Journal of Islamic Economics Lariba

ESG disclosure, capital structure, and profitability in explaining firm value of Indonesia’s IDX ESG Leaders: Some notes from Islamic finance perspectives‎

Hastin Riska Dewi — 2025-09-15

Introduction
The increasing importance of sustainability and responsible investment has led to growing attention to environmental, social, and governance disclosure in global markets. In Indonesia, the establishment of the IDX ESG Leaders index provides a relevant platform to evaluate how such disclosure, alongside financial fundamentals, contributes to firm value. Despite expectations that non-financial transparency enhances valuation, empirical findings in emerging markets remain inconsistent, warranting further investigation.
Objectives
This study examines the effects of environmental, social, and governance disclosure and capital structure on firm value among firms listed in the IDX ESG Leaders index from 2020 to 2023. It also explores whether profitability moderates these relationships by strengthening or weakening their impact on valuation.
Method
The research adopts a quantitative approach using panel data regression with 68 firm-year observations from 17 IDX ESG Leaders firms. ESG disclosure indices were constructed through content analysis of annual and sustainability reports, while financial data were obtained from audited statements. Profitability, proxied by return on assets, was incorporated as a moderating variable through moderated regression analysis to identify conditional effects.
Results
The findings reveal that environmental and social disclosure do not directly influence firm value, while governance disclosure exerts a significant negative effect. Capital structure shows a strong positive impact, and profitability both directly enhances firm value and moderates certain relationships. Specifically, profitability weakens the effect of social disclosure but strengthens the influence of capital structure, suggesting that investors prioritize financial fundamentals over non-financial reporting.
Implications
The results highlight the conditional relevance of ESG disclosure in emerging markets and reinforce the continuing importance of profitability and capital structure. Theoretically, the study challenges the universality of stakeholder and signaling theories by revealing context-dependent effects. Practically, it provides guidance for managers to align disclosure with financial strength and for policymakers to strengthen ESG reporting standards.
Originality/Novelty
This study contributes to the literature by disaggregating ESG disclosure into environmental, social, and governance dimensions and incorporating profitability as a moderating variable. It provides new evidence from Indonesia’s capital market, offering insights into how non-financial transparency interacts with financial strategies to shape firm value.

The mediating role of financial performance in the relationship between green accounting, leverage, and firm value in basic materials sector companies listed on Indonesia Sharia Stock Index

Rini Idayanti — 2025-10-08

Introduction
In recent years, the growing emphasis on sustainability and ethical investment has prompted firms to integrate green accounting and financial management practices into their business strategies. However, evidence regarding the impact of green accounting and leverage on firm value, particularly within Islamic capital markets, remains inconclusive. This study investigates how green accounting and leverage affect firm value, with financial performance acting as a mediating variable, among basic materials firms listed on the Indonesia Sharia Stock Index (ISSI).
Objectives
This research aims to analyze the direct and indirect effects of green accounting and leverage on firm value through financial performance. It also seeks to determine whether sustainability-oriented accounting practices contribute to firm valuation and to evaluate the mediating role of profitability in shaping these relationships within an Islamic financial context.
Method
A quantitative research design was employed using panel data from six basic materials firms listed on the ISSI during 2019–2023. Green accounting was measured using environmental cost disclosure, leverage by the debt-to-equity ratio, financial performance by return on assets, and firm value by Tobin’s Q. Data were analyzed using path analysis and the Random Effect Model, supported by classical assumption and Sobel tests to assess mediation effects.
Results
The findings indicate that green accounting and leverage do not have significant direct effects on either financial performance or firm value. However, financial performance significantly mediates the relationship between green accounting and firm value, suggesting that sustainability initiatives enhance firm valuation indirectly through profitability. In contrast, financial performance does not mediate the relationship between leverage and firm value. These results demonstrate that environmental accountability contributes to firm value when translated into financial efficiency but not through debt-financed strategies.
Implications
This study highlights the need for firms to integrate environmental expenditures as strategic investments rather than operational costs. It underscores the importance of aligning sustainability initiatives with financial management and governance frameworks to optimize firm value. Policymakers should strengthen regulatory incentives for environmental reporting and enhance investor awareness to bridge the gap between sustainability performance and market valuation.
Originality/Novelty
This study contributes to sustainability accounting and Islamic finance literature by empirically establishing the mediating role of financial performance in the relationship between green accounting and firm value. It provides new insights into how environmentally responsible practices create value in emerging Islamic capital markets.

The influence of Sharia implementation, financing access, and managerial capacity on MSME performance in Medan City, Indonesia

Muhammad Zulkifli Hasibuan — 2025-10-08

Introduction
Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economy, contributing significantly to national income and employment. Within this sector, Shariah-compliant MSMEs have emerged as strategic actors that integrate ethical, transparent, and socially responsible business principles aligned with Islamic law. However, limited empirical research has analyzed how Shariah implementation, access to Shariah-based financing, and managerial capacity collectively influence MSME performance, particularly at the city level in Medan.
Objectives
This study aims to examine the effects of Shariah implementation, access to Shariah-compliant financing, and managerial capacity on MSME performance in Medan, Indonesia. It further investigates the mediating role of managerial capacity in translating Shariah compliance into business growth and employment generation, providing theoretical and practical insights into the development of Shariah-based MSMEs.
Method
A mixed-methods sequential explanatory design was employed. The quantitative phase involved a survey of 389 Shariah-compliant MSMEs across key sectors in Medan, analyzed using multiple regression and bootstrap mediation tests. The qualitative phase comprised 20 semi-structured interviews to explore managerial experiences and ethical practices. Triangulation ensured reliability and validity of results, while thematic analysis supported contextual interpretation.
Results
The findings indicate that Shariah implementation, access to Shariah financing, and managerial capacity each have significant positive effects on MSME revenue and employment growth. Managerial capacity partially mediates the relationship between Shariah implementation and business performance, underscoring its central role in operationalizing ethical values. Qualitative evidence reveals that ethical governance and financial literacy enhance innovation, resilience, and stakeholder trust among Shariah-compliant MSMEs.
Implications
The study demonstrates that integrating Shariah principles with managerial competence strengthens MSME sustainability and competitiveness. Policymakers and financial institutions should expand Shariah-compliant financial access, reinforce managerial training, and promote digital Islamic finance to foster inclusive, ethical entrepreneurship.
Originality/Novelty
This research offers empirical evidence linking Islamic ethical principles with measurable business performance, validating managerial capacity as a mediating mechanism. It contributes to Islamic economic literature by presenting a city-level model for sustainable, value-based MSME development that bridges faith, ethics, and economic growth.

The dynamics of mosque fund management in Old Order Indonesia

Rizqi Anfanni Fahmi — 2025-11-30

Introduction
The management of mosque funds in Indonesia during the Old Order period (1945-1965) played a vital role in religious and social life. Mosques became central to national identity and cohesion, supported by Ad Hoc committees. This study examines the balance between state control and local autonomy in mosque fund management.
Objectives
This study investigates the dynamics of mosque fund management in the Old Order period, focusing on the roles of Ad Hoc committees and the Ministry of Religious Affairs. It aims to explore how state intervention and Islamic charitable practices like zakat and waqf influenced mosque sustainability and governance.
Method
A historical methodology is used, involving four stages: heuristics (source identification), verification (source cross-checking), interpretation (data analysis), and historiography (situating the study in literature). Primary and secondary sources, including government records and newspapers, are analyzed to understand mosque fund management during Indonesia's early independence period.
Results
Findings reveal a balance between local autonomy and centralized state control in mosque fund management. Ad Hoc committees fostered community involvement, while the Ministry of Religious Affairs centralized governance, affecting local autonomy. Islamic charitable practices, particularly zakat and waqf, were crucial for mosque sustainability but faced governance challenges.
Implications
This study highlights the need for balancing government regulation with local community participation in mosque management. It also emphasizes the significance of Islamic charitable practices, suggesting that integrating local needs with state oversight can lead to more sustainable and transparent religious institution management.
Originality/Novelty
This research contributes new insights by examining mosque fund management during Indonesia's Old Order period, focusing on the interaction between local governance and state control. It offers a unique historical perspective on the challenges and successes of mosque management, enriching the understanding of post-colonial religious governance.

Determinants of food producers’ intentions to obtain halal certification: An integrated TPB–halal model in Bali, Indonesia

Harisatun Niswa — 2025-11-30

Introduction
Halal certification has become increasingly important for food producers operating in non-Muslim-majority destinations such as Bali, where Muslim tourism continues to expand. Although numerous studies investigate halal consumption behavior, research examining producers’ intentions to obtain halal certification remains limited. This study extends existing knowledge by integrating halal knowledge and halal awareness into the Theory of Planned Behavior to explain certification intentions among food-sector entrepreneurs.
Objectives
The study aims to identify and analyze the determinants influencing food producers’ intentions to obtain halal certification in Bali by assessing the roles of attitude, subjective norms, perceived behavioral control, halal knowledge, and halal awareness within an integrated behavioral framework.
Method
A quantitative research design was employed, involving 150 food producers selected using non-probability sampling. Data were collected through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling. Measurement and structural models were assessed to evaluate validity, reliability, and the significance of hypothesized relationships.
Results
The findings show that all five determinants—attitude, subjective norms, perceived behavioral control, halal knowledge, and halal awareness—positively and significantly affect producers’ intentions to obtain halal certification. The model explains 85.9 percent of the variance in intention, demonstrating strong predictive power. The results highlight the combined influence of cognitive, social, and religious factors in shaping certification decisions.
Implications
The study provides theoretical contributions by expanding the Theory of Planned Behavior with halal-specific constructs and offers practical insights for policymakers, certification bodies, and industry stakeholders in promoting halal certification through education, technical assistance, and supportive regulatory frameworks.
Originality/Novelty
This research provides a comprehensive behavioral model for understanding halal certification intentions in a minority-Muslim tourism context, offering new insights into how halal knowledge and awareness strengthen producers’ decisions to pursue formal certification.

Transforming Islamic religious counselors into agents of mosque-based community economic empowerment in Pesawaran Regency

Asmaria Asmaria — 2025-11-30

Introduction
Islamic religious counselors have traditionally focused on spiritual guidance, yet evolving socio-economic demands have expanded their role into community economic empowerment. Mosques and religious institutions now serve as hubs for entrepreneurship development, sharia-based financial literacy, halal certification assistance, and digital outreach. However, empirical studies examining how this role transformation unfolds at the local level, particularly in Indonesia, remain limited.
Objectives
This study analyzes the transformation of Islamic religious counselors in Pesawaran Regency into agents of community economic empowerment. It identifies the strategies they employ, the enabling and constraining factors that shape their work, and the wider implications for community welfare, institutional development, and faith-based economic initiatives.
Method
Using a qualitative descriptive design, the study collected data through in-depth interviews, participant observations, and document analysis. Informants included counselors, local religious leaders, microenterprise actors, and community members selected purposively to ensure relevance and depth. Data were analyzed using thematic techniques to capture patterns of practice, challenges, and perceived outcomes.
Results
Findings indicate that counselors have integrated da‘wah with economic facilitation through mosque-based mentoring, financial literacy education, halal certification support, and digital tools. These efforts strengthened business skills, increased market access, and enhanced economic confidence among microenterprises. Structural constraints—such as limited counselor capacity, weak interagency coordination, and insufficient evaluation mechanisms—restricted program scalability, yet community trust and cross-sector partnerships enhanced effectiveness.
Implications
The study highlights the potential of counselor-led, mosque-centered empowerment as a culturally grounded model for community development. Strengthening governance, digital capacity, and evaluation systems is essential for sustaining impact and expanding inclusion.
Originality/Novelty
This research provides one of the most detailed qualitative accounts of counselor-led economic empowerment in an Indonesian locality, offering conceptual, practical, and policy insights into the alignment of da‘wah, Islamic economic principles, and community development.

The challenges of literacy, inclusion, and public trust in the digital Islamic banking ecosystem: An urban context study in Indonesia

Hurriah Ali Hasan — 2025-12-30

Introduction
The development of Islamic banking in Indonesia shows great potential, but still faces literacy constraints, public trust, and low inclusion. The public understands the basic principles of Islamic banking but has not mastered the technical aspects of operations. Digital transformation, which is supposed to expand access to Islamic financial institutions, has not been optimally utilized due to informational barriers, risk perception, and quality of digital services.
Objectives
This study aims to analyze the relationship between Islamic banking literacy, trust, and inclusion, identify the main obstacles in the use of digital services of Islamic financial institutions, and formulate strategies that can break the cycle of problems related to low public understanding and participation. The study also evaluates how education, transparency, and digital innovation can increase engagement in Islamic banking.
Method
This study uses a descriptive quantitative approach with a cross-sectional design. Data was obtained through a structured questionnaire to 198 respondents in Makassar City. Descriptive statistical analysis is used to describe literacy, trust, and inclusion levels, as well as identify patterns of structural, informational, and perceptual barriers in the use of Islamic banking services, especially digital-based ones..
Results
The results show that public literacy is still at the level of basic and general understanding, public trust is low due to lack of transparency, while inclusion is hampered by lack of information, limited digital infrastructure, and negative perceptions. The adoption of sharia digital technology is very low despite the high ownership of smartphones. Key barriers include awareness, risk perception, and the quality of the app's user experience.
Implications
These findings confirm the need for strategies to improve operational literacy, institutional transparency, and digital innovation based on user needs. Strengthening regulations, optimizing the role of the Sharia Supervisory Board (Dewan Pengawas Syariah - DPS), and collaboration with fintech can increase trust and inclusion. The results of the research provide more effective policy direction and service design to accelerate the transformation of Islamic banking.
Originality/Novelty
This research offers a new perspective by integrating three variables—literacy, trust, and inclusion—in the digitalization of Islamic banking. The study highlights digital barriers from a user experience perspective, not just technology access. This approach results in innovative recommendations based on transparency, user experience, and more applicable educational strategies.

Strengthening SEHATI self-declare halal certification in South Kalimantan: Roles, constraints, and field practices of Halal Product Process Companions

Zulpa Makiah — 2026-01-05

Introduction
Indonesia’s halal certification regime has expanded rapidly following the Halal Product Assurance Law, positioning halal assurance as both a consumer protection instrument and a strategic requirement for micro and small enterprises. To accelerate inclusion, the Free Halal Certification Program (SEHATI) applies a self-declare pathway that depends heavily on Halal Product Process Companions to facilitate verification and validation at the grassroots level. However, implementation performance varies across regions, raising questions about how frontline facilitation shapes program outcomes in geographically dispersed provinces such as South Kalimantan.
Objectives
This study examines how Halal Product Process Companions operationalize SEHATI in South Kalimantan by analyzing their roles, constraints, and adaptive practices in assisting micro and small enterprises through the self-declare halal certification process. It also explores the structural and technical factors that contribute to implementation gaps between program targets and realized certification outcomes.
Method
This research used a qualitative field research design. Data were collected through semi-structured, in-depth interviews with 37 Halal Product Process Companions selected purposively across districts and cities in South Kalimantan. Secondary data were obtained from relevant regulations, institutional reports, and prior studies. The analysis followed an iterative qualitative procedure involving data reduction, data display, and conclusion drawing.
Results
The findings show that Halal Product Process Companions function as hybrid implementers who perform two interdependent roles: educating micro and small enterprises about halal requirements and providing technical support for verification, validation, and digital submission. Implementation is constrained by administrative complexity, unstable internet connectivity, platform limitations, and uneven institutional support. At the enterprise level, limited digital literacy, uneven halal knowledge, and weak responsiveness delay certification completion and increase facilitation workload. These conditions explain why SEHATI outcomes may fall short of targets despite simplified procedures.
Implications
The study highlights that SEHATI effectiveness depends on integrated capacity building and institutional support, including improved digital infrastructure, simplified workflows, stronger training, and structured supervision to sustain both accessibility and certification credibility.
Originality/Novelty
This research contributes field-based evidence on self-declare halal certification implementation by centering Halal Product Process Companions as frontline intermediaries whose dual roles and constraints shape the practical success of SEHATI at the provincial level.

Harnessing Islamic FinTech for disaster risk financing: Innovative strategies for economic resilience and sustainable development

Nazmin Naher Nipa — 2026-01-05

Introduction
Natural and human-induced disasters have become more frequent and severe, resulting in significant economic losses, particularly in developing countries. Traditional disaster risk financing mechanisms often fail to adequately serve vulnerable populations due to high costs, limited accessibility, and delayed disbursements. This study explores how Islamic finance principles, when integrated with financial technology (FinTech), can provide scalable, Sharia-compliant solutions for enhancing disaster risk financing (DRF).
Objectives
The primary objective of this research is to examine the potential of combining Islamic finance mechanisms such as Zakat, Sadaqah, and Waqf with FinTech innovations, including blockchain, smart contracts, and mobile platforms, to improve accessibility, efficiency, and transparency in DRF. This study aims to identify how these integrated solutions can enhance economic resilience, financial inclusion, and alignment with the United Nations Sustainable Development Goals (SDGs).
Method
A mixed-methods approach was employed, utilizing case studies from Southeast Asia, the Middle East, and Africa, alongside a survey (n=100) and expert interviews (n=12). The case studies focused on the application of Islamic finance and FinTech innovations in disaster-prone regions. Surveys and interviews provided empirical insights into the effectiveness of these solutions and the challenges faced in implementing them.
Results
The study found that Islamic FinTech platforms raised an average of $24 million per disaster event, reduced disbursement times by 30-40%, and achieved adoption rates of 45-70%. Despite challenges such as regulatory barriers and digital literacy gaps, these solutions significantly enhanced financial inclusion and economic resilience, aligning with SDG 1, SDG 9, and SDG 13.
Implications
The research suggests that integrating Islamic finance with FinTech can provide a transformative approach to DRF, offering more inclusive, efficient, and transparent solutions. Policy recommendations include the development of unified Sharia-compliant FinTech standards and infrastructure investments to scale these solutions in disaster-prone regions.
Originality/Novelty
This study contributes to the emerging field of Islamic FinTech by bridging the gap between Islamic finance principles and modern digital technologies to enhance disaster risk financing, particularly in developing and Muslim-majority countries.

Designing a Cultural-Strategic Islamic Communication Audit Model for non-transportation asset governance in PT Kereta Api Indonesia SubDIVRE 1.1 Aceh

Yolandha Rakatiwi — 2026-01-09

Introduction
The governance of non-transportation assets in state-owned railway enterprises requires not only legal and administrative control but also effective organizational communication. In Aceh, where socio-religious norms strongly influence public legitimacy, communication practices surrounding asset safeguarding and commercialization face distinctive challenges. Despite the strategic value of railway land and buildings, communication audits have not been systematically institutionalized, creating coordination gaps and social resistance.
Objectives
This study analyzes the implementation of communication audits in managing non-transportation assets at PT Kereta Api Indonesia SubDIVRE 1.1 Aceh and formulates a culturally grounded audit model suited to Aceh’s socio-religious context.
Method
The research employs a descriptive qualitative and evaluative approach. Data were collected through in-depth interviews, participatory observation, and document analysis involving company leaders, asset managers, operational staff, commercial partners, and community representatives. Informants were selected using purposive and snowball sampling. Data credibility was strengthened through triangulation and member checks, and analysis followed an interactive model of data reduction, display, and verification.
Results
Findings indicate that communication audits are not formally structured but occur informally through meetings and routine evaluations. Internal communication remains predominantly top-down, with limited cross-unit coordination and insufficient communication competencies. Externally, while negotiation with partners is perceived as transparent, broader stakeholder engagement lacks cultural adaptation and participatory dialogue. Resistance to asset policies often stems from inadequate alignment with Acehnese values such as deliberation, communal consensus, and the mediating role of religious and traditional leaders.
Implications
The study proposes a Cultural-Strategic Islamic Communication Audit Model that integrates systematic planning, exploratory and focused interviews, strategic analysis, follow-up mechanisms, and participatory evaluation. Embedding local socio-religious values into communication governance can enhance transparency, legitimacy, and conflict prevention in asset commercialization.
Originality/Novelty
This research advances communication audit scholarship by contextualizing it within Islamic governance and local cultural structures, offering a model that bridges organizational communication strategy and socio-religious legitimacy in public asset management.

Islamic fintech, financial inclusion, and MSME sustainability: Evidence from a mixed-method study in Indonesia’s digital economy

Ridwan Widagdo — 2026-02-14

Introduction
Micro, Small, and Medium Enterprises play a critical role in economic development, employment generation, and inclusive growth, particularly in developing countries. Despite their importance, many MSMEs face persistent barriers in accessing formal financial services, which limits their ability to sustain and scale their businesses. The emergence of Islamic financial technology offers an alternative pathway by providing digital, sharia-compliant financial services that can enhance financial inclusion and support sustainable business practices.
Objectives
This study aims to analyze the role of Islamic fintech in improving financial inclusion and its impact on MSME sustainability. It also examines the mediating role of financial inclusion in the relationship between Islamic fintech and sustainable MSME performance within a digital business environment.
Method
The study employs a mixed-method approach using a sequential exploratory design. Qualitative data were collected through in-depth interviews with MSME stakeholders in Region III Cirebon, Indonesia, while quantitative data were obtained from 96 MSMEs using structured questionnaires. The analysis combines qualitative thematic interpretation with quantitative modeling using Structural Equation Modeling with Partial Least Squares to test the proposed relationships among variables.
Results
The findings indicate that Islamic fintech has a positive and significant effect on financial inclusion, while financial inclusion significantly enhances MSME sustainability. The results also confirm that financial inclusion mediates the relationship between Islamic fintech and MSME sustainability, suggesting that the impact of Islamic fintech operates indirectly through improved access to financial services. Qualitative findings further reveal that sustainable MSME models emphasize digital transformation, institutional support, and integration of economic and social practices.
Implications
The study highlights the importance of strengthening Islamic fintech ecosystems to improve financial access and support MSME sustainability. It also underscores the need for policies that promote financial literacy, digital readiness, and regulatory support to maximize the benefits of fintech adoption.
Originality/Novelty
This research contributes to the literature by providing empirical evidence on the mediating role of financial inclusion in the relationship between Islamic fintech and MSME sustainability. It offers a comprehensive perspective by integrating qualitative and quantitative approaches within the context of a developing economy.

Between prudence and innovation: A critical analysis of the Indonesian Ulema Council fatwa on Bitcoin in Islamic finance

Ahmad Khalifah Zamrud — 2026-02-14

Introduction
The rapid expansion of cryptocurrency has generated significant debate within Islamic economic discourse. Bitcoin, as the first decentralized digital currency, offers technological advantages such as transparency, efficiency, and global accessibility. However, it also raises concerns regarding price volatility, speculative trading behavior, and the absence of intrinsic value. These issues have prompted Islamic scholars and regulatory institutions to evaluate cryptocurrency from the perspective of Islamic law and financial ethics. In Indonesia, the Indonesian Ulema Council issued a religious ruling declaring Bitcoin impermissible due to elements of uncertainty, speculation, and potential economic harm. This ruling has stimulated ongoing discussion about the compatibility of cryptocurrency innovation with Islamic economic principles.
Objectives
This study aims to critically analyze the religious ruling on Bitcoin issued by the Indonesian Ulema Council by examining its legal reasoning, its relationship with Islamic economic principles, and its implications for the governance of digital financial innovation. The research also seeks to explore whether cryptocurrency can be accommodated within an Islamic economic framework under certain regulatory and ethical conditions.
Method
The study employs a qualitative research design using a transdisciplinary analytical approach that integrates perspectives from Islamic jurisprudence, Islamic economics, financial regulation, and digital financial technology. Data were collected through documentation of religious rulings, regulatory policies, and scholarly literature related to cryptocurrency and Islamic finance. The data were analyzed through thematic and comparative analysis to identify the legal reasoning underlying the prohibition of Bitcoin and to evaluate alternative scholarly interpretations regarding the status of digital assets in Islamic economics.
Results
The findings indicate that the prohibition of Bitcoin is primarily based on concerns about excessive uncertainty, speculative trading behavior, and potential economic harm associated with cryptocurrency markets. Nevertheless, the analysis also reveals that cryptocurrency may be considered permissible when these elements are mitigated through transparent governance, regulatory oversight, and the development of asset-backed digital financial instruments.
Implications
The study highlights the importance of developing regulatory and institutional frameworks that reconcile financial innovation with Islamic ethical principles. Such frameworks can provide clearer guidance for Muslim investors while supporting responsible digital financial development.
Originality or Novelty
This research contributes to the growing literature on cryptocurrency in Islamic economics by offering a critical analysis of religious rulings within the broader context of digital financial transformation and regulatory governance.

Determinants of student investment decisions: Examining risk perception, educational information, and financial goals with perspectives from Islamic finance

Totok Ismawanto — 2026-02-14

Introduction
The rapid expansion of capital market participation among students in emerging economies has increased the importance of understanding the determinants of investment decision-making. Despite growing access to financial information, many student investors still exhibit varying levels of financial literacy, risk perception, and goal orientation. Previous studies suggest that these factors influence investment behavior, yet their combined effects remain insufficiently explored, particularly within student populations and in relation to ethical considerations in Islamic finance.
Objectives
This study aims to examine the influence of risk perception, educational information, and financial goals on investment decisions among student investors. It seeks to identify which factors significantly shape decision-making behavior and to provide a more comprehensive understanding of investment behavior by integrating cognitive and motivational variables within a unified framework.
Method
The study employs a quantitative approach using a structured questionnaire distributed to 35 members of a capital market study group at a state polytechnic. Data were analyzed using Partial Least Squares Structural Equation Modeling to assess both measurement validity and structural relationships among variables. This method enables the evaluation of complex relationships within a relatively small sample size.
Results
The findings indicate that educational information and financial goals have a positive and statistically significant influence on investment decisions, while risk perception does not show a significant effect. The model explains a substantial proportion of variance in investment decisions, highlighting the dominant role of knowledge and goal orientation in shaping behavior among student investors.
Implications
These results suggest that improving financial literacy and promoting goal-based financial planning are essential for enhancing investment decision quality. The findings also indicate that risk perception may function as a secondary or conditional factor rather than a primary determinant, particularly among less experienced investors.
Originality/Novelty
This study contributes to the literature by integrating risk perception, educational information, and financial goals within a single empirical model and by incorporating an Islamic finance perspective to enrich the interpretation of investment behavior.

The influence of parental education and household financial behavior on halal food consumption in Tanjung Pinang City, Indonesia

Sella Kurnia Sari — 2026-02-14

Introduction
Halal consumption has become an essential aspect of consumer behavior in Muslim-majority societies, reflecting not only religious compliance but also ethical and quality considerations. While prior studies have emphasized religiosity and awareness as key drivers, limited research has examined how household-level factors, particularly parental education and financial behavior, shape halal food consumption. In urban contexts such as Tanjung Pinang City, understanding these determinants is critical due to the interaction between socio-economic conditions and daily consumption practices.
Objectives
This study aims to analyze the influence of parental education, household savings, and household expenditure on halal food consumption behavior. It also seeks to explore how educational and financial factors jointly shape household decision-making in the context of halal consumption.
Method
The study employs a quantitative approach using primary data collected from 100 household decision-makers in Tanjung Pinang City. Data were gathered through structured questionnaires using a Likert scale and complemented by interviews. The analysis applies multiple linear regression using the Ordinary Least Squares method to examine the relationships between the independent variables—parental education, savings, and expenditure—and halal food consumption behavior.
Results
The findings indicate that parental education has a positive and significant effect on halal consumption behavior, suggesting that higher education enhances awareness and adherence to halal principles. Household expenditure also shows a positive relationship, indicating that greater purchasing power facilitates access to halal-certified products. In contrast, household savings exhibit a negative effect, implying that financial caution may limit spending on halal goods. Collectively, these variables explain a substantial proportion of variation in halal consumption behavior.
Implications
The results highlight the importance of integrating educational and economic dimensions in promoting halal consumption. Enhancing halal literacy and improving access to affordable halal products are essential for strengthening household compliance with halal principles.
Originality/Novelty
This study contributes to the literature by providing an integrated analysis of parental education and household financial behavior as determinants of halal consumption in a regional urban context, offering new insights into the socio-economic dynamics of Islamic consumer behavior.

Embedding Mabadi Khaira Ummah into internal control systems to strengthen governance and performance in Islamic cooperatives: A case study of KSPPS Nusa Umat Sejahtera Semarang

Solikhul Hidayat — 2026-02-14

Introduction
Islamic cooperatives have become vital institutions for promoting inclusive finance and member-based economic development. However, their sustainability requires robust governance and reliable internal control systems. Few studies have examined how Islamic ethical values, particularly Mabadi Khaira Ummah, can be systematically embedded into internal control frameworks to enhance transparency, accountability, and organizational performance.
Objectives
This study aims to analyze how Mabadi Khaira Ummah—truthfulness, trust, justice, cooperation, and steadfastness—are conceptualized, implemented, and operationalized in the internal control system of KSPPS Nusa Umat Sejahtera. It further explores the impact of these values on cooperative governance, fraud prevention, and financial performance.
Method
A qualitative case study approach was employed, focusing on KSPPS Nusa Umat Sejahtera in Semarang, Indonesia. Data were collected through semi-structured interviews, direct observation, and document analysis. Purposive and snowball sampling were used to identify respondents, and thematic analysis was applied to examine how ethical values were integrated into organizational practices.
Results
The findings reveal that Mabadi Khaira Ummah values are embedded into standard operating procedures, staff training, monitoring processes, and member engagement. Their application has enhanced transparency, strengthened accountability, reduced fraud risks, and supported asset growth. Members perceive the cooperative as both a financial institution and a moral community, reinforcing trust and loyalty.
Implications
This study provides theoretical, practical, and policy implications. It extends governance theory by demonstrating how ethical values reshape accountability as a moral duty. Practically, it offers a replicable model for other Islamic cooperatives. At the policy level, it highlights the need for regulatory frameworks that promote ethics-driven governance.
Originality/Novelty
The study contributes to the literature by empirically showing how Mabadi Khaira Ummah principles can be institutionalized within internal control systems, bridging the gap between normative Islamic ethics and operational governance in Sharia-based cooperatives.

Product quality and digital technology as drivers of Halal fashion purchase decision among urban Muslim youth in Indonesia

Nurul Jannah — 2026-02-18

Introduction
Indonesia has become one of the leading countries in the global modest fashion sector, supported by its large Muslim population and the growing purchasing power of Millennials and Generation Z. However, the rapid expansion of halal fashion has not been fully matched by a clear understanding of how young urban Muslim consumers make purchase decisions in the digital era. Product quality remains important, but modern digital technology increasingly shapes how consumers search for information, evaluate halal fashion products, and complete purchases.
Objectives
This study examines the influence of product quality and modern digital technology on halal fashion purchase decisions among Muslim youth in urban Indonesia. It also seeks to identify which factor has the stronger effect on consumer decision-making and to develop a purchase decision model that reflects Islamic consumer behavior in a digitally mediated marketplace.
Method
This study used a quantitative explanatory approach. Data were collected through a Likert-scale questionnaire distributed to 300 urban Muslim Millennial and Generation Z consumers in Indonesia using purposive sampling. The data were analyzed using partial least squares structural equation modeling. The measurement model was assessed through convergent validity, discriminant validity, composite reliability, and Cronbach’s alpha, while the structural model was evaluated using coefficient of determination, effect size, path coefficient, and hypothesis testing.
Results
The findings show that product quality and modern digital technology jointly explain 62.6 percent of the variance in halal fashion purchase decisions. Product quality has a positive and significant effect on purchase decisions, although its effect size is relatively weak. Modern digital technology has a stronger and more dominant effect, indicating that digital accessibility, electronic commerce platforms, social media engagement, digital halal information, mobile commerce, and personalized online experiences are central to young Muslim consumers’ purchase behavior.
Implications
The study suggests that halal fashion businesses should not rely solely on physical product quality. They need to build trustworthy, accessible, and interactive digital ecosystems that support halal verification, consumer engagement, and seamless purchasing experiences.
Originality/Novelty
This study contributes to Islamic consumer behavior literature by integrating product quality, modern digital technology, the Theory of Planned Behavior, and Maqashid Sharia into a halal fashion purchase decision model for Muslim youth in urban Indonesia.

Do men and women respond differently to Sharia marketing? Exploring ethical drivers of loyalty in Islamic banking

Solikhul Hadi — 2026-02-18

Introduction
Ethical and Sharia-compliant marketing has become a strategic foundation for Islamic banks seeking to build sustainable customer loyalty. Unlike conventional marketing, Sharia marketing emphasizes honesty, fairness, and trust, reflecting Islamic ethical values in every business transaction. However, the extent to which these ethical marketing practices drive customer loyalty—and whether gender differences influence these effects—remains underexplored.
Objectives
This study aims to analyze the impact of Sharia marketing ethics, represented by the five dimensions of the Islamic marketing mix (product, price, promotion, people, and place), on customer loyalty in Islamic banking. It further examines the moderating role of gender in these relationships to uncover differential behavioral responses among male and female customers.
Method
A quantitative explanatory approach was employed, collecting survey data from 295 customers of Bank Syariah Indonesia (BSI) using purposive sampling. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.2.9 to assess both direct and moderating effects. The model’s validity and reliability were confirmed through confirmatory factor analysis and multicollinearity diagnostics.
Results
Findings reveal that all five elements of Sharia marketing ethics significantly influence customer loyalty, with promotion, product, and place showing the strongest positive effects. Interestingly, the “people” dimension has a negative influence, indicating that employee interactions do not always align with customers’ ethical expectations. Gender significantly moderates the relationships between price, promotion, people, and place with loyalty, suggesting that male and female customers respond differently to ethical marketing signals.
Implications
The results underscore the importance of integrating ethical and gender-sensitive strategies in Islamic marketing. Islamic banks should focus on authentic communication, fair pricing, and improving service interactions to strengthen customer trust and long-term loyalty. These insights also provide policy implications for enhancing the ethical governance of marketing practices in Islamic financial institutions.
Originality/Novelty
This study contributes to Islamic marketing literature by integrating ethical Sharia marketing principles with gender-based behavioral analysis. It offers a novel perspective by demonstrating how gender moderates the ethical marketing–loyalty relationship, providing both theoretical enrichment and practical guidance for inclusive marketing strategies in Islamic banking.

Transforming mustahiq into muzzaki through strategic management: An empirical study of productive zakat distribution in Yogyakarta, Indonesia

Chaidir Iswanaji — 2026-02-18

Introduction
Poverty alleviation remains a major development challenge in Indonesia. Zakat, as an Islamic redistributive mechanism, has the potential to function as a productive economic instrument. This study examines a productive zakat distribution model aimed at transforming mustahiq into muzzaki through empowerment and sustainable economic development, based on economic criteria including income, asset ownership, ability to meet basic needs, and fulfillment of the nisab threshold.
Objectives
The study aims to analyze how productive zakat contributes to socio-economic transformation, identify institutional and managerial factors influencing program effectiveness, and propose an applicable model of zakat distribution that supports mustahiq independence and transition toward muzzaki status.
Method
Using a qualitative descriptive approach and case study design, the research was conducted in several zakat institutions in Yogyakarta, including BAZNAS, LAZISMU, LAZISNU, and Rumah Zakat. Data were collected through in-depth interviews, direct observation, and document analysis involving 55 mustahiq and zakat managers. The data were analyzed using Miles and Huberman’s model of data reduction, display, and verification.
Results
Findings show that productive zakat programs when integrated with planning, mentoring, and monitoring significantly improve beneficiaries’ income, business performance, and self-reliance. The application of management principles (forecasting, organizing, actuating, and controlling) enhances accountability and program impact. However, challenges remain in limited institutional capacity, uneven monitoring, and insufficient long-term evaluation.
Implications
The study demonstrates that productive zakat can serve as an investment in human and social capital rather than a short-term relief tool. It highlights the need for strategic management integration and institutional collaboration to ensure sustainability and measurable economic transformation among mustahiq.
Originality/Novelty
This research contributes to Islamic economic scholarship by offering an empirical framework that links productive zakat management with socio-economic empowerment and sustainable development. It advances the understanding of zakat as a transformative instrument that aligns Islamic social finance with modern development management practices.

Integrating smart contracts with Islamic economic law: A Sharia design framework for digital finance governance

Hasanuddin Hasanuddin — 2026-02-18

Introduction
Smart contracts have become an important innovation in blockchain-based digital transactions because they enable automated, transparent, immutable, and self-executing agreements. In Islamic economic law, however, contracts are not merely technical instruments but also ethical and legal commitments that must fulfill the principles of consent, clarity, justice, lawful subject matter, and freedom from prohibited elements such as usury, excessive uncertainty, and gambling. This creates an important scholarly issue concerning whether smart contracts can be integrated with sharia contract principles in the digital age.
Objectives
This study analyzes the compatibility of smart contracts with Islamic economic law and examines their legal and regulatory position in Indonesia. It also formulates an Islamic Smart Contract Framework as a conceptual model for integrating blockchain technology with sharia contract validation, digital sharia supervision, and legally accountable execution.
Method
This study uses a normative-juridical approach based on secondary legal and scholarly materials. The analysis examines Indonesian regulations on electronic contracts, personal data protection, Islamic banking, and financial technology, along with fatwas issued by the National Sharia Council of the Indonesian Ulema Council. Academic literature on blockchain, smart contracts, Islamic contract theory, sharia fintech, and comparative practices in Malaysia, Bahrain, and the United Arab Emirates is also reviewed. The data are analyzed descriptively, normatively, comparatively, and conceptually.
Results
The findings show that smart contracts can support Islamic economic transactions when they function as technical instruments for executing valid sharia contracts. They can strengthen transparency, legal certainty, transaction efficiency, auditability, and trust. However, smart contracts cannot independently ensure contractual intent, consent, legal capacity, fairness, public benefit, or compliance with the higher objectives of sharia. Their implementation therefore requires sharia contract validation, fatwa-based supervision, digital sharia audits, hybrid dispute resolution, and clear regulatory standards.
Implications
This study provides a conceptual basis for regulators, sharia authorities, Islamic financial institutions, and fintech developers to design smart contracts that are technologically reliable, legally recognized, and sharia-compliant.
Originality/Novelty
This study contributes by proposing the Islamic Smart Contract Framework as a sharia-by-design model that integrates contract validation, programmable code structure, algorithmic sharia auditing, and blockchain-based execution.

Assessing the effectiveness of digital marketing for Halal tourism using EPIC model at Pesarean Syaikhona Kholil, Bangkalan

Muhammad Ersya Faraby — 2026-02-18

Introduction
Halal tourism offers a range of travel packages designed to accommodate Muslim travelers. Several components support the development of halal tourism, including halal food, halal transportation, halal hotels, halal logistics, halal financial systems, and halal tour packages that comply with sharī‘ah standards. The main problem addressed in this study is the suboptimal use of digital marketing systems as promotional media for halal tourism in Bangkalan, Madura.
Objectives
This study aims to identify the digital marketing systems employed by the religious tourism destination Pesarean Syaikhona Kholil Bangkalan as a halal tourism site in Indonesia. In addition, the study tries to assess the effectiveness of digital marketing through social media as part of the promotional strategy for this religious destination.
Method
This research adopts a mixed-methods approach. The qualitative component is used to explain the forms of digital marketing implemented by Pesarean Syaikhona Kholil. Meanwhile, the quantitative component is employed to obtain an assessment of the effectiveness of the destination’s digital marketing initiatives. The qualitative analysis uses the EPIC Model (Empathy, Persuasion, Impact, and Communication).
Results
The findings reveal that the management of Pesarean Syaikhona Kholil Bangkalan has not fully optimized digital marketing practices, resulting in relatively low visitor numbers. Based on the EPIC Model assessment, the average EPIC rate score is 3.955556, in the “effective” category. This indicates that utilizing digital media as a marketing strategy is effective for tourism promotion.
Implications
The results provide implications for the application of digital marketing in promoting Pesarean Syaikhona Kholil as one of Indonesia’s halal tourism destinations. There is a need to strengthen digitalization efforts by leveraging social media platforms such as Instagram, TikTok, Facebook, and WhatsApp to reduce conventional promotional costs and expand market reach. Additionally, synergy between the Bangkalan local government, tourism managers, and the surrounding community is crucial to building a shared vision in supporting the development of Pesarean Syaikhona Kholil Bangkalan as a national halal tourism destination.
Originality/Novelty
This study offers new insights into the use of digital marketing as a promotional tool for halal tourism in Bangkalan. The findings contribute to the development of innovative digital marketing strategies aimed at expanding the market reach of halal tourism in Indonesia. Furthermore, the EPIC Model assessment derived from respondents provides a valuable analytical tool for measuring the effectiveness of digital marketing implemented by tourism managers.