Publication:
Capital structure theory revisited: the impact of risk-sharing sukuk on firms in Malaysia
| DC Field | Value | |
|---|---|---|
| dc.contributor.author | Fareiny Morni | |
| dc.contributor.supervisor | Obiyathulla Ismath Bacha | |
| dc.contributor.supervisor | Belal Ehsan Baaquie | |
| dc.date.accessioned | 2022-10-19T01:43:49Z | |
| dc.date.available | 2022-10-19T01:43:49Z | |
| dc.date.issued | 2022 | |
| dc.description.abstract | In the Islamic finance capital market spectrum, the potential of mudharabah and musyarakah sukuk is hampered with criticism by Shariah scholars. Among the criticisms include the presence of uncertainties surrounding sukuk returns, the risk of losses that the rabbul-mal (investors) have to bear, and the need to mitigate agency costs (for mudharabah contracts). This have made it a deterrent for both issuers and investors in seeing the instrument as a viable alternative to debt-based sukuk structures. This study proposes an improvement to musyarakah sukuk. It begins with a qualitative examination of the structure of corporate mudharabah and musyarakah sukuk issued in Malaysia. The examination finds risk-sharing sukuk structures in Malaysia contain features that supresses the risk sharing element between the sukuk investors and issuer. Findings from qualitative analysis is supported by generalized method of moments (GMM) and threshold analysis. Based on the sample of 86 corporate mudharabah and musyarakah sukuk issuances, the introduction of partnership sukuk in the firm's capital structure is found to be insignificant in affecting both firm risk and firm performance. The present partnership sukuk structure is then modified to incorporate variable returns (coupon payments) proportionate to the firm's net profits and variable principal repayment proportionate to the firm's total assets value. This study finds that when sukuk returns are made variable, sukuk investors are able to earn better/ equitable returns compared what they are earning in the current sukuk structure. | en_US |
| dc.identifier.citation | Morni, F. (2022). Capital structure theory revisited: the impact of risk-sharing sukuk on firms in Malaysia (Doctoral dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3656 | en_US |
| dc.identifier.uri | https://ikr.inceif.org/handle/INCEIF/3656 | |
| dc.language | English | |
| dc.language.iso | eng | en_US |
| dc.publisher | INCEIF | en_US |
| dc.rights | 2022. INCEIF | |
| dc.source | SGPS | |
| dc.subject | Sukuk | en_US |
| dc.subject | Mudharabah sukuk | en_US |
| dc.subject | Musyarakah sukuk | en_US |
| dc.subject | Risk-sharing | en_US |
| dc.subject | Malaysia | en_US |
| dc.title | Capital structure theory revisited: the impact of risk-sharing sukuk on firms in Malaysia | |
| dc.type | PhD | en_US |
| dlc.maintopic | Islamic capital markets | en_US |
| dspace.entity.type | Publication | |
| ikr.doctype | Theses | |
| ikr.license | Available in downloadable format | |
| ikr.topic.maintopic | Islamic capital markets | en_US |
| relation.isAuthorOfPublication | 8e8de113-9c2e-4faf-8482-04f179564a0e | |
| relation.isAuthorOfPublication | 8e8de113-9c2e-4faf-8482-04f179564a0e | |
| Appears in Collections |