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CEO’s social capital and performance of zakat institutions: Cross-country evidence

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  • Syakir, Muhammad Fahmi
  • Risfandy, Tastaftiyan
  • Trinugroho, Irwan

Abstract

We investigate whether the performance of zakat institutions is affected by the social capital of their CEO. Using data of 92 zakat institutions from 42 countries between 2016 and 2018, we empirically find a positive association between CEO’s social capital and institutions’ performance. However, we further find that the effect is reduced in the large zakat institutions, suggesting the importance of the CEO’s social capital for a small organization. The result of this paper advocates zakat institutions to hire a CEO with a high profile of social capital. Our result is robust across different proxies of social capital, the institution’s performance, and various battery of robustness.

Suggested Citation

  • Syakir, Muhammad Fahmi & Risfandy, Tastaftiyan & Trinugroho, Irwan, 2021. "CEO’s social capital and performance of zakat institutions: Cross-country evidence," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    • Handle: RePEc:eee:beexfi:v:31:y:2021:i:c:s2214635021000654
    DOI: 10.1016/j.jbef.2021.100521
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    Cited by:

    1. Huanan Sun & Lianmei Zhu & Anqi Wang & Shali Wang & Haijing Ma, 2022. "Analysis of Regional Social Capital, Enterprise Green Innovation and Green Total Factor Productivity—Based on Chinese A-Share Listed Companies from 2011 to 2019," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    2. Juhro, Solikin M. & Syarifuddin, Ferry & Sakti, Ali, 2022. "Inclusive Welfare: On The Role of Islamic Public-Social Finance and Monetary Economics," MPRA Paper 113788, University Library of Munich, Germany.

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    More about this item

    Keywords

    Social capital; Zakat institution; Non-profit organization; Performance;
    All these keywords.

    JEL classification:

    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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