Sukuk structure and risk exposures: evidence from an originator perspective

IF 2.5 Q2 BUSINESS, FINANCE

Journal of Islamic Accounting and Business Research Pub Date : 2024-08-01 DOI:10.1108/jiabr-10-2023-0343

Salah Alhammadi, Simon Archer, Dalal Aloumi

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引用次数: 0

Abstract

Purpose

Despite the growing prevalence of Sukuk issuances, there remains a significant knowledge gap concerning their specific risk exposures to originators of issuances rather than to investors, particularly compared to conventional bonds, and the implications of this for the corporate governance (CG) of originators. This study aims to examine the risks faced by originators and sponsors of Sukuk issuances, drawing insights from unique Sukuk case studies. The distinct characteristics of Sukuk include legal intricacies and Shari’ah compliance, which pose particular challenges to originators. Effective risk management is a key issue for CG in these areas.

Design/methodology/approach

A sequential explanatory case study method is employed, utilising the content analysis approach to extract information from various articles, reports and Sukuk case studies, including Tamweel Residential Mortgage Backed Sukuk and Tamweel Sukuk Limited.

Findings

The findings underscore the critical issues for originators in navigating risks within Sukuk structures, particularly concerning Shari’ah non-compliance and default risk. This highlights the importance of managing risks inherent in Sukuk structures, considering both Shari’ah compliance obligations and the sustainability of Sukuk in terms of default risk. Default scenarios raise unique questions regarding stakeholders' interests, specifically those of shareholders, investors and creditors, contingent on the Sukuk issuance's structure and contractual basis of the Sukuk issuance.

Practical implications

The need for a CG framework conducive to the effective management of these risks, thereby ensuring both Shari’ah compliance and long-term viability, which is crucial for the sustainable growth of Sukuk in the financial landscape.

Originality/value

This study offers a unique perspective by focusing on the risks faced by originators of Sukuk issuances, a largely unexplored area, and underscores the importance of effective risk management for CG and sustainability of Sukuk issuances.

查看原文本刊更多论文

伊斯兰债券结构与风险暴露：从发起人角度看问题的证据

目的尽管伊斯兰债券（Sukuk）的发行越来越普遍，但关于其对发行者而非投资者的具体风险敞口（特别是与传统债券相比）以及这对发行者的公司治理（CG）的影响，仍然存在着巨大的知识差距。本研究旨在从独特的伊斯兰债券案例研究中汲取启示，探讨伊斯兰债券发行的发起人和保荐人所面临的风险。伊斯兰债券的显著特点包括法律的复杂性和伊斯兰教法的合规性，这给发起人带来了特殊的挑战。在这些领域，有效的风险管理是 CG 的一个关键问题。研究结果研究结果强调了发起人在应对伊斯兰债券结构中的风险时所面临的关键问题，尤其是在伊斯兰教法不合规和违约风险方面。这凸显了管理伊斯兰债券结构中固有风险的重要性，既要考虑伊斯兰教法的合规义务，又要考虑伊斯兰债券在违约风险方面的可持续性。违约情景提出了有关利益相关者利益的独特问题，特别是股东、投资者和债权人的利益，这取决于伊斯兰债券发行的结构和伊斯兰债券发行的合同基础。实际影响需要一个有利于有效管理这些风险的企业管治框架，从而确保伊斯兰教法合规性和长期可行性，这对伊斯兰债券在金融领域的可持续发展至关重要。独创性/价值本研究提供了一个独特的视角，重点关注伊斯兰债券发行人所面临的风险--这在很大程度上是一个尚未开发的领域，并强调了有效风险管理对于伊斯兰债券发行的企业管治和可持续性的重要性。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

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.