Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia
Islamic Capital Market (ICM) in Malaysia has expanded at an average rate of 13.6% per annum over the ten year period between 2000 and 2010. The size of Malaysia’s ICM is expected to expand at the average rate of 10.6% per annum to reach RM 2.9 trillion by 2020. In line with its future expansion, Sha...
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| Format: | Proceeding Paper |
| Language: | English |
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2013
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| Online Access: | http://irep.iium.edu.my/31320/ http://irep.iium.edu.my/31320/1/MFAC2013_68_4FKXN7aof6.pdf |
| _version_ | 1848780405335916544 |
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| author | Haron, Razali |
| author_facet | Haron, Razali |
| author_sort | Haron, Razali |
| building | IIUM Repository |
| collection | Online Access |
| description | Islamic Capital Market (ICM) in Malaysia has expanded at an average rate of 13.6% per annum over the ten year period between 2000 and 2010. The size of Malaysia’s ICM is expected to expand at the average rate of 10.6% per annum to reach RM 2.9 trillion by 2020. In line with its future expansion, Shariah compliant securities are and will continue to be one of the important elements in ICM. Motivated by this fact, this study intends to explore the dynamic aspect of capital structure among Shariah compliant firms. The study finds that there exists optimal capital structure for Shariah compliant firms in Malaysia with both firm specifics and country specific factors playing important roles. Found to be under-adjust these firms readjust in a rapid speed of adjustment. Such rapid adjustment towards optimal leverage suggests the existence of dynamic trade-off theory. By employing a robust econometric model (GMM), this study contributes to the literature by examining the corporate financing behaviour of Shariah compliant firms in Malaysia ICM. |
| first_indexed | 2025-11-14T15:33:09Z |
| format | Proceeding Paper |
| id | iium-31320 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:33:09Z |
| publishDate | 2013 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-313202013-09-14T11:29:36Z http://irep.iium.edu.my/31320/ Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia Haron, Razali HG4001 Financial management. Business finance. Corporation finance. Islamic Capital Market (ICM) in Malaysia has expanded at an average rate of 13.6% per annum over the ten year period between 2000 and 2010. The size of Malaysia’s ICM is expected to expand at the average rate of 10.6% per annum to reach RM 2.9 trillion by 2020. In line with its future expansion, Shariah compliant securities are and will continue to be one of the important elements in ICM. Motivated by this fact, this study intends to explore the dynamic aspect of capital structure among Shariah compliant firms. The study finds that there exists optimal capital structure for Shariah compliant firms in Malaysia with both firm specifics and country specific factors playing important roles. Found to be under-adjust these firms readjust in a rapid speed of adjustment. Such rapid adjustment towards optimal leverage suggests the existence of dynamic trade-off theory. By employing a robust econometric model (GMM), this study contributes to the literature by examining the corporate financing behaviour of Shariah compliant firms in Malaysia ICM. 2013-06-02 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/31320/1/MFAC2013_68_4FKXN7aof6.pdf Haron, Razali (2013) Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia. In: MFA Conference : Financial Challenges and Economic Growth. The Way Forward, 2-4 June 2013, Kuala Lumpur. http://submit.confbay.com/index.php?option=com_conf&acid=100&Itemid=1 |
| spellingShingle | HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title | Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title_full | Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title_fullStr | Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title_full_unstemmed | Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title_short | Investigating firm and country specifics in pursuing optimality. Shariah compliant securities in Malaysia |
| title_sort | investigating firm and country specifics in pursuing optimality. shariah compliant securities in malaysia |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/31320/ http://irep.iium.edu.my/31320/ http://irep.iium.edu.my/31320/1/MFAC2013_68_4FKXN7aof6.pdf |