Islamic Securities Research Articles

Mekanisme Pasar Sekunder dan Produk Investasi Pasar Sekunder

As a source of finance for businesses in the form of firms and a way for the general public to invest, the capital market has become a crucial necessity in the modern economic period. The Indonesia Stock Exchange (IDX) is where shares are bought and sold on the secondary market. The buying/selling of shares and the transaction settlement process are the two primary steps in the secondary market securities trading system. This article seeks to identify secondary market investment products of Islamic securities case studies and to describe the technique of buying and selling transactions in the secondary market. The descriptive technique, a type of research methodology that was employed in this study.

Analisis Fatwa DSN MUI No. 140 Tahun 2021 Terhadap Regulasi Dewan Pengawas Syariah pada Produk Securities crowdfunding

The purpose of this study is to determine and analyze the extent of the regulation of the Sharia Supervisory Board on securities crowdfunding products based on the DSN MUI fatwa No. 140 of 2021. The research method used is descriptive qualitative method which is focused on problems based on facts carried out by observation. This research focuses on analyzing data on the Shafiq.id website on the offering of Islamic securities in the form of sukuk through crowdfunding services reviewed through the provisions contained in the DSN MUI fatwa NO. 140 of 2021 concerning Islamic securities offerings through information technology-based crowdfunding services based on sharia principles. The results of this study indicate that the Sharia Supervisory Board (DPS) is tasked with ensuring that all activities in sharia fintech always comply with sharia principles, including in sharia crowdfunding activities. Islamic crowdfunding activities must be based on the spirit of helping in goodness (ta'awun) and must be based on Islamic rules and guided by the Qur'an and As-Sunnah. DPS oversees the information technology-based financing service model to ensure that the form of crowdfunding implementation does not conflict with sharia principles. In addition, DPS adjusts the contract according to the form of sharia crowdfunding that will be used by the parties. DPS is also tasked with providing advice to the parties and, in the event of a dispute, resolving it by consensus or through a sharia dispute resolution institution in accordance with the Fatwa of DSN-MUI.

The Impact of Islamic Securities Issuances on Domestic Investment: A Case Study of Malaysia

This study aims to analyze the impact of Islamic securities issuance on domestic investment in Malaysia during the period 2005-2019. Malaysia is considered a model, since it is the world's first country in issuing Islamic securities, the most important of which is Islamic Sukuk. This study investigates the efficiency of the Sukuk issuance market in Malaysia and its impact on the investment growth rate in the issuing economic sectors. Finally, it estimates the relationship between Islamic Sukuk issuance and domestic investment using the Cointegration Test and the Vector Error Correction Model (VECM). The results show a high performance of the Islamic Sukuk-market indicators in Malaysia, as well as a long-run equilibrium relationship between the estimated variables. In addition, Sukuk issuance has a significant positive impact on domestic investment in Malaysia.

Prevention of loss in Mudarabah Sukuk Philosophical: Jurisprudence Study

The aim of this paper is to clarify the major reasons for losses, prevention methods, and ways to address them by employing a descriptive-analytical approach. The paper initially discusses the concept of loss and its types, and primarily focuses on the causes of loss in Mudarabah Sukuk and ways to prevent and address them. The results of the study suggest that trading in Sukuk is a type of liquidity management and hedges against losses and disperses risks. The paper also recommends the establishment of a market for Islamic securities and the development of a legislative framework to address losses and prevent the collapse of its institutions.

What drives prospective investors to support small and medium enterprises via Islamic securities crowdfunding? An empirical evidence from Indonesia

PurposeThe presence of securities crowdfunding (SCF) FinTech in the Islamic financial landscape opens investment opportunities through shares and sukuk (Sharia bond) instruments. This study aims to examine the effect of investment risk (IR), legal risk (LR), product knowledge (PK), Sharia compliance (SC) and subjective norm (SN) on investment decisions in businesses and projects run by small and medium enterprises (SMEs).Design/methodology/approachThe questionnaires were distributed to prospective investors with prior knowledge of SCF and Islamic investment. The data collected was then examined using partial least square-structural equation modeling using SmartPLS 4.0.FindingsThe results show that LR has positive and significant implications for supporting investment through SCF, while IR has the opposite. The main findings in this study explain that PK and SC are proven to strengthen the intention to invest in SCF. Meanwhile, SN, which also strengthens intention, is the greatest influence. Therefore, it is highly recommended that SCF organizers collaborate with regulators (OJK), universities, academics and the investor community, as well as Muslim entrepreneurs, to provide education and literacy regarding SCF products and the underlying contracts, along with the consequences and uniqueness of investment vis SCF.Practical implicationsFrom a managerial side, Sharia expert educators can be appointed to increase investors’ literacy and confidence to support SMEs’ business expansion via SCF. In addition, to minimize investment risk, SCF organizers are also advised to issue sukuk and shares in different low-risk businesses/sectors, followed by investment amounts that are more affordable for novice investors.Originality/valueResearch on SCF as an alternative to SME financing is still scarce. To the best of the author’s knowledge, this is the first research to empirically test the relationship between risk, SC, PK and SN on potential investors’ decisions to support SMEs through the SCF mechanism.

The Position and Role of the Sharia Supervisory Board in Ensuring Sharia Compliance Equity Crowdfunding in Indonesia

Fundraising using the equity crowdfunding method has experienced rapid development and is in high demand from the public. In order to maintain the credibility of the implementation of Islamic securities crowdfunding, it is essential to establish a sharia supervisory board to supervise the offering of sharia-compliant securities employing information technology-driven crowdfunding service platforms. This article aims to discuss and analyze the position and role of the sharia supervisory board within the system, as well as the level of compliance with sharia principles in the implementation of equity crowdfunding in Indonesia. The research method used in this article is a type of normative legal research that relies on secondary data sources obtained through a literature review. The legal protection for the existence of a sharia supervisory board in sharia equity crowdfunding in Indonesia is regulated in POJK Number 57/POJK.04/2020 and Fatwa Number 140/DSN-MUI/VIII/2021. The sharia supervisory board has a very strategic role in ensuring sharia compliance in every equity crowdfunding activity in Indonesia. In order to maintain the credibility of sharia equity crowdfunding in the future, it is essential to ensure that every aspect of operations complies with sharia principles by maximizing the existence of a sharia supervisory board.

THE ROLE OF ISLAMIC SUKUKS IN FINANCING THE ECONOMY

This research seeks to introduce Islamic sukuks as a financing tool and present their reality in the Malaysian Islamic securities market. Its goal is to show how these sukuks contribute to financing the Malaysian economy by analyzing and presenting the experience. The central problem in this research is the extent to which they contribute to funding the economy. Regarding Islamic Sukuk, Malaysia is regarded as the leader in Islamic financial engineering and capital markets. The descriptive analytical technique was used to accomplish the study's goals by gathering and analyzing data relevant to the study's topic.

Behavioral Intentions of Prospective Investors in Islamic Securities Crowdfunding: Insights from the Indonesian Market

The community's and the MSMEs' need for Islamic investment instruments to expand their business has urged an innovation in Islamic finance. Islamic Securities Crowdfunding (iSCF) was first licensed to operate in Indonesia on August 19, 2021. iSCF's users continue to increase rapidly, however, the growth of investors for this instruments have not yet followed the growth of users. This study aims to analyze the characteristics and factors that influence the behavioral intention of future investors of the iSCF. UTAUT 2 was used as reference model. The results of this study indicate that only facilitating conditions and price value variables have captured a positive and significant effect on investment intention. Furthermore, the habit and investment intention show positive and significant effect on investment behavior. Therefore, these results encourage the provider of ISC to continue maintaining service to the platform users as their potential future investors, and promoting periodically the ISC products.

ISLAMIC SECURITIES CROWDFUNDING RESEARCH: A BIBLIOMETRIC ANALYSIS

The number of publications concentrating on Islamic Fintech and Securities Crowdfunding has significantly increased in recent years, especially from 2017 to 2023. Through bibliometric analyses using Dimension.ai, a dependable platform for accessing registered titles and abstracts, this growing interest has been thoroughly investigated. This investigation's main goal is to identify common topics and writing styles among the authors in this sector. The most recent information for this analysis was obtained by using the search term "Islamic Securities Crowdfunding" on the Dimension.ai platform on September 26, 2023. Many publications have made significant contributions to this increase in research output. A well-known work in this field, "The Crowdfunding and Islamic Securities: The Role of Financial Literacy," offers insightful information on how crowdfunding and Islamic securities interact. Further highlighting their importance and prevalence in the discourse around Islamic Securities Crowdfunding is the frequent use of the terms "Research," "Study," "Platform," and "Technology." This study highlights the most productive authors who have contributed to the academic environment in this area and examines the current trends. In conclusion, it is believed that the knowledge gained from this study would inform the future endeavors of academics and professionals working in this field.
 Keywords: Islamic Securities Crowdfunding, Islamic Fintech, Bibliometric, Islamic Finance

Islamic Securities Crowdfunding: A Bibliometric Analysis

Research focuses on Islamic Securities Crowdfunding topic by using a bibliometric analysis approach. In this study, 81 Scopus-indexed journal articles were analyzed to measure scientific performance in this domain. The bibliometric analysis process includes identifying the research background and determining key indicators. The results of this analysis visualized the author network, country of origin, related institutions, and keyword trends. Malaysia was identified as the dominant country in the research of Islamic Securities Crowdfunding, demonstrating its significant role. There are at least 6 (six) research clusters related to this topic. The findings provide a deeper understanding of the contribution of researchers, the role of countries, and institutions in this sub-ecosystem, providing a basis for future strategy development, especially regarding blockchain technology.

Islamic Securities Crowdfunding Based on Indonesia's Islamic and Positive Law Perspective

This paper analyzes Islamic Securities Crowdfunding (SCF) based on Indonesia's Islamic and positive law perspectives. This paper is a descriptive qualitative by using a normative juridical approach that observes the governing or binding law in society with the convergence on Islamic law and regulations of the Indonesian Financial Services Authority (OJK). The findings reveal that the practice of Islamic SCF is allowed by referring to the Qur'an, Hadith, legal maxim, maqasid al-shariah, and syirkah musahamah contract in DSN-MUI Fatwa No.140/DSN-MUI/VIII/2021 issued on August 24, 2021. Furthermore, from the positive law's perspective, Islamic SCF is allowed to operate by referring to POJK No.57/POJK.04/2020, which accommodates to four principal regulations, namely, organizers, crowdfunding services, issuers, and financiers

Pengaruh penanaman modal dalam negeri, penanaman modal asing, utang luar negeri dan surat berharga syariah negara terhadap perekonomian Indonesia

Economic growth is the primary objective to enhance the quality of human resources, societal welfare, and equitable national development within a country. Investment is considered a key determinant in achieving sustainable economic growth. Moreover, to meet developmental expenditure needs, governments often resort to borrowing. Therefore, this study investigates the impact of domestic investment, foreign investment, foreign debt, and state Islamic securities on Indonesia's economic growth. By utilizing secondary data from various reputable statistical institutions such as the Central Bureau of Statistics (BPS), the Fiscal Policy Agency (BPKPM), Bank Indonesia (BI), and the Financial Services Authority (OJK) spanning from 2012 to 2022, this research aims to provide a deeper understanding of the factors influencing Indonesia's economic growth. Multiple Linear Regression analysis is employed to analyze the data in this study. The results indicate that domestic investment does not significantly affect Indonesia's economic growth, while foreign debt is found to have a significant impact on economic growth. However, no evidence exists that state Islamic securities influence Indonesia's economic growth.

Financing Preference among Technology Startups (TSs) in Malaysia

As the maverick of the new economy TSs are making economic waves across industries. However at their early stages TSs are fragile and vulnerable. Startups struggle with many issues starting from business planning, capacity building and management, but financing is key to their survival and growth. Governments play pivotal role in financing TSs at their early stages and so do venture capital. This study measures financing and its’ correlation to culture, innovation, government financing and private investments (venture capital and angel investors). It also examines if Islamic Finance play any role in financing TSs. Findings show that innovation and government financing are significant in later stage financing and results indicate that venture capitalists and investors are more likely to finance female technopreneurs than their male counterpart. Despite high awareness levels among technopreneurs findings indicate that Islamic Finance is highly insignificant among TSs. This study is an important contribution in the startup and entrepreneurship space as it identify financing determinants for TSs in the Malaysian startup ecosystem. Further studies are recommended in the area of securitization of assets and intellectual property to enable to TSs to financing their venture via Sukuk or other forms of Islamic securities.

Sharia External Financing Alternatives for Business Expansion Study Case: PT. XYZ

This study investigates sharia compliance external sources of financing for SME’s business expansion. The object of this study is PT. XYZ that operates in the security service business entity of outsourcing industry. In the last five years until 2022 XYZ has declined in number of clients growth. Fortunately, in 2023 XYZ received an offer to supply 500 security personnel that will increase its sales growth to 134%. This growth is a lot higher than the internal and sustainable growth rate of the company, and hence it needs external financing of IDR 5.2 Billion to support the business expansion. The data collected in this research is through primary and secondary data from a semi-structured interview, five years of financial reports and desk research method. This study examines three alternatives of external Sharia financing namely Islamic Bank financing, Sukuk Issuance and Stock Issuance. XYZ needs to choose one alternative that makes the financial performance of the company healthy and also provides the most worthy risk-return to the equity holders. According to the financial ratios, DCF company valuation and risk-return analysis, this study finds that Sukuk is the best alternative external source of financing for XYZ because it makes the financial performance of the company healthy and also provides a desirable returns for the shareholders with lower risks. XYZ and others SMEs could use this alternative source of external financing to support business expansion. Sukuk can be issued through a funding campaign within a specified period in an authorized and credible Islamic Securities Crowdfunding (I-SCF) platforms.

Literature Study of Sukuk as a Sharia Securities Instrument

Sukuk is one of the subjects in the field of Sharia accounting that is growing rapidly in Islamic finance as an alternative investment instrument that has attracted investors' interest in the last few decades. This article aims to provide a deeper understanding of the topics raised, and the theories and methodologies used in research conducted in all countries in the world in the last 10 years (2010-2020). A review of articles from Publish or Perish that is indexed by Scopus and guided by the NVivo R1 application is used to analyze the data. From the results of the study, it was found, firstly about the trend of research on sukuk over the last 10 years by categorizing it from the publishing journal, year of publication, country, and research theme. Second, it was found that there were 29 theories used in previous articles related to the review of the Sukuk literature as an investment in Islamic securities. Furthermore, this theory influences the methods used for research, there are 29 methodologies found in previous articles. Third, the findings regarding research gaps are based on themes for further research

Limitation Of Non-Halal Income (Interest) In The Criteria Of Sharia Securities List In Indoneisia Stock Exchange

The Islamic capital markets in Indonesia have been developing over the last two decades, characterized by an increase in Islamic products and the issuance of regulations related to the Islamic capital markets, and the general public and investors are beginning to understand the list of Islamic securities. Next, there is one of the controversial criteria for the Sharia Securities List. That is, the total yield is less than 10%. It is understandable whether Islamic financial institutions earn income from bank interest before they are fully subject to Sharia law. This study analyzes the dispute using an associative approach by building relationships between social situations or domains based on the interdependencies of the dispute under study. It is a study to do. The results of this survey and discussion are based on an analysis of non-Halal income (interest) restrictions in the criteria for listing Shariah securities in Indonesia to address the conditions, risks and possibilities of DES. When the interest rate floor applies, few Shariah stocks need to be listed on flat Islamic securities and DES market shares, reducing interest in investing in the Islamic capital markets. This is also related to including other Shariah financial institutions. If the number of Islamic issuers decreases, the number of investors will surely decrease. Therefore, it will certainly be difficult to achieve in the development of the Islamic financial industry.

Cash Waqf Linked Sukuk Through Securities Crowdfunding in Indonesia

Islamic charitable innovations have evolved to give rise to the integration between Sukuk and cash waqf called Cash Waqf Linked Sukuk (CWLS). The integration of these two things is promising when combined, considering that Sukuk has long been named a commercial sharia instrument that aims to raise funds, while cash waqf as a sharia social instrument has played a philanthropic role. As for Indonesia, The cash waqf combined with Sukuk has become a new fiscal instrument because it has advantages in addition to contributing to development, furthermore, the returns obtained are reused into waqf money for socio-economic projects and funds invested be returned at maturity. As a legal research, this article uses qualitative analysis with statutory approaches and conceptual approaches. This article intends to introduce a new conceptual framework model innovation between CWLS and fintech types of Islamic securities crowdfunding. This innovation is for no reason considering that the use of fintech types of Islamic securities crowdfunding makes CWLS more popular and more flexible so that the funds raised are expected to be larger and can reach the broader community for the construction of more massive socio-economic projects. Furthermore, this article provides an overview of the proposed innovations in achieving the goals of maqasid al-shariah, regulations, and opportunities and challenges to be implemented in Indonesia.

СУКУК – ИСЛОМИЙ ҚИММАТЛИ ҚОҒОЗЛАР РИВОЖЛАНИШИНИНГ 2021 ЙИЛ ЯКУНЛАРИГА КЎРА ТАҲЛИЛИ

The Islamic financial system is one of the fastest-growing systems in the world, which is actively strengthening and expanding its position internationally. This article analyzes the growth of Islamic finance, in particular, sukuk - Islamic securities in the global financial market, and the state of Islamic finance in Uzbekistan by the end of 2021

Behavioural Finance: An Islamic Perspective

This paper discusses the issue of behavioural finance (BF) and its place in the Islamic financial system as well as the feasibility of applying Islamic finance and parameters to forecast the movement of Islamic securities prices. It also explores the possibility of harmonisation between the approaches of market efficiency and behavioural finance. The paper starts with questions about the credibility of the efficient market hypothesis (EMH) in determining the factors affecting the movement of prices in the securities market, especially after the severe financial crises that hit the financial market. The expectations of the positivist approach, which believes that the financial market is characterized by rationality and can correct any deviations of the market value from the fair value, were not borne out. The paper adopts the inductive approach, highlighting the most important views related to BF and EMH and their fundamentals, and also employs an analytical critical approach in analysing the two approaches. Furthermore, it adopts a comparative approach to collate the Islamic financial approach in studying the movement of stocks with the EMH and BF approaches. The paper concludes with a number of findings. The most important of these is that the approaches of market efficiency and behavioural finance do not, in general, contravene the principles of Islamic finance. Moreover, harmonisation between the rational approach based on market efficiency and behavioural finance is one of the best approaches to serve the price of Islamic securities and is in line with the fundamentals of Islamic finance. However, that harmonisation will remain an abstraction unless the market is regulated by Sharīʿah principles and legal rules.

MSMEs and Islamic Securities Crowdfunding: The Importance of Financial Literacy

The development of Islamic securities crowdfunding (I-SCF) financial technology has recently become a momentum for micro, small, and medium enterprises (MSMEs) in terms of fulfilling capital by issuing shares (sukuk) based on syariah principles. This research examines the role of Islamic financial literacy through the use of variables from the theory of planned behavior about the intentions of MSME actors to apply for capital through I-SCF. A total of 97 responses were collected from MSMEs owners/managers who have been in business for at least two years using an online questionnaire and then examined using structural equation modeling by SmartPLS. The results show that the variables of subjective norm, perceived behavioral control, and attitude toward behavior significantly influence the intention to obtain capital to expand one’s business. The primary finding of this research is that Islamic financial literacy has been experimentally shown to improve the desire of MSME players to expand their business capacity. There is thereby a need for continuous efforts from the Indonesian Financial Service Authority to collaborate with industry players, organising associations, and syariah scholars to boost Islamic financial literacy through sustainable education. In addition, efforts to maintain the uniqueness of I-SCF and its syariah compliancy must be supported by prospective I-SCF providers, even while awaiting their operational permits.