Potential Benefits of ICM Development on Market Segments Sharī`ah-compliant Equities Development of the Islamic equity market typically involves having in place a Sharī`ah stock-screening process which facilitates the identification of Sharī`ahcompliant stocks and therefore attracts wider participation from investors that seek Sharī`ah-compliant products. At the same time, it can facilitate the construction of Islamic equity indices. Sharī`ah-compliant equities may also appeal to the global socially responsible investing (SRI) community, as well as environmental, social and corporate governance (ESG) investors, in view of similarities in their underlying values and principles; therefore, the market demand for these stocks is potentially …show more content…
Development of the Sukuk market should include both the sovereign and corporate segments, to the extent possible and practicable, in order to enable both the public and private sectors to have the widest possible options for fund-raising. Based on the experience of some jurisdictions, government participation and support would be a major factor in developing a sound Sukuk market. Regular issuances by the government would create a yield benchmark for the issuance of corporate Sukuk and also encourage Sukuk issuance by the private sector. The feasibility of this approach nevertheless would differ between one jurisdiction and another, based primarily on the financial and economic specificities of each jurisdiction. In jurisdictions with large infrastructure investments, there are significant opportunities for the growth of Sukuk as a fund-raising means for both the public and private sectors. A facilitative ecosystem to provide SMEs greater access to funding via the ICM would help fuel the growth of these companies and drive the expansion of the SME sector. There are, however, factors for consideration in assessing the viability of SMEs to issue Sukuk, including their financial positions, investors’ risk appetite and the nature of the business. There have also been initiatives in several jurisdictions recently to democratise Sukuk from being a “wholesale”
Capital can come from state and corporate pension funds, public and private endowments and personal investors
Prior research has revealed numerous topics relevant in the study of integrated marketing communications and how marketer should best handle the IMC process in order to develop truly integrated communication programs (Cook 1997; Kitchen and Schultz 1999; Schultz and Kitchen 1997).
Socially responsible investing (SRI), also known as sustainable, socially conscious, "green" or ethical investing, is any investment strategy which seeks to consider both financial return and social good. This paper would argue that SRI is not only beneficial because it is sustainable policy but also that it yields almost the same or even higher returns for its investors. First, paper would give general information about SRI, its history and development issues. Then, it would focus on the financial returns to shareholders and argue that return on investments for companies that adopted SRI in their policies is the same as the general market. Finally, it would talk about what are the future prospects for companies that adopted SRI policy despite some of the latest drawbacks.
The limited funds forces SMEs to operate solely and discreetly which translates to the shortage of working capital, inadequate marketing as well as being stagnant at the growth stage. Given that SMEs operate in small scale, one of their biggest challenge is to command competitive procurement, distribution as well as the selling price. The working capital of these SMEs is restricted in the illiquid inventory and receivables due to the unorganized sectors which makes SMEs prone to any demand disruption in the supply chain which can affect their operations drastically. The financial manager has to ensure cash available to the company in order to cover its operating expenses and short-term debts. To obtain an effective working capital management, the manager must manage the cash flow to pay the employees and debts, know when to take on short-term loan to pay the suppliers or unexpected expenses. The manager can keep more current assets to reduce liquidity risk. However, this would reduce the company’s profitability as current assets have low returns. In contrast, using more current liabilities which cost less will result in higher
Anyone who owns public shares in a company has invested hard-earned money into a corporation based upon their perception that the company will be profitable and sustainable. The corporation’s board of directors are then responsible to manage the company in such a way as to increase their share-holders’ investment. For hundreds of years, this attempt to increase a corporation’s worth was done with little or no interest in social responsibility. Until very recently this topic was not very much in the public eye. However, at the moment the global economy is rapidly changing and business transparency is increasing through the accessibility of information across the world. Social and global change is moving faster than ever and progressing
After gaining insights of the history of the development of the SMEs and the motivational factors of young entrepreneurs to establish a business, there is potential obstacles that young entrepreneurs might face in financial options from the start-up. SMEs have difficulties in having access to formal finance and are more financially constrained than larger enterprises. According to Beck and Demirguc-Kunt (2016)’s survey, “the probability that a small firm lists financing as a major obstacle (as opposed to moderate, minor or no obstacle) is 39% compared to 36% for medium-size firms and 32% for large firms.” The result shows that SMEs have a harder time than large enterprises in accessing to finance options. For a reason, Beck and
Social responsible programs are growing very rapidly. “Over the last two years, SRI investing has grown by more than 22% to $3.74 trillion in total managed assets, suggesting that investors are investing with their heart, as well as their head” (Chamberlain, 2013). Investors are caring about their
Methodology used in this report is explanatory research case study and qualitative research method where data regarding the sukuk defaults and shariah issues in Sukuk Asset-Based and Sukuk Asset-Backed are being collected. From these data collection, the development of theory can be focused through an approach of case studies and this method can relate to the growing issues of sukuk defaults. (Eisenhardt, 1989; Yin, 1994).
All the social business visionaries we met made it clear that the greatest obstacle for them is the poor access to back, which seriously hampers their development. Since the social speculation atmosphere in India is as yet expecting developing, frequently, they are left to discover stores for themselves. They in the end must be bolstered by associations or establishments, for example, the Ashoka Establishment or the Skoll establishment. Indeed, even these associations augment help simply after the business visionary has survived the underlying days on her/his own. In this manner, the most concerning issue for such associations has been to pull in financial specialists and pick up their trust as to their method of operations, which does not guarantee any financial returns soon. In any case, regularly, the current legitimate structures, for example, Trusts and Societies are discovered unequipped for guaranteeing a just and proficient approach in operational administration. Among the restricted choices accessible to them, they discover the Section 25 organization arrangement to be the best as far as administration what's more, administrative compliances. Be that as it
This paper seeks to discuss securitisation as a viable, and an alternative way of raising additional capital for business organisations. Business organisations and other corporate entities require substantial capital to grow and expand their ventures. When the financial resources of a business entity are stretched to the limit, equity capital is scarce and therefore expansion is stalled. Therefore, in order to improve their financial liquidity, the shareholders may not be ready to relinquish their holdings by issuing stocks to the public. Hence, they have resorted to innovative ways of raising additional capital with minimal cost. Securitisation has been found to be a convenient way of raising funds by transforming unmarketable assets/receivables into tradable securities through the instrumentality of Special Purpose Vehicles (SPVs). For this reason, the securitisation market has continued to grow. Securitisation has witnessed exponential growth from a non-existent industry in 1970 to $6.6 trillion as of the second quarter of 2003. As it has been revealed in numerous instances, SPVs have been put to various use by
Sukuk was issued in order to raise money. Principle that been use in this Sukuk is Murabahah (Commodity Murabahah). Issue that arise is tradability of Sukuk which been traded at discount. Another issue is leakage of fund to non-compliance activity. Based on Shariah, riba is prohibited from Islamic finance, but in this issue, there is some profit which is using riba basic.
The success of the Islamic financial industry over the last two decades has lead new challenges related to liquidity management. Particularly, the Islamic capital market provides the component of liquidity to the alternatively illiquid assets. This is accomplished by selling a wide arrange of products structures from Shari’ah-compliant securities to bond-like structures known as Sukuk. Indirectly, this has increase economic activities based on Shari’ah. Even though the Islamic Capital Market uses the same market facility as the conventional, but the two have quite a different component and activity (Securities Industry Development Centre (SIDC),
Shahjanaz Kamaruddin begins this article by stating that Malaysia has developed into becoming a full-fledged Islamic financial system operating in parallel to its conventional counterpart. Islamic finance is based on the Islamic principle of Syariah which is relevant in today’s world. According to the Islamic Finance Development (IFD) Report 2014, Malaysia is the undisputed in sukuk(bond) with a 63% of global market share. Malaysia performs very well across 5 indicators which are quantitative development, knowledge, governance, CSR (corporate social responsibility) and
On 1 August 2013, the Prime Minister unveiled the Malaysia International Islamic Financial Centre’s new brand ` Malaysia: World’s Islamic Finance Marketplace’. It promotes the rapidly expanding connectivity of Malaysia’s Islamic financial institutions with the global banking community. A robust financial infrastructure will enable better cross-border multi-currency transactions. In conjunction with the launch, the enhanced MIFC portal was also rolled out. Major enhancements include Islamic finance news feeds, live market data, thematic analyses and
The Islamic banking industry has come a long way in issues of corporate governance. However, Islamic banks need to be at the forefront of pioneering innovative, impactful, and far-reaching social responsibility and corporate governance practices since for starters, they are faith-based institutions. Islamic banks need to stop resting on their laurels and stop playing catch up in these domains. Moreover, Islamic banks need to deal conclusively with the array of challenges facing their Shari’ah corporate governance endeavors so as to meet their objectives in a more effective manner.