Sukuk Ijarah Research Articles

The Performance of Double Bootstrap Method for Large Sampling Sequence

Studies on the iteration procedure in double bootstrap method have given a great impact on confidence interval performance. However, the procedure was claimed to be complicated and demand intensive computer processor. Considering this problem, an alternative procedure was proposed in this research. Despite of using small sampling sequence, this research was aimed to increase the accuracy estimation using a second replication number which resulted in a large sampling sequence of double bootstrap. In this paper, the alternative double bootstrap method was hybrid onto an example model and its performance was based on Studentised interval. The performance was examined in simulation study and real sample data of sukuk Ijarah. The result showed that hybrid double bootstrap model gave more accurate estimation in terms of its shorter length when dealing with various parameter values and has shown to improve the single bootstrap estimation.

The Influence of Corporate Governance, Financial Ratios, and Sukuk Structure on Sukuk Rating

Abstract The objective of this study was to provide empirical findings whether corporate governance, financial measures, and sukuk structure have a significant influence on sukuk rating. This study finds some interesting results. The board size has a positively significant influence on the corporate governance in relation to sukuk ratings. The study also demonstrated that financial leverage is negatively related to financial measures and sukuk ratings relationship. The study also demonstrated that sukuk ijarah is positively related to sukuk structure and sukuk rating relationship. The empirical findings are based on a sample of 25 Malaysian publicly traded firms rated by Malaysian rating agencies of RAM and MARC equivalent to S&P over the 2008 and 2012 period. The selected sample is representative enough in that rated and non-rated firms share similar characteristics in terms of (i) their stock return distribution, (ii) the profits they generate, and (iii) their industry distribution in similar industrial sectors.