets, which matters for policymakers and investors.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study provides new insights into the dynamics of return connectedness of the GCC index with other assets during the COVID-19 pandemic period, which has not been previously explored.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141528401","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The return of the bazaar: an old metaphor for a new world","authors":"Reed E. Nelson","doi":"10.1108/jiabr-09-2023-0301","DOIUrl":"https://doi.org/10.1108/jiabr-09-2023-0301","url":null,"abstract":"\u0000Purpose\u0000Mass markets, bureaucratic hierarchy and impersonal factories have provided the foundation for Western capitalism during the past three to four centuries, but long before this, the Islamic bazaar fulfilled many of these functions effectively if not admirably despite substantial cultural, political and economic challenges. Paradoxically, bazaar-like arrangements are reappearing in some of the most advanced sectors of the postmodern world at the same time they persist or surface in several other settings. The purpose of this paper is to consider the causes of this persistence and what it means for managers?\u0000\u0000\u0000Design/methodology/approach\u0000This paper uses the categories of Geertz’s classic ethnographic description of the Sefrou suq in Morocco buttressed with other relevant sources to compare the attributes of the institutions of classic capitalism described by Weber to the Islamic Bazaar and similar hybrid manifestations found in diverse settings today.\u0000\u0000\u0000Findings\u0000This study suggests five lessons for modern bazaaris: It is never totally about the money – the importance of multiple currencies in creating productive exchanges. The promise and dangers of clientelism – working with trusted collaborators speeds cooperation but poses the danger of stifling innovation. Private lives, public bonds – how the mechanisms of the bazaar permit diverse partners to collaborate successfully. Everyone is a broker – how participants in the bazaar search out creative opportunities for exchange. Creating safe, random interaction – how the physical and social design of the bazaar safely brings together rivals.\u0000\u0000\u0000Research limitations/implications\u0000These conclusions are drawn from existing ethnographic, historical and theoretical sources.\u0000\u0000\u0000Practical implications\u0000Contemporary managers dealing with environments where neoclassical markets and hierarchies no longer work or never fully arrived need to do the same, only more carefully, more consistently and more intentionally.\u0000\u0000\u0000Originality/value\u0000The legacy of the Islamic bazaar as a viable alternative to mass capitalism and a humanizing force has generally not been recognized in mainline management thought, especially in light of the erosion of the dominant metaphors of market and hierarchy in the postmodern world.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141342327","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Financial performance of Islamic and conventional banks in MENA region: a GLS approach","authors":"Samah Ibrahim Jarbou, Ana Irimia-Diéguez, Manuela Prieto-Rodríguez","doi":"10.1108/jiabr-11-2023-0380","DOIUrl":"https://doi.org/10.1108/jiabr-11-2023-0380","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study is to assess and contrast the impact of various factors, including both bank-specific and macroeconomic factors, on the financial performance of Islamic and conventional banks (I&CB) in countries with a dual banking system.\u0000\u0000\u0000Design/methodology/approach\u0000A general least square model is applied to a large data set of 103 I&CB operating in the Middle East and North Africa (MENA) region, comprising unbalanced annual panel data spanning the period from 2015 to 2020. The financial performance index (FPI) derived from capital adequacy, asset quality, management efficiency, earnings, and liquidity (CAMEL) ratios is used as the dependent variable.\u0000\u0000\u0000Findings\u0000Key factors, such as overhead expenses, gross domestic product (GDP) and retained earnings, exert a substantial influence on the financial performance of both I&CB. Moreover, the findings suggest that certain parameters, including deposits, inflation and cellular banking usage, significantly impact on the financial performance of conventional banks, while bank size specifically affects the financial performance of Islamic banks.\u0000\u0000\u0000Research limitations/implications\u0000While this study provides valuable insights, it is essential to acknowledge its limitations. The research focuses on a specific region (MENA) and may not be universally applicable to other geographical areas or banking systems. The study’s findings are based on historical data and might not fully reflect current or future market conditions. Additionally, the choice of variables and methodology may introduce bias or limitations, as with any empirical study. The theoretical implications of the research paper lie in the distinct ethical principles that constitute the foundation of Islamic finance. The ethical opposition to Riba is poised to have extensive implications, influencing market stability, commercial and economic impact and contributing to responsible banking practices within the Islamic banking sector. The study suggests that adherence to these sacred principles not only aligns with ethical considerations but also fosters social responsibility within Islamic banking institutions. This holds significance for broader societal and economic impacts, as responsible banking practices contribute to sustainable and equitable economic development.\u0000\u0000\u0000Practical implications\u0000The study underscores the significance of efficient overhead cost management for conventional banks, particularly in the context of a rapidly evolving digital banking environment. The call for adaptation and innovation in operational strategies aligns with the broader principles of efficiency and effectiveness emphasized in Islamic finance.\u0000\u0000\u0000Social implications\u0000In essence, the theoretical and practical implications of the study surpass the narrow focus on financial performance, resonating with the broader societal and economic landscape within the Islamic banking sector. The integration of ethical principles not only reinforces the unique i","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141340288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Consumers’ perception of distribution channel for the Malaysian microtakaful scheme: an exploratory study","authors":"Wahidah Shari, Asmadi Mohamed Naim, M. Isa, Mohd Fikri Sofi, N. Muhamed, Selamah Maamor, Shahrul Nizam Ahmad","doi":"10.1108/jiabr-07-2023-0205","DOIUrl":"https://doi.org/10.1108/jiabr-07-2023-0205","url":null,"abstract":"\u0000Purpose\u0000This paper aims to investigate consumers’ preferences regarding the distribution channels for subscription, contribution payment and compensation claims of microtakaful scheme in Malaysia.\u0000\u0000\u0000Design/methodology/approach\u0000Consumers’ preferences were explored through questionnaires and focus group discussions (FGD) conducted among the bottom 40% income classification households (B40) in five zones: northern, central, eastern, southern and Sabah and Sarawak.\u0000\u0000\u0000Findings\u0000Empirical findings from cross-tabulation analysis revealed that takaful company is the preferred distribution channel for purchasing protection plans and making compensation claims. However, the online platform is the favoured channel to make contribution payments. Further investigation through FGD suggested that the selection of a channel for subscription, contribution payment and compensation claim is influenced by consumer trust, cost-effectiveness and simplicity of procedure.\u0000\u0000\u0000Research limitations/implications\u0000Limitation is pertaining to only cross-tabulation analysis used in explaining the choice of distribution channel for microtakaful among B40 group. Thus, advanced analysis is required to strengthen the findings.\u0000\u0000\u0000Practical implications\u0000Findings of this study would help marketers and practitioners to formulate strategies to promote their microtakaful protection to enhance subscription among the low-income population.\u0000\u0000\u0000Originality/value\u0000Empirical findings offer academic contributions to the existing body of knowledge on microtakaful area as the primary data collected will eventually allow future researchers to explicate the contribution of the current study to understand the important of distribution channel for microtakaful from the perspective of subscribers and potential subscribers.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141351758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Cash waqf innovation in Islamic financial institutions and its governance issues, case studies: Indonesia, Malaysia, Türkiye","authors":"L. Nofianti, M. Mukhlisin, Andi Irfan","doi":"10.1108/jiabr-12-2023-0420","DOIUrl":"https://doi.org/10.1108/jiabr-12-2023-0420","url":null,"abstract":"\u0000Purpose\u0000This study aims to examine the potential for waqf innovation to be developed as products and services by Islamic financial institutions, identify the barriers and facilitators to the implementation of cash waqf governance in Indonesia, Türkiye and Malaysia, and to explore how pandemics have influenced the role of cash waqf practices in the three countries.\u0000\u0000\u0000Design/methodology/approach\u0000This study adopts a qualitative approach with an interpretative perspective, drawing on ecology theory and Ibn Khaldun’s thought. The research method includes conducting literature reviews and interviews to explore the concept and significance of cash waqf, the offerings of Islamic financial institutions and the mechanisms for good governance of cash waqf to bolster the proposed model.\u0000\u0000\u0000Findings\u0000The finding shows that a model of cash waqf governance that outlines the relationships and interactions with the goal of advancing cash waqf. The use of technology, specifically computer technology, further strengthens these interactions.\u0000\u0000\u0000Research limitations/implications\u0000This study suffers from several limitations, such as the number of countries in the sampling. Thus, future research opportunities include exploring similar initiatives in other countries and examining the connections between different sub-fields within the global cash waqf practice.\u0000\u0000\u0000Originality/value\u0000The contribution of this study serves as a guide for cash waqf organizations to promote professional, responsible and accountable management practices; reduce the risks faced by waqf managers and support them in making improvements to enhance the role of waqf in Indonesia and elsewhere; as well as provide a reference for the government and waqf agencies in promoting the importance of cash waqf governance in the country.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141359977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Determinants for the uptake of takaful insurance in Uganda: an exploratory mixed approach","authors":"Gorden Wofuma, Rehema Namono, Williams Munobe, Emmanuel Isiagi","doi":"10.1108/jiabr-07-2023-0222","DOIUrl":"https://doi.org/10.1108/jiabr-07-2023-0222","url":null,"abstract":"\u0000Purpose\u0000Takaful insurance is gaining increasing popularity worldwide. However, the takaful industry is relatively new in Uganda and its research is still in embryonic stages. This study aimed at exploring the contextual determinants for the uptake of takaful insurance in Uganda, a minority Muslim country.\u0000\u0000\u0000Design/methodology/approach\u0000This study used a sequential exploratory mixed research design using qualitative and quantitative approaches and drawing data from the managers of insurance companies and a section of potential customers of takaful products in Uganda. The qualitative data were analysed using content analysis to determine the emerging themes, whereas quantitative data was analysed using descriptive statistics.\u0000\u0000\u0000Findings\u0000The findings revealed that informational, individual personality and demographic factors influences the customer’s choice to select takaful products in Uganda. The authors concluded that focusing on informational besides, individual personality and demographic factors would enhance the uptake of takaful insurance in a minority Muslim country like Uganda.\u0000\u0000\u0000Research limitations/implications\u0000This study was limited to establishing and classifying the contextual determinants of takaful insurance without establishing the degree by which each of the determinants especially informational, demographic and individual personality explains the penetration of takaful insurance. Hence, future studies can examine the causal relationship between each of the three highlighted determinants on the penetration of takaful insurance in the context of minority Muslim countries.\u0000\u0000\u0000Practical implications\u0000The study contributes to the insurance industry players and the insurance regulator in understanding the respective customers needs for them to subscribe to takaful products.\u0000\u0000\u0000Originality/value\u0000This study presents an opportunity to understand the takaful or Islamic insurance market in Uganda by exploring the factors that can determine the subscription of takaful products in the country.\u0000","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141358184","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The determinants of Takaful insurance financial stability: the moderating role of Shari’ah Supervisory Board","authors":"Yosra Ridha BenSaid, Majdi Anwar Quttainah","doi":"10.1108/jiabr-11-2023-0392","DOIUrl":"https://doi.org/10.1108/jiabr-11-2023-0392","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper is to examine how the board of directors effectiveness (BODE), financial determinants, Takaful-specific determinants and the Takaful firms’ financial stability are related to the Shari’ah Supervisory Board’s quality (SCQ).</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>Using hierarchical regression analysis, the authors examine the determinants of financial stability of Takaful insurance and the authors test the moderator role of SCQ over 2016–2022 on a sample of 19 listed Takaful firms in 10 countries in the Middle East and South Asia region.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings reveal that SCQ negatively moderates the positive relationship between BODE, the Takaful model, diversification strategy, solvency, liquidity and Takaful financial stability. Shari’ah governance plays a crucial role in improving the financial soundness and the Shari’ah compliance of Takaful insurance.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This paper includes two main limitations. The results are restricted to the Middle East region and South Asia and may not be generalized to other areas. The study presents data from only 19 Takaful firms.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>This kind of investigation is of immense relevance to enhance the understanding of governance and soundness of Takaful companies. Furthermore, it serves as a guide to the recruitment of Shari’ah board members, the choice of Takaful model and appropriate strategy to increase its financial stability.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This research studies the financial stability of Takaful insurance and the moderating role of SCQ, unlike the majority of other works that focus on financial performance.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-06-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141197872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Unveiling interest rates and Islamic banking activity: empirical evidence from Saudi banks","authors":"Mouldi Djelassi, Jamel Boukhatem","doi":"10.1108/jiabr-09-2023-0311","DOIUrl":"https://doi.org/10.1108/jiabr-09-2023-0311","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>The purpose of this paper was to explore the impact of interest rate shocks on the deposits and financing of Islamic and conventional banks in Saudi Arabia.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>The authors use impulse response functions (IRFs) and variance decomposition (VDC) analyses over the period 2008Q1–2020Q2.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The IRFs showed that increasing interest rates reduce loans and conventional deposits. For Islamic banks, the deposits are more affected by interest rate changes than the financing. The VDC analysis found that deposits contribute up to 61% of Islamic financing variations, compared to only 25% in conventional lending ones.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This research contributes to the field of Islamic economics and finance by providing empirical evidence on how interest rates likely impact Islamic and conventional deposits and financing in Saudi banking system.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141197907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Impact of Sharia hospital service standards and religiosity commitment on patient satisfaction and loyalty: insights from certified Sharia hospital in Indonesia","authors":"Ngatindriatun Ngatindriatun, Muhammad Alfarizi, Tika Widiastuti","doi":"10.1108/jiabr-12-2022-0344","DOIUrl":"https://doi.org/10.1108/jiabr-12-2022-0344","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to analyze the influence of the dimensions of Sharia hospital service standards, religiosity commitment and trust of Muslim patients on attitudes and satisfaction, as well as the implications of loyalty.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This study was carried out by analyzing data obtained from a survey with purposive sampling techniques with 425 patients in an Indonesian-certified Sharia hospital and analyzing it using partial least squares structural equation modeling software to test the path modeling and the relationship between the instruments.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>This study shows that hospital amenities, doctor’s services, nurses’ services, health-care technicalities and hospital environmental and administrative behavior affect patient satisfaction. In addition, religiosity and trust in encouraging patient attitudes determine patient satisfaction. High satisfaction points will increase loyalty to Sharia hospitals.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study encourages managers to maximize the quality of humanist Islamic medical services and the infrastructure of comfortable facilities. In addition, hospitals need to improve their holistic atmosphere, technical services and administrative behavior so that they can become essential value for hospital marketing – the development of competence and ethical behavior of health workers through various training programs internally and externally.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>This study presents the determination of Sharia hospital service standards accompanied by a commitment to religiosity and trust as a psychological perspective of Muslim patients on attitudes and satisfaction and its implications on the brand loyalty of Indonesian Sharia hospitals that have been officially certified.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141197968","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Examining a distinctive loan contract “Pagang Gadai” practiced in a Muslim society: an Islamic finance perspective","authors":"Vima Tista Putriana","doi":"10.1108/jiabr-10-2023-0341","DOIUrl":"https://doi.org/10.1108/jiabr-10-2023-0341","url":null,"abstract":"<h3>Purpose</h3>\u0000<p>This study aims to examine a distinctive loan contract widely practiced in a Muslim society.</p><!--/ Abstract__block -->\u0000<h3>Design/methodology/approach</h3>\u0000<p>This research adopts a qualitative research approach. The study was divided into two main stages. Stage I research relied on documentary analysis of <em>pagang gadai</em> contracts. Hence, Stage II research was an in-depth study in a selected <em>nagari</em>, adopting an ethnography approach. The study was conducted in the district of Tanah Datar, West Sumatera, from 2020 to 2023.</p><!--/ Abstract__block -->\u0000<h3>Findings</h3>\u0000<p>The findings of this study show that the distinctive mode of contact breaks some basic rules of Islamic finance (the practice contains <em>riba</em> and <em>gharar</em>). The practice however is prevalent in the society studied due to the influence of the customary law namely the communal ownership of lands. The practice brings impacts on the society both positives and negatives.</p><!--/ Abstract__block -->\u0000<h3>Research limitations/implications</h3>\u0000<p>This study focuses on the traditional mode of <em>pagang gadai</em> contract, which involves the transfer of right to cultivate productive agricultural lands for an exchange of loan measured in gold measurement system and excludes other modes of <em>pagang gadai</em>.</p><!--/ Abstract__block -->\u0000<h3>Practical implications</h3>\u0000<p>Revision(s) of the contract mode is an urgent matter if the society to be rescued from practicing this type of contract that contains element of exploitation and oppression.</p><!--/ Abstract__block -->\u0000<h3>Social implications</h3>\u0000<p>The revision(s) is needed if the society wants to follow the teaching of Islam comprehensively, as claimed in the philosophy adopted.</p><!--/ Abstract__block -->\u0000<h3>Originality/value</h3>\u0000<p>To the best of the author’s knowledge, this is the first study on <em>pagang gadai</em> that focuses on impacts of the practice on the society studied.</p><!--/ Abstract__block -->","PeriodicalId":46046,"journal":{"name":"Journal of Islamic Accounting and Business Research","volume":null,"pages":null},"PeriodicalIF":2.2,"publicationDate":"2024-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141172137","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}