| Summary: | The governance and reporting system of waqf institutions in Malaysia at this time needs
to be given serious attention and updated in line with technological advance and
changing trends in global accounting reporting practice. Traditional waqf reporting has
proven to be less effective with a variety of recurring problem, including unproductive
asset management and mismanagement. In general, the lack of transparency in
reporting and inefficient governance are among the leading causes of the problems
experienced by waqf institution . In line with the integrated reporting framework
currently practiced globally, this study examined the current reporting practices and
proposed for an integrated waqf reporting model for waqf institutions based on Maqasid
Al-Shariah. This re earch also identified the effect of integrated waqf reporting and
governance mechanism , namely, risk management, Shariah compliance and internal
audit on the performance of waqf institutions. The role of online digital media as a
moderator in this relationship i also studied. Quantitative research using survey
questionnaire was conducted. The survey involved 259 stakeholder of 45 waqf
institutions in Malaysia. The Structural Equation Modelling (SEM) method ha been
used to test the hypotheses developed based on the agency theory and the stakeholder
theory. The research findings show that the significant components of waqf reporting
can be categori ed into information on cash waqf, waqf property, human capital, social
and environmental capital information. The main waqf governance mechanisms are risk
management, internal audit and Shariah compliance. Integrated waqf reporting has the
most significant impact on waqf performance, followed by utilisation of online digital
media and waqf governance mechanisms. The utilisation of online digital media does
not have a moderating effect on the relationship between integrated waqf reporting and
waqf performance, as well as the relationship between waqf governance and waqf
performance. Furthermore the institutional structure and takeholder's group have a
partial moderation effect on the relationship between the utilisation of online digital
media and waqf performance, whereby the impact is more pronounced on the non-SIRC
(State Islamic Religious Councils) group and external stakeholders. This study
produce new empirical evidence on the impact of integrated reporting, governance
practices and the utilisation of online digital media on the performance of waqf
institutions from the perspective of agency theory and stakeholder theory. From the
practical aspect, the results can assist waqf institutions and authorities to improve the
effectiveness of waqf reporting and sustainability of these institutions in the long run
through several interventions and improvements in waqf accounting, governance
policies and monitoring. These include increasing the level of transparency through
integrated waqf reporting, improving waqf governance and the use of online digital
media.
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