Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm
Sukuk default issue has impressed many parties of the sukuk industry, especially after the global financial crisis in 2007-2008 based on several high-profile cases reported related to sukuk near-default in 2009 which involved some Gulf Cooperation Council (GCC) countries and the United States of Ame...
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my-usim-ddms-12752 |
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uketd_dc |
| institution |
Universiti Sains Islam Malaysia |
| collection |
USIM Institutional Repository |
| language |
en_US |
| advisor |
Syahnaz Sulaiman [supervisor] |
| topic |
Sukuk -- Malaysia |
| spellingShingle |
Sukuk -- Malaysia Wan Hasmanirah Binti Wan Mohammad Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| description |
Sukuk default issue has impressed many parties of the sukuk industry, especially after the global financial crisis in 2007-2008 based on several high-profile cases reported related to sukuk near-default in 2009 which involved some Gulf Cooperation Council (GCC) countries and the United States of America (US), such as Saad Group Golden Belt Sukuk (Saudi Arabia), the Kuwaiti Investment Dar Sukuk (Kuwait), and the East Cameron Gas Company Sukuk (US). In Malaysia, there were 35 sukuk issuer firms registered default by Rating Agency Malaysia Berhad (RAM) and Malaysian Rating Corporation Berhad (MARC) from 2002 to 2014. Failure to address the issue may affect the banking and financial institutions in the sukuk issuance countries. Malaysia as the prime sukuk issuer in the world has issued sukuk for financing the industries and sectors in constructions, development and investment. Therefore, it is timely for researcher to do research on the sukuk default. This study investigates the extent to which liquidity risk, solvency ratio and corporate governance contribute to the characteristics of 30 sukuk default and 30 non-default firms in Malaysia from 2006 to 2011. In order to understand sukuk default, three independent variables are tested which are liquidity risk, solvency ratio and corporate governance. Liquidity risk is measured by using quick ratio and cash to asset ratio, solvency ratio is measured by using interest coverage ratio and debt to equity ratio, whereas the corporate governance is measured by using existence of audit committee and independent director. The analyses are conducted on SPSS and WEKA by using logistics regression and decision tree analysis. From the findings of each independent variable, the liquidity risk (quick ratio and cash to asset ratio), solvency ratio (debt to equity ratio) and corporate governance (existence of audit committee) contributed to the sukuk default and defaulted sukuk firms. Meanwhile, the full model, finding from WEKA revealed that existence of audit committee, debt to equity ratio and quick ratio affect sukuk default and sukuk defaulted firms. Therefore, from the findings, it shows that liquidity risk, solvency ratio and corporate governance contributed to the sukuk default and sukuk defaulted firms in Malaysia from 2006 to 2011. This findings indicate that sukuk default and sukuk defaulted firms coincided with world financial crisis of 2007-2008. Future research is suggested on the need to explore more on the sukuk, liquidity risk, and financial crisis. |
| format |
Thesis |
| author |
Wan Hasmanirah Binti Wan Mohammad |
| author_facet |
Wan Hasmanirah Binti Wan Mohammad |
| author_sort |
Wan Hasmanirah Binti Wan Mohammad |
| title |
Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| title_short |
Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| title_full |
Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| title_fullStr |
Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| title_full_unstemmed |
Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm |
| title_sort |
impact of liquidity risk, solvency ratio and corporate governance to the sukuk defaulted firm |
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Universiti Sains Islam Malaysia |
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1812444727992123392 |
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my-usim-ddms-127522024-10-03T18:02:07Z Impact Of Liquidity Risk, Solvency Ratio And Corporate Governance To The Sukuk Defaulted Firm Wan Hasmanirah Binti Wan Mohammad Syahnaz Sulaiman [supervisor] Sukuk default issue has impressed many parties of the sukuk industry, especially after the global financial crisis in 2007-2008 based on several high-profile cases reported related to sukuk near-default in 2009 which involved some Gulf Cooperation Council (GCC) countries and the United States of America (US), such as Saad Group Golden Belt Sukuk (Saudi Arabia), the Kuwaiti Investment Dar Sukuk (Kuwait), and the East Cameron Gas Company Sukuk (US). In Malaysia, there were 35 sukuk issuer firms registered default by Rating Agency Malaysia Berhad (RAM) and Malaysian Rating Corporation Berhad (MARC) from 2002 to 2014. Failure to address the issue may affect the banking and financial institutions in the sukuk issuance countries. Malaysia as the prime sukuk issuer in the world has issued sukuk for financing the industries and sectors in constructions, development and investment. Therefore, it is timely for researcher to do research on the sukuk default. This study investigates the extent to which liquidity risk, solvency ratio and corporate governance contribute to the characteristics of 30 sukuk default and 30 non-default firms in Malaysia from 2006 to 2011. In order to understand sukuk default, three independent variables are tested which are liquidity risk, solvency ratio and corporate governance. Liquidity risk is measured by using quick ratio and cash to asset ratio, solvency ratio is measured by using interest coverage ratio and debt to equity ratio, whereas the corporate governance is measured by using existence of audit committee and independent director. The analyses are conducted on SPSS and WEKA by using logistics regression and decision tree analysis. From the findings of each independent variable, the liquidity risk (quick ratio and cash to asset ratio), solvency ratio (debt to equity ratio) and corporate governance (existence of audit committee) contributed to the sukuk default and defaulted sukuk firms. Meanwhile, the full model, finding from WEKA revealed that existence of audit committee, debt to equity ratio and quick ratio affect sukuk default and sukuk defaulted firms. Therefore, from the findings, it shows that liquidity risk, solvency ratio and corporate governance contributed to the sukuk default and sukuk defaulted firms in Malaysia from 2006 to 2011. This findings indicate that sukuk default and sukuk defaulted firms coincided with world financial crisis of 2007-2008. Future research is suggested on the need to explore more on the sukuk, liquidity risk, and financial crisis. Universiti Sains Islam Malaysia 2021-09 Thesis en_US https://oarep.usim.edu.my/handle/123456789/12752 embargo embargo https://oarep.usim.edu.my/bitstreams/b848917b-0c26-42ab-b9db-36ce94f4bf15/download 8a4605be74aa9ea9d79846c1fba20a33 https://oarep.usim.edu.my/bitstreams/b7d21c3f-1679-4a4b-81b8-32a632bb3609/download 983302e8001ce5bae40bc94934c9d716 https://oarep.usim.edu.my/bitstreams/1b5a11d8-a232-4d2e-8f01-78f1412d36a2/download c97b15bf5a5d7a4778a3b9697b354426 https://oarep.usim.edu.my/bitstreams/f230accd-3131-4967-b82c-66534fcefb55/download 803ffecab69956cf62c4b6b6864f7729 https://oarep.usim.edu.my/bitstreams/286ba30e-c070-4b0e-a945-d8e9737866e1/download 0791617f78f70b92d5336b7cc04fb06e https://oarep.usim.edu.my/bitstreams/494d425b-025d-440c-bd2c-1a4df47251a8/download 5fdce7a26750e73e9d765754f95386c6 https://oarep.usim.edu.my/bitstreams/f0230c57-80d6-4bf0-a22d-4f0a100b5117/download cbca704e4fac32a63560cdc4a5745509 https://oarep.usim.edu.my/bitstreams/24031237-dc51-49f7-8966-a5cc7547bea0/download 1e17564831654d3af27b86f25ab05e78 https://oarep.usim.edu.my/bitstreams/b1641810-3811-42b3-a101-d0947b5bb574/download 6d95d0359865470e6999fae5d4208074 https://oarep.usim.edu.my/bitstreams/54fcedb2-6dca-44a1-9b3f-0a372af1b5f3/download 3ba3474dd3f22b0228666b1582c05e2d https://oarep.usim.edu.my/bitstreams/a04a9508-9c96-4864-969c-d75c1bcb29ab/download d7425b84cc3ac723817c26d95e387927 https://oarep.usim.edu.my/bitstreams/e0c2ab56-5439-4618-85bf-9a23667ae7d8/download 3cefb261829ae74b1216123225655942 https://oarep.usim.edu.my/bitstreams/102694ee-6635-4893-aaf9-871f70857608/download 022da05cf972a0a3fea566defba96534 https://oarep.usim.edu.my/bitstreams/f054d3db-6ddf-4bb3-ba07-007ad4a0cdcf/download 61f241be1784c6f5a96f32ccdd6b81d3 https://oarep.usim.edu.my/bitstreams/41fd6a94-928e-451b-b301-a949c405d7c9/download ce7247b6ddc4baea2535a82a49386279 https://oarep.usim.edu.my/bitstreams/3cf7a607-a36e-4a43-b924-5455ef595e1f/download 11a840c63fdd618c102181b125856247 https://oarep.usim.edu.my/bitstreams/e9b4084c-4d91-4446-89a6-43408c8efe5b/download e5ddd74b39cd57920e48e10892ad27f9 https://oarep.usim.edu.my/bitstreams/fcbff630-3a65-444c-b979-f03929d0fcd3/download be33a1aff33149e5a5609499fc68b173 https://oarep.usim.edu.my/bitstreams/7d62d9b6-1c7e-46c2-8cb1-8e08af141eae/download 47c95b1984d0e7e779fec205d3cf1561 https://oarep.usim.edu.my/bitstreams/f52c1459-4afb-4aa6-800d-1db9995dd492/download 731b91a741626362ef9448da9f9c1f7b https://oarep.usim.edu.my/bitstreams/8700ae1b-d5e5-41c2-8291-e718c90bad6e/download 564d80f215fb73dbb701c407b8dd35f0 Sukuk -- Malaysia |