Shariah disclosure and its effect on financial performance of Malaysian SMEs

Shariah disclosure has become an important aspect in a Small-Medium Enterprises (SMEs). The disclosure of shariah information would enhance the transparency and accountability of SMEs towards its stakeholders which in return helps promote the long term profitability and sustainability. Thus, the obj...

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Main Author:	Noor Azman, Ain Farahin
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Finance (Islamic law) Small business - Malaysia
Online Access:	http://psasir.upm.edu.my/id/eprint/99379/1/AIN%20FARAHIN%20BINTI%20NOOR%20AZMAN%20-%20IR.pdf
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id	my-upm-ir.99379
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spelling	my-upm-ir.993792023-04-04T03:27:30Z Shariah disclosure and its effect on financial performance of Malaysian SMEs 2020-01 Noor Azman, Ain Farahin Shariah disclosure has become an important aspect in a Small-Medium Enterprises (SMEs). The disclosure of shariah information would enhance the transparency and accountability of SMEs towards its stakeholders which in return helps promote the long term profitability and sustainability. Thus, the objectives of this study are to: (1) examine the extensiveness of Shariah disclosure and (2) investigate the relationship between Shariah disclosure on product and services, financing, earnings and expenditure, social functions and environment and its effect on financial performance of SMEs in Malaysia. In total, 131 respondents comprised of owners and top management of SMEs in the state of Selangor, Kedah, Pahang, and Johor. The questionnaire was developed based on Shariah Index for Islamic Social Reporting and the data was analysed using multiple regression. The findings indicated that Shariah disclosure on financing found to have significant relationship on the financial performance of SMEs. In contrast, products and services, earning and expenditure, social functions and environment were found to have no significant relationship on the financial performance of SMEs. The results also show that working environment for workers was disclosed extensively by SMEs while, earning expenditure on non-Shariah compliant the disclosure was less extensive. The results of the study would be useful to SMEs and policy-makers in Malaysia for example, the SME Corp. The relevant agencies or government should come out with new guidelines with regard to Shariah disclosure for safeguarding stakeholders’ interest. Finance (Islamic law) Small business - Malaysia 2020-01 Thesis http://psasir.upm.edu.my/id/eprint/99379/ http://psasir.upm.edu.my/id/eprint/99379/1/AIN%20FARAHIN%20BINTI%20NOOR%20AZMAN%20-%20IR.pdf text en public masters Universiti Putra Malaysia Finance (Islamic law) Small business - Malaysia Mat Daud, Zaidi
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Mat Daud, Zaidi
topic	Finance (Islamic law) Small business - Malaysia
spellingShingle	Finance (Islamic law) Small business - Malaysia Noor Azman, Ain Farahin Shariah disclosure and its effect on financial performance of Malaysian SMEs
description	Shariah disclosure has become an important aspect in a Small-Medium Enterprises (SMEs). The disclosure of shariah information would enhance the transparency and accountability of SMEs towards its stakeholders which in return helps promote the long term profitability and sustainability. Thus, the objectives of this study are to: (1) examine the extensiveness of Shariah disclosure and (2) investigate the relationship between Shariah disclosure on product and services, financing, earnings and expenditure, social functions and environment and its effect on financial performance of SMEs in Malaysia. In total, 131 respondents comprised of owners and top management of SMEs in the state of Selangor, Kedah, Pahang, and Johor. The questionnaire was developed based on Shariah Index for Islamic Social Reporting and the data was analysed using multiple regression. The findings indicated that Shariah disclosure on financing found to have significant relationship on the financial performance of SMEs. In contrast, products and services, earning and expenditure, social functions and environment were found to have no significant relationship on the financial performance of SMEs. The results also show that working environment for workers was disclosed extensively by SMEs while, earning expenditure on non-Shariah compliant the disclosure was less extensive. The results of the study would be useful to SMEs and policy-makers in Malaysia for example, the SME Corp. The relevant agencies or government should come out with new guidelines with regard to Shariah disclosure for safeguarding stakeholders’ interest.
format	Thesis
qualification_level	Master's degree
author	Noor Azman, Ain Farahin
author_facet	Noor Azman, Ain Farahin
author_sort	Noor Azman, Ain Farahin
title	Shariah disclosure and its effect on financial performance of Malaysian SMEs
title_short	Shariah disclosure and its effect on financial performance of Malaysian SMEs
title_full	Shariah disclosure and its effect on financial performance of Malaysian SMEs
title_fullStr	Shariah disclosure and its effect on financial performance of Malaysian SMEs
title_full_unstemmed	Shariah disclosure and its effect on financial performance of Malaysian SMEs
title_sort	shariah disclosure and its effect on financial performance of malaysian smes
granting_institution	Universiti Putra Malaysia
publishDate	2020
url	http://psasir.upm.edu.my/id/eprint/99379/1/AIN%20FARAHIN%20BINTI%20NOOR%20AZMAN%20-%20IR.pdf
_version_	1776100326858817536

Shariah disclosure and its effect on financial performance of Malaysian SMEs

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