Year 2015, Volume 1, Issue 1, Pages 5 - 64 2015-11-01

Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt

Mehmet Asutay [1] , Astrid Fionna Harningtyas [2]

140 2243

The rise of Islamic banking and finance is now a reality with Shari 'ah compliant financial operations existing in many different parts of the world. However, its development has recently been subjected to criticism in relation to the aspirational objectives of Islamic moral economy, which constitutes the moral foundations of Islamic finance. The aspirational objectives are general expressed with maqasid alShari'ah, which is defined as 'human well-being'. The aim of this research, hence, is to evaluate the social performance of Islamic banks according to maqasid al-Shari'ah upon the realization of Islamic Moral Economy aspirations. AbdelMajid Najjar's concept of maqasid al-Shari 'ah with eight orientations or articulations is adopted to construct an evaluation framework aligned with the objective of rendering a critical improvement of current empirical studies. In operationalizing the developed framework, this study conducts empirical investigations by taking 13 banks from 6 countries for 5-year period as a sample. In doing so, the annual reports of the sampled banks for the period are subjected to content analysis to generate the necessary data in applying to the formulated framework. Empirical evidence indicates that there is lack of achievement in maqasid alperformance of Islamic bank and finance. Nevertheless, the overall industry concentrates mainly on self, faith and rights and stakeholding rather than wealthorientation, despite the fewer contributions in social entity, intellect, posterity andecology. Additionally, the empirical results find that there are different orientations across the banks and countries. Finally, the industry orientation is estimated in this research, which is located to be somewhere between faith and rights and stakeholding
Maqasid al-Shari 'ah, Islamic Banking and Finance, Evaluation, Performance
Other ID JA37MJ48UR
Journal Section Articles
Authors

Author: Mehmet Asutay

Author: Astrid Fionna Harningtyas

Bibtex @ { ijisef313846, journal = {International Journal of Islamic Economics and Finance Studies}, issn = {2149-8393}, eissn = {2149-8407}, address = {Politik Ekonomik ve Sosyal Araştırmalar Merkezi}, year = {2015}, volume = {1}, pages = {5 - 64}, doi = {}, title = {Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt}, key = {cite}, author = {Asutay, Mehmet and Harningtyas, Astrid Fionna} }
APA Asutay, M , Harningtyas, A . (2015). Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt. International Journal of Islamic Economics and Finance Studies, 1 (1), 5-64. Retrieved from http://dergipark.org.tr/ijisef/issue/29332/313846
MLA Asutay, M , Harningtyas, A . "Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt". International Journal of Islamic Economics and Finance Studies 1 (2015): 5-64 <http://dergipark.org.tr/ijisef/issue/29332/313846>
Chicago Asutay, M , Harningtyas, A . "Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt". International Journal of Islamic Economics and Finance Studies 1 (2015): 5-64
RIS TY - JOUR T1 - Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt AU - Mehmet Asutay , Astrid Fionna Harningtyas Y1 - 2015 PY - 2015 N1 - DO - T2 - International Journal of Islamic Economics and Finance Studies JF - Journal JO - JOR SP - 5 EP - 64 VL - 1 IS - 1 SN - 2149-8393-2149-8407 M3 - UR - Y2 - 2019 ER -
EndNote %0 International Journal of Islamic Economics and Finance Studies Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt %A Mehmet Asutay , Astrid Fionna Harningtyas %T Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt %D 2015 %J International Journal of Islamic Economics and Finance Studies %P 2149-8393-2149-8407 %V 1 %N 1 %R %U
ISNAD Asutay, Mehmet , Harningtyas, Astrid Fionna . "Developing Maqasid al-Shari’ah Index to Evaluate Social Performance of Islamic Banks: A Conceptual and Empirical Attempt". International Journal of Islamic Economics and Finance Studies 1 / 1 (November 2015): 5-64.