01

Agenda
Overview of the article review presentation

5 Keys
A 5 key approach to unraveling the crux of the article.

01

02

03

04

05

Audience
Orientation

Hypothesis
Development

Research
Methodology

Findings

Value
Addition

Problem Statement
Research Objective
Literature Review

Key Terminology
Hypotheses
Instrument
Development

Instrument Design
Data Techniques

Summary of
Findings
Authors View

The Groups
Perspective

02

Statement of Problem
Justification/Motivation of Authors

Reluctant towards Zakah Payments

Businessmen have been documented as being apathetic towards paying Zakah in
Malaysia.1

Personal Income
A very paltry proportion of personal income is appropriated towards payment of
Zakah by households.2

Lackluster Zakah Collection

Collection at state/regulatory level has been very low compared to expectations.3

Research Objective
To investigate factors influencing commitment to paying Zakah.

03

Literature Review
Previous Studies on TRA

Tax Behavior

Code of Conduct

Technology

Zakah

Relation to Church
Attendence
(Gorsuch & Ortberg, 1983)

Ethical Business Decision

Making in Corporate
Environment
(Cohen, 1991)

Attitude Toward Adopting

New Technology
(Shih and Fang, 2004)

Relationship of Zakah
Payment with Employment
Income
(Zainol, 2009)

Is TRA a reliable model for explaining financial topics?

What is the Islamic link between behavior and intention?

04

Hypotheses
Four Areas Investigated

Attitude towards
zakah influence the
businessmans
intention to pay
business zakah

Subjective norms
influence the
businessmans
intention to pay
business zakah

H1

Intention is a
mediator between
the influence of
attitudes and
subjective norms
on zakah on
business income
compliance
behavior

H4

H2

H3
The businessmans
intention influences
zakah on business
income compliance
behavior

4 Hypotheses
Phenomena to investigate based on
Theory of Reasoned Action

05

Defining Terms
Theory of Reasoned Action
Behavioral Beliefs

Attitude Toward Behavior

Image
Productivity
Intellectual challenge

Derives from Behavioral Beliefs

Normative Beliefs

Subjective Norm

Superior
Colleagues
Subordinates
Family

Derives from Normative Beliefs

Control Beliefs

Perceived Behavioral Control

Environment
Facilitating Condition
Societal Predisposition

Derives from Control Beliefs

06

Theory of Reasoned Action

TRA Diagram

07

Research Design
Authors Approach Toward Developing and Designing Instruments

Instruments
reflective of TRA

Hypotheses

Evaluate Findings

Conducting Study

08

Research Design ()
Designing Instrument For Attitude

Purification of wealth or assets

Hypothesis
Zakah payment is an appropriate action

Zakah payment is a religious

responsibility

Instrument
Development
Beliefs for attitude

Zakah payment is important to help fellow

Muslims
Study
Zakah payment provides many
benefits

Findings

Seeking Allah's blessing

09

Research Design ()
Developing Instrument For Subjective Norms
Spouse
Hypothesis

Instrument
Development

3 groups of
reference

Parents
Zakat fund
manager

Belief for
subjective
norms

Support

Study

3 forms of
feedback
Findings

Advice

Agreement

10

Data @ Work
Conceptual Framework in Action

Sampling

Multiple Regression

Sole proprietors and partnership

enterprises
Kedah
Zakah Regulations Ordinance, 1982
Sample Size = 700
Roscoes Rule of Thumb

2 models were employed:

Data Analysis

Variables

279 Respondents (~40% )

Majority Married
Data Reliability (Chronbach Alpha Score)

a. Behavioral Intention to pay Zakah on

Business Income
b. Business Zakah Compliance Behavior

First Model
a. DV = intention
b. IV = attitude + subjective norm
Second Model
a. DV = compliance
b. IV = intention

11

Results
Regression Models (plus Mediator)

Behavioral Intention
Model

Adjusted R2 = 0.39

CCintention = 0.30
CCreference = 0.16
P < 0.001

Supports H1 + H2

Business Zakah
Compliance Model
Adjusted R2 = 0.32
Significant Positive Association

Intent vs. ZCB

P < 0.001

Supports H3

Mediator Model

Intention = Mediator between

Attitude and Subjective Norm

Indirect Effect Significant at p <.001

Summary of Findings
Six Salient Attitudes influence Zakah Payment
Three Reference Groups are Responsible
Three Normative Beliefs Influence Zakah Compliance
TRA Findings are in line with Bobek & Hartfield
(2003) and Hanno & Violette (1996)
Shariah Compliance findings are consistent with
Zainol and Kamil (2008)
Confirms suitability of TRA in Zakah context
Limitations?

Value Addition

Limitations of this study

Replicating in Malaysia
Replicating elsewhere (e.g., Middle East)
Sufficiency of TRA model
Alternate cognitive theory model
Audience Input?

Thank You!
Feel free to question, comment, or suggest.

Presented by:
Imtiaz Sifat
Siti Razifah
Salwahayati Nasiruddin