The impact of Islamic Debt on firm performance
type: CreativeWork
description: This thesis uses micro-econometric analysis to examine the impact of Islamic debt on firm value and firm financial performance by observing two groups, namely Malaysian firms and Indonesian firms. The study in particular considers (i) the impact of Islamic debt on firm value and firm financial performance, (ii) the Islamic debt announcement effect on stock return, (iii) the relationship between Islamic debt characteristics and stock return. A number of significant contributions to corporate finance arise from this research in relation to Islamic debt instruments and firm financial performance. First, it provides evidence of the Islamic debt impact on firm value and firm financial performance. Second, it provides evidence of the Islamic debt announcement effect on stock returns. Third, it provides evidence of the Islamic debt characteristics’ impact on stock return. Fourth, and very importantly it provides new insights, adding substantially to the very few studies that have been conducted on these types of instruments. It is expected that the empirical results from this study will be a starting point for significant future research on similar instruments. Islamic debt became increasingly popular for the last decade as companies sought to raise funds by offering corporate Islamic debt (sukuk). It has become significant for raising funds in the international capital markets through Islamic law (shariah). Moreover, Islamic debt has become a topic of research interest in Islamic finance since the financial crisis which affected major countries and firms around the world. The rise of Islamic debt, initially in Asia (Malaysia) is due to the fact that (i) Malaysian firms want to tap into investors from the Middle East (oil money), who have a considerable amount of money to invest, but also have to adhere to their religious view, (ii) the government’s policy regarding the Islamic Capital Market establishment along with its instruments, (iii) Islamic debt appears to offer mor…
abstract: This thesis uses micro-econometric analysis to examine the impact of Islamic debt on firm value and firm financial performance by observing two groups, namely Malaysian firms and Indonesian firms. The study in particular considers (i) the impact of Islamic debt on firm value and firm financial performance, (ii) the Islamic debt announcement effect on stock return, (iii) the relationship between Islamic debt characteristics and stock return. A number of significant contributions to corporate finance arise from this research in relation to Islamic debt instruments and firm financial performance. First, it provides evidence of the Islamic debt impact on firm value and firm financial performance. Second, it provides evidence of the Islamic debt announcement effect on stock returns. Third, it provides evidence of the Islamic debt characteristics’ impact on stock return. Fourth, and very importantly it provides new insights, adding substantially to the very few studies that have been conducted on these types of instruments. It is expected that the empirical results from this study will be a starting point for significant future research on similar instruments. Islamic debt became increasingly popular for the last decade as companies sought to raise funds by offering corporate Islamic debt (sukuk). It has become significant for raising funds in the international capital markets through Islamic law (shariah). Moreover, Islamic debt has become a topic of research interest in Islamic finance since the financial crisis which affected major countries and firms around the world. The rise of Islamic debt, initially in Asia (Malaysia) is due to the fact that (i) Malaysian firms want to tap into investors from the Middle East (oil money), who have a considerable amount of money to invest, but also have to adhere to their religious view, (ii) the government’s policy regarding the Islamic Capital Market establishment along with its instruments, (iii) Islamic debt appears to offer mor…
author: Fitriya
keywords: Islamic Debt and firm performance
license: https://researchcommons.waikato.ac.nz/bitstreams/1410c8fa-6486-4539-9bef-c91457e679a4/download
date published: 2013
date modified: 2026-07-24T05:57:33Z
provider: University Waikato
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Waikato