The impact of governance, administrative and organizational structure on performance of zakat distribution in Malaysia
<p>This study was conducted to investigate the impact of governance and administrative mechanism on the distribution performance of zakat institutions; and to determine the differences in distribution performance across four types of zakat organizational structure in Malaysia. Secondar...
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| Format: | thesis |
| Language: | eng |
| Published: |
2019
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| Subjects: | |
| Online Access: | https://ir.upsi.edu.my/detailsg.php?det=7520 |
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| Summary: | <p>This study was conducted to investigate the impact of governance and administrative mechanism on the distribution performance of zakat institutions; and to determine the differences in distribution performance across four types of zakat organizational structure in Malaysia. Secondary data were employed in obtaining data from 2010 to 2016. Tobit and Ordinary Least Squares (OLS) regression were used for the purpose of hypothesis testing, as well as the Kruskal-Wallis test. Regression analyses found that governance mechanisms of board size (P=0.070; p=0.001) and audit committee meetings (P=0.178; p=0.001) were positively correlated with financial efficiency of distribution performance. Besides, board size (P=0.031; p=0.001), board meetings (P=0.049; p=0.001), summary of audit committee report (P=0.143; p=0.001) and shariah committee meetings (P=0.075; p=0.001) were significantly associated with quality of distribution performance (R2=0. 740). Conversely, administrative mechanism of bank agent (P=0.0 IO; p=0.00 I) correlated negatively with the quality of distribution performance (R2=0.740). The study provided new evidence that there were significant difference in quality of distribution performance across different types of zakat organizational structure which included, "centralized without corporation under special enactment" was significantly different to "centralized with fully corporation" (p=0.001) and "centralized without corporation" (p=0.001); "decentralized without corporation" was significantly different to "centralized with fully corporation" (p=0.005) and "centralized without corporation" (p=0.001). The study concluded that the implementation of governance and administrative mechanism in zakat institutions have been carried out effectively but the critical weaknesses must be addressed. This study also signified that zakat institutions should provide the standard for the financial record which consistent with the payment behaviour by the zakat payer in order to control the issue of zakat surplus and review the current haddul kifayah used as distribution policy which is believed to be no longer relevant as the living cost is increasing.</p> |
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