Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks

The purpose of this research paper is to examine the factors that influence the issuers’ sukuk structures and the impact of sukuk on the performance of the Kingdom of Saudi Arabia (KSA) sukuk issuing listed banks using the pooled OLS regression and the random effects panel models. The findings of th...

Full description

Bibliographic Details
Main Authors: N. Hussain, Hanadi Abu Baker, Adewale, Abideen Adeyemi, Engku Ali, Engku Rabiah Adawiah
Format: Article
Language:English
Published: IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM). 2018
Subjects:
Online Access:http://irep.iium.edu.my/56065/
http://irep.iium.edu.my/56065/
http://irep.iium.edu.my/56065/1/56065_Factors%20Influencing%20Issuers%E2%80%99%20Sukuk%20Structure.pdf
id iium-56065
recordtype eprints
spelling iium-560652018-06-11T03:26:11Z http://irep.iium.edu.my/56065/ Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks N. Hussain, Hanadi Abu Baker Adewale, Abideen Adeyemi Engku Ali, Engku Rabiah Adawiah H Social Sciences (General) HB126.4 Islamic Economics HG3368 Islamic Banking and Finance The purpose of this research paper is to examine the factors that influence the issuers’ sukuk structures and the impact of sukuk on the performance of the Kingdom of Saudi Arabia (KSA) sukuk issuing listed banks using the pooled OLS regression and the random effects panel models. The findings of this study show that while both bank size and the issued amount of sukuk positively affect the performance of the sukuk issuing listed banks of the KSA, a negative effect of the leverage ratio on performance was noted. Meanwhile, the sukuk dummy is reported to be statistically insignificant though it has a positive and negative magnitude in both models. Nevertheless, given the insignificance of the dummy variable, we can conclude that the factors that affect the issuers’ sukuk structure in the case of the sukuk issuing listed banks of the KSA is profit maximization rather than Shari’ah compliance. Thus, this study may offer some policy insights for policymakers in KSA especially because sukuk issuance boost banks performance. IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM). 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/56065/1/56065_Factors%20Influencing%20Issuers%E2%80%99%20Sukuk%20Structure.pdf N. Hussain, Hanadi Abu Baker and Adewale, Abideen Adeyemi and Engku Ali, Engku Rabiah Adawiah (2018) Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks. Journal of Islamic Finnace, 7 (1). pp. 51-57. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/291
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic H Social Sciences (General)
HB126.4 Islamic Economics
HG3368 Islamic Banking and Finance
spellingShingle H Social Sciences (General)
HB126.4 Islamic Economics
HG3368 Islamic Banking and Finance
N. Hussain, Hanadi Abu Baker
Adewale, Abideen Adeyemi
Engku Ali, Engku Rabiah Adawiah
Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
description The purpose of this research paper is to examine the factors that influence the issuers’ sukuk structures and the impact of sukuk on the performance of the Kingdom of Saudi Arabia (KSA) sukuk issuing listed banks using the pooled OLS regression and the random effects panel models. The findings of this study show that while both bank size and the issued amount of sukuk positively affect the performance of the sukuk issuing listed banks of the KSA, a negative effect of the leverage ratio on performance was noted. Meanwhile, the sukuk dummy is reported to be statistically insignificant though it has a positive and negative magnitude in both models. Nevertheless, given the insignificance of the dummy variable, we can conclude that the factors that affect the issuers’ sukuk structure in the case of the sukuk issuing listed banks of the KSA is profit maximization rather than Shari’ah compliance. Thus, this study may offer some policy insights for policymakers in KSA especially because sukuk issuance boost banks performance.
format Article
author N. Hussain, Hanadi Abu Baker
Adewale, Abideen Adeyemi
Engku Ali, Engku Rabiah Adawiah
author_facet N. Hussain, Hanadi Abu Baker
Adewale, Abideen Adeyemi
Engku Ali, Engku Rabiah Adawiah
author_sort N. Hussain, Hanadi Abu Baker
title Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
title_short Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
title_full Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
title_fullStr Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
title_full_unstemmed Factors influencing issuers’ sukuk structure preference: the case study of KSA Banks
title_sort factors influencing issuers’ sukuk structure preference: the case study of ksa banks
publisher IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM).
publishDate 2018
url http://irep.iium.edu.my/56065/
http://irep.iium.edu.my/56065/
http://irep.iium.edu.my/56065/1/56065_Factors%20Influencing%20Issuers%E2%80%99%20Sukuk%20Structure.pdf
first_indexed 2023-09-18T21:19:06Z
last_indexed 2023-09-18T21:19:06Z
_version_ 1777411761763254272