Reconstructing Revenue Management Ethics in Islamic Finance: a Maqashid-Based Integrity Model and Empirical Framework

Desy Rahmawati Anwar; Sumarlin Sumarlin; Wahyuddin Abdullah

doi:10.55927/fjas.v4i6.177

Authors

Desy Rahmawati Anwar Sekolah Tinggi Ilmu Ekonomi Pelita Buana
Sumarlin Sumarlin Universitas Islam Negeri Alauddin Makassar
Wahyuddin Abdullah Universitas Islam Negeri Alauddin Makassar

DOI:

https://doi.org/10.55927/fjas.v4i6.177

Keywords:

Earnings Management Ethics, Maqashid al-Shariah, Islamic Finance, Model IEIM, Artificial Intelligence

Abstract

This research develops the Islamic Earnings Integrity Model (IEIM) as a conceptual and empirical framework to reconstruct profit management ethics in Islamic finance, based on the principles of maqashid al-shariah: niyyah (intention), thariqah (method), and ma'al (impact). Through a qualitative and quantitative approach, this model is tested on Islamic financial institutions and equipped with the Islamic Earnings Integrity Index (IEII) to measure the integrity of profit reporting. The research also explores the use of Artificial Intelligence (AI) and Natural Language Processing (NLP) in detecting hidden narrative intentions. The findings show that IEIM can improve the transparency, accountability, and social legitimacy of Islamic financial institutions. This model has the potential to be an evaluative and regulatory tool in financial reporting based on Islamic ethics.

References

Abdullah, F., & Ishak, R. (2021). The relationship between Maqasid al-Shariah and financial performance in Islamic banks. Journal of Islamic Accounting and Business Research, 12(4), 647–668.

Abdullah, N. H. (2020). Tauhid and the ethics of financial reporting: An Islamic perspective. Journal of Islamic Accounting and Business Research, 11(4), 741–758.

Adiwijaya, Z. A., Suprianto, E., & Rusdi, D. (2023). The Effect of Islamic Corporate Governance and Maqashid Sharia Index on Firm value with Islamic Social Reporting as a Moderating Variable. Indonesian Interdisciplinary Journal of Sharia Economics, 6(1).

AlShamrani, A., Haniffa, R., & Hudaib, M. (2023). The role of narrative reporting in Islamic finance: A machine learning approach to ethics and disclosure. Journal of Islamic Accounting and Business Research, 14(2), 213–233.

Bakar, N. A., & Hamat, M. (2021). Earnings management through real activities manipulation in Islamic and conventional banks. Asian Academy of Management Journal of Accounting and Finance, 17(1), 115–140.

Basir, S. A., Ismail, S. H. S., & Zainal, N. R. B. (2021). Maqasid al-Shariah in corporate governance: A review of Islamic financial institutions. Journal of Islamic Accounting and Business Research, 12(6), 876–895.

Dusuki, A. W., & Abozaid, A. (2021). The role of maqasid al-shariah in contemporary Islamic finance: A case for social and ethical reporting. ISRA International Journal of Islamic Finance, 13(2), 185–200. Dusuki, A. W., & Abozaid, A. (2021). The role of maqasid al-shariah in contemporary Islamic finance: A case for social and ethical reporting. ISRA International Journal of Islamic Finance, 13(2), 185–200.

El-Halaby, S., & Hussainey, K. (2022). Artificial intelligence and the future of Islamic corporate reporting: A critical review and agenda. Journal of Financial Reporting and Accounting, 20(3), 341–359.

Fakhfakh, M., & Omri, M. A. (2021). Financial reporting quality in the presence of Islamic ethics: A content analysis. Meditari Accountancy Research, 29(4), 700–725.

Farook, S., Hassan, M. K., & Lanis, R. (2020). Maqasid-based governance and accountability in Islamic banks: An integrated framework. Journal of Islamic Accounting and Business Research, 11(5), 1051–1070.

Haniffa, R., & Hudaib, M. (2019). A theoretical framework for the development of socially responsible Islamic banking. Accounting Forum, 43(2), 154–177.

Harymawan, I., & Nowland, J. (2022). Audit committee effectiveness and earnings quality in Islamic firms. Journal of Economics and Finance in Asia, 34(1), 100–120.

Hassan, R., & Noor, M. (2020). Systematic evaluation of Islamic earnings management models: A review. Journal of Accounting in Emerging Economies, 10(3), 557–577.

Hosen, M. N., Muthmainnah, Y., & Nugroho, A. A. (2021). Fatwa-Based Islamic Governance and its Role in Ethical Financial Practice: The Case of DSN-MUI. Etikonomi, 20(2), 217–230.

Ibrahim, S. H. M., & Yusoff, W. S. W. (2020). The role of spirituality in mitigating earnings management in Islamic firms. Humanomics, 36(4), 471–488.

Ismail, A., & Abdullah, M. (2022). Maslahah and transparency in Islamic accounting: Critical perspectives. Accounting Research Journal, 35(1), 22–38.

Kamla, R., & Alsoufi, R. (2023). Ethics, accountability, and Islamic financial reporting: Rethinking the role of narrative disclosure. Critical Perspectives on Accounting, 90, 102416.

Khalid, S., & Hassan, Z. (2022). Niyyah and ethical decision making in Islamic financial reporting. Islamic Accounting and Finance Review, 9(1), 12–29.

Khan, S., & Zaman, R. (2019). Integrating Maqashid al-Shariah into financial reporting: Towards an ethical reporting framework. Journal of Islamic Accounting and Business Research, 10(3), 369–385.

Khasanah, A. A., & Laela, S. F. (2024). The Effect of Green Accounting Practice on Maqashid Sharia Performance in Islamic Banks. Jurnal Akuntansi dan Auditing, 21(1), 39–63.

Li, F. (2020). Machine learning for detecting textual fraud in financial narratives. Review of Accounting Studies, 25(3), 883–915.

Marzuqi, M., & Latif, A. A. (2020). Earnings management within the framework of Islamic ethical values. Islamic Business and Ethics Review, 5(1), 30–42.

Mohammad, F., Rahman, A., & Yusof, R. (2021). Amanah and justice in Islamic financial reporting. International Journal of Islamic Business Ethics, 6(2), 101–117.

Mulyani, S. (2023). Good Corporate Governance and Sharia Banking Performance Based on Maqasid Al-Sharia in OIC Countries. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 15(1), 1–20.

Munifatussa'idah, A. (2021). Sharia Compliance, Islamic Corporate Governance, Intellectual Capital, and Earning Management toward Financial Performance in Indonesia Islamic Banks. Iqtishadia: Jurnal Kajian Ekonomi dan Bisnis Islam, 14(2), 1–20.

Napier, C. J. (2021). Islamic accounting history: The state of the art. Accounting History Review, 31(1), 1–26.

Nasir, S., & Yusoff, W. (2023). Technology, transparency and Islamic financial ethics. Journal of Islamic Finance and Technology, 5(2), 75–92.

Osman, I., Mohammed, N. F., & Ismail, S. (2021). Ethical AI and Islamic finance: Synergies and prospects. Humanomics, 37(4), 511–528.

Othman, H. B., & Zeghal, D. (2020). Maqashid Shariah and earnings management in Islamic financial institutions. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 563–580.