Open AccessGovernance and Efficiency of Zakah Distributions Based on the Dire Necessities of Maqasid Al-Syariah
Author(s) -
Maheran Zakaria,
Mahani Yusoff,
Zuraidah Mohd Sanusi
Publication year - 2019
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v10n5p191
Subject(s) - corporate governance , faith , distribution (mathematics) , relation (database) , business , public economics , economics , mathematics , finance , theology , computer science , mathematical analysis , philosophy , database
The study examines the governance and efficiency of zakah distributions based on the fulfilment of five dire necessities (daruriyyat) of Maqasid al-Syariah. There were about 500 questionnaires distributed to zakah beneficiarys of Asnaf Business Assistance program governed by one of Malaysian State Religious Council. 456 respondents responded, contributing to 89 per cent rate of response. Structural Equation Modelling with the use of Partial Least Square was used to analyse the data. Based on the findings, it can be concluded that the more likely the five elements of dire necessities namely faith, physical self, knowledge, family, and wealth being fulfilled, the more likely is the efficiency of zakah distributions. The study provides useful insights to zakah institutions to formulate strategies in relation to 5 elements of dire necessities to ensure competent distribution of the fund to recipients. The results would also provide comprehensive insights to other empirical studies in this area which will not only be applicable to Muslim countries but to non-muslim countries as well.