The paper discusses the common features of Islamic financial products. It outlines the framewrok of sharia-compliant investment tools including Musharaka, Mudaraba, Murabaha, Istisna, Ijara, Salam and Sukuk. The articles provides an overview of the governance structure of Islamic finance and the...

The paper is about strength of Islamic financial system. It is based on real study of some failed Islamic financial institutions. The study of causes of the failure reveals the real problem behind the failure. It suggests the areas to overcome to save failures

Efficient Market Hypothesis (EMH) is founded on the theory of expected rationality but the theory of behavioural finance concludes that stock market investors are quasi-rational. Therefore, under the capitalistic system, the efficient markets have already failed to protect the rights of...

The main characteristics of an Islamic financial system are described relying on recent writings on the subject and on the actual practice of Islamic banking. A theoretical model of an Islamic economic system is developed by generalizing the standard IS-LM model in order to study the effects of...

Emphasizing risk averse nature of fund suppliers in an uncertain environment, this paper establishes the possibility of a riba-free Pareto optimality in a primary financial market, explaining real life dominance of the mixed debt/equity system in terms of deviation from informational efficiency....

The arguments of this paper arise from the economic and methodological premises on behavior, markets and institutional structure that together influence asset-valuation. All these are bonded together to explain how methodology defines the domain of financial engineering in mainstream and Islamic...

We examine the relationship between Islamic and conventional stock market returns to see if Islamic financial markets provide portfolio diversification benefits and safe havens during turbulent times. Using daily data from January 1996 through September 2020 we consider conventional emerging...

Nowadays Islamic finance is experiencing rapid growth. In this paper author summarizes the research that has been conducted in the study of Islamic finance up to now. 170 scientific studies by authors and academics from different countries, various universities and international organizations...

In an Islamic economy, the financial sector functions to support the real sector. There are no interest rate based debt instruments. Financial assets are based on risk and return sharing and are contingent claims. Real as well as monetary forces determine the rate of return. As in traditional...

Khan and Mirakhor have imposed on their model a structure and constraints which lend a tautological character to their exercise (13). The indiscreet replacement of the rate of interest in the secular model by a profit rate makes their conclusions tentative and questionable. Formulation...