Title: Efficiency Analysis of Zakat Institutions in Indonesia: Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH) Approaches
Authors :
Muhamad Nafik Hadi Ryandono
A Syifaul Qulub
Eko Fajar Cahyono
Tika Widiastuti
Binti Binti Nur Aisyah
Aid Robani
Department: Islamic Economics
Journal Name: Academy of Accounting and Financial Studies Journal
Kinds of Journal: Q4
Keywords: Zakat Institutions, Data Envelopment Analysis, Free Disposal Hull, Efficiency, Cluster of Zakat Institution.
ABSTRACT: This study aimed at assessing the efficiency of zakat organizations in Indonesia by the use of the 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 the latest data from the financial reports of each zakat institution have been utilized. This period range 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 Contributs 21% of All Decision-Making Units (DMU) to the total, While The FDH Method Contributs 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 Consideration.
For details: https://www.abacademies.org/articles/efficiency