Evaluating Corporate Reporting on the Internet: The Case of Zakat Institutions in Malaysia

Shamharir Abidin, Ram Al Jaffri Saad, Nikmal Muzal Mohd Muhaiyuddin

Abstract


ABSTRACT

The purpose of this study is to document the extent of financial and non-financial reporting practices through the internet by zakat institutions and to identify the type of information reported. Using a checklist adapted from similar studies in the commercial sector, the study suggests that the disclosures of financial and non-financial information such as information on social responsibility are uncommon. While most of the zakat institutions focus on providing information regarding zakat collection and distribution, none has included financial statements. However, these institutions have gained reasonable score in terms of information timeliness with majority of them update their website on regular basis. The findings suggest that zakat institution in Malaysia should fully utilise the use internet as a main medium of communication, especially in order to gain more public trust and recognition.
Keywords: Zakat; Islamic taxation; financial reporting; internet

ABSTRAK

Tujuan kajian ini adalah untuk mendokumenkan amalan pelaporan kewangan dan bukan kewangan melalui internet oleh institusi zakat dan mengenalpasti jenis maklumat yang dilaporkan. Menggunakan senarai semak yang diadaptasi daripada kajian sama dalam sektor komersial, hasil kajian menunjukkan bahawa pendedahan maklumat kewangan dan juga maklumat bukan kewangan seperti maklumat berkenaan tanggungjawab sosial adalah sesuatu yang jarang. Walaupun kebanyakan institusi zakat memberi tumpuan kepada penyediaan maklumat berkenaan kutipan dan pengagihan zakat, tiada sebuah pun institusi ini yang memaparkan penyata kewangan. Walau bagaimanapun, institusi ini menunjukkan skor yang baik dari segi ketepatan masa maklumat, yang mana majoriti daripada mereka mengemaskini laman web secara berkala. Hasil kajian mencadangkan institusi zakat di Malaysia perlu menggunakan sepenuhnya internet sebagai medium utama komunikasi, terutamanya bagi mendapatkan kepercayaan dan pengiktirafan yang lebih tinggi dari orang ramai.

Kata kunci: Zakat; pencukaian Islam; pelaporan kewangan; internet


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