Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions.
Conclusions and Directions for Further Research 1. According to the dictates of the Islamic law, there is freedom in the activity and business negotiation although the ability to enter into agreements between the parties can be exercised only within certain limits.
The Traditional Principles of Corporate Finance postulate that each firm carries out some choices related to where to get the funds investment decisionhow to invest those financing decision and when to return the returns dividend decision.
The same choices can be referred to an Islamic firm .
We can therefore assert that the financial goal of the firm is to maximize the Shareholder Value. This goal is widely accepted in both theory and practice  and can be applied to Islamic firms [, 19]. In particular, Profit and Loss Sharing PLSMusharakah, Mudarabah, Sukuk and Mark-up financing, in addition to legal-religious principles, could play a significant role on the system of capital structure puzzle and, consequently, on the Beta measure of market risk.
The paper is organised as follows. First, we introduce a theoretical background of the Islamic Finance. After we analyse a sample of companies listed on Malaysian Stock Exchange, classified and shared according to the principles of Islamic finance quantitative and qualitative criteria in order to observe some financial ratio Debt over Equity and Debt over Total Assets and to know the different level of risk Beta.
Finally, we conclude by discussing the results and possible future applications of Beta in relation to capital structure. Islamic Finance is based on core concepts of balance, which help ensure that the reasons and objectives driving the Islamic industry are beneficial also for the society.
It is one of the most growing segments of the global finance industry . As demonstrated by the global proliferation of Islamic financial institutions, Islamic financial markets have gained impulse over the past few years; this proliferation has been accompanied by parallel increases in Islamic financial products.
The principles of Islamic finance have been analyzed by Muslim and not-Muslim researchers alike [, 20] but the number of literatures focusing on Islamic finance from the point of view of corporate finance is scant . Islamic financial system requires transactions to be linked to the real sector, leading to fruitful activities that produce income and wealth .
The main principles of Islamic finance are: Islamic finance rejects that a gain can be realized without taking a risk. The funding to the business entity is permitted, but the return must be tied exclusively to the results linked to the use of capital .
This is the base of the Profit and Loss Sharing that is a form of partnership, where partners share profits and losses based on their capital share and work. In particular, the concept of PLS is the method utilized in Islamic banking to comply with the prohibition of interest and it is a contractual agreement between two or more transacting parts, which allows to bring together their resources to invest in a project to share in profit and loss .
A Comparative Study on Beta 3. Fundamentally, the criteria consist of two different levels , : For firms with activities comprising both permissible and non-permissible activities, the SAC measures the level of mixed contributions from permissible and non-permissible activities towards turnover and profit before tax of a company .
The SAC uses benchmarks based on Ijtihad. In this sense, Bursa Malaysia offers a dynamic platform for issuers by supporting and assisting companies in fulfilling their capital raising needs and operates as a fully-integrated exchange that offers a comprehensive range of products which include equities, derivatives, offshore and Islamic products as well as exchange related services such as trading, clearing, settlement and depository services.
Third, we have defined some items relevant to the end of our comparative analysis on Beta. We have considered the three following selection criteria of the listed companies: Sample of listed companies analyzed 3.
Data Analysis and Findings From the sample of firms analysed, we have divided the undertakings by macro sectors: In order to provide some preliminary evidence of the potential effect on the risk as result of the principles used to divide the companies between LCSC and LCnotSC, we have decided to analyse for each listed companies the following elements:illustrate these two interpretative possibilities.
They are Tunisia and Iran. Tunisia is an example of ijtihad, that is new interpretations, new applications of minority opinions from the One of the fundamentals of the non-European Islamic legal culture is the right to one’s own legal culture especially in family and inheritance law.
One. Islamic Banking and Finance Select New Books Search this Theory and Application provides an overview of the organizing principles and fundamentals of an Islamic economy. With deep discussion of the characteristics, rationale, key institutions, objectives, and instruments at work, the book addresses the core economic principles underlying a.
This paper will illustrate the historical development of Islamic banking industry. In addition, it will provide information about the Islamic banking development in many countries around the world. Introduction: This report seeks to give an analysis of Islamic Banking and an organisational comparison to a corporate Global banking system/western one whilst identifying key issues and challenges that may arise for the use of such Islamic banking in the United Kingdom.
Is Bitcoin and Ethereum trading halal and allowed in Islam? Update Cancel. Answer Wiki. 6 Answers. Ibrahim Ludwick, Is cryptocurrency trading allowed in Islamic banking? Is trading stocks allowed in Islam? Ask New Question. Is Bitcoin and Ethereum trading halal or haram? Upon comparing Islamic banking and conventional/western banking for example like the Islamic bank of Britain compared to Barclays bank there some evident differences not only is the main one being that of the sha’riah law principles that are followed by the Islamic banks which therefore means business approaches in forms of investments, responsibility and product features will all be based upon the .