An empirical study of business zakah compliance in Yemen: The moderating role of trust

In Muslim countries, apart from income tax, Zakah collection plays a significant role in the national economic and community development. However, the noble socioeconomic objectives of Zakah in most Muslim states, including Yemen, have so far remained a mirage, as the collected Zakah funds failed to...

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Main Author:	Saeed Awadh Ali, Nashwan
Format:	Thesis
Language:	eng eng eng eng
Published:	2020
Subjects:	BP174 The practice of Islam HF5001-6182 Business
Online Access:	https://etd.uum.edu.my/9488/1/s902691_01.pdf https://etd.uum.edu.my/9488/2/s902691_02.pdf https://etd.uum.edu.my/9488/3/s902691_references.docx https://etd.uum.edu.my/9488/4/permission%20allow-902691.pdf
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id	my-uum-etd.9488
record_format	uketd_dc
spelling	my-uum-etd.94882022-06-12T07:09:33Z An empirical study of business zakah compliance in Yemen: The moderating role of trust 2020 Saeed Awadh Ali, Nashwan Abdul Jabbar, Hijattulah Abdul Aziz, Saliza Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy BP174 The practice of Islam HF5001-6182 Business HJ4771.6 Income Tax. Tax Returns. In Muslim countries, apart from income tax, Zakah collection plays a significant role in the national economic and community development. However, the noble socioeconomic objectives of Zakah in most Muslim states, including Yemen, have so far remained a mirage, as the collected Zakah funds failed to bring out the destitute poor from the poverty trap. The amount of Zakah collected from Zakah payers in Yemen is not satisfactory, nor is the level of compliance among business owners. The main objective of this study is to investigate the factors that influence business Zakah compliance behavior. The research framework was developed based on Fischer’s Model of tax compliance (predominated by economic-social psychological factors) and has been cautiously adapted to suit the Zakah environment. The influence of Islamic religiosity as well as the moderating effect of trust in Zakah authority were also incorporated into the study because of their relevancy in a religious context like Zakah. Using a quantitative approach, this study employed a self-administered questionnaire survey on 500 businesses, yielded a 54.8% response rate. The results of Partial Least Square-Structural Equation Modeling (PLS-SEM) revealed a significant influence of Zakah law complexity, Zakah fairness, peer influence, Zakah moral and religiosity on Zakah compliance. The findings further found trust-moderated interactions of Zakah law complexity, peer influence, Zakah moral and religiosity on compliance behavior are statistically significant. Overall, the novelty of this study is pioneer in providing an empirical evidence to the scanty literature, especially on the applicability of the Fischer’s Model in Zakah field, as a viable framework for a better understanding of Zakah compliance. This would also be a guide for a successive compliance strategy that Zakah authorities in Muslim states and Yemen in particular could implement. 2020 Thesis https://etd.uum.edu.my/9488/ https://etd.uum.edu.my/9488/1/s902691_01.pdf text eng public https://etd.uum.edu.my/9488/2/s902691_02.pdf text eng public https://etd.uum.edu.my/9488/3/s902691_references.docx text eng public https://etd.uum.edu.my/9488/4/permission%20allow-902691.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Abdul Jabbar, Hijattulah Abdul Aziz, Saliza
topic	BP174 The practice of Islam HF5001-6182 Business BP174 The practice of Islam
spellingShingle	BP174 The practice of Islam HF5001-6182 Business BP174 The practice of Islam Saeed Awadh Ali, Nashwan An empirical study of business zakah compliance in Yemen: The moderating role of trust
description	In Muslim countries, apart from income tax, Zakah collection plays a significant role in the national economic and community development. However, the noble socioeconomic objectives of Zakah in most Muslim states, including Yemen, have so far remained a mirage, as the collected Zakah funds failed to bring out the destitute poor from the poverty trap. The amount of Zakah collected from Zakah payers in Yemen is not satisfactory, nor is the level of compliance among business owners. The main objective of this study is to investigate the factors that influence business Zakah compliance behavior. The research framework was developed based on Fischer’s Model of tax compliance (predominated by economic-social psychological factors) and has been cautiously adapted to suit the Zakah environment. The influence of Islamic religiosity as well as the moderating effect of trust in Zakah authority were also incorporated into the study because of their relevancy in a religious context like Zakah. Using a quantitative approach, this study employed a self-administered questionnaire survey on 500 businesses, yielded a 54.8% response rate. The results of Partial Least Square-Structural Equation Modeling (PLS-SEM) revealed a significant influence of Zakah law complexity, Zakah fairness, peer influence, Zakah moral and religiosity on Zakah compliance. The findings further found trust-moderated interactions of Zakah law complexity, peer influence, Zakah moral and religiosity on compliance behavior are statistically significant. Overall, the novelty of this study is pioneer in providing an empirical evidence to the scanty literature, especially on the applicability of the Fischer’s Model in Zakah field, as a viable framework for a better understanding of Zakah compliance. This would also be a guide for a successive compliance strategy that Zakah authorities in Muslim states and Yemen in particular could implement.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Saeed Awadh Ali, Nashwan
author_facet	Saeed Awadh Ali, Nashwan
author_sort	Saeed Awadh Ali, Nashwan
title	An empirical study of business zakah compliance in Yemen: The moderating role of trust
title_short	An empirical study of business zakah compliance in Yemen: The moderating role of trust
title_full	An empirical study of business zakah compliance in Yemen: The moderating role of trust
title_fullStr	An empirical study of business zakah compliance in Yemen: The moderating role of trust
title_full_unstemmed	An empirical study of business zakah compliance in Yemen: The moderating role of trust
title_sort	empirical study of business zakah compliance in yemen: the moderating role of trust
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2020
url	https://etd.uum.edu.my/9488/1/s902691_01.pdf https://etd.uum.edu.my/9488/2/s902691_02.pdf https://etd.uum.edu.my/9488/3/s902691_references.docx https://etd.uum.edu.my/9488/4/permission%20allow-902691.pdf
_version_	1747828606432706560

An empirical study of business zakah compliance in Yemen: The moderating role of trust

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