nep-isf New Economics Papers
on Islamic Finance
Issue of 2023‒04‒03
three papers chosen by
Ali Polat, Ankara Yıldırım Beyazıt Üniversitesi

  1. Governance Of Islam In Pakistan: An Institutional Study Of The Council Of Islamic Ideology By Abdul Manan
  2. Analysis of Banker's Perception on Islamic Banking In Pakistan By Ul Haque, Muhammad Ebbad
  3. External Financing and Firm Growth: Evidence from Micro, Small, and Medium Enterprises in Iran By Iman Cheratian; Saleh Goltabar; Hassan Gholipour Fereidouni; Mohammad Reza Farzanegan

  1. By: Abdul Manan (Pakistan Institute of Development Economics)
    Abstract: The launch of the book “Governance of Islam in Pakistan: An Institutional Study of the Council of Islamic Ideology” by Dr. Sarah Holz was held at PIDE in a hybrid seminar. Mr. Fida Muhammad Khan, Lecturer at PIDE School of Social Sciences (PSSS), moderated the seminar. Dr. Holz presented key points the book with Mr. Suresh, Ms. Salma Rahim, and Mr. Abdul Rehman, each expressing their thoughts on the chapters of the book they had reviewed.
    Date: 2022
  2. By: Ul Haque, Muhammad Ebbad
    Abstract: The research is done with a purpose of increasing knowledge about the importance of working capital management. The research investigates impact of working capital management on the profitability of the firms along with the impact of the same on the fixed capital investment of the firm. The research also finds out the interrelationship of fixed capital investment and the profitability because the ultimate goal of the firms is to achieve maximum profitability at the lowest level of risk. The research has thoroughly examined impact of variables involved through ratio analysis and tools like regression and correlation. The data was gathered from Karachi Stock Exchange. The data gathering was archival and panel data was used as a method to extract the needed information. The 20 companies are selected from KSE-30 index because they were considered the best performing stocks in the market. The remaining 10 companies fall in the Banking sector which has a totally different perspective of debt and equity situation, thus, commercial banks are eliminated from the KSE-30 companies in this research. The results of the study shows that the working capital management does not affect the profitability of the firms in isolation, but there is a slight impact of managing the current assets and current liabilities. These should be accompanied by other variables as well to ensure profitability. The fixed capital investment has an extremely low, in fact negligible impact on profitability. The effect of working capital management varies among industries.
    Keywords: Islamic Banking Banker's Perception
    JEL: G21 G23
    Date: 2023–01–19
  3. By: Iman Cheratian (Tarbiat Modares University); Saleh Goltabar (Tarbiat Modares University); Hassan Gholipour Fereidouni (Western Sydney University); Mohammad Reza Farzanegan (Marburg University)
    Abstract: This study examines the relationship between access to finance and growth in sales for Micro, Small, and Medium Enterprises (MSMEs) in Iran. Using data from 486 firms in five provinces, our findings indicate that external financing positively impacts sales growth for MSMEs. The results suggest that financing for research and development expenditures, production diversification, new employment and advertising can significantly contribute to increased sales growth. We also find that spending on intellectual property, labor training and land and building acquisition have a negative moderating effect on the relationship between finance and sales growth.
    Keywords: Finance-sale growth nexus; Micro, Small, and Medium Enterprises (MSMEs); Iranian economy; External financing
    JEL: G21 G32 G38 O16 O53
    Date: 2023

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