Alija Avdukic - Academia.edu (original) (raw)
Papers by Alija Avdukic
This study analyzes the social performance of 40 Islamic banks from 13 countries over the period ... more This study analyzes the social performance of 40 Islamic banks from 13 countries over the period 2012-2018, aiming to investigate to what extent Islamic banks around the world meet the social goals of the Islamic moral economy. As key financial institutions that operate within the framework of the Islamic moral economy, Islamic banks are expected to play and emphasize their socio-economic role in society by improving their economic, social, ethical, and environmental performance. Therefore, social performance in this paper was measured via a comprehensive evaluation framework using a maqasid index based on disclosure analysis. The main findings suggested that Islamic banks achieved 35% of the maximum index value, which indicated a room for improving their social performance. There was an encouraging fact that social performance over the observed period grew on a yearly basis. The average growth rate of social performance per year was 3.58%, which did not guarantee significant change...
Journal of Business Ethics
This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari... more This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari’ah theoretical framework’s novel approach in evaluating the ethical, social, environmental and financial performance of Islamic banks. Maqasid al-Shari’ah is interpreted as achieving social good as a consequence in addition to well-being and, hence, it goes beyond traditional (voluntary) social responsibility. This study also explores the major determinants that affect maqasid performance as expressed through disclosure analysis. By expanding the traditional maqasid al-Shari’ah,, we develop a comprehensive evaluation framework in the form of a maqasid index, which is subjected to a rigorous disclosure analysis. Furthermore, in identifying the main determinants of the maqasid disclosure performance, panel data analysis is used by including several key variables alongside political and socio-economic environment, ownership structures, and corporate and Shari’ah governance-related factors....
Considering that Islamic finance and banking studies have come into dominance in recent years, th... more Considering that Islamic finance and banking studies have come into dominance in recent years, there are hardly any studies conducted in Islamic economics and political economy. While financial studies and practices require strong theoretical foundation, this is missing in the case of Islamic finance and banking. Due to the lack of theoretical developments, the working mechanism of Islamic finance is very much neo-classical economics despite the fact that its ontological base is ‘Islamic’. This creates tension between theoretical aspirations of Islamic economics and the realities as observed of Islamic finance. This research, therefore, is an attempt for expanding research in Islamic economics or as termed in his study in Islamic Political and Moral Economy to substantiate the theoretical underpinnings of this sub-discipline, whereby a theoretical foundation can be provided for Islamic finance and banking. This study therefore argues that ‘political and moral’ economy nature establi...
An opinion held by the majority of Muslims scholars, such as Ibn Taymiyyah, supports the contenti... more An opinion held by the majority of Muslims scholars, such as Ibn Taymiyyah, supports the contention that each thing or act has an ethical value that can be comprehended through reason. Two different methodologies are used for applying reason onto morals. One is categorical moral reasoning that attempts to locate morality within actions and duties, while the other is consequential moral reasoning which concentrates on the consequences of an act. Jeremy Bentham adopted consequential moral reasoning and developed the concept of utilitarianism, which was further developed by John Stuart Mill. Through utilitarianism, a concept of utility was introduced, measuring the consequences of actions or things. The concept of utility has its roots in the idea of pain and pleasure. By way of comparison, Islam has its own theme for pain and pleasure, which originates from the paradox of maruf (known good) and munkar (known evil). Therefore, the paradigm of utility theory in an Islamic economic model...
Asia-Pacific Financial Markets
Islamic indices encompass different fundamental principles to those held by conventional ones, wh... more Islamic indices encompass different fundamental principles to those held by conventional ones, which directs attention onto comparative financial performance. This paper offers a comprehensive performance comparison between Islamic indices and conventional indices, based on four main markets: worldwide, the US, Europe and Asia–Pacific for the period of 2007 and 2017 through financial ratio comparison and also the CAPM-EGARCH model. The main finding shows that Islamic indices yield higher average returns and lower risks during the 2007–2009 and 2013–2017 periods for all four markets, compared with respective conventional markets. During 2009–2013 period, the comparison proves inconclusive, since Islamic indices demonstrate better performance in European and Asia–Pacific markets, while conventional indices operate at an enhanced level within other markets. Overall, Islamic indices outperformed conventional indices during the global financial crisis period (2007–2009) and the latter po...
Journal of Business Ethics
Research into spirituality and its impact on the work environment has been bourgeoning. In an att... more Research into spirituality and its impact on the work environment has been bourgeoning. In an attempt to explore the role of Islamic spirituality in the workplace, this study examines the influence of Islamic spirituality on job satisfaction and organisational commitment through work ethics. Data are obtained by an online Likert-scaled questionnaire survey based on one thousand Muslim employees from various economic sectors in Indonesia and analysed through structural equation modelling (SEM). The findings demonstrate that Islamic spirituality positively influences job satisfaction and organisational commitment as two dimensions of work attitudes and that work ethics mediate that influence. There is also evidence that job satisfaction positively influences organisational commitment, but work ethics does not moderate that influence. The findings related to the role of work ethics, which mediates the effect of Islamic spirituality on job satisfaction and organisational commitment, can...
Journal of Business Ethics
Research into spirituality and its impact on the work environment has been bourgeoning. In an att... more Research into spirituality and its impact on the work environment has been bourgeoning. In an attempt to explore the role of Islamic spirituality in the workplace, this study examines the influence of Islamic spirituality on job satisfaction and organisational commitment through work ethics. Data are obtained by an online Likert-scaled questionnaire survey based on one thousand Muslim employees from various economic sectors in Indonesia and analysed through structural equation modelling (SEM). The findings demonstrate that Islamic spirituality positively influences job satisfaction and organisational commitment as two dimensions of work attitudes and that work ethics mediate that influence. There is also evidence that job satisfaction positively influences organisational commitment, but work ethics does not moderate that influence. The findings related to the role of work ethics, which mediates the effect of Islamic spirituality on job satisfaction and organisational commitment, can...
Journal of Business Ethics, 2020
This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari... more This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari'ah theoretical frame-work's novel approach in evaluating the ethical, social, environmental and financial performance of Islamic banks. Maqasid al-Shari'ah is interpreted as achieving social good as a consequence in addition to well-being and, hence, it goes beyond traditional (voluntary) social responsibility. This study also explores the major determinants that affect maqasid performance as expressed through disclosure analysis. By expanding the traditional maqasid al-Shari'ah,, we develop a comprehensive evaluation framework in the form of a maqasid index, which is subjected to a rigorous disclosure analysis. Furthermore, in identifying the main determinants of the maqasid disclosure performance, panel data analysis is used by including several key variables alongside political and socioeconomic environment, ownership structures, and corporate and Shari'ah gov-ern...
This study analyzes the social performance of 40 Islamic banks from 13 countries over the period ... more This study analyzes the social performance of 40 Islamic banks from 13 countries over the period 2012-2018, aiming to investigate to what extent Islamic banks around the world meet the social goals of the Islamic moral economy. As key financial institutions that operate within the framework of the Islamic moral economy, Islamic banks are expected to play and emphasize their socio-economic role in society by improving their economic, social, ethical, and environmental performance. Therefore, social performance in this paper was measured via a comprehensive evaluation framework using a maqasid index based on disclosure analysis. The main findings suggested that Islamic banks achieved 35% of the maximum index value, which indicated a room for improving their social performance. There was an encouraging fact that social performance over the observed period grew on a yearly basis. The average growth rate of social performance per year was 3.58%, which did not guarantee significant change...
Journal of Business Ethics
This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari... more This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari’ah theoretical framework’s novel approach in evaluating the ethical, social, environmental and financial performance of Islamic banks. Maqasid al-Shari’ah is interpreted as achieving social good as a consequence in addition to well-being and, hence, it goes beyond traditional (voluntary) social responsibility. This study also explores the major determinants that affect maqasid performance as expressed through disclosure analysis. By expanding the traditional maqasid al-Shari’ah,, we develop a comprehensive evaluation framework in the form of a maqasid index, which is subjected to a rigorous disclosure analysis. Furthermore, in identifying the main determinants of the maqasid disclosure performance, panel data analysis is used by including several key variables alongside political and socio-economic environment, ownership structures, and corporate and Shari’ah governance-related factors....
Considering that Islamic finance and banking studies have come into dominance in recent years, th... more Considering that Islamic finance and banking studies have come into dominance in recent years, there are hardly any studies conducted in Islamic economics and political economy. While financial studies and practices require strong theoretical foundation, this is missing in the case of Islamic finance and banking. Due to the lack of theoretical developments, the working mechanism of Islamic finance is very much neo-classical economics despite the fact that its ontological base is ‘Islamic’. This creates tension between theoretical aspirations of Islamic economics and the realities as observed of Islamic finance. This research, therefore, is an attempt for expanding research in Islamic economics or as termed in his study in Islamic Political and Moral Economy to substantiate the theoretical underpinnings of this sub-discipline, whereby a theoretical foundation can be provided for Islamic finance and banking. This study therefore argues that ‘political and moral’ economy nature establi...
An opinion held by the majority of Muslims scholars, such as Ibn Taymiyyah, supports the contenti... more An opinion held by the majority of Muslims scholars, such as Ibn Taymiyyah, supports the contention that each thing or act has an ethical value that can be comprehended through reason. Two different methodologies are used for applying reason onto morals. One is categorical moral reasoning that attempts to locate morality within actions and duties, while the other is consequential moral reasoning which concentrates on the consequences of an act. Jeremy Bentham adopted consequential moral reasoning and developed the concept of utilitarianism, which was further developed by John Stuart Mill. Through utilitarianism, a concept of utility was introduced, measuring the consequences of actions or things. The concept of utility has its roots in the idea of pain and pleasure. By way of comparison, Islam has its own theme for pain and pleasure, which originates from the paradox of maruf (known good) and munkar (known evil). Therefore, the paradigm of utility theory in an Islamic economic model...
Asia-Pacific Financial Markets
Islamic indices encompass different fundamental principles to those held by conventional ones, wh... more Islamic indices encompass different fundamental principles to those held by conventional ones, which directs attention onto comparative financial performance. This paper offers a comprehensive performance comparison between Islamic indices and conventional indices, based on four main markets: worldwide, the US, Europe and Asia–Pacific for the period of 2007 and 2017 through financial ratio comparison and also the CAPM-EGARCH model. The main finding shows that Islamic indices yield higher average returns and lower risks during the 2007–2009 and 2013–2017 periods for all four markets, compared with respective conventional markets. During 2009–2013 period, the comparison proves inconclusive, since Islamic indices demonstrate better performance in European and Asia–Pacific markets, while conventional indices operate at an enhanced level within other markets. Overall, Islamic indices outperformed conventional indices during the global financial crisis period (2007–2009) and the latter po...
Journal of Business Ethics
Research into spirituality and its impact on the work environment has been bourgeoning. In an att... more Research into spirituality and its impact on the work environment has been bourgeoning. In an attempt to explore the role of Islamic spirituality in the workplace, this study examines the influence of Islamic spirituality on job satisfaction and organisational commitment through work ethics. Data are obtained by an online Likert-scaled questionnaire survey based on one thousand Muslim employees from various economic sectors in Indonesia and analysed through structural equation modelling (SEM). The findings demonstrate that Islamic spirituality positively influences job satisfaction and organisational commitment as two dimensions of work attitudes and that work ethics mediate that influence. There is also evidence that job satisfaction positively influences organisational commitment, but work ethics does not moderate that influence. The findings related to the role of work ethics, which mediates the effect of Islamic spirituality on job satisfaction and organisational commitment, can...
Journal of Business Ethics
Research into spirituality and its impact on the work environment has been bourgeoning. In an att... more Research into spirituality and its impact on the work environment has been bourgeoning. In an attempt to explore the role of Islamic spirituality in the workplace, this study examines the influence of Islamic spirituality on job satisfaction and organisational commitment through work ethics. Data are obtained by an online Likert-scaled questionnaire survey based on one thousand Muslim employees from various economic sectors in Indonesia and analysed through structural equation modelling (SEM). The findings demonstrate that Islamic spirituality positively influences job satisfaction and organisational commitment as two dimensions of work attitudes and that work ethics mediate that influence. There is also evidence that job satisfaction positively influences organisational commitment, but work ethics does not moderate that influence. The findings related to the role of work ethics, which mediates the effect of Islamic spirituality on job satisfaction and organisational commitment, can...
Journal of Business Ethics, 2020
This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari... more This study utilises higher objectives postulated in Islamic moral economy or the maqasid al-Shari'ah theoretical frame-work's novel approach in evaluating the ethical, social, environmental and financial performance of Islamic banks. Maqasid al-Shari'ah is interpreted as achieving social good as a consequence in addition to well-being and, hence, it goes beyond traditional (voluntary) social responsibility. This study also explores the major determinants that affect maqasid performance as expressed through disclosure analysis. By expanding the traditional maqasid al-Shari'ah,, we develop a comprehensive evaluation framework in the form of a maqasid index, which is subjected to a rigorous disclosure analysis. Furthermore, in identifying the main determinants of the maqasid disclosure performance, panel data analysis is used by including several key variables alongside political and socioeconomic environment, ownership structures, and corporate and Shari'ah gov-ern...