Sukuk, bond market development and target capital structure : selected Southeast Asian Countries

Haron, Razali and Ibrahim, Khairunisah and Abdul Razak, Dzuljastri (2012) Sukuk, bond market development and target capital structure : selected Southeast Asian Countries. In: International Islamic Accounting and Finance Conference, 20-21 November 2012, Kualal Lumpur. (Unpublished)

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Abstract

This study aims to identify the existence of target capital structure and explore firm specific and country specific determinants of target capital structure for firms in the selected Southeast Asian countries (Malaysia, Thailand and Singapore). We detect a remarkable effect of bond market development on capital structure of firms in Malaysia comparative to Thailand and Singapore. This study argues that this is due to the development of sukuk, or Islamic bonds in Malaysia. The distinctive effect of bond market development with sukuk element on Malaysian firms shows that institutional environment and governance in which the firm operates do influence the capital structure decision. This study contributes to the existing literature by highlighting the impact of sukuk on bond market development as one of the significant determinants of target capital structure via the dynamic model. Keywords: Bond Market Development, Sukuk, Malaysia, Southeast Asian, Partial Adjustment Model

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	4433/25896
Uncontrolled Keywords:	sukuk, bond market development, partial adjustment model, South East Asia
Subjects:	H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr Dzuljastri Abdul Razak
Date Deposited:	17 Dec 2012 15:46
Last Modified:	21 Mar 2013 16:50
URI:	http://irep.iium.edu.my/id/eprint/25896

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