Profit and loss sharing ratios: a holistic approach to corporate finance

Submitted by Anonymous (not verified) on Thu, 08/22/2019 - 16:08
Year
2001
Country
United States
Language
English
Abstract

Islam approves certain forms of financial transactions and forbids others, based on principals of justice and equality spanning back 1,500 years. There is a need for more Islamic financial instruments, so that the depth and range of financial transactions is improved, but developing them within the constraints of the Shari‘a can be difficult. The ultimate challenge is to segregate equity into percales with different risk-return profiles in a way compatible with the teachings of Islam. A plausible solution is the division of parcels into different tranches, each with different levels of residual control and different rates of return.

English
ISSN/ISBN
0972-138X
No. of Pages
pp.5
Number
2
Volume
3
Select type of work
Author(s)
CIS Program Old
CIS publications
No
CIS Thesis
No