BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
Christophe J. Godlewski
Do the type of sukuk and choice of shari’a scholar matter?
(), Rima Turk-Ariss
() and Laurent Weill
Abstract: Sukuk, the shari’a-compliant alternative mode of financing
to conventional bonds, have considerably expanded over the last decade. We
analyze the stock market reaction to two key features of this instrument:
sukuk type and characteristics of the shari’a scholar certifying the issue.
We use the event study methodology to measure abnormal returns for a sample
of 131 sukuk from eight countries over the period 2006-2013 and find that
Ijara sukuk structures exert a positive influence on the stock price of the
issuing firm. We observe a similar positive impact from shari’a scholar
reputation and proximity to issuer. Overall our results support the
hypotheses that the type of sukuk and the choice of scholars hired to
certify these securities matter for the market valuation of the issuing
Keywords: financial instruments; Islamic finance; shari’a scholars; (follow links to similar papers)
JEL-Codes: G14; P51; (follow links to similar papers)
30 pages, December 3, 2014
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Päivi Määttä ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom