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...

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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:	H Social Sciences (General) HB126.4 Islamic Economics HG3368 Islamic Banking and Finance
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

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

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