Does Zakat Signal the Firm Value? An Additional Inference of Mining and Manufacturing Zakatnomics

International Journal of Zakat Vol. 5(1) 2020 page 55-66

12 Pages Posted: 13 Apr 2021

Date Written: June 1, 2020

Abstract

Mining and manufacturing industries are two contributive sectors having high economic value. Optimalization of their zakat potential should be estimated not only addressed to provide the gain for public welfare, but firms should also obtain the economic value on their performance. This research aims to provide an empirical inference on mining and manufacturing zakatnomics. The effect of corporate zakat potential on the firm value is tested in this research. The sample comprises 47 mining companies and 180 manufacturing companies listed in Indonesia Stock Exchange by utilizing financial statements of 2018 period. The result of this research finds that zakat potential was found positive on the firm value. This research also finds that zakat has a positive impact on profitability. Therefore, the finding in this research draws an inference that zakat empirically signals firm value and profitability.

Keywords: Zakat, Mining, Manufacture, Firm Value, Profitability

JEL Classification: G10, L60, L70, Z12

Suggested Citation

Abbas, Ahmad, Does Zakat Signal the Firm Value? An Additional Inference of Mining and Manufacturing Zakatnomics (June 1, 2020). International Journal of Zakat Vol. 5(1) 2020 page 55-66, Available at SSRN: https://ssrn.com/abstract=3825335

Ahmad Abbas (Contact Author)

STAIN Majene ( email )

Majene, West Celebes
Indonesia

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