A Delve into Performance of Sukuk (Islamic Bonds) and Conventional Bonds Issued by PLCs in Malaysia


The purpose of this study is threefold; (i) to analyze the performance of the public listed companies (PLCs) that issues sukuk (also known as Islamic bonds) as compared to conventional bonds. (ii) to validate the relationship between bond facets and firms’ performance and (iii) to evaluate the effects of independent variables in terms of size of issuance, bond’s rating, coupon rate, types of instruments and tenor of each issuance towards firm’s performance. The study used a secondary data for a total of N= 966 issuance which are gathered from Bank Negara info Bond website, and Rating Agency Malaysia (RAM) for such a bond facets. Data from Thompson Data Stream and Bloomberg are utilized to represent firm’s performance proxies (N=970) from 2002 until 2009. The preliminary result revealed by multivariate regression and independent T test was shown there is a statistically significant relationship between bond facets with firm’s performance. Most of the public listed issuer was issued sukuk as compared to conventional bonds during study periods.

Keywords: Bond facets, Conventional Bonds, Performance, Public Listed Companies, Sukuk

Unique Article ID: EJAAFR-118

Article Review Status: Published

Pages: 83-94 (Download PDF)

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