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How Governance Practices Influence Mandatory Zakah Payment in Saudi Arabia? كيف تُؤَثر مُمَارسات الحَوْكَمة في الدفع الإلزامي للزكاة في المملكة العربية السعودية؟

Author

Listed:
  • Abdulsalam Ahmed Sawmar

    (Lecturer, Islamic Economics Department Islamic University of Madinah, Saudi Arabia)

  • Mustafa Omar Mohammed

    (Associate Professor, Kulliyyah of Economics and Management Sciences International Islamic University, Malaysia)

Abstract

The purpose of this study is to investigate the influence of governance practices of the formal zakah authority in Saudi Arabia, the GAZT (General Authority of Zakat and Tax), on zakah payment compliance. It employs a quantitative approach using a questionnaire survey of actual zakah payers in Saudi Arabia. The analysis of one hundred and twenty-five usable questionnaires collected through random sampling from al-Madinah region was done using the PLS (Partial Least Squares) - SEM (Structural Equation Models) technique. The results suggested that the perceived transparency and disclosure, and the perceived procedural fairness had significant and positive relationships with zakah payment compliance. In addition, trust was found to have a mediating effect on the relationship between the perceived governance of the zakah authority and zakah payment compliance. The study’s findings provide interesting insights that benefit both theory and practices. تهدف هذه الدراسة إلى استقصاء تأثير ممارسات الحوكمة للهيئة العامة للزكاة والدخل في المملكة العربية السعودية على الامتثال لدفع الزكاة. ولتحقيق هذا الغرض استخدمت الدراسة منهجًا بحثيًا قائمًا على التحليل الكمي من خلال توزيع استبانة على دافعي الزكاة في المملكة العربية السعودية. وتم تحليل مائة وخمسة وعشرين استبانة صالحة تم جمعها من عَيِّنَات عَشْوَائية في منطقة المدينة المنورة باستخدام أداة المربعات الصغرى الجزئية (PLS) التي تمثل مقاربة مبنية على نماذج المعادلات الهيكلية (SEM). وأظهرت نتائج الدراسة أن الشفافية والإفصاح المُتوقعين، والعدالة الإجرائية المُتصورة لها علاقات مهمة وإيجابية مع الامتثال لدفع الزكاة. علاوة على ذلك وجدت الدراسة أن الثقة لها تأثير وسيط على العلاقة بين الحوكمة المأمولة لهيئة الزكاة والامتثال لدفع الزكاة. تقدم نتائج الدراسة رُؤى مُثيرة للاهتمام من شأنها أن تُفيد في الجانبين النظري والتطبيقي.

Suggested Citation

  • Abdulsalam Ahmed Sawmar & Mustafa Omar Mohammed, 2021. "How Governance Practices Influence Mandatory Zakah Payment in Saudi Arabia? كيف تُؤَثر مُمَارسات الحَوْكَمة في الدفع الإلزامي للزكاة في المملكة العربية السعودية؟," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 34(1), pages 3-24, January.
    • Handle: RePEc:abd:kauiea:v:34:y:2021:i:1:no:1:p:3-24
    DOI: 10.4197/Islec.34-1.1
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    References listed on IDEAS

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    1. Katharina Gangl & Stephan Muehlbacher & Manon de Groot & Sjoerd Goslinga & Eva Hofmann & Christoph Kogler & Gerrit Antonides & Erich Kirchler, 2013. ""How can I help you?" Perceived Service Orientation of Tax Authorities and Tax Compliance," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(4), pages 487-510, December.
    2. Nasim Shah Shirazi & Md. Fouad Bin Amin, 2009. "Poverty Elimination Through Potential Zakat Collection in the OIC-member Countries: Revisited," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 739-754.
    3. C. Guermat & A.T. Al-Utaibi & J.P. Tucker, 2003. "The Practice of Zakat: An Empirical Examination of Four Gulf Countries," Discussion Papers 0302, University of Exeter, Department of Economics.
    4. Yongjiao Yang & Iain Brennan & Mick Wilkinson, 2014. "Public trust and performance measurement in charitable organizations," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(6), pages 779-796, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Zakah institution; Governance; Transparency; Fairness; Zakah compliance; Saudi Arabia. مؤسسات الزكاة، الحوكمة، الشفافية، العدالة، الامتثال الزكوي، السعودية.;
    All these keywords.

    JEL classification:

    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling

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