Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia

Purpose – This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women microentrepreneurs in Malaysia within the framework of the informal credit market theory. Design/method...

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Main Authors:	Nik Azman, Nik Hadiyan, Kassim, Salina, Adeyemi, Adewale Abideen
Format:	Article
Language:	English English English
Published:	Emerald Group Publishing Ltd. 2018
Subjects:	HD72 Economic growth, development, planning HG Finance HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/1/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_article.pdf http://irep.iium.edu.my/70033/2/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_scopus.pdf http://irep.iium.edu.my/70033/13/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_WOS.pdf

id	iium-70033
recordtype	eprints
spelling	iium-700332019-03-13T04:29:16Z http://irep.iium.edu.my/70033/ Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia Nik Azman, Nik Hadiyan Kassim, Salina Adeyemi, Adewale Abideen HD72 Economic growth, development, planning HG Finance HG4001 Financial management. Business finance. Corporation finance. Purpose – This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women microentrepreneurs in Malaysia within the framework of the informal credit market theory. Design/methodology/approach – The study is based on primary data obtained by using selfadministered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu. The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents. Total number of respondents valid for data analysis was however 600. Findings – Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge. Research limitations/implications – This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states. Practical implications – As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses. The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs. Originality/value – The informal credit market theory is frequently used in conventional studies. This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products. Emerald Group Publishing Ltd. 2018-12 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/70033/1/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_article.pdf application/pdf en http://irep.iium.edu.my/70033/2/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_scopus.pdf application/pdf en http://irep.iium.edu.my/70033/13/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_WOS.pdf Nik Azman, Nik Hadiyan and Kassim, Salina and Adeyemi, Adewale Abideen (2018) Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia. ISRA International Journal of Islamic Finance, 10 (2). pp. 237-250. ISSN 0128-1976 E-ISSN 2289-4365 https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJIF-09-2017-0031 10.1108/IJIF-09-2017-0031
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HD72 Economic growth, development, planning HG Finance HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HD72 Economic growth, development, planning HG Finance HG4001 Financial management. Business finance. Corporation finance. Nik Azman, Nik Hadiyan Kassim, Salina Adeyemi, Adewale Abideen Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
description	Purpose – This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women microentrepreneurs in Malaysia within the framework of the informal credit market theory. Design/methodology/approach – The study is based on primary data obtained by using selfadministered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu. The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents. Total number of respondents valid for data analysis was however 600. Findings – Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge. Research limitations/implications – This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states. Practical implications – As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses. The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs. Originality/value – The informal credit market theory is frequently used in conventional studies. This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products.
format	Article
author	Nik Azman, Nik Hadiyan Kassim, Salina Adeyemi, Adewale Abideen
author_facet	Nik Azman, Nik Hadiyan Kassim, Salina Adeyemi, Adewale Abideen
author_sort	Nik Azman, Nik Hadiyan
title	Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
title_short	Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
title_full	Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
title_fullStr	Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
title_full_unstemmed	Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia
title_sort	analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in malaysia
publisher	Emerald Group Publishing Ltd.
publishDate	2018
url	http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/ http://irep.iium.edu.my/70033/1/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_article.pdf http://irep.iium.edu.my/70033/2/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_scopus.pdf http://irep.iium.edu.my/70033/13/70033_Analysing%20ar-rahnu%20in%20the%20context%20of%20informal_WOS.pdf
first_indexed	2023-09-18T21:39:25Z
last_indexed	2023-09-18T21:39:25Z
_version_	1777413039943843840

Analysing ar-rahnu in the context of informal credit market theory: evidence from women micro-entrepreneurs in Malaysia

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