The paper observes the operations of Islamic securities and investigates the possibility of their development under the existing regulations and economic conditions in Islamic countries. Furthermore, it also discusses the necessity of an Islamic secondary stock market and conditions for its emergence.
The Islamic equity screening standards specifically forbid investment in equities of companies with high financial leverage and a low fraction of investment in real assets. We investigate how these constraints on financial leverage and higher investment in real assets (operating leverage) affect the performance of Islamic equity portfolios (IEPs). The empirical findings suggest that investors sacrifice potential returns by holding constrained portfolios but also avoid some of the risk.
This paper aims to provide points of consensus on Islamic Economics and Finance Education (IEFE) based on the combined efforts of experts in the field by summarizing the findings from significant conferences on IEFE since 1975. Conference data is collectively treated as a survey of experts in the field. The conferences are analyzed in the context of current scholarship to understand is the field’s evolution. Findings include a need to develop the methodology of IEFE and evolve the paradigm of IEF.
The Islamic Finance Project (IFP) was founded by the Harvard University is America’s oldest university and one of the most respected centers of higher education and research in the world, attracting an array of talented students and scholars from across the globe. After about eight years of association with the CMES, the IFP came under the patronage of the Islamic Legal Studies Program (ILSP) at Harvard Law School in 2003.
The main purpose of the workshop was to envisage various models or structures of organizing business that retain the beneficial aspects of limited liability while avoiding the misuse of the concept. Accordingly the objectives set for the workshop were as follows: 1. Revisiting the debate on the shariah viewpoint of juridical person and limited liability; 2. Understanding advantages and benefits of limited liability to economy and business (public) in general and to promoters, shareholders, and employees in particular; 3. Discussing disadvantages and misuses: causes and extent; 4.
It is well established that countries require investments in infrastructure, education, healthcare and institutional development for long-term growth in income levels. However, due to the positive externalities associated with these sectors and issues such as non-excludability and non-rivalry, participation from private sector in these areas is generally inadequate and it becomes necessary for the state to intervene for optimal capital allocation.