Abstract

The main objective of our paper is to propose a novel approach in pricing Islamic financial assets in accordance to shariah, advocated by contemporary investment theories of Markowitz's Mean-Variance Analysis and CAPM. The shariah-compliant Capital Asset Pricing Model that we developed with a few changing's of the traditional Capital Asset Pricing Model is integrating zakat, purification of return and exclusion of short sales. Then, we utilize a sample composed of 10 shariah-compliant public listed companies in Bursa Malaysia. The empirical results find that the proposed Islamic CAPM is appropriate and applicable in investigating the linkage amongst risk and return in the Islamic stock market. Our investigation contributes to existing body of knowledge by presenting an algorithm and mathematical modelling of the shariah-compliant CAPM which has been lacking in the literature of Islamic finance.

In this study we tried to identify the determinants of profitability for the countries of Western Europe during the distress period 2007-2011. Our sample includes 322 banks we subdivided the sample into two sub sample GIPSI countries affected by the crisis (Greece, Italy, Portugal, Spain and Ireland) and the other countries of Western Europe. We opted for several specific determinants in the bank as well as macroeconomic factors. To take account of the persistence of the benefit we used dynamic panel data (system GMM). Our results demonstrate that bank profitability depends on proxies considered and the situation of country.

Abstract:At this study, we try to find the relationship between the system of governance and the quality of financial information for a sample of French companies

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