Work

The Influence of Board of Directors’ Characteristics and Internal Audit Practices on the Financial Sustainability of Incorporated Waqf Institutions (IWIS) in Malaysia

Year: 2025

Type: article

Abstract: Financial sustainability is a crucial factor in ensuring the long-term viability of waqf institutions, particularly in Malaysia, where these institutions contribute significantly to social welfare and poverty alleviation.Governance plays a fundamental role in this sustainability, with Board of Directors (BOD) characteristics and internal audit practices influencing operational efficiency and accountability.This conceptual study examines the impact of key BOD attributes such as CEO duality, BOD independence, size, diversity, and educational background on the financial sustainability of Incorporated Waqf Institutions (IWIs).The study further investigates whether the presence of an internal audit department moderates this relationship.Drawing on content analysis and panel data extracted from audited financial reports.Data are then analysed quantitatively using regression analysis based on the Tuckman and Chang model.The findings are expected to provide empirical insights into governance mechanisms that support financial performance in structures in IWIs.Additionally, the findings offer practical recommendations for policymakers, regulators, and waqf administrators to enhance governance, accountability and donor trust.

Source: International Journal of Academic Research in Accounting Finance and Management Sciences

DOI: 10.6007/ijarafms/v15-i3/25878

Authors: Sarita Ibrahim, Rosnia Masruki, Nur Hidayah Laili

Institution: Universiti Sains Islam Malaysia

Language: English

Topic: Islamic Finance and Banking Studies

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W4413848736