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Empirical evidence of risk shifting in bonds and debt-based sukuk: the case of Malaysian corporations

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dc.contributor.authorSiti Raihana Hamzah
dc.contributor.authorAbbas Mirakhor
dc.contributor.authorNurhafiza Abdul Kader Malim
dc.contributor.authorObiyathulla Ismath Bacha
dc.date.accessioned2019-07-02T08:40:42Z
dc.date.available2019-07-02T08:40:42Z
dc.date.issued2018
dc.description.abstractThe purpose of this paper is to examine the extent of risk shifting behavior in bonds and sukuk. The examination is significant, as economists and scholars identify risk shifting as the primary cause of the global financial crisis. Yet, the dangers of this debt-financing feature are largely ignored - one needs to only witness the record growth of global debt even after the global financial crisis. To identify the signs of risk shifting existence in the corporations, this paper compares each corporation's operating risk before and after issuing debt. Operating risk or risk of a firm's activities is measured using the volatility of the operating earnings or coefficient variation of earning before interest, tax, depreciation and amortization (EBITDA). Using EBITDA as the variable offers one distinct advantage to using asset volatility as previous research has - EBITDA can be extracted directly from firms' accounting data and is not model-specific.en_US
dc.identifier.citationHamzah, S. R., Bacha, O. I., Mirakhor, A., & Abdul Kader Malim, N. (2018). Empirical evidence of risk shifting in bonds and debt-based sukuk: the case of Malaysian corporations. Journal of Islamic Accounting and Business Research, 9(5), pp. 687-700.en_US
dc.identifier.doihttps://doi.org/10.1108/JIABR-06-2016-0068
dc.identifier.issn1759-0817
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/3072
dc.languageEnglish
dc.language.isoengen_US
dc.publisherEmerald Publishing Limiteden_US
dc.rights2018. Emerald Publishing Limited
dc.sourceSEDONA
dc.subjectGlobal financial crisisen_US
dc.subjectSukuken_US
dc.subjectRisk shiftingen_US
dc.subjectRisk sharingen_US
dc.subjectBondsen_US
dc.subjectDebt-based sukuken_US
dc.subjectEquity-based sukuken_US
dc.titleEmpirical evidence of risk shifting in bonds and debt-based sukuk: the case of Malaysian corporationsen_US
dc.typeJournal Articleen_US
dlc.maintopicIslamic capital markets
dlc.subtopicSukuk
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicIslamic capital marketsen_US
ikr.topic.subtopicIslamic capital marketsen_US
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