IMF paper on how sukuk type and Shari’a scholar selection effect market valuation of originator

IMF Working Paper titled ‘Do the Type of Sukuk and Choice of Shari’a Scholar Matter?’ dated August 2014. In summary, this is an analysis (in eight countries, from 2006-2013) of stock market reactions to types of sukuk and the shari’a scholar certifying the issuance. The finding is that ijara sukuk have a positive influence on the stock price of the issuing firm; there is a similar effect found resulting from scholars’ having a favourable reputation. The paper finds that both sukuk type and selection of shari’a scholar(s) can increase the market valuation of the issuing company.

Also, a comment by the IMF Director of the Middle East and Central Asia on Islamic finance, dated 20 May 2015.

Finally a conference call dated 6 April 2015 on the IMF paper (linked to in previous post): ‘Islamic finance:opportunities, challenges and policy options’ .

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