Most existing texts covering topics in Islamic finance discuss the potential of Islamic banking; very few talk about other forms of financing and the investment activities of Islamic firms from the standpoint of owners and managers. This book fills this gap by looking at the traditional as well as non-traditional financing and investment activities of shariah-compliant companies.
The chapters in this edited text offer a full range of topics on corporate finance for Islamic firms, including global comparisons of shariah screening, dividend policy and capital structure of Islamic firms, details of global Islamic equity markets, trends and performance of sukuk markets, and a brief account of derivative securities that can be used in Islamic finance. This is a useful reference for anyone who wishes to learn more about the performance of shariah-compliant companies vis-à-vis conventional firms. The book includes both technical and non-technical information that would be suitable for classroom teaching as well as a reference for postgraduate research students.
Table of Contents
1. Screening and performance of shariah-compliant companies (Mamunur Rashid and Andrew Saw Teck Wei)
2. Is there a cost for adopting faith-based investment styles? (Zaheer Anwer, Shamsher Mohamad Ramadili Mahamad and Mohamed Eskandar Shah Mohamed Rasid)
3. Islamic corporate finance: Capital structure (Mohamed Eskandar Shah Mohd Rasid, Ajim Uddin and Mohammad Ashraful Ferdous Chowdhury)
4. Islamic venture capital financing (Ali Ashraf and M. Kabir Hassan)
5. IPO underpricing, regulation, sentiment and shariah screening in Bangladesh (Mamunur Rashid, Varun K. Sibdoyal, Md. Shafiul Islam and Ahsanur Rahman)
6. Sukuk: Introduction and global performance (Rasidah Mohd-Rashid and Ahmad Hakimi Tajuddin)
7. Sukuk: Meaning, valuation, benefits and challenges (Mustapha Abubakar and Nasiru Abdullahi)
8. Dividend policy: The case of shariah-compliant firms (Zaheer Anwer, Shamsher Mohamad Ramadili Mohamad, Mohamed Eskandar Shah Mohamed Rasid, M. Kabir Hassan and Andrea Paltrinieri)
9. Prospects for Islamic derivatives in Bangladesh (Md. Faruk Abdullah, M. Kabir Hassan and Asmak Ab Rahman)
10. Impact of derivative usage on the value of shariah-compliant firms in Malaysia (Mamunur Rashid, Lim Li Chern and Cheong Jiunn Yan)
M. Kabir Hassan is Hibernia Professor of Economics and Finance, and Bank One Professor of Business, at the University of New Orleans, Louisiana, USA.
Mamunur Rashid is Senior Assistant Professor of Finance at the Universiti Brunei Darussalam.
Sirajo Aliyu is Senior Lecturer at the Federal Polytechnic Bauchi-Nigeria, and a certified member of the International Council of Islamic Finance Educators and Chartered Institute of Islamic Finance Professionals.
Because they comply with shariah law, Islamic firms – financial as well as non-financial – behave differently from their conventional counterparts. While we know a lot about the structure and operation of Islamic financial institutions, information on Islamic non-financial corporations is very limited. This book combines technical as well as non-technical information on Islamic listed corporations and their structures and strategies, from several dimensions. The contents of this book will be particularly useful for academics to get an in-depth view of Islamic corporate finance, with evidence garnered from around the globe.
—Professor Dr. Habib Ahmed, Durham University, UK
In recent years the Islamic financial services industry has seen astonishing, double-digit global growth, mostly in the form of financial firms (Islamic banks, microcredits, and others). However, the existing literature provides minimal coverage of the underlying corporate finance assumptions and relevant financing strategies non-financial shariah-compliant corporations which engage in halal business – that permitted by shariah law. This book covers regular topics in corporate finance, such as performance matrix/measures, capital structure, dividend policy, and pertinent corporate finance issues, from the perspective of Islamic corporations. The book will help both corporate leaders and academics to arrive at a deeper understanding of Islamic corporate financing, especially in emerging economies.
—Dr. Syed Musa Bin Syed Jaafar Alhabshi, Dean, International Islamic University Malaysia (IIUM) Institute of Islamic Banking and Finance, Malaysia