Islamic Corporate Finance

Most existing texts covering topics in Islamic finance discuss the potential of Islamic banking; very few talk about other forms of financing and the investment activities of Islamic firms from the standpoint of owners and managers. This book fills this gap by looking at the traditional as well as non-traditional financing and investment activities of shariah-compliant companies.

The chapters in this edited text offer a full range of topics on corporate finance for Islamic firms, including global comparisons of shariah screening, dividend policy and capital structure of Islamic firms, details of global Islamic equity markets, trends and performance of sukuk markets, and a brief account of derivative securities that can be used in Islamic finance. This is a useful reference for anyone who wishes to learn more about the performance of shariah-compliant companies vis-à-vis conventional firms. The book includes both technical and non-technical information that would be suitable for classroom teaching as well as a reference for postgraduate research students.

1. Screening and performance of shariah-compliant companies. 2. Is there a cost for adopting faith-based investment styles? 3. Islamic corporate finance: Capital structure. 4. Islamic venture capital financing. 5. IPO underpricing, regulation, sentiment and shariah screening in Bangladesh. 6. Sukuk: Introduction and global performance. 7. Sukuk: Meaning, valuation, benefits and challenges. 8. Dividend policy: The case of shariah-compliant firms. 9. Prospects for Islamic derivatives in Bangladesh. 10. Impact of derivative usage on the value of shariah-compliant firms in Malaysia. Index

M. Kabir Hassan is Hibernia Professor of Economics and Finance, and Bank One Professor of Business, at the University of New Orleans, Louisiana, USA.

Mamunur Rashid is Senior Assistant Professor of Finance at the Universiti Brunei Darussalam.

Sirajo Aliyu is Senior Lecturer at the Federal Polytechnic Bauchi-Nigeria, and a certified member of the International Council of Islamic Finance Educators and Chartered Institute of Islamic Finance Professionals.