1,721,083 research outputs found
Awareness of Islamic banking and finance: the case of Kyrgyzstan
No full textThe paper examines the level of awareness of the people in the Kyrgyz Republic about Islamic Banking and Finance and whether they are willing to adopt an Islamic financial system in the country. It also attempts to explore population's opinion of the mechanism of the banking business in general. Questionnaire forms were developed and distributed among 300 nationals. It has been found that while a small proportion of the practicing Muslims have some notion of Islamic Banking and Finance, non-practicing Muslims and non-Muslims almost completely lack in this field of knowledge ..
Mergers & acquisitions announcement patterns: the Malaysian experience
No full textIn the last decade, Malaysia has witnessed a growing number of corporate takeover exercises. The growth in the asset management industry meant that the role of institutional investors have become more important in these corporate takeovers. Neither the synergistic gains hypothesis nor the information effect hypothesis were able to fully explain the market responses to takeover announcements and the gains derived from corporate acquisitions on whether the offer is successful ..
Using reputation (fame) to reduce information asymmetry in Islamic risk-sharing crowdfunding models: a game theory approach
No full textCrowdfunding as a part of sharing economy is a fast developing method of projects finance mobilization. From Islamic finance point of view, it is important to address the Islamic crowdfunding system to improve the new Fintech trends in Islamic communities. Moreover, risk sharing is the essence of Islamic finance and equity crowdfunding potentially is a proper musharakah risk sharing scheme to be compliance with Shariah of Islam. However, the lack of trust and the problem of information asymmetry are the main challenges of any type of risk sharing deal as well as crowdfunding. The main problem that should be answered to implement a successful Islamic crowdfunding platform is information asymmetry. Reputation mechanism is one of the newest ways to solve asymmetric information in web based social networks. The primary objective of reputation mechanisms is to enable efficient transactions in communities where cooperation is compromised by post-contractual opportunism or information asymmetries. A reputational mechanism has been designed in this research specifically for crowdfunding system to eliminate moral hazard and reduce asymmetric information. The role of reputation is important as a mechanism for establishing trust to address the risk of fraud in online transactions. We defined the concept of “Fame”, in order to implement the reputation mechanism in our designed crowdfunding system. “Fame” refers to credibility of every individual who is a member of the crowdfunding system
Towards risk-sharing regulatory framework: a case for Malaysia
No full textThe 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 ..
The determinants and impact of short-term capital flows on stock market (conventional and Islamic) and economic growth: evidence from the OIC countries
No full textThis thesis investigates the determinants and impact of short-term capital flow in the 33 OIC countries from 2000 to 2018 and bridges the understanding between both literature strands. The short-term capital flows are divided into gross inflows, outflows, and extreme episodes, analyzed under the push-pull framework. The empirical approaches for exploring the determinants of short-term capital flows consist of panel static and dynamic LSDV and probit models. Additional analysis controlling for Lucas's paradox conditions provides more insights and robustness. The study then analyzes their impact on economic growth (GDP), conventional, and Islamic stock markets. The study employs time-series models (ARDL and NADRL) to test the impact of short-term capital flows on economic growth and stock markets. The models establish the long-term dynamic relationship and synergize with prior findings on the heterogeneous responses of each country. The findings suggest that short-term capital flows into the OIC countries are tied to the global commodity and domestic consumption effects, indicating the dominance effect from push factors and the global economic cycle. Regional contagion act as a transmission mechanism of episodic flows across the OIC. There is also clear evidence of each country's heterogeneous determinants and impact of short-term capital flows, emphasizing the important roles of pull factors and the level of capital account openness. The impact of STC flows on stock markets confirms that they are susceptible to global economies and uncertainty, especially in conventional stock markets. The findings for Islamic stock markets support the "decoupling hypothesis" since they are less affected by global shocks from higher risks and uncertainty. The overall findings imply the importance of capital liberalization, institutional quality, and the optimal sequence of capital liberalization
Risk-sharing investment account: a proposed model for Islamic banks in Malaysia
No full textOne of the objectives of the implementation of the Islamic Financial Services Act 2013 (IFSA) is to promote greater risk-sharing in the Islamic financial industry. Accordingly, IFSA has distinguished the two major sources of funding for an Islamic banking institution, i.e. deposits and investment accounts. However, more than five years into the implementation, the Act is deemed to have failed in terms of upholding its risk-sharing values, where change could only be observed in the statutory position of investment account. This dissertation aims to motivate Islamic banks to move away from continuing risk-transfer practices, by proposing a risk-sharing investment account model (including its operationalisation) for the consideration of the Islamic banking industry in Malaysia ..
A purchasing price parity and equilibrium exchange rate: an empirical study of twelve arab countries (MENA region)
No full textThis research aims to examine the exchange rate regimes of 12 MENA countries. The sample is composed of the 6 GCC oil exporting countries, most of which have pegged their currency to the US dollar, and another 6 Arab countries that have different exchange rate regimes. The objective of the study is to determine the extent of over and undervaluation of these MENA currencies. The results show that official peg to the US dollar does not reduce the amount of deviation from the equilibrium exchange rate. Also, countries which had their currency pegged to a basket of currencies had lower currency fluctuations than others ..
Islamic finance product structuring through Islamic securitization markets
No full textIslamic finance assets in several countries comprise significant part of the financial system. In these countries there are certain issues that are unique to the Islamic finance and are overlooked by stakeholders, most importantly regulators. This paper investigates that Islamic finance product structuring, through a chain effect, may influence the financial stability of the Islamic financial system in a country. This is demonstrated through the securitization chain of an Islamic Mortgage Backed Security (MBS) to show that Islamic product structuring decisions at the retail level have a chain impact on the investor base for an Islamic MBS deriving from the mortgage assets ..
Performance/commodity-linked sukuk for private and public sector funding: some proposed models
No full textCurrent sukuk structures often fall short of adequately meeting the Shariah conscious investors' needs. The objective of this dissertations is, therefore, to address this issue by conceptualizing and operationalizing three innovative models of sukuk. The first proposed model of sukuk is based on the concept of musharakah and is meant for companies and revenue generating infrastructure projects. The model has an incentive-compatible feature by making the share of the issuing entity in the profit positively related to its performance ..
Identifying the determinants of corporate sukuk yield spread: evidence from Malaysia
No full textSukuk has become one of the main instruments for corporate to raise fund nowadays. Aside from its ability to reach a wider range of investors, being part of an ethical investment game adds to its global acceptance. With the total outstanding reached USD 434.8 billion in 2017 worldwide, the sukuk market has become more conceptually and practically complex. As they have been traded side by side with conventional bonds which both are grouped in the same asset class-fixed income, there is a suspicion whether both spreads are explained by the same determinants or not. Ideally, sukuk spread should behave differently because they conform with Shariah requirements at all time. Therefore, this paper takes an opportunity to unveil what are the determinants of sukuk spread, focusing on Malaysian corporate sukuk issued from a period of 2010-2017. Our cross-sectional analysis offers interesting findings. Common determinants of bonds spread such as credit rating, tenure, and issuance amount significantly determined sukuk spread. In addition to that, sukuk main features such as sukuk structure (asset-based and asset-backed) and underlying Shariah contracts also significantly explained the spread, with the exception of Mudharabah and Wakalah. Findings suggest that Shariah requirements are priced and reflected accordingly in the spread. Other material findings include high proportionate difference of spread for asset-based sukuk against asset-backed sukuk, where intuitively can be understood that the latter is safer investment than the latter. Based on the findings, the study proposes two initiatives to the policymakers: (i) to encourage the corporate issuer to issue more asset backed or hybrid sukuk in order to promote social well-being and economic sustainability and (ii) to explore valuation and pricing mechanism specific to sukuk according to underlying structures, Shariah contracts, and assets
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