This study analyzes the impact of financing structure on Islamic banks' insolvency risk exposure. By analyzing four models, we find that an increase in real estate financing decreases insolvency risk; however, an increasing concentration of financing structure increases insolvency risk. We...

Due to their different characteristics, banks are expected to report the features of their corporate governance in the corporate report. This paper is aimed to explore disclosure on corporate governance mechanisms in annual reports of Islamic commercial banks in Indonesia. Corporate governance...

The Malaysian managed fund market provides investors with greater choice between conventional and Islamic equity funds. Widening choice also pose challenges to investors in relation to selection of fund type, manager and portfolio optimization. While aggregate market information reveals the...

The last decade witnessed a proliferation in issues of sukuk, Islamic financial instruments structured to replicate the cash flows of conventional bonds. Using a market-based approach on Malaysian data, we consider whether investors react differently to the announcements of sukuk and...

This paper undertakes a comparative analysis of the smart money effect in mutual funds - whereby investors are able to identify funds that subsequently perform well - in Malaysian Islamic and conventional domestic equity funds. We find that Islamic equity fund investors are unable to identify...

What attracts conventional investors to Islamic financial instruments? We answer this question by comparing Malaysian Islamic and conventional security prices and their response to macrofinancial factors. Our analysis suggests that Islamic and conventional bond and equity prices are driven by...

The principle of Wa'd or promise can be used to structure innovative shariah compliant hedging instruments. Conventional hedging products such as forward currency contracts and currency swaps are prohibited in Islamic Finance principally due to the issue of riba and to the violation of bay...