Initial Performance of Malaysian Shariah-Compliant IPOS

Author: Nor Azizan Che Embi, Ruzita Abdul Rahim & Izani Ibrahim

Publisher: UKM Press

ISBN: 9789674126520

Pages: 136pp

Year: 2018

Weight: 0.239kg

Price: RM30

This book is a response to the development in the Malaysian IPO market which in 2004 witnesses the introduction of pre-IPO Shariah status. It is clearly one of the initiatives to promote growth in the Islamic capital market it the country, in line with its aspiration to become the world's hub of Islamic financial market. Initial Performance of Malaysian Shariah-Compliant IPOs begins by arguing that this vision could be hindered due to the discrepancy in the screening standards for equity securities that are practiced by the Shariah Advisory Council (SAC) of Securities Commission of Malaysia as opposed to the international standards. The accentuation of this book is on the financial aspects of the companies, as they are practiced by the Council of Islamic Fiqh Association (CIFA) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The book discusses in length the significant of the respective financial criteria based on the Islamic principles and theoretical arguments of corporate finance. It reports empirical results which verify that the adoption of those financial criteria produces clearer distinctions among IPOs that are Shariah-compliant of different extensiveness. Adopting these financial criteria will improve the compatibility of Malaysia's Shariah screening criteria to the international standards, and therefore make Malaysian equity securities more appealing to the Muslim investors around the globe. This book is positioned for advanced-level undergraduate and postgraduate students, researchers, regulators, and practitioners. The materials are suitable for additional readings for courses on Islamic Finance and Banking, Islamic Economics and Islamic Perspective of Investment.

NOR AZIZAN CHE EMBI, PhD, is an Assistant Professor at the Department of Finance at the Kulliyyah of Economics and Management Science, International Islamic University of Malaysia. Her areas of specialisation are Economics and Islamic Finance and Insurance. She has been working and publishing on the issues of Shariah-compliant equity securities and management of waqaf. RUZITA ABDUL RAHIM, PhD, is an Associate Professor at the Department of Finance and Risk Management at the Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM). Her areas of specialisation are corporate finance including in international issues, and also investment. With the (r)evolutionary development of financial technology (fintech), she is recently developing an immense interest in the technology and block chain and has started working on the conceptual and application aspects of these technologies in both Finance and Investment. IZANI IBRAHIM, PhD, was formerly a Professor in Finance at the UKM-Graduate School of Business, UKM. He is currently serving as a faculty member at the Department of Finance of Prince Sultan University, Saudi Arabia. A well-known econometrician, he has contributed to the literature of various areas of Finance particularly the statistical properties of stocks and the behavior of corporate financing.