Jurnal Ekonomi & Keuangan Islam

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ISSN / EISSN : 2088-9968 / 2614-6908
Total articles ≅ 54
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Jurnal Ekonomi & Keuangan Islam; doi:10.20885/jeki

Abstract:
JURNAL EKONOMI & KEUANGAN ISLAM is published twice a year in January and July, intended as a medium of information, communication, and dissemination of research results and scientific studies in the field of Islamic economics and Islamic finance. Articles published are the responsibility of the author, however Editors can edit without changing the substance of the article.
Rahmatina A Kasri, Chairilisa Azzahra
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 149-164; doi:10.20885/jeki.vol6.iss2.art6

Abstract:
Purpose – Albeit Islamic banks are often considered more stable than conventional banks, empirical evidence to support the stability view is relatively scanty. This study, therefore, mainly aims to investigate whether Islamic banks are more stable than conventional banks in Indonesia. To enrich and support the analysis, it will also compare the factors influencing the stability of Islamic banks and conventional banks in the country.Methodology – This paper employs a dynamic panel data model using the system-GMM (General Method of Moment) estimator. The data used are quarterly data from 83 conventional banks and 11 Islamic banks in Indonesia during September 2015-June 2019 period. Findings – The study did not find any significant difference in the stability of conventional and Islamic banks. This result is presumably influenced by the small size and small market share of Islamic banks, as well as many similarities between the two types of banking systems. Furthermore, the stability of the conventional bank in Indonesia is more influenced by macroeconomic factors including interest rate, exchange rate and financial inclusions, meanwhile the stability of Islamic banks is more influenced by the banks’ specific factors such as financing growth, efficiency and risk management factors.Research limitations – The data used in the study is limited to the period from September 2015 to June 2019. The variables utilized are also limited to those taken from publicly available financial statements.Originality – This paper provides additional empirical evidence regarding Islamic banking stability in Indonesia by using the latest data. While theoretically Islamic banks are expected to be more stable than conventional banks, this study did not find strong support for the case of Indonesia during the period of observation.
Khairil Faizal Khairi, Nur Hidayah Laili, Aimi Fadzirul Kamarubahrin
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 106-118; doi:10.20885/jeki.vol6.iss2.art3

Abstract:
Purpose – The purpose of this paper is to determine the factors influencing Malaysian consumer toward intention to purchase Takaful scheme for mental health disorders.Design/methodology – This paper adopts a quantitative approach by using an extended Theory of Reasoned Action (TRA) model. A pilot study with the total of 60 questionnaires were obtained from online survey to examine the significance relationship using multiple regression analysis.Findings – The result from this study portrays that subjective norm are strong predictors of a Malaysian consumer intention to purchase Takaful scheme for mental health disorders. Moreover, factors such as awareness, perception and attitude have positive and significant impacts on consumer intention to purchase takaful scheme for mental health disorders in Malaysia.Research limitation – There are some constraints. First, it focuses only on the actions of Malaysian consumers against a takaful scheme for mental health disorders; thus, the findings cannot be generalized to other takaful schemes. Therefore, more studies in other takaful settings, such as general takaful, need to begin. Second, this study considered only four factors were awareness, perception, attitude and subjective norm, and the factors selected might not cover all the factors which may have an effect on Malaysia's intentions toward takaful mental health disorders scheme.Originality - This study not only helps takaful operators design, develop and promote better approved takaful products and services, but also offers a new insight into how these products and services can be marketed to these particular consumers. Previous empirical studies that employed TRA focused on various types of variables, such as attitude and subjective norm, especially in the financial service environment. This research thus adds to the body of information by analysing the relative value of the goal affecting it.
Intan Aulia Ardhani, Jaenal Effendi, Mohammad Iqbal Irfany
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 134-148; doi:10.20885/jeki.vol6.iss2.art5

Abstract:
Purpose­­­ – This study aims to perform the short-term and long-term relationships between net asset value of Islamic mutual funds within macroeconomic variables, to analyze responses towards the economic shock, and to analyze the composition of the net asset value of Islamic mutual funds within selected macroeconomic variables.Methodology – Monthly data over the 2015-2019 period were analyzed using the Vector Error Correction Model (VECM), impulse response test, and variance decomposition test.Findings – The results show that inflation, money supply, and gross domestic products had a positive and significant effect on the net asset value of Islamic mutual funds, on the other hand, the rupiah exchange rate had a negative thus insignificant effect on the net asset value of Islamic mutual funds.Research limitation/implication – The main limitation of this research is the lack of a variable that represents the Islamicity index, which can differentiate the driven factors of FDI in Muslim and non-Muslim organization countries.Practical implication – This study suggests that the society and the government should collaborate to maintain the stability of the rupiah exchange rate by buying domestic products, strengthening the real sector.Originality – Here we provide an update data of macroeconomics variables dynamics (e.g. GDP, inflation, exchange rate, and money supply) and its implication to Islamic mutual funds – i.e. net asset value over 2015-2019. We used a novel timeseries analytical approach (VECM) to estimate the magnitude of macroeconomics effects to Islamic mutual funds in Indonesia.
Indri Supriani, Bayu Arie Fianto
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 91-105; doi:10.20885/jeki.vol6.iss2.art2

Abstract:
Purpose­­­ – This study investigates the driven factors of Foreign Direct Investment (FDI) inflow in selected OIC member countries. The selection of samples observation based on the top 10 hosts of inward FDI flows countries, includes the United Arab Emirates (UAE), Morocco, Indonesia, Turkey, Iran, Egypt, Bangladesh, Kazakhstan, Oman, and Malaysia.Methodology – The data for this study are obtained from World Bank and United Nations Development Programme (UNDP) database for the period 2001-2018. This study adopted panel regression analyses and utilized the Random Effect Model.Findings – This study reveals that GDP and trade openness were positive and significantly plays a vital role in driving the FDI inflow. Whereas, the exchange rate, inflation, and human development index did not have a significant impact on FDI inflow in the top 10 hosts of inward FDI flows countries.Research limitation – The main limitation of this research is the lack of a variable that represents the Islamicity index, which can differentiate the driven factors of FDI in Muslim and non-Muslim organization countries.Practical implication – This study suggests that members of OIC countries should provide a conducive investment environment which is represented by higher GDP growth and engage in various international trade agreements because those factors have higher possibilities in impacting the FDI inflow. Moreover, the rules which describe the investment priority amongst the member of OIC countries must be ratified immediately to decrease the percentage of the FDI inflows goes to non-OIC members.Originality – This study has advanced the knowledge by examining the driven factors of FDI in the specifically selected members of OIC countries, which based on the highest FDI inward. Thus, this study provides significant insights for policymakers for the rest of the member OIC countries to attract FDI inflows referring to the top 10 hosts of inward FDI flows countries.
M. Shabri Abd. Majid, Sri Ulina
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 77-90; doi:10.20885/jeki.vol6.iss2.art1

Abstract:
Purpose – This study explores comparatively the effects of capital adequacy, non-performing loans/financing, liquidity, and operating expenses on Indonesia’s conventional and Islamic banking performances between the pre-and post-2008 Global Financial Crisis (GFC) periods.Methodology – The study selected the three respective largest conventional and Islamic banks as a sample of the study using a purposive sampling technique. The data for the pre-2008 GFC period (i.e., 2003 – 2008) and the post-2008 GFC period (i.e., 2009 – 2017) were analyzed using a panel multiple regression analysis.Findings – The study documented different influences of capital adequacy, liquidity, non-performing loans/financing, and operating expenses on conventional and Islamic banking performances between the pre- and post-2008 GFC. Research limitations – This study only investigated the banks’ characteristics as the determinants of banking performances and compared merely the effects the pre- and post-2008 GFC periods.Practical implications – To maintain and enhance their performances, the Islamic and conventional banks should adopt different financial policies between the normal and turbulent economic periods. The Islamic banks were in a better position amid the crisis, showing an urgent need for the government to further promote Islamic banks, as they could offer better solutions for economic stability.Originality – The study examined a larger number of conventional and Islamic banks over more extended and updated study periods, namely six years (i.e., 2003-2008) before the 2008 GFC and ten years (i.e., 2009-2018) after the 2018 GFC. The study is among the first attempts to comparatively analyze the determinants of Indonesia’s Islamic and conventional banking performances between the pre- and post-2008 GFC periods using the panel multiple regression analysis to arrive at more comprehensive and robust empirical evidence.
U’Um Munawaroh, Sunarsih Sunarsih
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 119-133; doi:10.20885/jeki.vol6.iss2.art4

Abstract:
Purpose – The purpose of this study is to examine the effect of Fama-French five-factor and momentum factor on Islamic stock portfolio excess returns listed in the Indonesia Sharia Stock Index (ISSI).Methodology – This study used return data from ISSI group, starting from January 2013 to December 2017, which are then formed into time series data with excess monthly stock portfolio. This study adapted the Fama and French (2015) methodology using 2x3 and 2x2 to form the portfolio and applied Ordinary Least Square (OLS) with monthly data frequency to test the relevance of the model to the expected stock return of 183 companies.Findings – The results showed that the risk premium, the book-to-market ratio which is proxied by High Minus Low (HML), the investment that is proxied by Conservative Minus Aggressive (CMA), and the momentum which is proxied by Up Minus Down (UMD) has a positive effect on the excess return of the company's stock portfolio registered in Indonesia Sharia Stock Index (ISSI) during the period. While, the size and profitability variable do not affect the expected stock return.Research limitations – The results of this study provides relevant information about the relationship between risk and stock return using Fama and French five-factor model and momentum. However, future researchers can expand the scale of the research by adding research periods and using daily return research data. It is intended that the results are more representative of the actual market conditions at the moment.Originality – Researches on the factors that influence the selection of Islamic stock portfolios based on excess return using Fama-French five-factor including the momentum factor are still limited. This study contributes to the asset pricing development by investigating factors influencing performance of ISSI’s portfolio excess return using five-factor model and momentum factor.
Kunti Saptasari, Hendy Mustiko Aji
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 165-180; doi:10.20885/jeki.vol6.iss2.art7

Abstract:
Purpose – The purpose of this paper is to determine the factors influencing the Indonesian Muslim consumer’s intention to use Islamic banks.Methodology – This paper adopts a quantitative approach. The data is collected from online and offline questionnaires. By using a non-probability purposive sampling method, this study limited the respondents to the Muslims who have no Islamic bank account. In total, there are a total of 575 sample respondents.Findings – The results of this study portray that religiosity, knowledge, and perceived quality have a positive and significant effect on customers’ intention to use Islamic bank in Indonesia.Research limitations – After finishing all research processes, the author finds that the indicators to measure Islamic religiosity is not entirely reflected Islamic religiosity from the Indonesian Muslim context. As a consequence, several items must be eliminated from the analysis due to validity issues. The author recommends future researchers to retest the religiosity indicators to find more suitable items in the context of Indonesia Muslim culture.Practical applications – This study provides an insight into the Indonesian Islamic finance industry as a basic formulation in designing, developing, and appropriate strategies to promote Islamic banking.Social applications – This study not only helps Islamic financial sector in designing, developing, and promoting Islamic banking in Indonesia but also offers new insights concerning Indonesian Muslim religiosity, knowledge on Islamic banks, and their perception of quality toward Islamic banks.Originality – This study uses an extended Theory of Planned Behavior (TPB) to explain the intention to use Islamic banks. In the model, religiosity, knowledge, and perceived quality is simultaneously tested to complement the TPB.
Anggia Zainur Rahmah , Sheema Haseena Armina
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 34-41; doi:10.20885/jeki.vol6.iss1.art4

Abstract:
Doubtful finance showing a bad performance of a company, but this can be avoided if the banks use the right strategy to prevent such financial condition. This study aims to indicate the determinants of doubtful finance in the Indonesian Islamic banking sector from 2011 to 2018. We employed panel data regression to meet our objectives. Our results depict that banks’ profitability and finance to deposit ratio have a significant positive impact on Non-Performing Finance. On the other hand, Gross Domestic Product has a significant positive effect on doubtful finance. This study provides an alluded picture of Indonesian Islamic banking sectors, particularly Non-Performing Finance (NPF). Moreover, it enables policymakers to deliberate on the macroeconomic determinants of NPFs (i.e. GDP). Furthermore, this study will enhance the Islamic bank's performance literature.
Arsyad Abror, Ataina Hudayati
Jurnal Ekonomi & Keuangan Islam, Volume 6, pp 24-33; doi:10.20885/jeki.vol6.iss1.art3

Abstract:
The purpose of this study was to examine the effect of distributive justice on the intention to pay zakat through Zakat Institutions (ZIs), using affective trust and cognitive trust as intervening variables. Data collection techniques through the distribution of questionnaires to 272 Muslims in Yogyakarta. Data analysis using Structural Equation Modeling (SEM) with SmartPLS software version 3.2. The findings show that the distributive justice has a positive effect on intention to pay zakat through ZIs, as well as has a positive effect on affective and cognitive trust. In addition, affective and cognitive trust has a positive effect on intention to pay zakat through ZIs. The results of the study also show that affective and cognitive trust are intervening variables on the relationship between distributive justice and the intention to pay zakat through ZIs.
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