Analysis Of Factors On The Issuance Of Sharia Bonds (Sukuk) And Sharia Shares On Company Performance In Jakarta Islamic Index 70

Abstract

This study aims to analyze the effect of the issuance of Islamic bonds (sukuk) and the issuance of Islamic stocks on company performance in the Jakarta Islamic Index 70. The issuance of Islamic bonds and Islamic stocks is an alternative for companies to obtain a capital structure in carrying out company operations and is expected to improve the company's performance. In terms of financial performance through Return On Assets (ROA), company stakeholders optimize Islamic capital market products to increase Islamic financial inclusion. Besides, it attracts investors to invest. This study uses a quantitative descriptive method, secondary data from companies listed in the Jakarta Islamic Index 70 years 2018-2020 using a purposive sampling method with Tobin's analysis and company age into 15 samples. Testing the hypothesis model using the classic assumption test and multiple regression tests to test the market reaction to the issuance of Sukuk and Islamic shares on the issuance variable using the issuance value, the number of shares outstanding, company leverage, company size, total debt, and company managerial ownership. The research resultsstated thatReturn on Assets (ROA) was affected bythe issuance value variable and the company's leverage in 0.00192 and 0.0373. The variables of the number of outstanding shares, total debt, firm size, and managerial ownership do not affect the value of ROA. However, all variables have a significant effect on the ROA value. The result shows that the issuance of Islamic bonds and Islamic stocks affects the company's performance.

The Potential of The Islamic Capital Market (ICM) as an Investment Model for the Baitul Mal

“…Technically, according to the International Shariah Research Academy (ISRA, 2015), In the context of money and capital markets, sukuk refers to securities certificates that represent financial rights emerging from underlying trade and other commercial activity (Utami et al, 2019). Furthermore, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) defines investment Sukuk (Sukuk istithmar) as "certificates of equal value representing an undivided share in the ownership of tangible assets, benefits, and services" in Shariah Standard 17(2) (2010), or (owning) unique project assets or specialized investing activity (Jastacia et al, 2021)." In terms of investing Sukuk features, AAOIFI (2010) declares in Shariah Standard 17/4/2 that, "Investment sukuk are a type of agreement/commitment to hold assets accessible for investment, such as non-monetary assets, proceeds, services, or a combination of all of these, as well as intangible rights, debt, and monetary assets.…”

How New Green Technologies are Changing the Indonesian Economy

“…The return on assets ratio serves as the dependent variable to observe a company's performance, ensuring stable and reliable financial performance. ROA can reflect returns on the Islamic capital market and measure other financial performance that has an impact on company management (Jastacia et al, 2021).…”