Sukuk Rating Research Articles

FAKTOR-FAKTOR YANG MEMPENGARUHI PERINGKAT SUKUK (STUDI EMPIRIS PERUSAHAAN YANG DIPERINGKAT FITCH RATING)

This study aims to determine the effect of profitability, leverage, firm size, and growth of the company to the sukuk ratings. The main purpose of this rating is to provide information to investors about the state of sukuk issuers and what risks will be borne, so that can be used as consideration of investors in investing. The sample in this research is sukuk issuer company rated by rating agency Fitch Rating period 2013-2016. Samples were chosen using purposive sampling method and 15 companies were selected. Data analysis was done by multiple linear regression model and using SPSS 22.0 software. The results of this study indicate that the profitability and firm size have a positive and significant impact on the rating of sukuk. Leverage has a negative and significant impact on the sukuk rating. While the growth of the company has a positive effect is not significant on the rating of sukuk

Pengaruh Corporate Governance terhadap Peringkat Sukuk Perusahaan di Indonesia

This study aims to examine the effect of corporate governance on corporate sukuk ratings in Indonesia. The proxies of corporate governance are institutional ownership, managerial ownership, board independence commissioner. audit committees, and audit quality. The control variables taken in this study include board size and leverage. This study took a population of sukuk publishing companies which is published during the period 2007-2016 and ranked by PEFINDO. Using the purposive sampling method, the number of sample obtained 18 companies. This study uses a datapanel model with software Eviews 10 for method analysis. The results prove that institusional ownership and managerial ownership, both of them affect on corporate sukuk ratings. Board independence commissioner, audit committees, and audit quality don’t have an effect on Corporate sukuk ratings. The control variables are board size and leverage have an effect on corporate sukuk ratings.
 
 Keyword: Sukuk, Corporate Governance, Corporate Sukuk Rating

ANALISIS DAMPAK PERISTIWA PENGUMUMAN PERINGKAT SUKUK TERHADAP REAKSI PASAR PADA PERUSAHAAN YANG TERDAFTAR DI JAKARTA ISLAMIC INDEX (JII)

The purpose of this research is to analyze the impact of sukuk rating announcement event upon market reaction in company which registered at Jakarta Islamic Index (JII) from 2011 until 2015 using average abnormal return during five days before and after event. The type of data used in this research is secondary data which obtained from financial statements publishing by capital market reference center that existed in Indonesia Stock Exchange. The sample used in this research is study case with the total of the population is 7 companies. Method used in this research is purposive sampling which yielded 5 companies sample for sukuk rating announcement event. Meanwhile, the examination of hypothesis used is event study method. The result of this research illustrate that sukuk rating announcement event did not give an impact upon market reaction. However, in case of considering each variable, there is a difference between before and after the occurrence of sukuk rating announcement event.

Pengaruh Profitabilitas dan Solvabilitas Terhadap Yield Sukuk dengan Peringkat Sukuk Sebagai Variabel Moderator pada Perusahaan di Indonesia

<em>This study aims to determine the effect of profitability and solvency on sukuk yields with Sukuk ratings as moderator variables. The population of this study is the company that issued Sukuk on the IDX in 2014-2017. By using a purposive sampling technique, there are 9 companies with 34 Sukuk as the final sample. This study uses a quantitative approach with secondary data types. The analysis technique uses multiple linear regression and Moderated Regression Analysis supported by IBM SPSS 24. The results are (1) Profitability does not have a significant effect on sukuk yield. This is because regardless of the company's profits, the investor still receives a refund and the fee specified. (2) Solvability has a significant positive effect on sukuk yield. (3) The sukuk rating is not able to moderate the relationship between profitability and sukuk yield. (4) Sukuk rating can moderate the solvency relationship with sukuk yield.</em>

FAKTOR-FAKTOR KEUANGAN YANG MEMPENGARUHI RATING SUKUK DENGAN MENGGUNAKAN MODEL REGRESI MULTINOMIAL LOGISTIK

This research aims to explain the influence of financial performance towards therate of sukuk listed in Indonesia Stock Exchange in the period of 2013 to 2015. Independent variables used is the ratio of return on assets, current ratio and growth as a proxy for financial performance, and the dependent variable used is sukuk rating. The analytical method used in this study is Multinomial Logistic Regression.The results of this study showed that simultaneous financial performance significantly affect the rating sukuk, and individually there are two models produced.In the first model, the ROA and CR have positive influenceon the idA rating compared to the idAAA rating. In the second model, the ROA and CR also have positive influence on the idAA rating compared to the idAAA rating.

Developing financial disclosure quality in sukuk and bond market: Evidence from Indonesia, Malaysia, and Australia

This research investigates the relationships among financial disclosure quality (FDQ), accounting-based risks (ABRs), sukuk, and bond market. Using three samples of different countries (Indonesia and Malaysia for sukuk ratings, and Australia for bond ratings) through pooled EGLS regression, the results suggest that FDQ related to reliability affects sukuk ratings, but not bond ratings. Leverage is found to be the most influential on sukuk and bond ratings. FDQ is, to some extent, found to affect the relationship between ABRs (i.e., operating income, leverage and ROI) and sukuk or bond ratings. Differentiating between sukuk and bond issuers is not empirically proven. Additionally, ancillary evidence that relevance is more pronounced than reliability; and bond ratings are more concerned with the variability of financial measures than sukuk, is left to further research for confirmation. This is ample evidence for the expanded value-relevance of financial disclosure in sukuk and bond market.

PERBANDINGAN YIELD TO MATURITY DAN (RATING) PADA SUKUK IJĀRAH DAN SUKUK MUḌĀRABAH

Yield to Maturity is the total return anticipated on a bond if the bond is held until it matures, with purpose of investing current funds and will be received when it maturity with the terms of the profit level of each contract. Risk of sukuk investment, it can be seen from the sukuk rating that reflects the state of the sukuk issuer company. Yield to maturity and rating are related to investor considerations before deciding on investments, namely return and risk on ijārah sukuk and muḍārabah sukuk. Population of this study rating in 2011-2016 from PT. Pefindo, sample used 42 observation data and analysis using the t-test. The results of this test that there is a significant difference between the yield of ijārah sukuk and muḍārabah sukuk based on yield to maturity and there is no significant difference between the rank of ijārah sukuk and muḍārabah sukuk based on ratings.

Keputusan Investasi Perbankan Nasional Pada Sukuk International Islamic Liquidity Management (IILM)

This study aims to analyze the investment decision of banks and measures their investment preferences in IILM sukuk with IILM sukuk preference index. The investment decision is investigated from several factors, such as the structure of IILM sukuk, the currency used in the transaction IILM sukuk, tenors of IILM sukuk,covenants used in the transaction, marketability of IILM sukuk and IILM sukuk rating. This study also attempts to inform the features that can attract banks to invest in IILM sukuk. This study used quantitative method to calculate the index of banking investment decision on IILM sukuk. The result of this research explains that the index of banking investment decisions includes in the high category. The index investment decisions show a high index, but up to now banks have not invested in IILM sukuk. This needs in-depth education and socialization to banks related to IILM sukuk, and providing periodic information is really essential, so banks can get the latest information about IILM sukuk. Another factor that restrictsbank investment in sukuk IILM is internal bank policies. Until now, banks still manage their funds by using investment instruments issued by the state or domestic sukuk. The recommendations for sukuk is related to IILM first appointment of primary dealers, and the institutions are expected to appoint IILM primary dealers located in Indonesia in order to facilitate buying and selling transactions of IILM sukuk. Furthermore, the selection of IILM tenor sukuk is expected to have miraculous tenor selection to meet the needs of banks. Further provision of rating is expected to not only IILM sukuk but also the standardized IILM institution to create more reliable institutions that are able to add the investors.

Identifying the determinants of Malaysian corporate Sukuk rating

PurposeThis study aims to identify the determinants of Malaysian corporate Sukuk rating and attempts to find out which determinant has the most significant impact.Design/methodology/approachThe framework tries to establish a relationship between firm’s size, profitability, Sukuk guarantee status and types of Sukuk with Sukuk rating from the perspective of Agency Theory and Information Asymmetry Theory. The data consist of 43 Sukuk issuances from 2006 to 2015. Multinomial Logistic Regression Model is then used to find out the significant determinants of Sukuk rating.FindingsThe study found that only three variables significantly impact Sukuk rating. The results show that a guaranteed Sukuk Ijarah or a guaranteed Sukuk Musyarakah that is issued by a highly profitable firm has a higher likelihood of getting rating AAA or rating AA as compared to getting rating A. A type of Sukuk, particularly Sukuk Murabahah, is the most significant variable influencing Sukuk rating. However, firm size is not a significant determinant of Sukuk rating in the context of this study.Research limitations implicationsThe first limitation of the study is the relatively small sample size. Second, the study only tested four independent variables.Practical implicationsSeveral implications are derived from the results of the study. First, new firms that are planning to issue Sukuk should consistently maintain a high level of profit and consider issuing debt-based Sukuk to ensure that the issued Sukuk have higher rating. To increase the likelihood of getting higher rating, they should also consider providing a third-party guarantor. As for existing Sukuk issuers that are in lower rating category, they should increase their profitability to be upgraded to higher rating category. Second, risk-adverse investors should invest in highly profitable, guaranteed and debt-based Sukuk, as these Sukuk are likely to be in higher rating category and provide guarantee in terms of capital payments during liquidation or bankruptcy. Third, to reduce information asymmetry, policymakers should make it compulsory for all Sukuk issuers to have their Sukuk rated annually and make it mandatory for all rating agencies in Malaysia to publish their Sukuk rating methodologies.Originality/valueThis paper helps to expand the limited existing literature about the determinants of Sukuk rating, particularly for the Malaysian corporate Sukuk.

Analisis Pemeringkatan Sukuk: Perspektif Keuangan

The aims of this study is to analysed sukuk rating from financial perspective. Financial perspective used in this research is profitability, likuidity, and firm size. Sample used in this study is sukuk listed in BEI during 2010 – 2015. Used multiple regression to analysis model both partially and simultanly. Used financial performance to analyse sukuk rating. The result of this study show that profitability, likuidity, and firm size have significant effect to sukuk rating

KEPUTUSAN INVESTASI PERBANKAN NASIONAL PADA SUKUK INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT (IILM)

This study aims to analyze the investment decision of banks and measures their investment preferences in IILM sukuk with IILM sukuk preference index. The investment decision is investigated from several factors, such as the structure of IILM sukuk, the currency used in the transaction IILM sukuk, tenors of IILM sukuk, covenants used in the transaction, marketability of IILM sukuk and IILM sukuk rating. This study also attempts to inform the features that can attract banks to invest in IILM sukuk. This study used quantitative method to calculate the index of banking investment decision on IILM sukuk. The result of this research explains that the index of banking investment decisions includes in the high category. The index investment decisions show a high index, but up to now banks have not invested in IILM sukuk. This needs in-depth education and socialization to banks related to IILM sukuk, and providing periodic information is really essential, so banks can get the latest information about IILM sukuk. Another factor that restricts bank investment in sukuk IILM is internal bank policies. Until now, banks still manage their funds by using investment instruments issued by the state or domestic sukuk. The recommendations for sukuk is related to IILM first appointment of primary dealers, and the institutions are expected to appoint IILM primary dealers located in Indonesia in order to facilitate buying and selling transactions of IILM sukuk. Furthermore, the selection of IILM tenor sukuk is expected to have miraculous tenor selection to meet the needs of banks. Further provision of rating is expected to not only IILM sukuk but also the standardized IILM institution to create more reliable institutions that are able to add the investors.

Yield Sukuk: Maturity, Rating and Value of Emission

This study was to determine the effect of Sukuk maturity, Sukuk rating, and Sukuk emmisions value on Sukuk yield. The sample in this study was 157 corporate Sukuk issued by corporate and listed on Indonesia Stock Exchange (IDX) during the period of 2013-2016. This study used multiple regression analysis to examine the effect of Sukuk maturity, Sukuk rating and Sukuk emmisions value on Sukuk yield. The results of this study showed that the maturity of Sukuk has significant positive effect on Sukuk yield, Sukuk rating has significant negative effect on Sukuk yield, and value emissions of Sukuk has not significant effect on Sukuk yield. Keywords: Sukuk maturity, Sukuk rating, value emissions of Sukuk, Sukuk yield

The Impact of Financial Measures, Earnings Management, and Sukuk Structure on Sukuk Rating

The Impact of Financial Measures, Earnings Management, and Sukuk Structure on Sukuk Rating

The effects of board attributes on Sukuk rating

PurposeThe purpose of this paper is to investigate the effect of board attributes on Sukuk rating in firms listed in Bursa Malaysia (Malaysian Stock Exchange) during the period of 2008 to 2013.Design/methodology/approachThis study uses ordinal logit regression model to examine the influence of board attributes (CEO-chairman duality, board size and board independence) on the dependent variable (RATING).FindingsThe findings of this paper generally support the agency theory and stakeholder theory. Results show that after controlling for firm characteristics, the Sukuk rating is positively associated with CEO-chairman duality, board size and board independence; and negatively correlated with leverage while positively related to profitability and size. The findings of this study also provide evidence that having two positions in an organization as CEO and chairman could have added higher responsibility towards making corporate decisions and provide better Sukuk rating performance. In addition, findings show that the larger the board size, the better Sukuk rating. Also, higher board independence enjoys higher rating.Research limitations/implicationsThis study was limited to the investigation of the relationship between board attributes (CEO duality, board size and board independence) on Sukuk ratings using aggregate data from 2008 to 2013 among Malaysian Sukuk issuers.Practical implicationsThe findings of this paper describe the impact of board attributes on Sukuk rating in Malaysian Sukuk market which in turn gives the useful insights to many of the actors in the markets such as issuers, investors and policymakers which can be relied upon in making strategic decisions to issue and invest in Islamic bonds in Malaysian market. In addition, the findings could prove to be useful also for regulators because they are responsible for the acceptable level of corporate governance standards.Originality/valueThis study contributes to the body of knowledge by focusing heavily on enhancing Sukuk ratings by reducing conflict between managers and Sukuk holders in Malaysia. Additionally, this study benefits from the agency theory and stakeholder theory to provide evidence on the effect of board attributes on Sukuk rating.

PENGARUH LIKUIDITAS DAN LEVERAGE TERHADAP YIELD SUKUK DENGAN PERINGKAT SUKUK SEBAGAI VARIABEL INTERVENING (Study Pada Perusahaan Non Keuangan di Bursa Efek Indonesia )

This research aims to analyze the impact of liquidity ratio (current ratio), leverage ratio (debtto equity ratio) toward yield to maturity and sukuk rating. The sample that used was sukukthat listed in Indonesian Stock Exchange and it was rated by PT PEFINDO during 2006-2014.The technique that used to select the sample was purposive sampling. Based on this method,there are 29 companies that were suitable with the criteria. The analysis method that used inthis research was multiple analysis linier regression with intervening variable. The result of thisresearch was Sukuk Rating and Debt to Equity Ratio (DER) variables had significant negativeimpact to Yield To Maturity. But, liquidity (current ratio) did not give significant impact to Yield ToMaturity, liquidity (current ratio) variables brought significant negative impact to sukuk rating andleverage (debt to equity ratio) did not give impact to sukuk rating too.Keywords : Current Ratio, Debt To Equity Ratio, Sukuk Rating, Yield To Maturity

Ownership Monitoring Mechanism over Sukuk Credit Rating

This study examines the effect of ownership structure as one of the corporate governance monitoring mechanism to Sukuk rating. Sukuk rating represents the credit risk assessment made by local rating agencies, RAM and MARC. This study is based in Malaysia for the period of 2008-2013. Two proxy for ownership variables chosen were institutional and insider investors. The results of this study showed that institutional investors have a non-significant effect to Sukuk rating with a mix positive and negative directions. When this variable was tested alone together with the control variables of financial characteristics —leverage, profit and size, the results showed a positive and non-significant effect to Sukuk rating. However, the direction changed when the variable was tested with the appearance of insider investors to proxy ownership and the non-significant effect remains. Insider investors showed a significant and negative effect to Sukuk rating across tested models.

Investigating FTSE KLCI Using CAAR Estimations Following Sukuk Announcement in Malaysia: Based on Sukuk Ratings

The intention of the article is to explore whether different rating announcements on sukuk issuance provide any supplementary information to market for the years 2004-2011 in Malaysia. Data collected from the Securities Commission Malaysia (SC) and Bloomberg database. This research classifies the sukuk ratings from highest to poor quality. The investigation exercises event study methodology using cumulative average abnormal return (CAAR) on symmetric and asymmetric performances based on the reaction of the FTSE Kuala Lumpur Composite Index (FTSEKLCI) to the news of sukuk issuance. The results designate positive and significant asymmetric reactions on sukuk issuance. The market responds positively and significantly to the announcements of sukuk for the rating of high-quality, excellent and good ratings. However, FTSE KLCI will react negatively for the medium, questionable and weak ratings. The conclusions would be useful to issuers, investors, and decision-makers in assessing the credit risk of sukuk issuance. This study assists the sukuk issuers and investors in making profitable decisions on their investment.

The predictive accuracy of Sukuk ratings; Multinomial Logistic and Neural Network inferences

The development of Sukuk market as the alternative to the existing conventional bond market has risen the issue of rating the Sukuk issuance. These credit ratings fulfill a key function of information transmission in capital market. Moreover, Basel Committee for Banking Supervision has now instituted capital charges for credit risk based on credit ratings. Basel II framework allowed the bank to establish capital adequacy requirements based on ratings provided by external credit rating agencies or determine rating of its investment internally for more advance approach. For these reasons, ratings are considered important by issuers, investors, and regulators alike. This study provides an empirical foundation for the investors to estimate the ratings assigned using the approach from several rating agencies and past researches on bond ratings. It tries to compare the accuracy of two logistic models; Multinomial Logistic Regression and Neural Network to create a model of rating probability from several financial variables.

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.

Firms’ Performance and Risk with the Presence of Sukuk Rating as Default Risk

This research aims to examine the role of income stream risk, stock return risk, strategic risk and default risk in explaining corporate performance. Approximately 312 listed firms, from 2008 until 2011 are chosen across industries in Malaysia to represent the sample firms. The Sukuk rating emerges as a surrogate for default risk, while the corporate performance indicators are based on the return on assets and return on equity. The contribution of the research result may lead on introducing the default risk measures by Sukuk based on the uniqueness of Malaysian data in applying the Shariah compliance.