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Abstract

Trust among zakat payers is important as it contributes to the success of zakat institutions. Zakat payers, are reluctant to pay zakat through zakat institutions due to lack of trust. This study examines whether perceived board management and governmental model may influence zakat payers' trust on zakat institutions. Using questionnaire survey on 184 zakat payers, this study shows that perceived board management influences zakat payers' trust on zakat institutions. By contrast, perceived governmental model does not influence zakat payers' trust on zakat institutions. These findings imply that zakat institutions should focus on strengthening the efficiency of their institutions to increase the trust level among zakat payers. In doing so, the zakat payers are driven to pay zakat diligently, thereby ensuring the sustainability of zakat institutions particularly in developing countries such as Malaysia.
GJAT | JANUARY 2018 | SPECIAL ISSUE | 73
ISSN : 2232-0474 | E-ISSN : 2232-0482
www.gjat.my
This journal is a member of and subscribes to the principles of the Committee on Publication Ethics (COPE)
Effect of Board Management and Governmental Model on Zakat
Payers’ Trust on Zakat Institutions
Erlane K Ghani (Corresponding Author)
Accounting Research Institute, Universiti Teknologi MARA, Malaysia
Tel: +60162388429 Email: erlanekg@salam.uitm.edu.my
Asmah Abdul Aziz
Faculty of Accountancy, Universiti Teknologi MARA, Malaysia
Tel: +6014332969 Email: asmah030@salam.uitm.edu.my
Sakinah Mohamed Tajularin
Faculty of Accountancy, Universiti Teknologi MARA, Malaysia
Tel: +60132229342 Email: sakinah_0403@yahoo.com
Nahla Samargandi
Faculty of Economics and Management, King AbdulAziz University, Saudi Arabia
Tel: +966555512633 Email: nahlasamargandi@gmail.com
Abstract
Trust among zakat payers is important as it
contributes to the success of zakat institutions.
Zakat payers, are reluctant to pay zakat
through zakat institutions due to lack of
trust. This study examines whether perceived
board management and governmental model
may inuence zakat payers’ trust on zakat
institutions. Using questionnaire survey on 184
zakat payers, this study shows that perceived
board management inuences zakat payers’ trust
on zakat institutions. By contrast, perceived
governmental model does not inuence zakat
payers’ trust on zakat institutions. These ndings
imply that zakat institutions should focus on
strengthening the efciency of their institutions
to increase the trust level among zakat payers. In
doing so, the zakat payers are driven to pay zakat
diligently, thereby ensuring the sustainability
of zakat institutions particularly in developing
countries such as Malaysia.
Keywords: zakat payers, trust level, board
management, governmental model, zakat
institutions.
Introduction
In Malaysia, the government has established
zakat institutions to administer zakat.
Administrating zakat is important to ensure
that its collection and distribution is conducted
effectively. Zakat institutions also play a role in
providing guidelines and explanations on the
importance of zakat to strengthen the conscience
of the Muslims. Despite the efforts of zakat
institutions to encourage eligible Muslims to pay
zakat formally, the amount of zakat collection to
date remains relatively small (Ahmad & Ma’in,
2014). This low number leads to concerns on
why this scenario exists.
One of the reasons leading to this scenario is
the lack of trust among zakat payers, which
results in non-compliance behavior (Ahmad &
Ma’in, 2014). Studies show that trust among
zakat payers contributes to the success of zakat
institutions. The perception of the zakat payers
on the efciency of zakat institutions may
inuence the payers’ trust on the institutions
(Salleh, 2006). Mohammad (1990) found that
since the government of Pakistan has introduced
compulsory zakat collections through formal
zakat institutions, trust among zakat payers
... ia, by among 105 respondents found that attitude toward zakat evasion affects the intention to pay zakat. Similarly, Saad & Haniffa (2014) stated that an in-depth study of the accountability practices of zakat institutions might help to recognise the basic factors that result in inefficient zakat disbursement. According to Abioye et. al., (2011);; Ghani, et. al., (2018), zakat payers' trust is important than zakat institutions because its deficiency will undercut the institutional efficiency of zakat. A satisfactory level of trust should be retained between Muslims and zakat institutions or else the potential zakat payers would desire to pay their zakat directly to the poor or needy, instead of through ...
... , following the rule of this model, the more positive the attitude and subjective norms are towards patronage of zakat institution, the greater the perceived behavioural control, and the stronger the individual's intention to patronise zakat institutions. This study support the result of the study by Saad & Haniffa, (2014);Abioye et. al., (2011);; Ghani, et. al., (2018), Ahmed, Johari, & Wahab, 2017; Ahmad, 2019). ...
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