Islamic Accounting Journal

The Role of Internal Control on Accountability of Waqf Nazir

2026-07-07T06:27:36+00:00

Objective & object:

This study aims to analyze whether the internal control affect the accountability of waqf nazir. Specifically, we examine the effects of internal control structure on the effectiveness of the internal control of the waqf nazir and the effectiveness of internal control on the accountability of waqf nazir.

Methods:

This study uses a quantitative approach to test the hypothesis and aims to generalize the results. The total population in this study is 407 cash waqf nazirs registered with the Indonesian Waqf Agency in October 2023. We used online questionnaire, this study got 65 waqf nazir as a sample. The data analysis in this study uses second-order construct analysis by Warp PLS 7.0.

Results & Conclusions:

The results of the study showed that the internal control structure did not have a significant effect on the effectiveness of the internal control of the waqf nazir. The effectiveness of internal control affects the accountability of the money waqf nazir. Limitations:

This study used small sample, the future research on internal control in the waqf context should get bigger sample.

Implications:

By understanding the condition of nazirs, the results of this study can provide suggestions to the Indonesian Waqf Agency (BWI) to encourage nazirs to improve their organization. NGOs can improve their organizational learning by implementing an excellent internal control system.

Keywords: Internal Control, Accountability, Waqf, Nazir.

How Can Accounting Conservatism be Implemented? (Study of Infrastructure Sector Companies Listed on ISSI)

2026-07-18T06:55:29+00:00

Objective & object:

This study examines the effect of earnings pressure, financial distress, and capital intensity on accounting conservatism, with the independent board of commissioners as a moderating variable in infrastructure companies listed on ISSI during 2019–2023.

Methods:

This study uses a quantitative approach with panel data analysis on 125 samples selected through purposive sampling and analyzed using EViews 12.

Results & Conclusions:

The results show that earnings pressure and financial distress have a significant negative effect on accounting conservatism, while capital intensity has no effect. The independent board of commissioners moderates the effect of earnings pressure but does not moderate financial distress or capital intensity.

Limitations:

This study is limited to infrastructure companies listed on ISSI and the 2019–2023 period.

Implications:

The findings provide practical and academic implications regarding the role of corporate governance in maintaining accounting conservatism.

Adopting Wellbeing Budgeting at the Local Government Level in Malaysia: Lessons from New Zealand and Other Models

2026-09-26T10:20:32+00:00

Objective & object:

This article examines how Malaysian local governments can adopt wellbeing budgeting by drawing lessons from New Zealand’s Wellbeing Budget and subnational practices in the United Kingdom, Canada, and Australia. The study focuses on Malaysia’s local government context, particularly Penang, Kuala Lumpur, and Sarawak.

Methods:

The study employs a qualitative descriptive approach based on a literature review and comparative case analysis. It examines wellbeing economics, international wellbeing budgeting practices, Malaysia’s governance and budgeting context, and selected local initiatives.

Results & Conclusions:

The findings show that Malaysian local governments have introduced initiatives aligned with wellbeing goals, including Penang’s Vision 2030, Kuala Lumpur’s inclusive budgeting agenda, and Sarawak’s SDG roadmap. However, implementation remains constrained by limited local autonomy, fragmented institutional coordination, conventional budgeting practices, and inadequate wellbeing indicators and data systems. The study concludes that wellbeing budgeting requires clear outcomes linking wellbeing goals, indicators, planning, and budget allocation.

Limitations:

This conceptual study relies on secondary data and selected case studies and does not empirically evaluate implementation effectiveness.

Implications:

The article proposes a roadmap involving local wellbeing goals, indicators and data systems, outcome-based planning and budgeting, budget reform, institutional coordination, and community engagement to support more evidence-based, people-centred local government budgeting.

The Influence of Understanding of Sharia Contracts, Fear of Riba, and Financial Literacy on the Preference for Sharia Financing among Culinary MSMEs in Pangkalpinang City

2026-07-29T04:09:45+00:00

Abstract

Objectives & Objects:
This study aims to empirically analyze the influence of Understanding of Sharia Contracts, Fear of Riba, and Financial Literacy on the Preference for Sharia Financing among Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector in Pangkalpinang City. The study seeks to explain behavioral tendencies among Muslim entrepreneurs in choosing Islamic financing products and to identify which factors predominantly shape their financial decision-making patterns.

Methods:
The research employed a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS version 4. Primary data were collected through a questionnaire distributed to culinary MSMEs in Pangkalpinang. Sampling used the purposive method, focusing on business owners who have been operational for at least two years and are aware of both conventional and Islamic financial products. The model was tested through validity, reliability, and hypothesis testing procedures.

Results & Conclusions:
The findings reveal that Understanding of Sharia Contracts and Fear of Riba have no significant influence on the Preference for Sharia Financing, while Financial Literacy exerts a strong and significant positive effect. These results suggest that rational cognitive factors such as financial competence and knowledge play a more dominant role in influencing financing preferences than religious or emotional considerations. The study further emphasizes that practical literacy in managing finance and understanding profit-sharing mechanisms enhances the intention to adopt Sharia-compliant financial products.

Limitations:
The study focuses solely on culinary MSMEs in Pangkalpinang City and does not account for potential moderating variables such as Islamic educational background or previous experience with Sharia banking. Broader generalization requires multi-regional and sectoral comparison.

Implications:
The findings underline the necessity for Islamic financial institutions to improve public financial literacy through practical education, simulation of Sharia contracts, and contextual communication. Future research could integrate moderating factors such as exposure to Islamic schooling or perceived behavioral control to deepen understanding of the intention–behavior gap in Islamic finance adoption.

Analysis of How ESG Leader Stocks Performed in the 2024 Election Period Using the Sharpe Method

2026-10-15T02:13:49+00:00

Objective & object:

This study aims to find out how the performance of the optimal portfolio made up of selected ESG Leader index stocks compares over three monthly periods: before, during, and after the 2024 general election. In the era of the 5.0 industrial revolution that prioritizes ESG, the IDX, in collaboration with Sustainalytics, launched a new index, the ESG Leader index, which interestingly outperformed the LQ45 index during the 2023-2024 election period.

Methods:

This study uses a descriptive method with a sample of twenty-nine selected ESG Leader index stocks. The data source used for reference and analysis in this study is secondary data. The data collection method used is documentation. Next, to determine the stocks included in the optimal portfolio, a single index model calculation was performed, and the performance of the optimal portfolio was calculated using the Sharpe method.

Results & Conclusions:

The results of the Sharpe method calculations on the optimal portfolio showed that the Sharpe value improved with each research period. In December 2023, the Sharpe value was 0.0882, followed by a Sharpe value of 1.0609 in January 2024. Furthermore, in February 2024, the Sharpe value of the optimal portfolio was 1.1686.

Limitations:

This study only looks at ESG Leader stocks from December 2023 to February 2024 using the Sharpe method.

Implications:

Single index model method to determine the optimal portfolio and the performance of the portfolio with the Sharpe method can be an option for investors in making investment decisions.