DETERMINANTS OF CASH WAQF CONTRIBUTION IN KLANG VALLEY AND SELANGOR: A SEM APPROACH

  • Muhammad Rizky Prima Sakti Islamic Economics Forum for Indonesian Development, Kuala Lumpur, Malaysia http://orcid.org/0000-0001-8717-1838
  • Hassanuddin bin Mohd Thas Thaker HELP University, Kuala Lumpur, Malaysia
  • Abdul Qoyum UIN Sunan Kalijaga, Yogyakarta, Indonesia
  • Ibnu Qizam UIN Sunan Kalijaga, Yogyakarta, Indonesia
Keywords: Cash waqf, Malaysia, Structural Equation Modeling (SEM)

Abstract

Cash waqf is becoming one of the popular Islamic financial instruments which not only focus on the religiosity but also has significant impact to the ummah development. This waqf scheme does not require richness in wealth, yet everybody in the society can contribute to cash waqf. The importance of cash waqf is getting popular as it has benefited in many ways, for example it can be used to develop assets and abandoned land for business and agricultural purposes. In addition, cash waqf also can be utilized to help institutions who are facing financial problem or liquidity issues. Nonetheless, rarely we found in the literature that empirically examines the cash waqf determinants and contributions. This paper is one of the few empirical studies that investigate the determinants towards the contribution of cash waqf in Malaysia. The purpose of this paper is to investigate the main factors that influence people towards the contribution of cash waqf instruments, special reference to the Klang Valley and Selangor. This paper employs structural equation modeling (SEM) to verify the determinants of cash waqf contribution. In doing so, we use primary data by distributing self-administrated questionnaire constituting a sample of 114 respondents from Klang Valley and Selangor. Our empirical results reveal that the main factors that driven people towards the contribution of cash waqf products are attitude and social influences, however interestingly religion obligation is not influence the contribution of cash waqf.

 

Author Biographies

Muhammad Rizky Prima Sakti, Islamic Economics Forum for Indonesian Development, Kuala Lumpur, Malaysia

Researcher, ISEFID (Islamic Economics Forum for Indonesian Development), Kuala Lumpur, Malaysia

Hassanuddin bin Mohd Thas Thaker, HELP University, Kuala Lumpur, Malaysia

Lecturer, Department of Accounting and Finance,

Faculty of Business, Accounting and Economics,

ELM Business School, HELP University, Malaysia 

Scopus ID: 57193616905

Abdul Qoyum, UIN Sunan Kalijaga, Yogyakarta, Indonesia

Lecturer, UIN Sunan Kalijaga, Yogyakarta, Indonesia

Published
2016-09-09
How to Cite
Sakti, M., bin Mohd Thas Thaker, H., Qoyum, A., & Qizam, I. (2016). DETERMINANTS OF CASH WAQF CONTRIBUTION IN KLANG VALLEY AND SELANGOR: A SEM APPROACH. Journal of Islamic Monetary Economics and Finance, 2(1), 111-144. https://doi.org/10.21098/jimf.v2i1.593
Section
Articles