Measuring the Size of Output Gap in Sukuk Issuing OIC Member Countries

Ahmad, Nursilah; Hashim, Norhaziah; Johari, Fuadah

doi:10.5901/mjss.2015.v6n2s5p249

Cited by 1 publication

(1 citation statement)

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“…The issuance volume of Sukuk bonds is related to market risk, which includes interest, risk of inflation and exchange rates. Therefore, investors maintain the Sukuk value until the maturity period, without numerous fluctuations that require the support of return analysis (Kamarudin, Kamaluddin, Manan, & Ghani, 2014) because the fluctuating volume of Sukuk issuance can be caused by economic variable shocks (N. Ahmad, Hashim, & Johari, 2015). Some studies on the reaction of the bond market and the stock market show that the transition in the volume of stock issuance affects the decline in bond prices (Abaffy, Bertocchi, Dupačová, Moriggia, & Consigli, 2007).…”

Section: Introductionmentioning

confidence: 99%

The Volume of Issuance of Government Islamic Securities SR-007 Series, 2015–2018

Shintyawati¹,

Doktoralina²,

Nurhasanah³

et al. 2020

IJFR

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In Islamic finance, Sukuk instruments are similar to the bond market in conventional finance and are intended to increase long-term investment capital. However, according to Sharia, Sukuk means there is no uncertainty (Garar), interest (usury) and gambling (Maisir).This is also new in the financial market in Islamic Bank. The government uses Sukuk as an instrument for financing the state budget, and Sukuk financing has contributed to the development and financing of state projects. The amount of Sukuk issuance volume is influenced by external factors such as macroeconomic conditions and internal factors, namely prices and yields of Sukuk. The problem is whether inflation, exchange rates, Sukuk prices and returns affect the volume of Sukuk issuance. Therefore, this research aims to determine the effect of macroeconomic variables (inflation and exchange rates), Sukuk prices and Sukuk yields on the volume of Retail Sukuk issuance in Indonesia, using the Vector Error Correction Model (VECM) research model and the assistance of econometrics EViews 9. The data used in this study are time-series data from April 2015 to March 2018, with a research sample of Retail Sukuk with the latest maturity in March 2018, namely Retail Sukuk SR-007 series. The results of the study show that the inflation and price variables have a long-term significant influence on the volume of Retail Sukuk SR-007 issuance and only yield variables that do not influence both the long- and short-term, while the exchange rate variable has significant long- and short-term effects.

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Section: Introductionmentioning

confidence: 99%