The Infuence of Macroeconomics Factors and Political Risk on the Sukuk Market Development in Selected GCC Countries: A Panel Data Analysis

doi:10.17576/jem-2019-5302-15

Cited by 2 publications

(1 citation statement)

References 36 publications

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“…Furthermore, according to [17] the exchange rate contributes to the bond prices, while the price of the bond may affect the yield or yield rate that indirectly encourages sukuk trade activity. The exchange rate and trade openness on the secondary market is a defining of sukuk market development [18]. The government needs to consider the effect of exchange rates on each economic policy, because the rate of exchange rates has a relationship to the capital market products that are sukuk in the long term [19].…”

Section: Introductionmentioning

confidence: 99%

The Effect of Inflation, Exchange Rate and Yield of Retail Sukuk to Trade Volume of The Retail State Sukuk Series SR-007 in Secondary Market

Ayudia¹,

Salma²,

Yusuf³

2020

Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwoker

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The research aims to determine the trading volumes of retail state sukuk that are thought to be influenced by macroeconomics through inflation indicators and the rupiah/USD exchange rate as well as retail yield sukuk itself. This research uses multiple regression methods with retail state sukuk SR-007 series as research objects. The results of the study in partial inflation and yield were positively significant as well as the significant negative exchange rates on the trading volumes of the retail state sukuk SR-007 series. Simultaneously inflation, the exchange rate and the yield of retail sukuk have a significant influence on the trade volume of retail state Sukuk SR007 series. Regression Model shows R-squared adjusted value of 0.685428 This indicates inflation, the exchange rate and the yield of retail sukuk can explain the 68% of the dependent variable namely the trade Volume of retail state Sukuk series SR-007.

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Section: Introductionmentioning

confidence: 99%

The Effect of Inflation, Exchange Rate and Yield of Retail Sukuk to Trade Volume of The Retail State Sukuk Series SR-007 in Secondary Market

Ayudia¹,

Salma²,

Yusuf³

2020

Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwoker

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Factors Affecting Sukuk Return and Issuance: Insight from Sukuk Market of Türkiye

Baykut

2024

Kocatepe İslami İlimler Dergisi

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Since the first sukuk issuance in 2001, sukuk transaction volumes have been increasing day by day in major financial markets. Sukuk has become an attractive investment tool, especially for US and EU investors, as well as being preferred by investors who embrace Islamic finance principles and shariah compliance. Parallel to increased attention all over the financial markets, also sukuk plays a critical role in facilitating the deepening capital markets of Türkiye. To this end, this paper aims to identify the effect of inflation, deposit interest rate, dollar currency and sukuk issuance size on sukuk return. Furthermore, as a part of the analyses, the causality relationship is tested between macroeconomic variables and sukuk issuance. The Toda-Yamamoto causality test is utilised to rigorously assess the causal relationships between variables. In contrast, the Autoregressive Distributed Lag (ARDL) is applied to detect both short-term and long-term coefficients among the variables, employing a monthly dataset that encompasses the period from 2013 to 2024. Empirical evidence shows the constructed ARDL model is significant at the 1% significance level. On top of that, a significant positive relationship between sukuk returns and deposit interest rate, inflation, and sukuk issuance size might be stated by assessing the long-term coefficients. Only the USD/TRY exchange rate negatively affects sukuk returns as indicated by long-term coefficients. Moreover, the coefficient of error correction model is negative and significant which is developed to get the short-term coefficients. ECM model reflected that 75% of a shock occurs in the short term and these shocks will disappear in the long term. In addition, a Toda-Yamamoto causality test stated that dollar exchange rate and deposit interest rates are the two factors that have a causal relationship with the size of sukuk issuance. This study elucidates the importance of macroeconomic variables on both sukuk return and sukuk issuance. It highlights the factors that sukuk issuers and investors should consider throughout their decision-making process.

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The Infuence of Macroeconomics Factors and Political Risk on the Sukuk Market Development in Selected GCC Countries: A Panel Data Analysis

Cited by 2 publications

References 36 publications

The Effect of Inflation, Exchange Rate and Yield of Retail Sukuk to Trade Volume of The Retail State Sukuk Series SR-007 in Secondary Market

The Effect of Inflation, Exchange Rate and Yield of Retail Sukuk to Trade Volume of The Retail State Sukuk Series SR-007 in Secondary Market

Factors Affecting Sukuk Return and Issuance: Insight from Sukuk Market of Türkiye

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