In most parts of the world, Islamic banks operate in a dual banking system together with conventional banks. Researchers may be curious to explore whether operating in a dual banking system affects the type of Islamic banks that exist in the economy and the kind of products that they offer. In light of the recent LIBOR scandals, debates surrounding benchmarking of Islamic products will recapture the attention of researchers; hence, product development in Islamic banking will also remain an important area. With the increasing availability of data, empirical research in Islamic banking is expected to continue to inform industry stakeholders. Understanding the Islamic banking phenomenon from an economic perspective with the support of empirical evidence may help to align the practices of Islamic banks to its originally intended objectives of offering a just and equitable form of financing based on sound ethical principles. This volume aims to bring together papers on these themes. The volume consists of selected papers from the 8th International Conference on Islamic Economics and Finance held in Doha during 19–21 December 2011 and from the 9th International Conference on Islamic Economics and Finance held in Istanbul during 9–11 September 2013.
PART 1: ISLAMIC CAPITAL MARKETS AND CORPORATE FINANCE
Valuation of Islamic debt instruments, the Sukuk: Lessons for market development / Mohamed Ariff and Meysam Safari
The impact of Islamic debt on company value / Fitriya Fauzi, Stuart Locke, Abdul Basyith and Muhammad Idris
Islamic financing and bank characteristics in a dual banking system: Evidence from Malaysia / Muhamed Zulkhibri
Leverage risk, financial crisis, and stock returns: A comparison among Islamic, conventional, and socially responsible stocks / Vaishnavi Bhatt and Jahangir Sultan
Is Shariah-compliant investment universally sustainable? A comparative study / Mehdi Sadeghi
PART 2: ISLAMIC BANKING – EFFICIENCY, PROFITABILITY & INTERNATIONAL PERSPECTIVES
The nexus between economic freedom and Islamic bank performance: Empirical evidence from the MENA banking sectors / Fadzlan Sufian, Muhamed Zulkhibri and Abdul Majid
Efficiency of performance of banks in the Gulf region before, during and after crises (financial and political) / Abdel Latef Anouze
The relationship between Islamic bank efficiency and stock market performance: Evidence from GCC countries / Samir Srairi, Imen Kouki and Nizar Harrathi
Conventional banks versus Islamic banks: What makes the difference? / Huseyin Aytug and Huseyin Ozturk
PART 3: PRODUCT DEVELOPMENT IN ISLAMIC FINANCE
Estimating expected returns on Mudaraba time deposits of Islamic banks / Zeynep Topaloglu Calkan
Self-adjusting profit sharing ratios for Musharakah financing / Volker Nienhaus
Indexing government debt to GDP: A risk sharing mechanism for government financing in Muslim countries / Syed Aun R. Rizvi and Shaista Arshad
Concept and mathematics of Islamic valuation and financial engineering / Nadi Serhan Aydin, and Martin Rainer
