Academic Journal
[In Press] Does being Shariah-compliant affect capital structure decision : evidence from emerging markets
| العنوان: | [In Press] Does being Shariah-compliant affect capital structure decision : evidence from emerging markets |
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| المؤلفون: | Bugshan, Abdullah, Bakry, Walid K. (R18552) |
| بيانات النشر: | U.K., Emerald Publishing |
| سنة النشر: | 2023 |
| المجموعة: | University of Western Sydney (UWS): Research Direct |
| مصطلحات موضوعية: | 350202 - Finance, 280108 - Expanding knowledge in economics |
| الوصف: | Purpose – This paper aims to examine the relationship between Shariah compliance and corporate capital structure decisions. This study explores the variation of capital structure speed of adjustment. Design/methodology/approach – The authors’ sample includes a sample of the largest 200 nonfinancial firms trading in the Malaysian and Pakistan stock markets. This study uses ordinary least squares and dynamic two-step system generalized method of moments to test the hypotheses of the study. Findings – The results show that Shariah-compliant firms use a lower level of leverage than the noncomplaint firms. Moreover, while both types of firms have optimal capital structures, the speed of adjustment toward the targets is slower for Shariah-complaint firms than non-Shariah-compliant firms. This variation can be seen through the different levels of market imperfection experienced by the two types of firms. Shariah-compliant firms follow Islamic rules that restrict the type and degree of leverage, thus affecting the availability of external funding to Shariah-compliant firms. Research limitations/implications – The findings call for more development and innovation of financing instruments that comply with Shariah rules that will increase of supply of external funds for Shariah-compliant firms and, thus, reduce market imperfections that are faced by Shariah-compliant firms. Originality/value – The study contributes to the limited number of studies that examine the nexus between conventional corporate theories and Islamic corporate finance. |
| نوع الوثيقة: | article in journal/newspaper |
| وصف الملف: | |
| اللغة: | English |
| Relation: | Journal of Islamic Accounting and Business Research--1759-0817--1759-0825 |
| DOI: | 10.1108/JIABR-10-2022-0259 |
| الاتاحة: | https://doi.org/10.1108/JIABR-10-2022-0259 https://hdl.handle.net/1959.7/uws:71438 |
| رقم الانضمام: | edsbas.421B9233 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1108/JIABR-10-2022-0259 |
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