GISRAS Journal of Management & Islamic Finance (GJMIF) <p>Keeping in view the need of the day and adopting these needs as our objective, Global Institute of Shariah Research &amp; Advisory Service (GISRAS) is initiating a quarterly peer-reviewed research journal namely GISRAS Journal of Management &amp; Islamic Finance (GJMIF) focusing the theory and practice of Islamic economics and finance and management aspects particularly focusing upon the applied activities prevailing into the world. In this respect, GISRAS-JMIF would provide a platform for researchers, academicians and practitioners to take part in this journal along with qualitative and quantitative research in the field of Islamic economics and finance.<br /><br />GISRAS Journal of Management &amp; Islamic Finance (GJMIF) is the publication of Global Institute of Shariah Research &amp; Advisory Services, Karachi. It has been launched with the objective to make valuable contribution in the theoretical and practical thought in the fields of management and Islamic finance. GJMIF is a quarterly peer reviewed research journal which is supervised by an advisory board of international and national experts from national and international organizations like University of New Orleans USA, AAOIFI Bahrain, ISRA Malaysia, INCEIF Malaysia, Universiti Malaysia Sabah Malaysia, La Trobe University Australia, King Saud University Saudi Arabia, Emirates College of Technology UAE, Florida International University USA, Meezan Bank Pakistan, Riphah International University Pakistan, COMSATS University Islamabad, CIE Pakistan, IMS Peshawar, IBA Pakistan, UET Pakistan and NBFI &amp; Modaraba Association of Pakistan.</p> en-US (Dr Ahmed Khan) (Khawaja Masood Raza) Sun, 24 Mar 2024 20:02:03 +0000 OJS 60 Does Sharia Tag Constitute Heuristic While Choosing an Islamic Financial Institute? Evidence From Pakistan <p><strong><em>Purpose</em></strong></p> <p><em>Know your customer is one of the cornerstones of financial industry success. Extant literature has explained the reasons for choosing an Islamic financial institute, but no study has explored customers' psychological behavior in making this decision. Based on attribute substitution theory, this study examined the psychology of customers during the selection process, and whether differences in personality type could influence the decision-making process.</em></p> <p><em>&nbsp;</em></p> <p><strong><em>Design/methodology/approach</em></strong></p> <p><em>Methodologies combining qualitative and quantitative approaches were employed. An experiment was conducted to generate a discussion among the five focus groups, and their personalities were also noted.</em></p> <p><em>&nbsp;</em></p> <p><strong><em>Findings</em></strong></p> <p><em>Results suggest that, despite customers feeling more attached to Islamic institutions that perform better in terms of Sharia compliance, interest-free, and CSR programs, their interpretations of these aspects vary considerably. In addition, the name tag of Islamic and Sharia had been the source of heuristically made decisions, where customers adopted Islamic institutes solely because of their Islamic labels or positive recommendations from Sharia scholars. Finally, it was found that different personality types have different selection criteria.</em></p> <p><strong><em>Originality</em></strong></p> <p><em>This paper was the first attempt to analyze the decision-making process of customers when choosing an Islamic financial institute by employing attribute substitution theory. It is pertinent to note that personality types were also discussed for the first time in this regard.</em></p> Dr. Awais Ur Rehman, Dr. Arsalan Haneef Malik, Malik Shahzad Shabbir, Dr. Arsalan Hussain, Khawaja Masood Raza Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 14 Jan 2024 00:00:00 +0000 SUSTAINABILITY ASSESSMENT OF PAKISTANI ISLAMIC BANKING INDUSTRY AND ITS IMPACT ON THE ACHIEVEMENT OF MAQĀSID-ALSHARI’AH <p>Purpose:<br>Islam's concept of development places a strong emphasis on both individual and societal welfare, going beyond only material advancement. The socio-economic agenda should be Islamic banks’ strategic objective to establish their 'Islamic moral economy' nature. Islamic banks could not be considered to meet the Islamic moral economy requirement of substance beyond formoriented Shari'ah compliance if they do not incorporate social and ethical dimensions into their business strategy. However, there have been significant criticisms raised against Islamic financial institutions' failure to meet the social demands of society. Due to the significance of Maqāsid-al- Shari'ah for Islamic banks and complaints made against them for failing to uphold their social obligations, it is necessary to investigate their Maqāsid based role. It is necessary to do an empirical investigation of Islamic banks' contributions to promote economic growth, stability, and well-being and the factors that determine successful implementation of Maqāsid-al-Shariah should be given significant consideration and rigorous analysis.<br>Methods:<br>The study has employed disclosure theories to establish a link between sustainability practices and Maqāsid-al-Shari’ah-based ethical performance. The research has aimed at sustainability assessment of the Islamic banking industry and investigating the impact of sustainability practices on Maqāsid-al-Shari’ah performance of Islamic banks in Pakistan. The annual reports of Pakistani Islamic bank are scrutinized for the information using content analysis technique. The primary source of data are the banks’ annual reports. The period of research is from 2010-to 2019. The TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) technique is used to assess the banks' sustainability performance in this study. Finally, regression analysis has been carried out to investigate the impact of sustainability practices on Maqāsid based role.<br>Results:<br>It is found that economic, financial sustainability and governance practices can help towards Maqāsid-al-Shari’ah achievement by Islamic banks.</p> <p>Novelty:<br>The Islamic banks’ performance evaluation frameworks are heavily weighted toward financial considerations. The literature has evidence on the fact that Islamic banking performance is being assessed using models of the commercial banking system. Only a few studies have examined how Maqāsid-ul Shari'ah can be used in practice, despite the fact that Islamic banks performance<br>standards are moral. There is a significant research gap regarding performance evaluation based on Maqāsid and the factors that contribute to their Maqāsid-based role, the study has aimed to fill this research gap.</p> Quanita Rehman, Riaz Ahmed, Akhtiar Ali Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Wed, 10 Jan 2024 00:00:00 +0000 Impact of Macroeconomic Instability on Income Inequality in South Asian Countries <p>Purpose:<br>This paper aims to highlight the impact of economic instability on income inequality in South Asian countries.<br>Methods:<br>Panel data analysis have been performed for South Asian countries namely Pakistan, India and Sri-Lanka for the period from 1990 to 2021. Foreign direct investment and labor participation have been used as control variables. The Macroeconomic Instability Index has been calculated by combining unemployment rate, inflation and external balance which is trade<br>deficit.<br>Findings:<br>It was observed that macroeconomic disturbance and foreign direct investment increase income disparity while labor participation rate reduces the inequality.<br>Novelty of the Study:<br>The recent economic unrest all around the world increased the significance of this study. To gauge economic instability, an index has been created using geometric mean which was not used in previous studies.</p> Muhammad Khalid, Afaq Ali Khan, Muhammad Kazim Jafri Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Wed, 10 Jan 2024 00:00:00 +0000 ARTIFICIAL INTELLIGENCE IN CUSTOMER ENGAGEMENT: STRIKING A BALANCE BETWEEN RESPONSIVENESS AND ADVOCACY <p><strong><em>Purpose</em></strong></p> <p>Artificial intelligence is becoming mainstream and well-known by people in every field and at every age. Whether they are students, businessmen, customers, housewives, celebrities, or even children, Artificial Intelligence has already left an impression in their minds but as this phenomenon is new in the world and progressing and evolving day by day the existing data is too hard to understand and in a few instances of progress in this field it will become obsolete. That's why in this study, we will shed light upon the basics of AI as well as cited facts and our own observations by linking AI to customer relationships, potential marketing strategies, CSR and the rapidly growing unease and ethical dilemmas caused by AI.</p> <p><strong><em>Methods</em></strong></p> <p>Using data collected from our society, we developed a theoretical framework, analyzed the data, and draw conclusions regarding AI in the corporate world. In order to collect data, our target population includes students, employees, businessmen, and people who are familiar with the concept or work in this field.</p> <p><strong><em>Results/Findings</em></strong></p> <p>Following the collection and analysis of all data, we have identified a few things, and we would like to conclude the discussion in the following manner. People are intrigued by the developments in this field, and they want to know, but it's complex for them to understand it as a layman. They also understand that it is necessary for them to know about it and its use case.</p> <p><strong><em>Novelty/Originality of The Study</em></strong></p> <p>As a result of this study, researchers will be able to access relevant data and information in the future. This will start a conversation globally regarding artificial intelligence and its usage. We will also discuss the limitations of this study which will pave the way for future research that can be conducted in this rapidly developing technology.</p> Sobia Jamil, Kousar Zaheer, Syeda Sadaf Seraj Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 14 Jan 2024 00:00:00 +0000 FORENSIC ACCOUNTING: A BLESSING FOR FRAUD DETECTION <p><strong><em>Purpose</em></strong></p> <p>The jeopardy of the fraud has a very serious bad impact on the economy of the country. From financial crimes number of companies suffered around the world. The demand of forensic accounting is gradually increasing in modern business world. The purpose of this study is to examine the relationship between forensic accounting and fraud detection.</p> <p><strong><em>Methodology</em></strong></p> <p>This study used the descriptive research design by using the survey strategy. The targeted population of the research is the employees, working as professional accountant. Primary data has been collected from the sample size of (317). <a name="_Toc104977830"></a><a name="_Toc104978691"></a></p> <p><strong><em>Findings</em></strong></p> <p>In the light of results, the study concluded that there is a significant impact of forensic investigation, forensic litigation and forensic accountant investigation tenure on fraud detection in the private sector of Pakistan. Results shows that the existing independent variables has explained the dependent variable up to 32.6 %.</p> <p><strong><em>Implication</em></strong></p> <p>The practical implication of this research is that it provides the direction for professionals for taking necessary actions to avoid the fraudulent practices in the light of the results of this study. Therefore, professionals may take the decisions for the education, training, practice of forensic accounting and may demand the forensic accounting implementation in the organizations.&nbsp;</p> <p><strong><em>Novelty</em></strong></p> <p>This study unveils a unique link between forensic accounting and fraud detection, shedding light on the significant impact of forensic investigation, litigation, and accountant tenure in combating fraud within Pakistan's private sector.</p> Rashid Mumtaz, Dr. Syed Mohammad Noaman Ahmed Shah, Muddassir Sayeed Siddiqui, Shahnawaz Baloch Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 14 Jan 2024 00:00:00 +0000 Impact of Sustainability Performance on Financial Performance of Small and Medium enterprises (SMEs) in Pakistan <p><strong><em>Purpose:</em></strong> The relationship between sustainability performance and financial performance has been the subject of extensive research over the past few decades. Although a variety of approaches and strategies have been used by researchers to look into this relationship, the findings are still unclear. Since small and medium-sized businesses in Pakistan are dealing with some sustainability-related challenges, we examine the relationship between sustainability performance and financial performance in this article.</p> <p><strong><em>Methods:</em></strong> We used a basic random sampling technique to gather data from 385 employees of small and medium-sized businesses and analysis performed through Smart PLS.</p> <p><strong><em>Findings:</em></strong> According to our findings, financial performance is significantly impacted positively by sustainability performance and resource-based view also support these findings.</p> <p><strong><em>Novelty:</em></strong> According to researchers’ knowledge this is the pioneer study conducted on Pakistani small and medium enterprises. The findings contribute significantly to the policy implications for the creation of sustainability to improve their financial performance.</p> Asim Mehboob, Dr. Syed Shahid Zaheer Zaidi Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 24 Mar 2024 00:00:00 +0000 Audit Implications on The Financial Reporting Process in Pakistani Companies During Covid-19 <p><strong><em>Purpose</em></strong></p> <p>This study has been conducted in Pakistan to examine the impact of Covid-19 on the audit of financial reporting of companies. The audit is conducted to get a reasonable assurance on the financial reporting of the company asserted by the management.</p> <p><strong><em>Methods</em></strong></p> <p>For the purpose of this research, primary data has been used which is collected through online questionnaire form. A sample of 100 respondents has been collected, belonging to the field of external auditing. Risk assessment, audit evidence and going concern are taken as independent variables and audit implications are taken as dependent variables to study the impact of Covid-19. All descriptive analysis, diagnostics tests and regression were applied for comprehensive data analysis.</p> <p><strong><em>Results/Findings</em></strong></p> <p>It is concluded that there are difficulties related to accessing the resources for audit, the auditors are also facing issues with respect to problems and queries solving and auditors need to put up more efforts in order to develop the independent opinion.</p> <p><strong><em>Novelty/originality of the study</em></strong></p> <p>Covid-19 has resulted in many challenges to the auditors in terms of different aspects required to develop an independent opinion. This study provides guidelines to auditors for any sort of unfortunate future pandemic situation.</p> ABDUL GHAFFAR, ASIF SAEED NAJI, AFAQ ALI KHAN Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 24 Mar 2024 00:00:00 +0000 An Effect of Liquidity on Profitability in Cement Sector Firms <p><strong><em>Purpose:</em></strong></p> <p>Purpose of the study is to examine how liquidity in Pakistan's cement market affects profitability&nbsp;for this purpose current ratio, cash conversion ratio, cash ratio and working capital to Total Assets are used.</p> <p><strong><em>Methodology:</em></strong></p> <p>This goal was accomplished through the collection of secondary data of selected company balance sheets and income statements from 2010 to 2019. Secondary data was gathered from a sample of 4 companies listed at Pakistan Stock exchange ,The correlation was performed to inspect the association or link between profitability and liquidity, and regression analysis using the OLS technique was used to estimate the parameters. Profitability (ROE) is considered as dependent and liquidity elements are independent variables (CCE, CR, WCTA &amp; cash ratio) for the study.</p> <p><strong><em>Results / Findings:&nbsp;</em></strong></p> <p>Study finds CCE and CR having a positive and significant relation, whereas cash ratio having significant and WCTA have an insignificantly negative relationship with the dependent variable. This study finds that the profitability ratios are influenced by the liquidity ratio.</p> <p><strong><em>Novelty / Originality of the study:&nbsp;</em></strong></p> <p>This study contributes to the literature on the impact of Liquidity on Profitability by considering the Return on equity as Profitability measure (dependent variable) whereas current ratio, cash conversion ratio, cash and working capital to Total Assets are used for the liquidity measure (independent variable).</p> Touba Zahid, Dr Israr Ahmed, Muhammad Raghib Zafar Copyright (c) 2024 GISRAS Journal of Management & Islamic Finance (GJMIF) Sun, 24 Mar 2024 00:00:00 +0000