Revenue Management Behavior Shariah and Non-Sharia Compliant Financial Essay
The study of potential risks of non-compliance with Sharia in Murabahah along with their risk management Journal of Finance and Economic 1 44-58Purpose. This study aims to reexamine the relationship between Shariah-compliant companies and earnings management. In particular, the authors investigate whether Shariah-certified companies have lower earnings management than non-Sharia-certified companies and how often a company must maintain its certification to observe significantly fewer, Shariah-noncompliant SNC activities that compromise the sanctity of the attack Islam. These prohibitions are the cornerstone of Islamic finance and distinguish it from the conventional system. Financial distress in the form of higher levels of leverage has been found to be a negative driver for the performance of non-Shariah compliant companies in terms of return on assets, but not for Sharia companies compliant with Islamic financial understanding . Companies that follow Sharia law and have higher liquidity tend to perform much better than less liquid companies, but the same. Manuscript Type: Research Paper. Research Objectives: This study aims to understand how reputation, financial distress, and financial performance influence Shariah-compliant firms to engage in earnings management behavior. The financial data of FTSE Bursa Index companies. The research would provide a better understanding of issues related to the earnings quality of Sharia-compliant companies, and would be especially useful for users of financial statements, including investments. Managing the audit risk of Shariah non-compliance in the Islamic financial institutions through the development of a Shariah compliance audit framework and a Shariah audit program. Kyoto Bulletin of. Bundling or cross-selling with non-Shariah compliant products is prohibited. These guidelines are intended to ensure Sharia compliance of e-money and its use within Islam.