Which firms do prefer Islamic debt? An analysis and evidence from global sukuk and bonds issuing firms

Uddin, MH, Kabir, SH, Hossain, MS, Wahab, NSA and Liu, JL ORCID: https://orcid.org/0000-0002-2978-6022 2020, 'Which firms do prefer Islamic debt? An analysis and evidence from global sukuk and bonds issuing firms' , Emerging Markets Review, 44 , p. 100712.

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Abstract

The Islamic debt instrument sukuk has been in the market for two decades; still, we do not know why a firm prefers an Islamic debt over conventional debt, set aside religiosity issue. We argue there is a genuine reason to choose Islamic debt because it has lighter indebtedness, benefits of avoiding external monitoring, and tax incentives. Based on the cross-country data for 346 firms issuing dollar-denominated global sukuk and bonds, we find that firms that prefer Islamic debt and issue sukuk are financially more unstable, and thus exposing to higher insolvency risk as compared to bond issuing firms.

Item Type: Article
Additional Information: ** Article version: AM ** Embargo end date: 31-12-9999 ** From Elsevier via Jisc Publications Router ** Licence for AM version of this article: This article is under embargo with an end date yet to be finalised. **Journal IDs: issn 15660141 **History: issue date 07-06-2020; accepted 04-06-2020
Journal or Publication Title: Emerging Markets Review
Publisher: Elsevier
ISSN: 1566-0141
Related URLs:
SWORD Depositor: Publications Router
Depositing User: Publications Router
Date Deposited: 07 Sep 2020 13:10
Last Modified: 07 Sep 2020 13:10
URI: http://usir.salford.ac.uk/id/eprint/57250

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