Waikato Management School, The University Waikato

This study uses micro-econometric analysis to examine the impact of Islamic debt on firm value and firm financial performance by observing Malaysian firms. A number of significant contributions to corporate finance arise from this research in relation to Islamic debt instruments and firm financial performance. First, it provides evidence of the Islamic debt impact on firm value and firm financial performance. Second, and very importantly it provides new insights, adding substantially to the very few studies that have been conducted on these types of instruments.