Efficiency Analysis Of Zakat Institutions In Indonesia: Data Development Analysis (DEA) And Free Disposal Hull (FDH) Approaches

Ryandono, Muhamad Nafik Hadi and Qulub, A Syifaul and Cahyono, Eko Fajar and Widiastuti, Tika and Nur Aisyah and Robani, Anidah (2021) Efficiency Analysis Of Zakat Institutions In Indonesia: Data Development Analysis (DEA) And Free Disposal Hull (FDH) Approaches. Academy of Accounting and Financial Studies Journal, 25 (6). pp. 1-12. ISSN 1096-3685

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Abstract

This study aimed at assessing the efficiency of zakat organizations in Indonesia by the use of non-parametric efficiency measurement methods. In addition, a cluster analysis based on the affiliation type was also used to assess the efficiency of Zakat organizations. A quantitative approach with the DEA and FDH methods was applied to this research, during which the latest data from the financial reports of each Zakat Institution have been utilized. This period ranges from 2014 to 2018 for the 14 Zakat Institutions. Based on the results, Zakat Institutions have equal efficiency between DEA and FDH methods if the clusters of government, corporation, and social community are combined. Research data on measuring efficiency show that the DEA method contributes 21% of all Decision-Making Units (DMU) to the total, while the FDH method contributes 25%. The research is one of the first studies to focus on the efficiency of the Zakat Institutions and its associated clusters: government, corporation, and social community. This research can be useful for Zakat Institutions in the form of critical application evaluation considering the research input variables, such as salaries, operational costs, and cost of socialization, and research output variables, for example zakat fund, zakat distribution taking maqasid sharia aspects into consideration.

Item Type:	Article
Uncontrolled Keywords:	Zakat institutions, Data envelopment analysis, Free disposal hull, Efficiency, Cluster of zakat institution
Divisions:	Institute of Technology Management And Entrepreneurship
Depositing User:	Sabariah Ismail
Date Deposited:	13 Apr 2022 08:58
Last Modified:	13 Apr 2022 08:58
URI:	http://eprints.utem.edu.my/id/eprint/25816
Statistic Details:	View Download Statistic

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