There is a need to uphold integrity among the management in order to strengthen Islamic cooperative institutions in Malaysia. This paper aims to observe the development of mudarabah contract and practice in Islamic Cooperative Institutions (ICI) in Malaysia. Next, it also aims to theoretically establish mudarabah contract in Islamic cooperative institution model in Malaysia that employs IIE-process (shuratic process). This study is a qualitative-based research. It uses literature reviews, documents and content analysis approach to document, understand and analyse the structure, process and practice of mudarabah contract in ICI in Malaysia. This study attempts to comprehensively examine the evolution of the mudarabah contract in ICI in Malaysia. After the introduction of the background problem, this paper will present the literature on Islamic Cooperative institutions in Malaysia, shuratic social learning process, reduce principal agent problems and uphold integrity. This study contributes in uphold integrity among the management in order to strengthen mudarabah contract of Islamic cooperative institutions in Malaysia.
Ahmed, H. (2002). Financing Microenterprises?: An Analytical Study of Islamic Microfinance Institutions. Islamic Economic Studies, 9(2), 27–64. Retrieved from http://www.isdb.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IRTI/CM/downloads/IES_Articles/Vol 9-2..Habib Ahmed..Financing Microenterprises..dp.pdf
Akhtaruddin, M., & Haron, H. (2010). Board ownership, audit committees’ effectiveness, and corporate voluntary disclosures. Asian Review of Accounting, 18(3), 245–259. https://doi.org/10.1108/13217341011089649
Asutay, M. (2013). Islamic microfinance: Fulfilling social and developmental expectations. QFinance, 7. Retrieved from http://www.qfinance.com/financing-best-practice/islamic-microfinance-fulfilling-social-and-developmental-expectations?page=1
Choudhury, M. A. (2001). Islamic Venture Capital: A Critical Examination. Journal of Economic Studies, 28(1), 14–33.
Choudhury, M. A. (2016). A prescriptive model of trade and development for the muslim world. Journal of Education and Social Sciences, 4, 65–75.
Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4), 325–345. https://doi.org/10.1016/S0278-4254(03)00037-1
Farooqi, A. H. (2006). Islamic Social Capital and Networking. Emerald Journal, 22(4), 113–125. https://doi.org/10.1108/08288660610669400
Koperasi, S. (2010). GP23: garis panduan pelaporan penyata kewangan koperasi, 1–62.
Lewis, M. K. (2005). Islamic Corporate Governance. Review of Islamic Economics, 9(1), 5–29. https://doi.org/10.4337/9781783479825.00021
Malaysia, B. N. (2010). Resolusi Syariah dalam Kewangan Islam Edisi Kedua.
Marzuki, M., & Haji, B. (2015). Pelaksanaan Prinsip Al-Mudarabah Di Koperasi Kolej Poly-Tech MARA Kuala Lumpur Berhad, 10(September), 529–538.
Mohamad, M., Othman, I. W., & Mohamed, A. (2013). Accountability Issues and Challenges: The Scenario for Malaysian Cooperative Movement. International Journal of Economics and Management Engineering, 7(6), 1503–1508. https://doi.org/scholar.waset.org/1999.10/1437
Mohieldin, M., Iqbal, Z., Rostom, A., & Fu, X. (2012). The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) Countries. Islamic Economic Studies, 20(2), 55–120. https://doi.org/10.1596/1813-9450-5920
Muda, R. B., Ismail, A. G., & Shahimi, S. (2011). Profit-Loss Sharing and Economic Value Added in Islamic Banking Model. Profit-Loss Sharing and Economic Value Added in Islamic Banking Model.
Muhamad, A. M. A. (2008). Islamic Finance for Micro and Medium. International Conference on “Inclusive Islamic Financial Sector Development: Enhancing Islamic Financial Services for Micro and Medium Sized Enterprises” Was, (February), 379. https://doi.org/10.1016/S0065-2776(08)60014-0
Ramli, N. M., & Muhamed, N. A. (2013). Good Governance Framework for Corporate Waqf?: Towards Accountability Enhancement. Proceedings Of World Universities’ Islamic Philanthropy Conference 2013 Good.
Suruhanjaya Koperasi Malaysia. (2009). GP7: Garis Panduan Mengenai Pembiayaan Islam Oleh Koperasi, 51(1), 1–32.
Sykuta, M. E., & Cook, M. L. (2001). A New Institutional Economics Approach to Contracts and Cooperatives (Vol. 83).
Zouari, Z., & Nabi, M. S. (2013). Enhancing the Enforceability of Islamic Microfinance Contracts in OIC countries.
In-Text Citation: (Hassan & Sanusi, 2019)
To Cite this Article: Hassan, N. M., & Sanusi, N. A. (2019). Mudarabah Contract in Islamic Cooperative Institutions: A Conceptual Study. International Journal of Academic Research in Business and Social Sciences, 9(2), 994–1003.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
