WHAT MAKES UNDERGRADUATE STUDENTS ENROLL INTO AN ELECTIVE COURSE? THE CASE OF ISLAMIC ACCOUNTING

JOURNAL.:

International Journal of Islamic and Middle Eastern Finance and Management

2009, Vol. 2 No.4, pp. 289-304

Hanudin Amin
Labuan School of International Business and Finance, Universiti Malaysia Sabah

Abdul Rahim Abdul Rahman

Department of Accounting, Faculty of Economics and Management Sciences,

International Islamic University Malaysia

T. Ramayah

School of Management, Universiti Sains Malaysia

Abstract

Purpose – The main purpose of this paper is to investigate the acceptance level of Islamic accounting course by undergraduate students at the Universiti Malaysia Sabah (UMS). The study used theory of reasoned action (TRA) to analyze the findings. Design/methodology/approach – The primary data for the study are collected using self-administered questionnaires. Altogether, the sample comprised of 135 respondents. Data are analyzed using statistical package for social science 13.0 and Analysis of Moment Structures 7.0 to determine the acceptance level and model fit. Findings – Attitude (ATT), subjective norm (SN), and amount of information on Islamic accounting (AIIA) are found to affect the intention of students to enroll in the Islamic accounting course. Other proposed hypotheses are also supported. Research limitations/implications – The study limitations are confined to three only. The first limitation is the narrow focus on one University in Malaysia as a case study. The second is about its limited relevant measures used in the model that may potentially support the acceptance. The third is about the lack of adequate sample of non-Muslim students. Nevertheless, these limitations drive for the future research in the area of Islamic accounting. Practical implications – Despite its limitations, this study is still of importance in providing insights on a particular issue. The findings of this study shed some light on the students’ acceptance level of an Islamic course. This course is unique as it is different in orientation compared to other existing courses on offer. This paper also provides an invaluable insight, especially in the case of UMS, to consider Islamic accounting course as a core course in the future instead of only an elective course. The university’s management should consider the importance of students’ ATT, SN, and AIIA prior to offering the course. Originality/value – This paper examines undergraduate students’ acceptance level of an Islamic accounting course using TRA and highlights the factors affecting the acceptance of students of an Islamic accounting course in a Malaysian higher learning institution.

CLUSTER ANALYSIS FOR BANK CUSTOMERS' SELECTION OF ISLAMIC MORTGAGES IN EASTERN MALAYSIA: AN EMPIRICAL INVESTIGATION

JOURNAL.:

International Journal of Islamic and Middle Eastern Finance and Management

2009, Vol. 2 No.3, pp. 213-234

Hanudin Amin, Mohamad Rizal Abdul Hamid, Suddin Lada, Ricardo Baba

Labuan School of International Business and Finance, Universiti Malaysia Sabah

Abstract

Purpose – The purpose of this paper is to explore the reasons behind customers' selection of Islamic mortgage in Sabah, Malaysia and present factor and cluster analyses to identify the importance of choice criteria for Islamic mortgage selection. The choice criteria among Sabahans are investigated along with their gender, age group, religion, monthly income, and ethnicity. Design/methodology/approach – A total of 250 bank customers responded to a survey addressing the choice criteria for Islamic mortgage providers. It is important to address the criteria in order to make sure the service providers are able to come up with attractive package of Islamic home financing to their prospective customers. Of these, only 211 questionnaires are usable, which gives us a response rate of 84.4 percent. No extra efforts are conducted in order to increase the number of respondents. Non-probability, convenience sampling is implemented. This paper uses a quantitative study similar to what employed by Lymperopoulos et al. and by Devlin. Frequencies, descriptive, factor and cluster analyses are used to analyze the data. Findings – A cluster analysis indicates that bank customers can be divided into three clusters. Members of cluster 1 reported a tendency to select mortgage bank on the basis of “service provisions” while the members of cluster 2 reported a tendency to select mortgage bank on the basis of “elements of Shariah and Islamic principles.” While those of members in the cluster 3, almost entirely had lower mean scores as compared to other clusters. Nevertheless, the members of this cluster reported a greatest tendency to choose Islamic mortgage provider on the basis of “pricing.” Research limitations/implications – The paper has addressed three limitations that provide opportunities for other researchers to explore them in depth in the future in the similar field of Islamic home financing. The limitations are presented in the conclusion's part. Practical implications – With regard to implications, this paper offers inputs for management decision among Islamic mortgage providers (i.e. Islamic banking institutions such as full-fledged Islamic banks, conventional banks with Islamic windows and conventional banks with Islamic subsidiaries). In addition, this paper adds to the literature in the area of home loans/financing. Originality/value – This paper offers the choice criteria for Islamic mortgage providers provides useful information on the Islamic mortgage providers' selection among Sabahans. This paper indeed provides useful information on the main choice criteria that affect why Sabahan choose Islamic mortgage providers.

AN ANALYSIS OF ONLINE BANKING USAGE INTENTIONS: AN EXTENSION OF THE TECHNOLOGY ACCEPTANCE MODEL

JOURNAL.:

International Journal of Business and Society

2009, Vol. 10 No. 1, pp.27-40

Hanudin Amin

Labuan School of International Business and Finance, Universiti Malaysia Sabah

Abstract

This study is aimed at investigating the factors influencing the online banking acceptance in Kota Kinabalu, Northern Borneo, Malaysia. In term of design/methodology/approach -this study applies technology acceptance model (TAM) as a reference in order to investigate the online banking acceptance. For this purpose, a linear regression is employed to examine the factors influencing online banking acceptance. The model employs perceived credibility, perceived enjoyment, and social norm, in addition to perceived usefulness and perceived ease of use. Findings - the study results suggest that perceived usefulness, perceived ease of use, perceived credibility and social norm are statistically significant while perceived enjoyment are statistically insignificant. Research limitations/ implications – due to the time and cost constraints, the present study has suffered from the two setbacks. On one hand, the sample of the study somewhat limits generalizations. On the other hand, other potential variables are not included in the model. Essentially, this study offers an insight into online banking in Kota Kinabalu, Northern Borneo, Malaysia, which has limited previously been investigated. Indeed, the results useful to banks planning further online banking. Worthily to say, the study is able to contribute to the literature on online banking in Kota Kinabalu, Northern Borneo, Malaysia.

Keywords: Online banking, Kota Kinabalu, Sabah, Banks, Technology acceptance model (TAM)

CHOICE CRITERIA FOR ISLAMIC HOME FINANCING: EMPIRICAL INVESTIGATION AMONG MALAYSIAN BANK CUSTOMERS

JOURNAL.:

International Journal of Housing Markets and Analysis

2008, Vol. 1 No. 3, pp.256-274

Hanudin Amin

Labuan School of International Business and Finance, Universiti Malaysia Sabah

Abstract

Purpose – This study investigates the choice criteria for Islamic home financing in Malaysian Islamic banks. Most importantly, this study considers establishing a specific rank of choice criteria for Islamic home financing. Moreover, these choice criteria will also be ranked according to the selected demographic elements such as gender, marital status and age range. Design/methodology/approach – This study uses a quantitative study similar to what was employed by Dusuki and Abdullah, 2007; Devlin, 2002; Haron et al., 1994. The study presents primary data collected by self-administered questionnaires involving a sample of 150 Malaysian bank customers in Labuan, Malaysia. Of these, 141 questionnaires were returned with a response rate equivalent to 94%. The Islamic home financing choice criteria as perceived by the Malaysian bank customers are analysed using frequencies, independent samples t-test and ANOVA. Findings – The results suggest that “Shariah principle”, “lower monthly payment”, “transparency practice”, “interest-free practice” and “100% financing” are the first five decision criteria considered as being very important. The least preferred criteria, among others, are “recommendation”, “longer financing period”, “product range” and “branch location”. Results also suggested that a small number of significant differences are apparent in the importance of choice criteria with respect to gender, marital status and age range. Research limitations/implications – The study contains three limitations. The first limitation was based on the sample area for the study which is confined to Labuan, Malaysia. Second, this study restricted the use of factor analysis since the data did not allow for aggregation. Third, this study was also unable to perform ANOVA for religion differences as the sample consisted largely of Muslims. Practical implications – The results are primarily beneficial to academics and practitioners in Malaysia by offering an insight into choice criteria for Islamic home financing. This study provides new results about different kinds of customer types and their preferences with regard to Islamic home financing choice criteria. As such, Islamic bank managers can learn and plan to offer attractive schemes for the Islamic home financing market that meet Malaysian bank customers’ needs. For the researcher this study contributes to existing body of knowledge by providing an investigation of choice criteria in the Islamic home financing. Indeed, this study is also considered as an ‘eye-opener’ for Islamic home financing choice criteria in Malaysia. Originality/ value –This study introduces the choice criteria for Islamic financing among Malaysian bank customers. The study offers an insight into Islamic home financing choice criteria in Malaysia which has limited previously been investigated.

Keywords - Mortgage, Islamic bank, Choice Criteria, Mortgage provider, Malaysia, Islam, Analysis of Variance, independent samples t-test

ISLAMIC BANKING DEVELOPMENT IN BIMP-EAGA COUNTRIES: ISSUES AND POTENTIAL COOPERATION

JOURNAL.:

Journal of Muamalat and Islamic Finance Research

2006, Vol. 3 No.1, pp.89-118.

Hanudin Amin, Mohd Zulkifli Muhammad, Suddin Lada, Airulamri Amran and Mohamad Rizal Abdul Hamid

Labuan School of International Business and Finance, Universiti Malaysia Sabah

Abstract

This study analyses the Islamic banking system development in BIMP-EAGA countries since 1983. An analytical method of comparative study is employed for Brunei, Indonesia, Malaysia and Indonesia to verify the discrepancy of the countries in terms of Islamic banks. In Brunei, the evidence suggests that Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah is committed to increase the number of Islamic banks since 1990s. The evidence from Indonesia suggests that the development of Islamic banks has showed significant progress due to long term planning by Bank Indonesia (BI) to increase Islamic banks role at national economy. Similarly, the evidence from Malaysia suggests that Islamic banking development involves an active and systematic growth due to the commitment from the government. Unlike in Philippines, Islamic banking system is underperformed due to the passive programs carried by the government unlikely to construct it as a national policy. Positive reforms by creating a number of assistances between countries may possible to minimize those gaps.

Keyword(s): Islamic bank, BIMP-EAGA, cooperation

EDUCATING BANKERS IN ISLAMIC FINANCE [ZAWYA]

June 2008The oil boom sending Arab financial markets into frenzy has generated worldwide interest in Islamic finance. But this relatively nascent segment is in much need of a new breed of financiers boasting financial skills, as well as in-depth knowledge of sharia. Universities have responded to the trend by offering Islamic financial specializations.
According to Hanudin Amin, Head of the Islamic Finance Program at the University of Malaysia Sabah-Labuan, Islamic specialization is a growing field in finance, one that has received the Malaysian government's full support. "Islamic deposits and the market share of Islamic finance are estimated at 11-12%, a figure which should increase for both in the next few years. Many foreign countries have also shown interest in Islamic finance such as New Zealand, Japan and Hong Kong," he explained.
Dr Humayon Dar, Senior Honorary Visiting Fellow in Islamic Finance at the London Cass Business School, which provides an executive MBA with an Islamic stream, believes that skill shortage in this particular area of finance is more profound than in other sectors, saying "With 15% consistent growth over the last decade, Islamic banking and finance poses new challenges to academic institutions and professional bodies since specialized personnel needs to be trained in sufficient numbers."
And Lebanon is no stranger to the trend. The IFQ (Islamic Financial Qualification) was launched about a year ago as a joint venture between the British Securities and Investment Institute and the Ecole Supérieures des Affaires (ESA) in Beirut. Initiated by the Lebanon's Central Bank with the support of Dr. Ahmad Jachi, first vice-governor of the bank, the qualification is available in the UK, Kuwait and Dubai, as well as in Beirut through ESA. "It is a global benchmark qualification that covers Islamic finance from both a technical and a sharia aspect," explained Jan Schaaper, academic coordinator at ESA.
The qualification is aimed at those already working in Islamic finance or in the conventional banking industry and is preparation for key positions in the areas of Islamic finance and Islamic insurance. "No prerequisites are imposed on candidates who often have different professional backgrounds, such as law, consultancy and insurance," according to Sandra Abboud, project coordinator at ESA.
At Cass, prerequisites for the executive MBA in Islamic finance are similar to other executive MBA programs. "However, we are particularly interested in candidates who have been previously exposed to Islamic banking and finance," said Dar, underscoring the university's Islamic specialization is similar to other specializations from an academic rigor point of view. In Malaysia, the Sabah-Labuan University accepts students with a diploma in any field related to finance, economics, business or management.
"With the IFQ, candidates will acquire practical insight into designing and setting up financial instruments such as murabaha, mudaraba, sukuk, musharakah, salam, istithna, Islamic funds and takaful," Schaaper pointed out.
IFQ seems to be generating wide interest as Gulf nationals and EU specialists seek it out. "About 200 people sat for the qualification last year," reckoned Abboud.
At the Sabah-Labuan University, students are mostly Malays from the country's various provinces. According to Amine, some 50 students will be graduating this year in Islamic finance, a program that was introduced in 2004. Amine expects the program to grow to more than a hundred students graduating every year. "We started our campaign for the executive MBA in Islamic Finance late last year but were very happy to recruit about 30% of our Dubai students into the Islamic finance stream," Dar said.
Schaaper explained that, given the qualification's popularity, in October 2008 ESA will launch the Executive Master in Islamic Financial Management (XIFM) , in collaboration with the Rotterdam School of Management of Erasmus University. The XIFM will be focusing on the managerial aspect of Islamic finance using valuation, risk management and decision making, while allowing students to master Islamic finance techniques and to develop their strategic ability by identifying synergies between conventional and Islamic finance. The program targets managers of institutions operating in both the conventional and Islamic finance field. Schaaper pointed out that the new XIFM offered by ESA and the Rotterdam School of Management is solely dedicated to Islamic finance. "Our goal is to build a bridge between conventional and Islamic finance. The program aims at measuring and quantifying risks inherent in Islamic financial products, we therefore selected the best specialists in financial technique and Islamic sharia to help develop the program."
On the other side of the globe, at Sabah-Lubuan University, students are exposed to a number of courses, such as Islamic accounting systems, Islamic fund management, Islamic banking practice, Islamic finance as well as microeconomics, accounting, basic finance, and business mathematics. "This program differs from other financial modules due to its intrinsic Islamic values, Islamic ethics and verses," suggested Amin.
According to Dar, the Cass Business School EMA offers three specialised modules on Islamic economics, finance and law as well as a project.
"The Islamic financial MBA is an executive MBA with an Islamic focus," he emphasized. "The main objective of this specialization is to produce a new breed of Islamic bankers who are well-equipped with the conventional banking and finance tools and have a firm understanding of Islamic banking and finance."
© Executive 2008
Article originally published by Executive 12-Jun-08