The factors affecting sukuk issuance among firms in Malaysia / Syazmel Areef Abd Aziz
The Malaysian capital market is dominated by sukuk, which has significant backing from the government, mega corporations, and businesses. In terms of volume of transactions and number of sukuk issuances, sukuk is catching up to conventional bonds as a major form of business financing. The purpose of...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/102061/1/102061.pdf |
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| Summary: | The Malaysian capital market is dominated by sukuk, which has significant backing from the government, mega corporations, and businesses. In terms of volume of transactions and number of sukuk issuances, sukuk is catching up to conventional bonds as a major form of business financing. The purpose of this study is to examine the factors that affecting sukuk issuance among firms in Malaysia. It is critical to determine the factors that influence organizations decisions to issue sukuk, whether they are driven by internal efforts or external incentives. Sukuk issuance, asset tangibility, leverage, firm size, and profitability are the variables being studied. The methods that will be used in this study are descriptive analysis, correlation analysis and regression analysis. The sample consists of 10 firms in Malaysia that sukuk in 201 1 to 2020. Asset tangibility, leverage, firm size and profitability all play a role in determining the factors that influence sukuk issuance in Malaysia. Based on the determinants identified, there should be an intensive and comprehensive plan to encourage businesses to issue sukuk. However, there is still potential for development in terms of regulatory framework and infrastructure to help Malaysia's sukuk market grow faster. |
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