The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia

IF 2.5 Q2 BUSINESS, FINANCE
Nor Balkish Zakaria, Kazi Musa, Mohammad Rokibul Kabir, Farid A. Sobhani, Muhammad Rasyid Abdillah
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引用次数: 0

Abstract

Purpose

This study aims to examine the impacts of global geopolitical risks (GPRs) and COVID-19 pandemic stringency on the size of Sukuk issuance in Malaysia.

Design/methodology/approach

To examine the issue, this paper collected yearly data for the Sukuk issuance from the DataStream, and the rest of the variables, including the control variables from the World Bank, were from 2018 to 2022. Several econometric approaches have been used, that is, ordinary least square (OLS), two-stage least squares (2SLS) and generalized method of moment (GMM) with fixed effects and random effects in examining the impacts.

Findings

The results demonstrate that global GPRs negatively impact the size of Sukuk issuance due to the investment risk during the high global geopolitical conflicts, war and rampant terrorism. Besides, the COVID-19 pandemic-related stringency also similarly affects the country's Sukuk issuance market because of the long-time lockdown measures, border closures, travel restrictions and low access to the market. The control variables also demonstrate similar results except for the gross domestic products, which shows positive and significant impacts on the Sukuk market of Malaysia.

Originality/value

The study's policy implications for Sukuk investors and issuers stress the importance of disclosing risk mitigation procedures, strengthening the regulatory framework and raising investor knowledge to attract and protect investors in the Sukuk sector.

地缘政治风险和 COVID-19 大流行严格性对马来西亚伊斯兰债券发行的影响
目的本研究旨在考察全球地缘政治风险(GPRs)和COVID-19大流行病的严格性对马来西亚伊斯兰债券发行规模的影响。为了考察这一问题,本文从DataStream中收集了伊斯兰债券发行的年度数据,其余变量,包括来自世界银行的控制变量,均为2018年至2022年的数据。本文采用了几种计量经济学方法,即普通最小二乘法(OLS)、两阶段最小二乘法(2SLS)和广义矩量法(GMM),并使用固定效应和随机效应来研究其影响。研究结果表明,在全球地缘政治冲突、战争和恐怖主义猖獗的高发期,由于投资风险的存在,全球GPRs对伊斯兰债券的发行规模产生了负面影响。此外,与 COVID-19 大流行相关的严格性也同样影响了该国的伊斯兰债券发行市场,原因是长期封锁措施、边境关闭、旅行限制和市场准入较低。除了国内生产总值对马来西亚伊斯兰债券市场有积极和显著的影响外,其他控制变量也显示出类似的结果。 原创性/价值该研究对伊斯兰债券投资者和发行者的政策影响强调了披露风险缓解程序、加强监管框架和提高投资者知识以吸引和保护伊斯兰债券领域投资者的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.80
自引率
22.70%
发文量
78
期刊介绍: The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.
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