Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212807
Authors: 
Godlewski, Christophe J.
Turk-Ariss, Rima
Weill, Laurent
Year of Publication: 
2014
Series/Report no.: 
BOFIT Discussion Papers No. 21/2014
Abstract: 
​Sukuk, the shari'a-compliant alternative mode of financing to conventional bonds, have considerably expanded over the last decade. We analyze the stock market reaction to two key features of this 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. Publication
Subjects: 
financial instruments
Islamic finance
shari’a scholars
JEL: 
G14
P51
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-009-5
Document Type: 
Working Paper

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