Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework

Currently, theories and empirical works in disclosure study are clouded by the conventional perspective. Even though, there are efforts in discussing disclosure study based on Islamic view, nevertheless, it is still considered at the early stage. With regard to zakat institutions disclosure via annu...

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Main Authors: Sapingi, Raedah, Puat Nelson, Sherliza, Sheikh Obid, Siti Normala
Format: Conference or Workshop Item
Language:English
Published: Pusat Pengajian Ekonomi, Fakulti Ekonomi Dan Pengurusan, Universiti Kebangsaan Malaysia 2017
Subjects:
Online Access:http://irep.iium.edu.my/58622/
http://irep.iium.edu.my/58622/
http://irep.iium.edu.my/58622/13/58622-Brotherhood%20concept.pdf
id iium-58622
recordtype eprints
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic H Social Sciences (General)
H96 Public policy (General), Policy sciences
spellingShingle H Social Sciences (General)
H96 Public policy (General), Policy sciences
Sapingi, Raedah
Puat Nelson, Sherliza
Sheikh Obid, Siti Normala
Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
description Currently, theories and empirical works in disclosure study are clouded by the conventional perspective. Even though, there are efforts in discussing disclosure study based on Islamic view, nevertheless, it is still considered at the early stage. With regard to zakat institutions disclosure via annual report, the issue of accountability and information asymmetry have been raised in many past literatures. Realising the loopholes in theories of zakat institutions disclosure, thus, the study aims to propose a framework, by examining the two Islamic concepts i.e. brotherhood and Islamic accountability concept as well as conventional i.e. the agency theory, that would able to explain zakat institutions disclosure practices. Brotherhood concept introduces the idea of social justice, where zakat is seen as an antidote in ensuring the social-economic justice (al-adl) is attained, it promotes harmonious relationships with fellow human beings i.e. habl min al-nās, therefore in this context, the role of zakat institutions is to report their zakat activities via disclosure of zakat information in the annual report. While, accountability concept from Islamic perspective brings out the idea of primary and secondary accountability, zakat institutions are accountable to discharge their accountability to the users in relation to disclosure of zakat information. From conventional view, the agency theory describes agent- principal relationship. This section highlights interesting discussions, especially in providing justifications of using agency theory in this context. Finally, the application of the Islamic concepts and agency theory is then translated into a proposed framework. Pada masa ini, teori dan karya empirikal dalam kajian pendedahan diliputi oleh perspektif konvensional. Walau bagaimanapun, terdapat usaha untuk membincangkan kajian pendedahan berdasarkan pandangan Islam, namun ia masih dianggap pada peringkat awal. Berhubung dengan pendedahan maklumat institusi zakat iaitu laporan tahunan, isu akauntabiliti dan maklumat asimetri telah dibincangkan dalam banyak literatur masa lalu. Menyedari kekurangan dalam teori pendedahan makluamt zakat, maka kajian ini bertujuan untuk mencadangkan rangka kerja yang berdasarkan dua konsep Islam iaitu persaudaraan dan akauntabiliti Islam serta konvensional iaitu teori agensi, yang dapat menjelaskan amalan pendedahan institusi-institusi zakat. Konsep persaudaraan memperkenalkan idea keadilan sosial, di mana zakat dilihat sebagai penawar untuk memastikan keadilan sosial ekonomi dicapai, ia menggalakkan hubungan yang harmonis dengan sesama manusia iaitu habl min al-nā, oleh sebab itu dalam konteks ini, peranan zakat Institusi adalah melaporkan aktiviti zakat mereka melalui pendedahan maklumat zakat dalam laporan tahunan. Manakala, konsep akauntabiliti dari perspektif Islam membawa idea akauntabiliti utama dan sekunder, institusi zakat bertanggungjawab untuk menunaikan tanggungjawab mereka kepada pengguna berhubung pendedahan maklumat zakat. Dari pandangan konvensional, teori agensi menggambarkan hubungan ejen-prinsipal. Bahagian ini membawa perbincangan menarik, terutamanya untuk memberikan alasan penggunaan teori agensi dalam pendedahan maklumat laporan tahunan institusi-institusi zakat. Akhirnya, pemakaian konsep dan teori agensi Islam kemudian diterjemahkan ke dalam rangka kerja yang dicadangkan
format Conference or Workshop Item
author Sapingi, Raedah
Puat Nelson, Sherliza
Sheikh Obid, Siti Normala
author_facet Sapingi, Raedah
Puat Nelson, Sherliza
Sheikh Obid, Siti Normala
author_sort Sapingi, Raedah
title Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
title_short Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
title_full Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
title_fullStr Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
title_full_unstemmed Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework
title_sort brotherhood concept, islamic accountability concept and agency theory in relation to disclosure of annual report of zakat institutions: a proposed framework
publisher Pusat Pengajian Ekonomi, Fakulti Ekonomi Dan Pengurusan, Universiti Kebangsaan Malaysia
publishDate 2017
url http://irep.iium.edu.my/58622/
http://irep.iium.edu.my/58622/
http://irep.iium.edu.my/58622/13/58622-Brotherhood%20concept.pdf
first_indexed 2023-09-18T21:22:56Z
last_indexed 2023-09-18T21:22:56Z
_version_ 1777412002119942144
spelling iium-586222018-01-11T10:47:19Z http://irep.iium.edu.my/58622/ Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework Sapingi, Raedah Puat Nelson, Sherliza Sheikh Obid, Siti Normala H Social Sciences (General) H96 Public policy (General), Policy sciences Currently, theories and empirical works in disclosure study are clouded by the conventional perspective. Even though, there are efforts in discussing disclosure study based on Islamic view, nevertheless, it is still considered at the early stage. With regard to zakat institutions disclosure via annual report, the issue of accountability and information asymmetry have been raised in many past literatures. Realising the loopholes in theories of zakat institutions disclosure, thus, the study aims to propose a framework, by examining the two Islamic concepts i.e. brotherhood and Islamic accountability concept as well as conventional i.e. the agency theory, that would able to explain zakat institutions disclosure practices. Brotherhood concept introduces the idea of social justice, where zakat is seen as an antidote in ensuring the social-economic justice (al-adl) is attained, it promotes harmonious relationships with fellow human beings i.e. habl min al-nās, therefore in this context, the role of zakat institutions is to report their zakat activities via disclosure of zakat information in the annual report. While, accountability concept from Islamic perspective brings out the idea of primary and secondary accountability, zakat institutions are accountable to discharge their accountability to the users in relation to disclosure of zakat information. From conventional view, the agency theory describes agent- principal relationship. This section highlights interesting discussions, especially in providing justifications of using agency theory in this context. Finally, the application of the Islamic concepts and agency theory is then translated into a proposed framework. Pada masa ini, teori dan karya empirikal dalam kajian pendedahan diliputi oleh perspektif konvensional. Walau bagaimanapun, terdapat usaha untuk membincangkan kajian pendedahan berdasarkan pandangan Islam, namun ia masih dianggap pada peringkat awal. Berhubung dengan pendedahan maklumat institusi zakat iaitu laporan tahunan, isu akauntabiliti dan maklumat asimetri telah dibincangkan dalam banyak literatur masa lalu. Menyedari kekurangan dalam teori pendedahan makluamt zakat, maka kajian ini bertujuan untuk mencadangkan rangka kerja yang berdasarkan dua konsep Islam iaitu persaudaraan dan akauntabiliti Islam serta konvensional iaitu teori agensi, yang dapat menjelaskan amalan pendedahan institusi-institusi zakat. Konsep persaudaraan memperkenalkan idea keadilan sosial, di mana zakat dilihat sebagai penawar untuk memastikan keadilan sosial ekonomi dicapai, ia menggalakkan hubungan yang harmonis dengan sesama manusia iaitu habl min al-nā, oleh sebab itu dalam konteks ini, peranan zakat Institusi adalah melaporkan aktiviti zakat mereka melalui pendedahan maklumat zakat dalam laporan tahunan. Manakala, konsep akauntabiliti dari perspektif Islam membawa idea akauntabiliti utama dan sekunder, institusi zakat bertanggungjawab untuk menunaikan tanggungjawab mereka kepada pengguna berhubung pendedahan maklumat zakat. Dari pandangan konvensional, teori agensi menggambarkan hubungan ejen-prinsipal. Bahagian ini membawa perbincangan menarik, terutamanya untuk memberikan alasan penggunaan teori agensi dalam pendedahan maklumat laporan tahunan institusi-institusi zakat. Akhirnya, pemakaian konsep dan teori agensi Islam kemudian diterjemahkan ke dalam rangka kerja yang dicadangkan Pusat Pengajian Ekonomi, Fakulti Ekonomi Dan Pengurusan, Universiti Kebangsaan Malaysia 2017 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/58622/13/58622-Brotherhood%20concept.pdf Sapingi, Raedah and Puat Nelson, Sherliza and Sheikh Obid, Siti Normala (2017) Brotherhood concept, Islamic accountability concept and Agency theory in relation to disclosure of annual report of zakat institutions: A proposed framework. In: Persidangan Kebangsaan Ekonomi Malaysia (PERKEM) Ke-12, 12th-13th September 2017, Bangi, Selangor. http://www.ukm.my/fep/perkem/