Islamic economics and Islamic finance in the world economy

Ibrahim, Mansor H.; Alam, Nafis

doi:10.1111/twec.12506

Cited by 34 publications

(22 citation statements)

References 34 publications

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“…Instead, most sukuk have financial structures that are equivalent to debt as they had been structured to deliver standard and certain periodic payments to investors that are independent of the performance of the project; and contain legal provisions that require the borrower to acquire the asset at a pre-agreed price at the end of the period of financing. According to Al-Harran (1995; cited in Ibrahim and Alam, 2018: 669), murabaha sukuk – a ‘flavour’ of sukuk that most closely resembles a fixed-interest debt instrument – made up roughly 80 to 90 per cent of Islamic banking assets from the 1970s to the 1990s. 8 In late 2007, Sheikh Muhammad Taqi Usmani, a highly respected Islamic scholar with an international reputation, famously claimed that up to 85 per cent of all sukuk issued may not have been fully shariah -compliant ( Arabian Business , 2007), which rattled the financial market and industry (Wigglesworth, 2010).…”

Section: Securitisation In Islamic Financementioning

confidence: 99%

Financialised ethics, economic security and the promise of Islamic finance

Lai

2021

Asian Journal of Comparative Politics

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The character and state of a financial system are important contributing factors to the performance, stability and security of any economy, something which has been repeatedly demonstrated during times of financial crisis. While assessments of earlier financial crises tended to focus on shortcomings in the governance of financial sectors, not least when crises occurred in the developing world, many have noted issues with the moral character of the industry, and the attendant processes of securitisation and financialisation, in the wake of the transatlantic financial crisis of 2007–2008. Against these recent criticisms, Islamic finance was pitched as a more ethical, stable and secure alternative. Although the ideas that inform the development of Islamic finance might hold the promise of a more ethical alternative to conventional finance, the industry itself has not been immune to processes of financialisation and securitisation, which have arguably undermined the market's initial promise.

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Section: Securitisation In Islamic Financementioning

confidence: 99%

Financialised ethics, economic security and the promise of Islamic finance

Lai

2021

Asian Journal of Comparative Politics

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“…It is believed that Muslim directors in the majority of countries such as Jordan, Yemen, Iraq, Saudi, etc. can make a significant impact to the firm performance due to their religious belief which regulated the economics, moral, and dealings (Ibrahim & Alam, 2018). As most recently reported that the more diversified a board is, in term of religion or gender, the greater the chance for corporate performance (Hassan & Marimuthu, 2018).…”

Section: Muslim Directors On the Boardmentioning

confidence: 99%

Moderating Effect of Enterprise Risk Management on the Relationship Between Board Structures and Corporate Performance

Shatnawi

Hanefah

Eldaia³

2019

IJEMP

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Risk encroachment into Corporate Governance (CG) remains a continuous process that required an efficient and long-term solution. Using enterprise risk management (ERM) as a moderating variable on the relationship between board structures and corporate performance remains an area unexploited in CG research. This relationship can effectively measure by the extent of ERM interactions between board structures and corporate performance. Despite various studies on CG mechanisms, firm performance, ERM implementation level, and gender diversity, the empirical results appeared inconclusive and the findings are inconsistent. None of the studies have addressed the role play by ERM as a moderator between director ownership, the board size, board independence, the total number of women on the board, number of Muslim directors on the board, and firm performance. It is demonstrated that the ERM has the potential to moderate between the different board structures and corporate performance, and this moderation has never been reported in the literature. It is expected that this ERM moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between board structures and firm performance. Thus, this paper, with regards to available literature, conceptualized that ‘ERM’ moderates the relationship between Board Size, Board Independence, Director Ownership, Total Women in the Board, Muslim directors on the Board, and corporate performance.

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“…The investments in Islamic capital markets have gained momentum after the Global Financial Crisis of 2007–2009 as the empirical studies suggest that they performed well during the endogenous shocks like global financial crisis compared to the conventional investments ( Masih et al, 2018 ; Al-Khazali & Mirzaei, 2017 ; Anagnostidis et al, 2016 ; Alam & Rajjaque, 2016 ; Alam et al, 2016 ; Saiti et al, 2014 ; Ashraf, 2013 ). The performance of the Islamic investment vehicles is often credited to the distinct nature of the Islamic finance which endorses the idea of profit distribution and loss bearing and screens the companies based on the high exposure to interest-based leverage, low working capital, omission of complex financial products like derivatives and other exotic assets, prohibits firms whose investments are involved in activities like gambling, selling alcohol or pork, and connections with the real economy ( Abedifar et al, 2015 ; Hassan et al, 2020 ; Ibrahim, 2015 , 2019 ; Ibrahim & Alam, 2018 ; Ibrahim & Rizvi, 2017 ).…”

Section: Introductionmentioning

confidence: 99%