Purpose: The purpose of this study is to investigate the effects of service quality, product choice and Islamic debt policy on consumer attitude within the context of Islamic mortgage sector in Malaysia. The present study also examines the effect of attitudinal-behaviour on consumer preference towards preference of Islamic mortgage selection. Design/methodology/approach: The study is based on questionnaire survey. Data are collected using sample from customers of Islamic banks in Malaysia. The study collects 351 respondents. Data are analysed using partial least squares (PLS). Findings: The results indicate that service quality, product choice and Islamic debt policy significantly influence consumer attitude, in turn, affecting the Islamic home financing preference. Consumer attitude also mediates the effects of service quality, product choice and Islamic debt policy on the Islamic home financing preference. Research limitations/implications: Several limitations warrant future research. First, this study considers only a specific user group in one public university. Second, this study does not consider attitude as a moderator. Third, this study suffers from the limited number of factors used. These limitations, however, provide directions for future research. Practical implications: Our results will add value to the consumer preference topic for Islamic home financing literature. The present study provides bank managers with valuable insights into better planning of Islamic home financing services in Malaysia. Originality/value: This study is a pioneering effort at exploring consumer attitude and preference from the context of Islamic mortgage sector in Malaysia. The use of PLS analysis provides another important contribution to the literature in this area. � 2017, � Emerald Publishing Limited.

The study examines the views of accountants concerning the importance of items in the developed index for Islamic Financial and Social Reporting (IFSR) as well as measures and discusses the level of weighted IFSR for Islamic banks based on the IFSR index developed for Malaysian Islamic banks. The research uses the questionnaires and the annual reports to collect the relevant data with respect to the views of accountants and IFSR score of Islamic banks respectively. The findings suggest that the financial part, and the auditing and governance part in the index of IFSR are important and close to important, respectively, while the social part is viewed as fairly important. Moreover, the other finding reflects that the weighted IFSR for Islamic banks in Malaysia is considered as fair. The findings with respect to the level of weighted IFSR disclosure may not be generalised to the years prior and after the examination period. The research provides empirical insights on the importance of items in the IFSR index and the weighted level of IFSR practices among Malaysian Islamic banks. The paper highlights the importance of items in the IFSR index as well as IFSR disclosure in enhancing the accountability and sustainability of Islamic banks. � 2017, Universiti Malaysia Sarawak. All rights reserved.

PurposeThis paper aims to examine some issues in IFRS9 with regards to classification and measurement of Islamic financial assets. In addition, the paper discusses the Shariah concerns on the use of fair value to measure financial assets. Design/methodology/approachThis paper adopts qualitative method via the study of documents and textual analysis of Shariah opinions of scholars and relevant accounting standards. FindingsThe paper found that the classification and measurement of equity-based Islamic financial assets do not fit into the �default� classification category of amortised cost, as the future cash flow receivable does not constitute solely the payment of principal and interest (fixed rate payment). With regards to fair value measurement, Shariah concern arises during the adoption of fair value at Level 2 (reference of asset values from input other than quoted prices in active markets) and Level 3 (use of discounted cash flow method to arrive to asset valuation) because of the existence of in uncertainty or gharar as compared to Level 1 (fair value referred to quoted prices of similar assets). Practical implicationsFindings of the paper provide a starting point for a debate and extensive research on issues related to classification and measurement of Islamic financial assets and the use of fair value as a method of subsequent revaluation of Islamic financial assets. The Shariah analysis in the paper is useful for International Accounting Standard Board to engage with Islamic financial institutions and local accounting standard setters to reflect the unique nature of Shariah-compliant financial instruments. The paper serves as a basis to devise technical solutions to address accounting and reporting issues of Islamic financial instruments. Originality/valueThe paper offers Shariah analysis on the issue of classification, measurement and impairment model for Islamic financial assets. The paper is considered as the first paper that examines areas of possible tensions when applying IFRS9 to the accounting of Islamic financial assets. In addition, the paper has contributed to the literature in Islamic accounting and auditing. � 2016, Emerald Group Publishing Limited.

The study proposes and discusses the development of an index of Islamic Financial and Social Reporting (IFSR) for Islamic banks. The index of IFSR is carefully developed based on the relevant and applicable standards, guidelines and literature from an Islamic perspective such as the Malaysian Accounting Standards Board (MASB), Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), Islamic Financial Services Board (IFSB), Bank Negara Malaysia (BNM) and Islamic social reporting literature. The index is developed in three parts, namely, financial, social, and auditing and governance. The items within the finance section are developed to ensure that the Islamic banks disclose relevant financial information. The items for the social part aim to ensure that the Islamic banks provide the relevant information regarding social and environment. The items within the auditing and governance part are developed to ensure that the Islamic banks provide relevant information regarding the monitoring and supervising activities that the Islamic banks have undertaken. The IFSR index may be lacking in terms of its usage generalisability as it is specifically developed for IFIs. The developed index of IFSR aims to promote a more appropriate level of disclosure among the Islamic banks. The need for the index is motivated by the growing importance of Islamic banks, not only from the economic perspective but also from the social perspective. � 2016, Virtus Interpress. All rights reserved.

Purpose – The purpose of this study is to examine the nature of the risk management practices of Islamic banks as recommended by the Islamic Financial Services Board (IFSB) in managing their unique risks. This study also explores the differences in risk management practices based on the country, size, type and age of the bank. Design/methodology/approach – A questionnaire was developed to investigate the risk management practices. The main reference for the questionnaire was the IFSB Guiding Principles of Risk Management and the respondents were either the chief risk officers or holders of other senior positions involved in risk management in the Islamic banks. A non-parametric test was then conducted to explain the difference in mean scores for the unique risk management practices by the Islamic banks. Findings – A lack of effective risk management practices was found in relation to liquidity risk, displaced commercial risk and equity investment risk by Islamic banks. However, Islamic banks were comparatively good in managing operational risk/Shari’ah non-compliance risk. The study found that there was a significant difference in the practice of equity investment risk management based on the size, type and age of the Islamic bank. In addition, a significant difference was found between the Islamic banks in the Middle Eastern and North African (MENA) and Asian countries concerning the practice of both displaced commercial risk and operational risk/Shari’ah non-compliance risk management. Research limitations/implications – In spite of the limitations in non-parametric analysis, this analysis was preferred inasmuch as the data were measured on an ordinal scale with a small sample size. Originality/value – This study is among the few studies that examine and explore the risk management practices of Islamic banks internationally by explaining the unique risks encountered in Islamic finance.

The aim of this study is to conceptually analyze and develop Islamic economic performance measurement indicators (M Score) for Islamic banks. In developing the indicators, the study has developed and adapted the performance measurement indicators based on the well-established Islamic economic objectives by selected scholars. The main argument of this study is that Islamic banks� performance should be measured using unique and specific objective indicators that will reflect their Islamic economic objectives. Hence, it is of vital importance to translate the normative Islamic economic objectives that require broader and more societal approach of measurement rather than focusing on the narrow financial measurement of conventional finance. This study is conducted to validate and test the level of acceptability of M Score for Islamic banks. The M Score is very useful to be tested for future empirical studies. � 2016 American Scientific Publishers All rights reserved.