Most existing texts covering topics on Islamic finance discuss the potentials of Islamic banking and very few talk about other forms of financing and investment activities of Islamic firms from owners as well as managers' standpoints. This book fills the gap in existing literature by looking at the traditional as well as non-traditional financing and investment activities of Shari’ah compliant companies.
The chapters in this edited text offer a full range of topics on corporate finance for Islamic firms. It also provides a global comparison of Shari’ah screening, dividend policy and capital structure of Islamic firms, details on global Islamic equity markets, trends and performance of Sukuk market, and a brief on derivative securities that can be used in Islamic finance. This is a useful reference for anyone who wishes to learn more about performance of Shari’ah compliant companies vis-à-vis conventional firms. The chapters include technical as well as non-technical information that would be suitable for classroom teaching as well as a reference for the post graduate research students.
Due to compliance to Shariah, Islamic financial as well as non-financial firms behave differently than 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 corporation, their structures, and strategies from several dimensions. The contents from this book will be particularly useful for academicians to get in-depth view about Islamic corporate finance with global evidence.
—Professor Dr. Habib Ahmed, Durham University, UK
With an astonishing double-digit global growth of the Islamic financial services industry, mostly through financial firms (Islamic banks, microcredits, etc), existing literature provides minimal discourse on the underlying corporate finance assumptions and relevant financing strategies of Shariah compliant (non-financial) corporations which engage in halal business. This edited book includes regular topics in corporate finance, such as the performance matrix/measures, capital structure, dividend policy, and pertinent corporate finance issues with the Islamic perspectives of corporations. The book will help corporate leaders as well as academicians to have a deeper understanding of Islamic corporate financing, especially from emerging economies.
—Dr. Syed Musa Bin Syed Jaafar Alhabshi, Dean, IIUM Institute of Islamic Banking and Finance, Malaysia
1. Screening and Performance of Shari’ah Compliant Companies (Mamunur Rashid and Andrew Saw Teck Wei)
2. Is There a Cost for Adopting Faith-based Investment Styles? (Zaheer Anwer, Shamsher Mohamad 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 Shari’ah 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: Types and Valuatoin (Mustapha Abubakra and Nasiru Abdullahi)
8. Dividend Policy: The Case of Shari’ah Compliant Firms (Zaheer Anwer, Shamsher Mohamad Ramdili 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 Shari’ah Compliant Firms in Malaysia (Mamunur Rashid, Lim Li Chern and Cheong Jiunn Yan)