Muhammad Iqmal Hisham Kamaruddin^1♣, Sofiah Md Auzair² and Saunah Zainon^3
1Faculty of Economics and Muamalat Universiti Sains Islam Malaysia, Nilai,
Negeri Sembilan, Malaysia
²Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi,
Selangor, Malaysia
³Faculty of Accountancy, Universiti Teknologi MARA Cawangan Johor Kampus
Segamat, Segamat, Johor, Malaysia

This study examined the role of financial management practices consisting of financial disclosure, internal control, financial planning and budgeting and financial performance management in Islamic Social Enterprises (ISEs) in Malaysia. A survey method was used and 102 financial officers in Malaysian ISEs had responded. T-test analysis was used to examine the significant differences based on Malaysian ISEs attributes including years of operation, organisational size and income generation level. This study found that Malaysian ISEs had moderate financial management practices led by internal control (77.46%), followed by financial disclosure (75.93%), financial planning and budgeting (68.87%) and the least was financial performance management (62.06%). Specifically, this study found that Malaysian ISEs with more years of operation, bigger in size and self-sustained in income generation had high financial management practices. Empirical findings from this study will benefit ISEs management, authority and regulator for monitoring and governing purposes. The study contributes by becoming among the early attempts studying financial management practice aspects of Malaysian ISEs.

Keywords: Financial Disclosure, Internal Control, Financial Planning and Budgeting, Financial Performance Management, Islamic Social Enterprise (ISE).

^♣Corresponding Author: Muhammad Iqmal Hisham Kamaruddin, Faculty of Economics and Muamalat Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan, Malaysia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Tel: +6013-4526824