nep-isf 2020-02-24 papers

on Islamic Finance

Issue of 2020‒02‒24
two papers chosen by

ISLAMIC FINANCE AND GCC ECONOMIC INTEGRATION By Russell Krueger
Political Patronage on Capital Structure in Indonesia By Muhammad Istan

ISLAMIC FINANCE AND GCC ECONOMIC INTEGRATION

By:	Russell Krueger (Economist)
Abstract:	The GCC economic integration process is taking place among countries that officially embrace Islam and with heavily Muslim populations. The thesis of this paper is that the GCC financial system is partially bifurcated into conventional and Islamic subsectors; intrinsic characteristics of Islamic finance might tend to partially isolate it from the general financial system in the GCC with consequences for overall financial integration prospects and financial stability. This paper enumerates several areas where special actions might be needed to effectively integrate Islamic finance in national and regional financial systems to support the economic and policy efforts of the integration program. Higher degrees of regional financial integration such as a common market or monetary union require a high level of harmonisation of rules and practices in multiple spheres including financial market integration, which encompasses Islamic finance as well as conventional finance.
Date:	2019–12–20
URL:	http://d.repec.org/n?u=RePEc:erg:wpaper:1381&r=all

Political Patronage on Capital Structure in Indonesia

By:	Muhammad Istan (State Institute of Islamic Studies, Curup, Bengkulu, Indonesia Author-2-Name: Kamaludin Author-2-Workplace-Name: Bengkulu University, Bengkulu, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
Abstract:	Objective – The purpose of this research is to test the theory of capital structure by determining whether the relationship is affected by Political Patronage. The study will examine political support, capital structure and financial performance of the company. Methodology/Technique – The data in this research is in the form of financial ratios displayed in the financial report of each company listed from 2010 to 2016. The sample was selected using purposive sampling with as many as 70 companies indicated to have political support. The data was analysed using regression analysis. Findings – The results show that Political Patronage has an influence on capital structure and political Patronage has a weak effect on financial performance. Type of Paper: Empirical
Keywords:	Political Patronage; Capital Structure; Financial Performance.
JEL:	G30 G32 G39
Date:	2019–12–12
URL:	http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr161&r=all

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