Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011

The aim of this study is to investigate stock market reactions to the announcements of sukuk issuance in Malaysia for the period of study, 2004 to 2011 using 50 listed companies. This research also aims to identify the structure, amount, tenure, sector and rating of sukuk issuance in Malaysia that w...

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Main Author:	Syazwani Abd Rahim
Format:	Thesis
Language:	English
Subjects:	Stock market Sukuk issuance
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id	my-usim-ddms-12332
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spelling	my-usim-ddms-123322024-05-29T04:01:35Z Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011 Syazwani Abd Rahim The aim of this study is to investigate stock market reactions to the announcements of sukuk issuance in Malaysia for the period of study, 2004 to 2011 using 50 listed companies. This research also aims to identify the structure, amount, tenure, sector and rating of sukuk issuance in Malaysia that were least affected during the 2008 global financial crisis. It is also important to examine the confidence effects among sukuk investors in Malaysia. The study uses cumulative average abnormal return (CAAR) to check the reactions with a three year estimation period. The confidence effect will be measured using an Equity Market Sentiment Index (EMSI). This study focuses on FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI), FTSE Bursa Malaysia Emas Shari’ah Index (FBM EMAS), FTSE Bursa Malaysia Hijrah Shari’ah Index (FBM HIJRAH) and Dow Jones Islamic Market (DJIM). The sources of data come from Datastream, Bloomberg database, Securities Commission Malaysia and Bursa Malaysia. This research examines symmetric and asymmetric event windows to check the market efficiency. In relation to the first objective of this research, the findings show that the markets reacted positively before the crisis, and negatively and significantly both during and after the crisis. Addressing the second objective, the results suggest the best structure is Musyarakah; the best rating is the excellent rating; the best amount range is in RM10.1- 50 million; the best sector is the services sector and the best tenure range is 5.01- 10 years. The researcher advices policy makers to guide regulators, investors and issuers to the best sukuk that remained stable during a crisis.With respect to the third objective, sukuk investors did not display high risk-seeking behavior before the 2008 crisis. This analysis will provide valuable information and guidelines to issuers, policy makers, regulatory bodies and investors to Islamic bonds. Universiti Sains Islam Malaysia 2014-02 Thesis en https://oarep.usim.edu.my/handle/123456789/12332 https://oarep.usim.edu.my/bitstreams/950b7acd-3ca8-45d0-ae55-1bfa3c0d15d7/download 8a4605be74aa9ea9d79846c1fba20a33 Stock market Sukuk issuance
institution	Universiti Sains Islam Malaysia
collection	USIM Institutional Repository
language	English
topic	Stock market Sukuk issuance
spellingShingle	Stock market Sukuk issuance Syazwani Abd Rahim Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
description	The aim of this study is to investigate stock market reactions to the announcements of sukuk issuance in Malaysia for the period of study, 2004 to 2011 using 50 listed companies. This research also aims to identify the structure, amount, tenure, sector and rating of sukuk issuance in Malaysia that were least affected during the 2008 global financial crisis. It is also important to examine the confidence effects among sukuk investors in Malaysia. The study uses cumulative average abnormal return (CAAR) to check the reactions with a three year estimation period. The confidence effect will be measured using an Equity Market Sentiment Index (EMSI). This study focuses on FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI), FTSE Bursa Malaysia Emas Shari’ah Index (FBM EMAS), FTSE Bursa Malaysia Hijrah Shari’ah Index (FBM HIJRAH) and Dow Jones Islamic Market (DJIM). The sources of data come from Datastream, Bloomberg database, Securities Commission Malaysia and Bursa Malaysia. This research examines symmetric and asymmetric event windows to check the market efficiency. In relation to the first objective of this research, the findings show that the markets reacted positively before the crisis, and negatively and significantly both during and after the crisis. Addressing the second objective, the results suggest the best structure is Musyarakah; the best rating is the excellent rating; the best amount range is in RM10.1- 50 million; the best sector is the services sector and the best tenure range is 5.01- 10 years. The researcher advices policy makers to guide regulators, investors and issuers to the best sukuk that remained stable during a crisis.With respect to the third objective, sukuk investors did not display high risk-seeking behavior before the 2008 crisis. This analysis will provide valuable information and guidelines to issuers, policy makers, regulatory bodies and investors to Islamic bonds.
format	Thesis
author	Syazwani Abd Rahim
author_facet	Syazwani Abd Rahim
author_sort	Syazwani Abd Rahim
title	Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
title_short	Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
title_full	Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
title_fullStr	Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
title_full_unstemmed	Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011
title_sort	stock market reactions and confidence effect following sukuk issuance in malaysia, 2004-2011
granting_institution	Universiti Sains Islam Malaysia
_version_	1812444634329120768

Stock market reactions and confidence effect following Sukuk issuance in Malaysia, 2004-2011

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