An optimal Islamic investment decision in two-region economy: The case of Indonesia and Malaysia

In this work, the possibility of cross-border activities between two regions in the framework of the investment contract is viewed as optimal allocation problems. The problems of determining the optimal proportion of funds to be invested in liquidity and technology are analyzed in two different environments. In the first case, we consider a two-region and two-technology economy in which both regions possess the same productive technology or project, but a different stream of return. While in the second case, we examine an economy where two regions (i.e., Indonesia and Malaysia) hold different Islamic productive projects with identical returns. Allocation models are formulated in terms of investors’ expected utility maximization problem under budget constraints with respect to regional and sectoral shocks. It is revealed that optimal parameters for liquidity ratio, technological investment profile, and bank repayment are analytically characterized by the return of a more productive project and the proportion of impatient and patient investors in the region. Even though both cases employ different assumptions, they provide the same expressions of optimal parameters. The model suggests that cross-border Islamic investment activities between two regions might be realized, provided both regions hold productive projects with an identical stream of return. This paper also shows that by increasing the lower return of the project approaching the higher return, a room for inter-region investment can be created. An analytical framework of an investment contract in terms of optimal allocation model is provided.

Analysis of the Effect of Sharia Compliance and Islamic Corporate Governance on Fraud in Islamic Banks in Indonesia 2017-2019

This study aims to analyze the factors that influence the occurrence of fraud in Islamic banks in Indonesia. Measurement of fraud in Islamic banks is based on the number of internal frauds that occur in the financial year. The population in this study is Islamic banks in Indonesia for the period 2017-2019. The sample is selected using purposive sampling method and the number of samples obtained is 24 samples. The data used in this study are secondary data in the form of financial reports and corporate governance reports. Data analysis is performed using classical assumption tests and regression analysis. The results of this study indicate that Islamic corporate governance has a significant effect on internal fraud in Islamic banks in Indonesia. Meanwhile, partially the profit sharing ratio and Islamic investment ratio do not have a significant effect on internal fraud in Islamic banks in Indonesia. Islamic banking must comply with accounting standards and Auditing Organizations for Islamic Financial Institutions (AAOIFI) to minimize fraud in operations.

Corporate Governance dan Shariah Compliance Terhadap Financial Statement Fraud Pada Bank Umum Syariah

This study tested the Influence of Corporate Governance and Shariah Compliance on Financial Statement Fraud in Sharia Commercial Banks in the Period 2015-2019. Independent variables in this study are Corporate Governance and shariah compliance projected with Islamic Income Ratio, Profit Sharing Ratio and Islamic Investment Ratio. While the dependent variable used is Financial Statement Fraud in sharia commercial banks. The population in this study was all Sharia Commercial Banks (BUS). Sampling techniques using purposive sampling method. The number of samples as many as 12 Islamic commercial banks with a lot of data 60. The results of this study show islamic income ratio affects Financial Statement Fraud, while Profit Sharing Ratio, Islamic Investment Ratio and Corporate Governance have no effect on Financial Statement Fraud.

PENGARUH PENGETAHUAN PASAR MODAL, PERSEPSI RISIKO INVESTASI, PENGGUNAAN TEKNOLOGI TERHADAP PERILAKU MAHASISWA BERINVESTASI DI PASAR MODAL (Studi Empiris pada Galeri Investasi di Purwokerto)

This study aims to determine and analize effect of capital market knowledge, risk investment perception and use of technology towards the student’s investing behavior in the capital market. The population is the student’s who are members of the Investment Gallery Universitas Jenderal Soedirman and Islamic Investment Gallery Universitas Muhammadiyah Purwokerto. The sampling method used is purposive sampling. The data sample was obtained as many as 143 respondents. The result of this research indicates that capital market knowledge has a positive impact to the student’s investing behavior in the capital market, risk investment perception and use of technology have no impact to the student’s investing behavior in the capital market. Implication of the research is the most basic student’s must have as the investor. Investors need a basic understanding of the capital market, stocks as an investment in the capital market and rate of returns. Knowledge will support skills in analyzing, choosing and making a decision.

Sharia Investment Literation by Sharia Insurance Agents on Unit-Linked Products

The growth of the Islamic insurance industry in this country can be seen from the increase in existing assets and players. However, the low level of literacy related to sharia insurance as well as how to invest in unit-linked sharia insurance products makes some people hesitant about sharia insurance. Certified sharia insurance agents are at the forefront of providing investment literacy in sharia insurance products to customers since they have been given full trust to manage their assets so that customers get protection and benefits. How the sharia insurance agent at PT. Asuransi Jiwa Generali Indonesia understands Islamic investment will be discussed in depth using a descriptive qualitative method and triangulation techniques in managing the interview results. This study reveals that certain agents also lack product awareness and investment literacy. So that it can be a reference for insurance agent trainers in optimizing training for agents, both directly and through applications, to provide more understanding and make it easier for Generali insurance agents to provide information on unit-linked products to their customers, especially in terms of sharia investment.

Perilaku Investasi sebagai penerapan gaya hidup halal masyarakat Indonesia: tinjauan Theory of Planned Behavior

The survey shows that the community's ability to utilize Islamic financial products is still low. This fact contradicts the potential development of a halal lifestyle and the increasing number of middle-class Muslims, and the fact that 87.2% of Indonesians are Muslim. It turns out that not many people know and take advantage of Islamic financial products, including Islamic investment. The purpose of the study was to determine the factors behind investment behaviour in sharia instruments as a form of implementing the halal lifestyle of people in Indonesia. The research subjects are Muslims who have or are currently investing in sharia securities, with 100 respondents. Data were collected by distributing online questionnaires. The data analysis technique uses Partial Least Square. The results show that attitudes and perceived behavioural control affect intention in investing in sharia securities, while subjective norms do not affect. Investment intention in sharia securities affects investment decisions. This study proves that investors' assessments and perceptions of factors that can support their investment activities, such as knowledge and skills, can influence their interest in investing in the Islamic capital market. Thus, it is essential to conduct training for novice investors to provide exposure to the Islamic capital market.

Incorporating Private Savings Behavior in Product Offerings: A Case Study of Pakistan

In order to enhance understanding about the actual savings behaviour and impulses which drive savings behaviour, it is interesting to study the micro foundations of savings behaviour. Collecting micro data through filled questionnaire from households in urban areas, this study identifies the motives of savings and the instruments and channels where the savings are invested in Pakistan. The results reveal that investment motive, higher income and greater frequency of household members joining labor force for earning incomes enhance the monthly savings rate. The results can be used to offer Islamic investment deposits in an attractive way. If the investment deposits are pitched properly by highlighting the stable ex-post investment returns and low ex-post volatility, then people with an investment motive parking their savings in fixed income mutual funds would be attracted towards Islamic investment deposits. Likewise, incremental long term savings plans wherein periodic investments increase over a period of time can be offered given that monthly savings rate are found to be positively associated with income. Finally, joint investment accounts can be offered given the finding that monthly savings rate is higher in households with greater number of earning members in family.JEL Classification: G11, G21, G23How to Cite:Shaikh, S. A. (2021). Incorporating Private Savings Behavior in Product Offerings: A Case Study of Pakistan. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 247-258. https://doi.org/10.15408/sjie.v10i2.20139.

Theory of International Commercial Arbitration Behind Foreign Corrupted Islamic Investments

This article examines the core outlines of commercial arbitration and its relationship with corruption in Islamic investment contracts. It deals with the issue of misuse of arbitration to cover some practices of corruption in such contracts in theory and practice. It answers why commercial arbitration may encourage foreign investors to indulge in corruption regarding Islamic investment contracts for private gains. It also proves how some rules and doctrines of commercial arbitration can be used to supersede the national laws and the jurisdiction of national courts to avoid combating such type of corruption. It examines these facts through some practices of arbitration that illustrate the misuse of arbitration in concluding such contracts.

Pengembangan Exchange Trade Fund Syariah Indonesia: Peluang dan Tantangan

This paper aims to discuss the opportunities and challenges of developing Sharia Exchange Trade Fund (ETF) investment products in Indonesia. ETF is an investment product in the capital market that collaborates stock and mutual fund products that can collectively be traded on the capital market. This will provide attractive new investment opportunities for investors who are concerned about sharia investment. With the consideration that Indonesia's population is predominantly Muslim, then of course Islamic investment products will attract them. ETFs have the following advantages: easy and flexible process of ownership and transfer, low cost and risk, wide coverage because they are like investing in several portfolios at once, and the process is transparent. In particular, Islamic ETFs have the advantage in the aspect of ensuring product halalness because their portfolios are always monitored by the sharia supervisory board in each investment manager as the manager. On the other hand, Islamic ETFs are faced with challenges related to the low literacy of the Muslim community about investing in the capital market that has sharia products.