Cover; Abstract; Contents; I. Introduction; II. Literature Review and Hypotheses Development; III. Empirical strategy; A. Methodology; B. Data; IV. Results; A. Main Estimations; B. Additional Estimations; C. Robustness Checks; V. Conclusion; References; Tables; Table 1 Composition of the Sample; Table 2 Descriptive Statistics; Table 3 Main Estimations; Table 4 Additional Estimations; Table 5 Robustness Check: Alternative Variables; Table 6 Robustness Check: Alternative Window; Appendix
Summary
Sukuk, the shari'a-compliant alternative mode of financing to conventional bonds, have expanded considerably over the last decade. We analyze the stock market reaction to two key features of this financial instrument: sukuk type and characteristics of the shari'a scholar certifying the issue. We use the event study methodology to measure abnormal returns for a sample of 131 sukuk from eight countries over the period 2006-2013 and find that Ijara sukuk structures exert a positive influence on the stock price of the issuing firm. We observe a similar positive impact from shari'a scholar reputation and proximity to issuer. Overall our results support the hypotheses that the type of sukuk and the choice of scholars hired to certify these securities matter for the market valuation of the issuing company. --Abstract
Notes
"International Monetary Fund - Middle East Center for Economics and Finance"--Page 2 of pdf
"August 2014"--Page 2 of pdf
Bibliography
Includes bibliographical references (pages 14-15)
Notes
Online resource; title from pdf title page (IMF.org Web site, viewed on August 13, 2014)
