MUHAMMAD IQMAL HISHAM BIN KAMARUDDIN, MUHAMMAD IQMAL HISHAM (2020) FINANCIAL MANAGEMENT, FINANCIAL GOVERNANCE AND ACCOUNTABILITY IN ISLAMIC SOCIAL ENTERPRISE (ISE) IN MALAYSIA. Doctoral thesis, UNIVERSITI KEBANGSAAN MALAYSIA.
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FINANCIAL MANAGEMENT, FINANCIAL GOVERNANCE AND ACCOUNTABILITY IN ISLAMIC SOCIAL ENTERPRISE (ISE) IN MALAYSIA.pdf - Submitted Version Restricted to Registered users only Download (19MB) | Request a copy |
Abstract
The combination of social and economic objectives in Malaysian Islamic Social Enterprises (ISE) has created complexity and tensions between financial governance and accountability. To date, no proper standards and guidelines exist to monitor and govern the functions of ISEs. Therefore, this study provides insights into the financial management, financial governance and accountability in ISEs. Based on stakeholder theory, financial management practices will influence ISEs’ financial governance to enhance their accountability. Questionnaire surveys were sent to financial officers of Malaysian ISEs. Data from 102 questionnaires were analysed using SmartPLS-SEM (Partial Least Square-Structural Equation Modelling) to test the hypotheses formulated. The results indicate that financial management practices are determinants of ISEs’ financial governance, and, in turn, is a determinant of ISEs’ accountability. ISEs’ financial governance acts as a mediator in this relationship, while no direct relationship was found between financial management practices and accountability, except for Islamic work ethic. Additional analysis reveals relationships among financial management practices to enhance ISEs’ financial governance and accountability, such as between financial disclosure and internal control. Theoretically, this study provides empirical evidence of financial management, financial governance and accountability relationships in Malaysian ISEs. The findings also emphasise the roles of financial governance to enhance accountability in Malaysian ISEs. This study adds to the body of knowledge by defining and conceptualising ISEs from an Islamic perspective. Methodologically, it developed an instrument for accountability in Malaysian ISEs that combines general accountability and Islamic accountability. From the practical perspective, the findings suggest the need to establish a function or authorised body to monitor and govern Malaysian ISEs. This body could benefit from the instrument developed to assess accountability levels in Malaysian ISEs. The findings could also be used by the management of ISEs to improve their financial management and financial governance in order to achieve good accountability. Future research may explore non-financial factors that could also affect accountability of the ISEs. Views from multiple respondents in the same ISEs could be considered to enhance understanding of the ISEs.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HG Finance |
| Divisions: | Universiti > Universiti Kebangsaan Malaysia (UKM) |
| Depositing User: | Encik Mohd Zulkarnain Hassan bin Mohd Zainudin |
| Date Deposited: | 04 Oct 2024 19:01 |
| Last Modified: | 04 Oct 2024 19:01 |
| URI: | https://repositori.mohe.gov.my/id/eprint/17 |
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