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Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia

Introduction: 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....

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Main Authors: Noor Azman, Ain, Ali, Noor Azman, Mahat, Fauziah, Mat Daud, Zaidi
Format: Article
Published: Society for Science and Education 2020
Online Access:http://psasir.upm.edu.my/id/eprint/85809/
https://journals.scholarpublishing.org/index.php/ASSRJ/article/view/8958
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spelling my.upm.eprints.858092023-09-18T04:17:16Z http://psasir.upm.edu.my/id/eprint/85809/ Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia Noor Azman, Ain Ali, Noor Azman Mahat, Fauziah Mat Daud, Zaidi Introduction: 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. Objective: (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. Methods: 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. Results: 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. Society for Science and Education 2020 Article PeerReviewed Noor Azman, Ain and Ali, Noor Azman and Mahat, Fauziah and Mat Daud, Zaidi (2020) Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia. Advances in Social Sciences Research Journal, 7 (9). 63 - 75. ISSN 2055-0286 https://journals.scholarpublishing.org/index.php/ASSRJ/article/view/8958 10.14738/assrj.79.8958
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description Introduction: 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. Objective: (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. Methods: 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. Results: 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.
format Article
author Noor Azman, Ain
Ali, Noor Azman
Mahat, Fauziah
Mat Daud, Zaidi
spellingShingle Noor Azman, Ain
Ali, Noor Azman
Mahat, Fauziah
Mat Daud, Zaidi
Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
author_facet Noor Azman, Ain
Ali, Noor Azman
Mahat, Fauziah
Mat Daud, Zaidi
author_sort Noor Azman, Ain
title Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
title_short Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
title_full Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
title_fullStr Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
title_full_unstemmed Shariah information disclosure and its effect on financial perfomance among SMEs in Malaysia
title_sort shariah information disclosure and its effect on financial perfomance among smes in malaysia
publisher Society for Science and Education
publishDate 2020
url http://psasir.upm.edu.my/id/eprint/85809/
https://journals.scholarpublishing.org/index.php/ASSRJ/article/view/8958
_version_ 1781706645937586176
score 13.211869

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