12 research outputs found
Islamic banking
Islamic Banking is designed to provide an introduction to Islamic banking and finance for students at universities and similar tertiary institutions. This book is also a source of general understanding ofthe concept of Islamic banking and finance and it will be beneficent not only
for students but also for the laymen.
I believe that the approach to Islamic banking and finance taken in this book will provide a solid foundation towards understanding the concept of Islamic finance. An effort has been made to provide an overview of the principles of Islamic commercial law in business and
Islamic financial dealings.
This book has been written with the objective of conveying an understanding of Islamic banking and finance, without introducing unnecessary technical terminology and procedures. It was written to develop a clear understanding ofthe prohibition of Riba, the instruments or products
offered by Islamic banks, the contemporary approaches and practices across banks worldwide, and the challenges and future prospects ofIslamic banking.
As in the conventional banking system, the Islamic banking system also has its sources of funds and various forms of applying these funds in order to generate reasonable profits and maximize its shareholders' wealth. Students will be able to appreciate and acknowledge the inbenmt
equity of Islamic principles towards commercial and financial transactions. eedIess to say, it our responsibility to educate and enlighten the younger generation about the veracity and authenticity of Islamic ideologies and the undeniable fact that Islam is a complete way of life.
The establishment of the institution of Islamic Banking and Finance and its continual successful growth during the last four decades had proved beyond doubt that Muslims around the
can successfully develop a sound financial system without relying on the Wester financial system.
However, the challenges and problems that the Islamic banking system are facing are discussed in this book to help the students appreciate the inherent complications associated economics in every business environment
THE IMPACT OF UNANTICIPATED POLITICAL EVENTS ON STOCKS MARKET RETURNS: EMPIRICAL EVIDENCE FROM SAUDI ARABIA
Abstract:This study aims to identify the effect of unexpected political-events on Saudi stock market returns based on the efficient market hypothesis (EMH) assumptions.ย The disappearance of the Saudi journalist Jamal Khashoggi in Turkey is the political event has been determined in this study.ย The data collected from ten companies traded in the Saudi stock market which accounted for more than 62 percent of the total market capitalization. However, this paper applied the Event Study Methodology. The results showed that the Saudi stock market initially reacted to the event and tried to absorb the information received but could not correct itself in most of the window event period. It seems that the market did not get the relevant news quickly or clearly. So, the information that flow among traders was not readily available for the investors at the same level and time. Ultimately, the Saudi stock market is described as a weak-form market (inefficient).Keywords: Unanticipated political events, the stock market, expected returns, abnormal returns, cumulative returns, event study methodologyAbstract: This study aims to identify the effect of unexpected political-events on Saudi stock market returns based on the efficient market hypothesis (EMH) assumptions.ย The disappearance of the Saudi journalist Jamal Khashoggi in Turkey is the political event has been determined in this study.ย The data collected from ten companies traded in the Saudi stock market which accounted for more than 62 percent of the total market capitalization. However, this paper applied the Event Study Methodology. The results showed that the Saudi stock market initially reacted to the event and tried to absorb the information received but could not correct itself in most of the window event period. It seems that the market did not get the relevant news quickly or clearly. So, the information that flow among traders was not readily available for the investors at the same level and time. Ultimately, the Saudi stock market is described as a weak-form market (inefficient).Keywords: Unanticipated political events, the stock market, expected returns, abnormal returns, cumulative returns, event study methodology
The effect of banks' debt creation on price stability: evidence from Middle East and North Africa
The purpose of the study is to examine the possible influence of the current money creation process applied by the commercial banks through the fractional reserve system on the overall prices stability in the MENA countries. The study uses yearly data spanning from 2005 through 2011 for 15 MENA countries, and applies panel regression analysis based on the pooled data set. The results indicate that neither outstanding deposits nor outstanding loans do have a significant influence on inflation
Identification of macroeconomic determinants for diversification and investment strategy for Islamic unit trust funds in Malaysia
Purpose โ This study aims to investigate the role of selected macroeconomic variables in influencing
the movement of Net Asset Value (NAV) of the Islamic Unit Trust Funds (UTFs) in Malaysia. In
efforts to arrive at more enriching findings, the UTFs are further categorised into equity, bond,
balanced, fixed, mixed, money market and feeder funds.
Design/methodology/approach โ The study adopts the Vector Autoregression framework
(Johansen-Juselius (1990), cointegration test and Vector Error Correction Model to analyse the
relationship between the macroeconomic variables and the NAVs of the various type of funds.
Findings โ The study shows that there is a significant long-run equilibrium relationship between the
macroeconomic variables and the NAV of all Islamic UTFs in Malaysia. Despite of this, the findings
show that different funds have different responses to the movements of the macroeconomic
variables.
Practical implications โ The results of the study are of significant importance to the various
stakeholders in the Islamic UTF industry. Investors benefit in terms of getting the inputs on their
investment decisions as to whether to buy, hold or sell fund units within their investment portfolio in
the long-run, along with building their optimal portfolio diversification investment strategy,
especially in reallocating their assets distribution between the various types of funds in the UTFs
industry. For the policy-makers, the findings of the study may assist them in evaluating the
suitability of the existing economic policies as to whether they positively or negatively contribute to
the development of the Islamic UTFs.
Originality/value โ This paper fulfils the need to understand how unit-holders can strategise and
diversify their portfolio investments in the Malaysian Islamic UTFs industry based on detailed
understanding and knowledge derived from rational and scientific inputs
PRINCIPAL-AGENT PREFERENCES IN IMPERFECT MARKETS: THEORETICAL ANALYSIS ON MURABAHAH AND IJARAH
This paper aims to determine the optimal contract for the principal and the agent in imperfect market, when murabahah and ijarah are used. The financial contracting enforceability approach is employed to determine the contract that maximizes the value of the firm subject to agentsโ constraints when the shock is low and high, and regarding market frictions. Furthermore, this approach allows us to assess the level of market frictions that agents may bear in case of low shock and high shocks. Findings reveal that the simulated values of the market frictionsโ parameters for both contracts increase when moving from the low shock to the high shock. Such evidence implies that the agent is more likely to cheat and hide significant information about the project when the shock is high. As a response to this higher risk, the simulated values of the profit margin parameters for the principal rise also when the shock is high in order to compensate for the increase of market frictions and mitigate conflicts of interest. By comparing both contracts based on the simulated optimal values of the firm, it is noticeable that the gap between both contracts is very tight, which can be attributed to their common debt-based financial arrangements. However, the results show that ijarah allows the principal and the agent to generate the highest value in case of low shock and high shock, comparing to murabahah. Therefore, ijarah seems to be more attractive for the principal and the agent than murabahah
Dynamic linkages among ASEAN-5 emerging stock markets
Purpose โ The purpose of this paper is to empirically explore market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore) during the pre- and post-1997 financial crisis periods.
Design/methodology/approach โ Employs two-step estimation, cointegration and generalized method of moments (GMM).
Findings โ The study finds that the stock markets in the ASEAN region are cointegrated both during the pre- and post-1997 financial crisis. However, the markets are moving towards a greater integration, particularly during the post-1997 financial crisis. Finally, as measured by the error correction terms, except the emerging market of Indonesia, all other ASEAN markets appear to be the important bearers of short-run adjustment to a shock in the long-run equilibrium relationships in the region both during the pre- and post-crisis periods.
Research limitations/implications โ The study only focuses on stock markets of the five founding members of ASEAN, i.e. Malaysia, Indonesia, Thailand, Singapore and the Philippines.
Practical implications โ The paper reveals that unlike during the pre-crisis period, the long-run diversification benefits that can be earned by investors across the ASEAN markets in the post-crisis period tend to diminish.
Originality/value โ The study is among the first to use two-step estimation, cointegration and GMM to re-examine market integration either in the emerging or developed markets
SDGs, Islamic banks and economic growth nexus: a case study of Malaysia
Purpose โ The purpose of this paper is to examine the short-run and long-run relationships between Islamic banksโ financing that are aligned with the SDGs and economic growth in Malaysia.
Design/methodology/approach โ Utilizing quarterly data set for the duration of 2014 to 2018, this study applies the bound testing approach to cointegration and error correction model to analyse the data based on autoregressive distributed lag (ARDL) ARDL approach.
Findings โ The results suggest that Islamic banksโ financing in line with SDG2, SDG3, SDG4 and SDG11 have significant impact on economic growth in the short-run and long-run. However, while SDG2, SDG3 and SDG4 have negative impact on economic growth, SDG11 has a positive impact on economic growth.
Research limitations/implications โ Thoughtful policies to encourage Islamic banksโ financing in
line with the SDGs while coping with slow economic growth will be imperative in achieving the SDGs in the long-run. This matters because with just eight years to go until the SDGs deadline of 2030, policymakers and Islamic banking regulators need to act fast by formulating strategies that
will shift emphasis on GDP growth to financing the SDGs.
Originality/value of the paper โ This paper is a pinioning effort in the application of the ARDL approach to investigate the nexus between the SDGs, Islamic banks and economic growth
Academic performance measurement: capacity building for OIC-Affiliated Universities
The OIC recognises that performance measurement is an integral component of quality management of academic
activities. The quality of performance measurement is vital to a universityโs claim about the quality of its management
of the curriculum, graduates, and research which define the trust and confidence of stakeholders and the general
public. It is indisputable that in an institution of higher education, performance measurement is one of the major
factors that influence the quality of faculty and student outcomes. Assessment shapes the learning, teaching and
research that will take place; it molds what and how faculty will perform, and eventually what students will learn and
how they will learn it. In sum, performance measurement is a catalyst for progress and reform in educational
practices