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Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method

This study aims to assess the impact of Securities Commission (SC) of Malaysia 2013 revised Shariah approved firms screening method in relation to the levels of debt and the Shariah- approved firms’ performance. Panel regressions were employed to examine the impact for firms that are consistently Sh...

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Main Authors: Ramli, Nurshamimitul Ezza, Mat Ghani, Gairuzazmi, Haron, Razali, Che Embi, Nor Azizan
Format: Article
Language:English
Published: Center of Islamic Finance (CIF) 2020
Subjects:
BPH Islamic Economics
Online Access:http://irep.iium.edu.my/82546/6/82546_Debt%20financing%20and%20firm%20performance.pdf
http://irep.iium.edu.my/82546/
https://lahore.comsats.edu.pk/CIF/Journal/Vo5-1/DOI10.26652.cjif.5202014.pdf
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spelling my.iium.irep.825462021-02-11T07:17:26Z http://irep.iium.edu.my/82546/ Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method Ramli, Nurshamimitul Ezza Mat Ghani, Gairuzazmi Haron, Razali Che Embi, Nor Azizan BPH Islamic Economics This study aims to assess the impact of Securities Commission (SC) of Malaysia 2013 revised Shariah approved firms screening method in relation to the levels of debt and the Shariah- approved firms’ performance. Panel regressions were employed to examine the impact for firms that are consistently Shariah-approved as determined by the SC of Malaysia.The period of study is 2000 to 2014. There gression result indicatesa non-monotone association between Shariah-approved firms’ performance and debt levels. The optimum level of debt, however, is much higher than the 33% benchmark set by SC. Hence, it can be concluded that the 2013 revised Shariah- approved firms screening method which introduced the 33% debt ratio benchmark did not improve the performance of Shariah-approved firms for the period studied. Nevertheless, since the observations are only until 2014, it is possible that the observations have not capture the true impact of the change. Keywords: Debt financing, Firm performance, Shariah-approved firms, Shariah screening method, Optimum debt level. Center of Islamic Finance (CIF) 2020 Article PeerReviewed application/pdf en http://irep.iium.edu.my/82546/6/82546_Debt%20financing%20and%20firm%20performance.pdf Ramli, Nurshamimitul Ezza and Mat Ghani, Gairuzazmi and Haron, Razali and Che Embi, Nor Azizan (2020) Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method. COMSATS Journal of Islamic Finance, 5 (1). pp. 64-85. ISSN 2519-707X https://lahore.comsats.edu.pk/CIF/Journal/Vo5-1/DOI10.26652.cjif.5202014.pdf 10.26652.cjif.5202014
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic BPH Islamic Economics
spellingShingle BPH Islamic Economics
Ramli, Nurshamimitul Ezza
Mat Ghani, Gairuzazmi
Haron, Razali
Che Embi, Nor Azizan
Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
description This study aims to assess the impact of Securities Commission (SC) of Malaysia 2013 revised Shariah approved firms screening method in relation to the levels of debt and the Shariah- approved firms’ performance. Panel regressions were employed to examine the impact for firms that are consistently Shariah-approved as determined by the SC of Malaysia.The period of study is 2000 to 2014. There gression result indicatesa non-monotone association between Shariah-approved firms’ performance and debt levels. The optimum level of debt, however, is much higher than the 33% benchmark set by SC. Hence, it can be concluded that the 2013 revised Shariah- approved firms screening method which introduced the 33% debt ratio benchmark did not improve the performance of Shariah-approved firms for the period studied. Nevertheless, since the observations are only until 2014, it is possible that the observations have not capture the true impact of the change. Keywords: Debt financing, Firm performance, Shariah-approved firms, Shariah screening method, Optimum debt level.
format Article
author Ramli, Nurshamimitul Ezza
Mat Ghani, Gairuzazmi
Haron, Razali
Che Embi, Nor Azizan
author_facet Ramli, Nurshamimitul Ezza
Mat Ghani, Gairuzazmi
Haron, Razali
Che Embi, Nor Azizan
author_sort Ramli, Nurshamimitul Ezza
title Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
title_short Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
title_full Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
title_fullStr Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
title_full_unstemmed Debt financing and firm performance: an analysis of securities commission of Malaysia 2013 revised shariah approved firms screening method
title_sort debt financing and firm performance: an analysis of securities commission of malaysia 2013 revised shariah approved firms screening method
publisher Center of Islamic Finance (CIF)
publishDate 2020
url http://irep.iium.edu.my/82546/6/82546_Debt%20financing%20and%20firm%20performance.pdf
http://irep.iium.edu.my/82546/
https://lahore.comsats.edu.pk/CIF/Journal/Vo5-1/DOI10.26652.cjif.5202014.pdf
_version_ 1691732908586303488
score 13.211869

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