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Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia

This study aims to examine the impact of Islamic and Conventional bonds on firm performance. Using Malaysian listed companies from 2010 to 2018, the results of the multiple regression analyses show that the bond affects firm performance measured by Return on Assets (ROA) and Return on Equity (ROE)....

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Main Authors: Nur-Al-Ahad, Md., Jamadar, Yasmin, Abdul Latiff, Ahmed Razman, Tabash, Mosab I.
Format: Article
Published: IEEE 2022
Online Access:http://psasir.upm.edu.my/id/eprint/111642/
https://ieeexplore.ieee.org/document/9939670/
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spelling my.upm.eprints.1116422024-10-08T08:31:40Z http://psasir.upm.edu.my/id/eprint/111642/ Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia Nur-Al-Ahad, Md. Jamadar, Yasmin Abdul Latiff, Ahmed Razman Tabash, Mosab I. This study aims to examine the impact of Islamic and Conventional bonds on firm performance. Using Malaysian listed companies from 2010 to 2018, the results of the multiple regression analyses show that the bond affects firm performance measured by Return on Assets (ROA) and Return on Equity (ROE). Moreover, we also examine whether the bond affects the firm value (measured by EPS) or not. Results provide mixed results for both conventional and Islamic bonds. The results show that the issuance of conventional bonds positively affects the firm's performance. However, the findings also reveal that the Islamic bond-to-debt ratio negatively affects firm ROA. Next, Islamic bond has a negative effect on ROE. Further, results also reveal that the total debt ratio positively relates to firm performance. On the other hand, both conventional bonds and Islamic bonds have a negative association with the firm value. This study shows that either type of bond is good for companies up to a certain threshold. The manager should deliberate the sensitivity of Islamic bonds while investing. IEEE 2022 Article PeerReviewed Nur-Al-Ahad, Md. and Jamadar, Yasmin and Abdul Latiff, Ahmed Razman and Tabash, Mosab I. (2022) Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia. 2022 international conference on sustainable islamic business and finance (sibf). pp. 108-116. https://ieeexplore.ieee.org/document/9939670/ 10.1109/sibf56821.2022.9939670
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description This study aims to examine the impact of Islamic and Conventional bonds on firm performance. Using Malaysian listed companies from 2010 to 2018, the results of the multiple regression analyses show that the bond affects firm performance measured by Return on Assets (ROA) and Return on Equity (ROE). Moreover, we also examine whether the bond affects the firm value (measured by EPS) or not. Results provide mixed results for both conventional and Islamic bonds. The results show that the issuance of conventional bonds positively affects the firm's performance. However, the findings also reveal that the Islamic bond-to-debt ratio negatively affects firm ROA. Next, Islamic bond has a negative effect on ROE. Further, results also reveal that the total debt ratio positively relates to firm performance. On the other hand, both conventional bonds and Islamic bonds have a negative association with the firm value. This study shows that either type of bond is good for companies up to a certain threshold. The manager should deliberate the sensitivity of Islamic bonds while investing.
format Article
author Nur-Al-Ahad, Md.
Jamadar, Yasmin
Abdul Latiff, Ahmed Razman
Tabash, Mosab I.
spellingShingle Nur-Al-Ahad, Md.
Jamadar, Yasmin
Abdul Latiff, Ahmed Razman
Tabash, Mosab I.
Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
author_facet Nur-Al-Ahad, Md.
Jamadar, Yasmin
Abdul Latiff, Ahmed Razman
Tabash, Mosab I.
author_sort Nur-Al-Ahad, Md.
title Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
title_short Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
title_full Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
title_fullStr Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
title_full_unstemmed Effect of islamic and conventional bonds on firm's performance: evidence from Malaysia
title_sort effect of islamic and conventional bonds on firm's performance: evidence from malaysia
publisher IEEE
publishDate 2022
url http://psasir.upm.edu.my/id/eprint/111642/
https://ieeexplore.ieee.org/document/9939670/
_version_ 1814054738727010304
score 13.211869

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