Addressing financial bankruptcy from the Islamic perspective

Ata, Haider Mohammed Ali Bani

doi:10.21511/bbs.14(3).2019.02

Cited by 6 publications

(3 citation statements)

References 12 publications

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“…Information asymmetry is a theory that managers very well know information on company conditions than investors (Bergh et al, 2019;Wolff et al, 2022). In this case, as a good signal to the financial market, managers can use high debt levels to express optimistic expectations about the future of the company if default or default on profits can lead to bankruptcy (Bani Ata, 2019;Goh et al, 2022). A lack of external information about the business can discourage them from taking big risks, so they offer the business a low price.…”

Section: Literature Review Information Asymmetry Theorymentioning

confidence: 99%

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Dhiva,

Gunawan

2023

International, J. , Contemporary, account.

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This study tries to determine how financial openness affects sustainability and profitability, sustainability report assurance regarding the cost of debt, business age, and firm size as a measure of control. The population of this research consists of banking enterprises registered on the Indonesia Stock Exchange (IDX) between 2017 and 2021. This data is obtained from secondary data that comes from annual reports or sustainability reports has a 116-person sample size. This study's analytical method was text analysis regression analysis. double linear. According to this study's test findings, the profitability variable significantly and negatively affects the cost of debt. This demonstrates that sound financial sustainability has a negative and significant influence on the cost of debt when the variable sustainability financial disclosure is used. Disclosure might reduce borrowing costs. The sustainability report assurance variable has a detrimental and substantial influence on debt's cost. The age of the firm, which served as the study's control variable, produced negative findings and had no impact about the price of debt. The size of the business is the second controlling factor, which has been shown to have a favorable and considerable influence on the company's debt costs.

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Section: Literature Review Information Asymmetry Theorymentioning

confidence: 99%

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Dhiva,

Gunawan

2023

International, J. , Contemporary, account.

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“…Moreover, it is timely that zakat institutions should consider the people overwhelmed by debts as their beneficiaries. Mohammed Ali Bani Ata (2019) also emphasized on zakat fund and the consideration of the financial institutions to address the bankruptcy cases. Raza Rabbani et al (2021) also put forward similar suggestions.…”

Section: Finding’s Analysismentioning

confidence: 99%

Can Islamic Financial Literacy Minimize Bankruptcy Among the Muslims? An Exploratory Study in Malaysia

et al. 2022

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Studies showed that Malaysians possess low financial literacy. Consequently, bankruptcy cases among young adults in Malaysia are rising. The government and its relevant institutions, that is, credit counseling and debt management agency, provide different training and awareness programs to minimize the bankruptcy rates. Muslims are among the majority that declared bankruptcy; hence, Islamic financial literacy (IFL) may have a considerable role to minimize bankruptcy cases by changing the attitudes and behaviors of debtors. Furthermore, studying IFL is pertinent to Malaysia because it is a Muslim-majority country with the leading Islamic banking market in the world. Therefore, this study aims to construct the theory of IFL from the sources of the Shariah and examines whether it is suitable to implement IFL in different financial awareness programs in Malaysia. The study concludes that IFL provides a comprehensive guideline for borrowers, lenders, financial institutions, and society to reduce bankruptcy. Furthermore, findings from the field study confirmed that IFL could be used in Malaysia to raise awareness among the related parties. This is a qualitative study that employed an inductive and deductive approach to review the sources of the Shariah to come out with Shariah rulings. Furthermore, this study conducted semi-structured interviews with the officials of related government bodies and agencies. It is expected that the outcome would have a direct implication on the policymakers and loaning institutions in Malaysia.

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“…During the last four decades, many sharia-compliant financial products and have been introduced all around the globe by Islamic financial institutions [69-71 products have been introduced in areas of consumer finance, investment banking, ing of poor and needy, venture capital and SME financing [72,73]. These produ services offered by the Islamic financial institutions are equity-based modes of fin such as Musharakah, Diminishing Musharaka and Mudrabaha, and asset-backed fin such as Murabaha, Ijarah, Istisna, Salam and Istisna [74,75]. Some other popular f services include Qardh-Al-Hasan, Bay-Al-Sarf and Agency.…”

Section: Research Framework: the Four-stage Economic Impact Of The Covid-19 Pandemicmentioning

confidence: 99%

The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

Rabbani

Ali

Rahiman

et al. 2021

Journal of Open Innovation: Technology, Market, and Complexity

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Novel Coronavirus, also known as COVID-19, is a health emergency that is having an ever-growing impact on the global economy. COVID-19 has caused economic disruption at an unprecedented speed and scale. The economic costs it will bring to society can only be measured in times to come. Millions of people across the globe have already become unemployed, and similarly, millions of businesses have either shut down or are on the verge of collapse. It is a great challenge for policymakers to minimize the economic impact of COVID-19 and put the economy on a growth trajectory once again. Unfortunately, there is so far no country in the world that can be viewed as a role model for its economic response to the COVID-19 pandemic. The present study proposes Islamic finance as a potential tool to help affected economies safely pass through the economic crisis resulting from the pandemic. This study identifies a four-stage COVID-19 model and proposes ten innovative Islamic financial services for each stage of the pandemic. In addition, it analyzes how these services can be effectively utilized at different stages to overcome the economic damage caused by the pandemic.

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Addressing financial bankruptcy from the Islamic perspective

Cited by 6 publications

References 12 publications

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Influence of Profitability, Sustainability Finance Disclosures, and Sustainability Report Assurance on Cost of Debt

Can Islamic Financial Literacy Minimize Bankruptcy Among the Muslims? An Exploratory Study in Malaysia

The Response of Islamic Financial Service to the COVID-19 Pandemic: The Open Social Innovation of the Financial System

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