Wealth effect of sukuk issuance announcement in two markets
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This chapter is written with a view to explain how stock prices react to the issuance of a new kind of debt instrument (the sukuk debt certificates) in two stock markets in the period 2001-15. The existing classical corporate finance theory considers share prices' response to capital issuances to be crucial to any understanding on how to maximize the firm value and thus the shareholder wealth. How this is achieved has been debated extensively and deliberated elaborately by academics over six decades. It stands to reason, though, that maximizing firm value requires effective investment decisions which in turn necessitates access to a valuable source of capital.
Wealth effect , Sukuk issuance
Mahomed, Z., Ariff, M., & Ramadili Mohd, S. M. (2017). Wealth effect of sukuk issuance announcement in two markets. In Mohamed Ariff & Shamsher Mohamad Ramadili Mohd. (Eds.), Islamic wealth management: theory and practice (pp. 225-246). Cheltenham, United Kingdom: Edward Elgar Publishing Limited.
Edward Elgar Publishing Limited