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dc.contributor.advisorIannino, Maria Chiara
dc.contributor.advisorAbedifar, Pejman
dc.contributor.authorAl Balooshi, Sara
dc.coverage.spatialix, 228 p.en_US
dc.description.abstractThis thesis comprises three essays on Islamic investment securities (sukuk) and Islamic banking products. Data show that firms in dual financial system economies utilize traditional and Islamic instruments simultaneously to raise funds. Hence, religion is not the sole motive for Islamic transactions. That is attributed to the structure of sukuk, either promoting transparency or obscuring firm information. Chapter II investigates the relationship between firms' opacity and the choice to issue sukuk, given the availability of traditional external sources. We find that as opacity increases, the probability of firms' issuing zero-coupon (ZC) sukuk is the highest followed by conventional bonds and profit-loss sharing (PLS) sukuk. Therefore, opacity has a significant role in choosing between traditional and Islamic instruments, and that issuing zero-coupon sukuk requires more supervision. Chapter III uses a modified pecking order theory to place sukuk in firms' financial hierarchies among debt and equity. We look at the firms' funding choices at two thresholds: exhaustion of internal funds and maximum debt capacity. Firms' choice indicates the level of adverse selection and information asymmetry involved in issuing sukuk. When internal funds are exhausted, firms prefer to issue Profit-loss sharing sukuk over bonds, and fixed income sukuk is placed before equity beyond firms' maximum leverage. Thus, sukuk can widen the external funding spectrum, and the modified pecking order can accommodate sukuk. Chapter IV looks at the investors of such instruments. We investigate the Islamic banks' product mix to verify the claim that Islamic banks are identical to conventional banks due to the concentration of debt-like products. We hand-collected the values of each Islamic banking product otherwise aggregated under "loans". We document that while debt-like products positively affect bank performance, profit-loss sharing products enhance solvency. Contrary to theoretical claims, Islamic banks portfolios are not concentrated. Chapter I introduces Islamic finance and products, while Chapter V concludes.en_US
dc.description.sponsorship"I owe a great debt to the University of Bahrain for the financial support." -- Acknowledgementsen
dc.publisherUniversity of St Andrews
dc.subjectCorporate capital structureen_US
dc.subjectIslamic financeen_US
dc.subjectIslamic bankingen_US
dc.subjectPecking orderen_US
dc.subjectProduct mixen_US
dc.subjectFinancial econometricsen_US
dc.subjectEmerging marketsen_US
dc.subjectPortfolio concentrationen_US
dc.subject.lcshBanks and banking--Religious aspects--Islamen
dc.subject.lcshFinance (Islamic law)en
dc.subject.lcshIslam--Economic aspectsen
dc.subject.lcshCapital market--Islamic countriesen
dc.subject.lcshCapital market (Islamic law)--Malaysiaen
dc.titleEssays in Islamic finance and bankingen_US
dc.contributor.sponsorJāmiʻat al-Baḥraynen_US
dc.type.qualificationnamePhD Doctor of Philosophyen_US
dc.publisher.institutionThe University of St Andrewsen_US
dc.publisher.departmentUniversity of Bahrainen_US

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