This study aims to investigate the effects of financial aid via zakat and the perceived learning–teaching process on the educational outcomes of undergraduate students in Malaysia.
Approximately 350 zakat recipients (mustahiq) were selected to evaluate their educational outcomes, measured by the learning process, student readiness and academic performance. Partial least squares (PLS) regression was used to test the selected samples and approve the hypothesis.
In accordance with the underlying theories, the results of the PLS regression highlighted several major findings: financial aid, through zakat indeed increases positive effects in the learning process; zakat aid is found to increase student readiness in the education process and academic performance of undergraduate students; and student readiness in the education process plays a significant role in mediating the effect between zakat aid and the learning process and academic performance. This study also demonstrates that the learning process is equally important for student readiness and academic performance.
Importantly, this study contributes novelty by exploring the impact of zakat in education, specifically the higher education sector, because previous studies have enormously discussed zakat as a poverty-mitigating topic. The findings of this study are essential for zakat stakeholders to understand the contribution of zakat to developing human capital, particularly post-COVID-19 in Malaysia.
