Safe havens in Islamic financial markets: COVID-19 versus GFC

Using a bivariate dynamic conditional correlation (DCC) generalized autoregressive conditional heteroskedasticity (GARCH) model, this study compares the safe-haven properties of various assets against the major Gulf Cooperation Council (GCC) stock indexes during two periods of financial turmoil, the COVID-19 pandemic and the 2008 Global Financial Crisis (GFC). Sovereign bonds offered the highest hedging benefits under both crises. The traditional safe assets, gold and silver, which were reasonably productive under the GFC, have been less so during the pandemic. The Japanese yen emerged as a very safe choice for investors holding GCC stock indexes. Both sector indexes and stock indexes failed to safeguard investors most of the time during each crisis.

Sharia Economy, Islamic Financial Performance and Factors That Influence It—Evidence from Indonesia

The contribution of SMEs to economic growth is supported by the development of the sharia economy by the government, making SMEs one of the main pillars in Indonesia's economic development. This study aimed to analyze the influence of the digital economy, financial literacy, human capital, the role of Islamic financial institutions, government support for strengthening the Islamic economy and the Islamic financial performance of SMEs in Makassar City, Indonesia. This study used a quantitative method with a survey approach. Data were obtained through questionnaires distributed to 350 respondents with a sampling method. The results of this study indicated that the strengthening of the sharia economy, the Islamic financial performance of SMEs, economic digitalization and financial literacy are determined by factors of human capital, the role of Islamic financial institutions and government support. Regarding human capital, the roles of Islamic financial institutions and government support affect the Islamic financial performance of SMEs with a coefficient of determination of 58.5%. Human capital, the role of Islamic financial institutions, government support and financial performance have a positive correlation with the strengthening of the sharia economy with a coefficient of determination of 71.6%. This study supports the improvement of government policies and the construction of financial facilities in improving the Islamic financial performance of SMEs and encourages the strengthening of the sharia economy in Makassar City, South Sulawesi, Indonesia. The limitation of this research is that the research object was only carried out on SMEs in Makassar City;thus, similar research can be increased at the national level to describe the strengthening of the sharia economy and the improvement of the financial performance of SMEs as a whole in Indonesia.

Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development

Micro, Small, and Medium Enterprises are one of Indonesia's economic buffer pillars. However, its position as a financial buffer still faces various problems. The purpose of this research is to examine the reduction of digitalization policies for Indonesian MSMEs and their implications for the development of the Islamic economy. This research is normative legal research with a statutory approach. The results showed that the provisions in the Copyright Law that require the digitization of MSMEs make its management more efficient and straightforward. During the COVID-19 pandemic, there has been a twofold increase in the number of businesses transitioning to the digital ecosystem. MSMEs are present in the development of the Islamic economy, with the possibility of managing MSMEs in the technology-based halal industry. Deregulation is carried out by simplifying regulations in order to improve the flow of bureaucracy. However, behind the ease, there are obstacles experienced by MSMEs in their digitalization efforts, including blocks in terms of community culture, regulation, and structure. © 2022, Institut Agama Islam Negeri Batusangkar. All rights reserved.

Bibliometric Analysis of the Development of Islamic Economic Dispute Resolution Research in Indonesia

This research aims to explore the development of scientific publications in the field of sharia economic dispute resolution from 2017 to 2022, this year was chosen because three conditions occurred in that year, namely before, during and after or began to subside the Covid-19 pandemic. Thus, the results of this study will have an impact on policy making and become material for future research and use by policy makers in the field of sharia economic dispute resolution. There are two formulations of the problem to be answered, namely: 1) How is the development of scientific publications in the field of sharia economic dispute resolution in Indonesia from 2017 to 2022. 2) What is the existence of scientific publications in the field of sharia economic dispute resolution in the Islamic economic order in Indonesia. Research which is a type of library research, researchers will use a bibliometric approach method with data presentation techniques that are descriptive quantitative in nature. The results of this study are: First, the development of scientific publications from 2017 to 2022 in the field of Islamic economic dispute resolution has fluctuating results (not fixed), with a total of 1001 publications with the highest peak occurring in 2021 and the lowest point occurring in 2017 and there are 12 productive researchers. Second, the existence of scientific publications in the field of sharia economic dispute settlement has an important role in social life, where the results of these publications are used as evaluation material or material for finding solutions for Islamic financial institutions in resolving sharia economic disputes and become an important study in impacting policy makers. in decision-making in the field of sharia economic dispute resolution. © 2022, Institut Agama Islam Negeri Batusangkar. All rights reserved.

Literacy and strategic marketing to raise public awareness using Sharia pawnshops during the COVID-19 pandemic

Purpose: The purpose of this study is to reveal empirical facts that literacy and marketing strategies effectively impact people using Sharia pawn products during the COVID-19 pandemic because of the pressure of capital needs and financial difficulties. Design/methodology/approach: This study used an exploratory qualitative research approach through semi-structured interviews with six partners of different productive ages and social, economic and educational backgrounds. After data reduction, presentation, description and validation, this paper develops the theory and presents it as a qualitative thematic analysis. Findings: The findings of this study revealed that those who had socialised Sharia pawnshops had a low literacy level. Nonetheless, the socialisation of Sharia pawnshops increases literacy and public understanding of pawnshop products in Sharia pawnshops. This issue arises because of the COVID-19 pandemic, which makes it impossible for Sharia pawnshops to hold an event or socialise. Originality/value: The authenticity of this study proves that literacy and marketing strategies can increase public awareness of Sharia pawn products during the COVID-19 pandemic. © 2023, Emerald Publishing Limited.

THE COVID-19 PANDEMIC AND ITS IMPACT ON THE YIELDS OF SHARIA STOCK BUSINESS PORTFOLIO IN INDONESIA

Purpose: This research aims to examine the impact of the COVID-19 pandemic on the performance of stock portfolios in Indonesia, particularly the sharia stock portfolios and common stocks in response to information sentiment due to the COVID-19 pandemic on the Indonesian stock exchange. Theoretical framework: Research by Bash & Alsaifi (2019) and Shanaev & Ghimire (2019) examined the relationship between stock returns through the stock index on political activity or its connection with environmental exploitation (Alsaifi et al., 2020;Guo et al., 2020). The relationship between stock price changes with sports (Buhagiar et al., 2018) and disasters (Kowalewski & Śpiewanowski, 2020). Design/methodology/approach: The data used in this study were 564 stocks, consisting of 356 Islamic stocks and 208 common shares provided by the Osiris database. The model testing used panel data regression with a time lag approach, where information on the number of positive cases, deaths, and recoveries due to COVID-19 each week affected the performance of the stock portfolio on that day. Findings: The testing of the performance of sharia and conventional stock portfolios showed that there is no significant difference in response to the COVID-19 pandemic information, but statistical statistics on Islamic stocks have a tendency to be more resistant to pressure from selling by investors in the Indonesian capital market compared to common stock portfolios, this is proven by the sharia stock correlation coefficient shown to be positive, on the other hand, the stock regression coefficient shows the opposite direction. Research, Practical & Social implications: This research is expected to be a recommendation material that has benefits for the development of Islamic economics, primarily can be implemented by sharia-based banks in Indonesia and other countries. Originality/value: This research focuses on studying the performance of stock portfolios in Indonesia. This research responds to the impact of the Covid-19 pandemic on the performance of stock portfolios, which is focused on Islamic stock portfolios. © 2022 AOS-Estratagia and Inovacao. All rights reserved.

Sustainability performance at stake during COVID-19 pandemic? Evidence from Sharia-compliant companies in emerging markets

Purpose: This study aims to analyse whether Sharia-compliant companies have better sustainability performance, especially in the midst of the COVID-19 pandemic. The pandemic context is worth investigating as there is a concern that companies will reduce their sustainability activities to focus more on economic recovery, thereby leading to lower sustainability performance. Design/methodology/approach: This study uses data from companies listed on Indonesian and Malaysian stock exchanges. These two countries have experienced rapid developments in Islamic finance and possess similar criteria in assigning the Sharia compliance label to a company. The data on sustainability performance and its three dimensions (environmental, social and governance) were gathered from Refinitiv (Thomson Reuters) and analysed using panel data regression. Findings: The results show that Sharia-compliant companies had a higher sustainability performance in all research periods, but not during the COVID-19 pandemic. This implies that the pandemic has not triggered a need for Sharia-compliant companies to improve their sustainability performance. The results can be interpreted that sustainability performance is not only at stake during the COVID-19 pandemic but it can also indicate a "business-as-usual” approach applied by companies regardless of the Sharia-compliant label. Originality/value: Sustainability performance has been intensively investigated in prior research, but how it is related to the current health crisis and Sharia compliance has been scantily studied and becomes the originality of this research. © 2022, Emerald Publishing Limited.

Efficiency and herding analysis in gold-backed cryptocurrencies.

This study analyses and compares the behavior of the gold-backed, conventional cryptocurrency, and gold markets capable of detecting the existence of herding and deducing the efficiency degree. In addition, this empirical work tried to examine the COVID-19 pandemic's influence on both cryptocurrency performances. This work developed a new method that discloses herding biases using persistence and efficiency metrics. Besides, this paper investigated the nonlinear dynamic properties of the gold-backed, conventional cryptocurrencies and Gold by estimating the Multifractal Detrended Fluctuation Analysis (MFDFA). It also assessed the inefficiency of these markets through an efficiency index (IEI) and tested the effect of COVID-19 on their dynamics. The findings of this investigation indicate that the gold-backed cryptocurrency (X8X) is the most efficient market in the long-term trading market. However, the conventional cryptocurrency market (Bitcoin) is the most efficient on the short trade horizon. Besides, gold-backed cryptocurrency markets present a smaller level of herding behavior than conventional cryptocurrencies on tall scales. Nevertheless, we noted the positive and negative effects of the pandemic on each cryptocurrency market dynamics. To the best of the authors' knowledge, this study is the first investigation that uses multifractal analysis to quantify the impact of the COVID-19 spread on gold-backed cryptocurrencies and detects the presence of herding behavior.

ANALYSIS OF THE FINANCIAL PERFORMANCE OF BPR NATIONAL SHARIA BEFORE AND DURING THE COVID-19 PANDEMIC

The COVID-19 pandemic and the implementation of Large-Scale Social Restrictions that occurred in Indonesia resulted in an economic slowdown. Then the problem that is present in the banking sector is the difficulty of debtors in fulfilling their financing obligations. The purpose of this study is to analyze the differences in the performance of the National Sharia BPR before the covid 19 pandemic and during the covid 19 pandemic for the period June 2018 -September 2021. In this study, performance was measured by the asset return ratio (ROA), capital adequacy ratio (CAR), ratio of nonperforming financing (NPF), operating expenses to operating income (BOPO), and the ratio of financing to deposit (FDR). The research is included in quantitative research with a comparative type. The data used is secondary data in the form of the financial statements of the National Sharia BPR obtained from www.ojk.co.id. Data analysis in this study used paired sample t-test analysis with the help of the SPSS version 25 program. The results showed that only CAR and NPF had significant differences before and during the COVID19 pandemic. While ROA, BOPO, and FDR had no significant differences. before and during the covid 19 pandemic. [ FROM AUTHOR] Copyright of Eduvest: Journal Of Universal Studies is the property of Green Publisher and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

Social Reporting by Islamic Banks: The Role of Sharia Supervisory Board and the Effect on Firm Performance

This study aims to explore social reporting by Islamic banks (IB) (referred to as Islamic social reporting, ISR, hereafter) through two streams, i.e., its determinants and consequences on firm performance. Using annual report data from 90 samples of the world’s IB from 2016–2020, this study focuses on the sharia governance implementation through the role of the Sharia Supervisory Board (SSB). The SSB was measured by individual characteristics and IG-Score, representing a combination of dichotomous characteristics of the SSB, which have not been encountered in previous studies. Firm performance as a consequence of disclosure was determined by a more comprehensive approach based on accounting and the stock market. The study’s findings demonstrate the SSB’s beneficial influence on ISR, suggesting that the presence of an SSB can promote ISR practices. Social reporting has been found to have a negative impact on ROA, but it has a positive impact on MTBV and Tobin’s Q. The data suggest that while voluntary reporting practices may cause a short-term decline in profitability, they can have a positive impact on an enterprise’s long-term value.

Sustainability performance at stake during COVID-19 pandemic? Evidence from Sharia-compliant companies in emerging markets

Purpose This study aims to analyse whether Sharia-compliant companies have better sustainability performance, especially in the midst of the COVID-19 pandemic. The pandemic context is worth investigating as there is a concern that companies will reduce their sustainability activities to focus more on economic recovery, thereby leading to lower sustainability performance. Design/methodology/approach This study uses data from companies listed on Indonesian and Malaysian stock exchanges. These two countries have experienced rapid developments in Islamic finance and possess similar criteria in assigning the Sharia compliance label to a company. The data on sustainability performance and its three dimensions (environmental, social and governance) were gathered from Refinitiv (Thomson Reuters) and analysed using panel data regression. Findings The results show that Sharia-compliant companies had a higher sustainability performance in all research periods, but not during the COVID-19 pandemic. This implies that the pandemic has not triggered a need for Sharia-compliant companies to improve their sustainability performance. The results can be interpreted that sustainability performance is not only at stake during the COVID-19 pandemic but it can also indicate a "business-as-usual" approach applied by companies regardless of the Sharia-compliant label. Originality/value Sustainability performance has been intensively investigated in prior research, but how it is related to the current health crisis and Sharia compliance has been scantily studied and becomes the originality of this research.

The need for social theology to strengthen the social functions of Islamic banking in Indonesia

This study is based on the objective conditions of Islamic banking in Indonesia, which have not carried out their social functions optimally. Based on reports from the financial services authority, Indonesia bank and several related research, the efforts to optimise the social function of Islamic banking still encounters several problems related to the distribution of banking funds that are more focused on business interests, lack of real business run by Islamic banks, customer funds that are mostly deposited in Indonesia bank and have not been distributed to the real sector effectively, to banking activities by referring to the capitalistic economic paradigm and not fully referring to sharia guidelines. The results of the study of documents, literature and actual phenomena using descriptive and holistic analysis methods indicate that the degradation of the social function of Islamic banking appears as a result of a lack of understanding of the concept of Islamic economics based on the construction of Islamic social theology. The lack of understanding of banking management towards Islamic social theology has created a gap between the practical and conceptual sides of Islamic social theology, which in turn has an impact on the lack of social commitment from related parties in the implementation of Islamic banking activities. Strengthening the practical side of Islamic social theology is a necessity to overcome the existing problems. Contribution: The article contributes to the discourse on the application of Islamic social theology to Islamic banking practices. It aims to contribute to theological thought in Islam in order to strengthen the social function of Islamic banking, by focusing on the main objective of Islamic economics: al-falah or the achievement of spiritual and material prosperity.

The value of political connections and Sharia compliance during the COVID-19 pandemic

The relationship between the COVID-19 pandemic and the stock market has been well documented in other studies. However, thus far, researchers have shown little interest in the role of political connections and Sharia compliance during the pandemic. This study offers novel evidence by investigating the value of both political connections and Sharia compliance during the present pandemic. We use two kinds of analysis. First, using the event-study methodology, we measure the stock market reaction to the COVID-19 pandemic. Second, to further sharpen our identification of the value of political connections and Sharia compliance during the current pandemic, we use a pooled regression analysis. We find that there was a stock market anomaly during the COVID-19 pandemic in Indonesia in that the pandemic had a positive impact on the stock market. We also find that there was value for firms in being Sharia-compliant during the pandemic when the government announced tax incentives for firms. Based on these results, we offer insights relevant to policymakers and financial market authorities seeking to enhance the effectiveness of policy measures during the COVID-19 pandemic. In addition, our study also has important implications for individual investors.

Augmented reality (AR)-based sharia financial literacy system (AR-SFLS): a new approach to virtual sharia financial socialization for young learners

PurposeThis study aims to examine financial socialization based on augmented reality (AR) technology for elementary school students, which it is hoped will improve their sharia financial knowledge.Design/methodology/approachThe experimental method with pre- and post-test and control groups was used to test the improvement in the young learners’ sharia financial knowledge. This study used AR for sharia financial socialization on elementary school students and focused on sharia’s basic concepts, which include earning money, balanced spending, borrowing, saving, investment, payment methods, financial technology and the concept of protection.FindingsThis study finds empirical evidence that the treatment group, who received sharia financial socialization via the AR media, increased their sharia financial knowledge to a greater extent than the control group did.Research limitations/implicationsThis study provides encouraging evidence about the potential of sharia financial education for elementary school students using the appropriate learning strategies and media. The weakness in this study is that it was only carried out in one elementary school, with the children of middle- to upper-income parents. Further research should be undertaken at several schools with the children of parents with different income levels.Practical implicationsA shift in learning styles from verbal or visual to virtual encourages the use of AR-based learning media. Financial concepts can be ones, and AR-based learning media is able to present intangible virtual elements so they become more concrete and tangible.Social implicationsThe global COVID-19 pandemic has affected all aspects. One of the most severe and likely to be multiyear ahead is the financial aspect. Therefore, this research is expected to be a preparation for the younger generation as early as possible to strengthen social benefits in order to improve sharia financial literacy.Originality/valueResearch into the financial literacy, especially sharia financial literacy aimed at elementary school students, is still very limited. The teaching of financial literacy will be more effective if educators use the appropriate strategies and media. This study used financial socialization strategies and AR learning media that are aligned with the learning styles of young learners.