Browsing by Topic Islamic finance::Risk sharing in Islamic finance

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Showing results 14 to 17 of 17
  • risk_sharing_public_policy_contribution_Islamic_finance_mirakhor.pdf.jpg
  • Journal Article


  • Authors: Askari, Hossein; Mirakhor, Abbas (2014)

  • A major reason for the recurrent episodes of financial instability is the predominance of interest-based debt and leveraging. Financial stability is achievable through risk sharing finance instead of risk shifting that characterizes contemporary finance. A risk sharing system serves the true function of finance as facilitator of real sector activities and avoids the emergence of a “paper economy” where there is gradual decoupling of finance from the real sector. Islamic finance was initially proposed as a profit-loss sharing system, but its core principle is risk sharing. In prohibiting interest-based debt instruments, Islam grounds finance on a strong risk sharing footing. Although s...

  • risk_sharing_versus_risk_transfer_islamic_finance_evaluation_zubair.pdf.jpg
  • Journal Article


  • Authors: Hasan, Zubair (2015)

  • Some recent writings on Islamic finance have resuscitated the old ‘no risk, no gain’ precept from the earlier literature in the wake of current financial crisis. They argue that the basic reason for the recurrence of such crises is the conventional interest-based financial system that subsists purely on transferring of risks. In contrast, Islam shuns interest and promotes sharing of risks, not their transfer. The distinction is used to make a case for replacing the conventional system with the Islamic; for that alone is thought as the way to ensuring the establishment of a just and stable crisis free economic system. Islamic banks have faced the current crisis bette...

  • equity_premium_puzzle_ambiguity_aversion_institutional_quality_implications_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Erbas, S. Nuri; Mirakhor, Abbas (2010)

  • With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant, which indicates that a large part of equity premium may reflect investor aversion to ambiguities resulting from institutional weaknesses. Implications of the results for Islamic finance are discu...

  • item.jpg
  • PhD


  • Authors: Lajis, Siti Muawanah (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also a behavioral shaper of market players. The laws, standards and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. If well designed, these tools will induce appropriate behavior that is consistent with the social objective of systemic stability and equitable economic prosperity ... Available in physical copy only (Call Number: t HD 61 S623)

Browsing by Topic Islamic finance::Risk sharing in Islamic finance

Jump to: 0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
or enter first few letters:  
Showing results 14 to 17 of 17
  • risk_sharing_public_policy_contribution_Islamic_finance_mirakhor.pdf.jpg
  • Journal Article


  • Authors: Askari, Hossein; Mirakhor, Abbas (2014)

  • A major reason for the recurrent episodes of financial instability is the predominance of interest-based debt and leveraging. Financial stability is achievable through risk sharing finance instead of risk shifting that characterizes contemporary finance. A risk sharing system serves the true function of finance as facilitator of real sector activities and avoids the emergence of a “paper economy” where there is gradual decoupling of finance from the real sector. Islamic finance was initially proposed as a profit-loss sharing system, but its core principle is risk sharing. In prohibiting interest-based debt instruments, Islam grounds finance on a strong risk sharing footing. Although s...

  • risk_sharing_versus_risk_transfer_islamic_finance_evaluation_zubair.pdf.jpg
  • Journal Article


  • Authors: Hasan, Zubair (2015)

  • Some recent writings on Islamic finance have resuscitated the old ‘no risk, no gain’ precept from the earlier literature in the wake of current financial crisis. They argue that the basic reason for the recurrence of such crises is the conventional interest-based financial system that subsists purely on transferring of risks. In contrast, Islam shuns interest and promotes sharing of risks, not their transfer. The distinction is used to make a case for replacing the conventional system with the Islamic; for that alone is thought as the way to ensuring the establishment of a just and stable crisis free economic system. Islamic banks have faced the current crisis bette...

  • equity_premium_puzzle_ambiguity_aversion_institutional_quality_implications_Islamic_finance_abbas.pdf.jpg
  • Journal Article


  • Authors: Erbas, S. Nuri; Mirakhor, Abbas (2010)

  • With cross-section data from 53 emerging and mature markets, we provide evidence that equity premium puzzle is a global phenomenon. In addition to risk aversion, equity premium may reflect ambiguity aversion. We explore the sources of equity premium using some pertinent fundamental independent variables, as well as the World Bank institutional quality indexes and other proxies for the degree of ambiguity in the sample countries. Some World Bank and other indexes are statistically significant, which indicates that a large part of equity premium may reflect investor aversion to ambiguities resulting from institutional weaknesses. Implications of the results for Islamic finance are discu...

  • item.jpg
  • PhD


  • Authors: Lajis, Siti Muawanah (2016)

  • The role of regulation extends beyond ensuring stability and confidence in the financial system, as it is also a behavioral shaper of market players. The laws, standards and guidelines issued are instrumental in creating an incentive structure for market players to behave in certain ways. If well designed, these tools will induce appropriate behavior that is consistent with the social objective of systemic stability and equitable economic prosperity ... Available in physical copy only (Call Number: t HD 61 S623)