scholarly journals HOW FEASIBLE A CONVERTIBLE IJARAH CONTRACT FOR SME’S FINANCING: A SIMULATION APPROACH

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Zuliani Dalimunthe ◽  
Akhmad Syakhroza ◽  
Mustafa Edwin Nasution ◽  
Zaafri Ananto Husodo
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Economic Performance ◽  
Business Sector ◽  
Simulation Approach ◽  
Short Term ◽  
Islamic Financial Institutions ◽  
Main Input ◽  
Almost All

Islamic financial institutions have relied for decades on margin-based contracts toprovide financing for the business sector, despite the basic idea that Islamic financeis expected to provide an equity-based or a profit and loss sharing (PLS) contract.This fact raises the need to encourage the use of a margin-based instrument with aninnovative scheme that allows for conversion of the contract into a PLS-based contract.Moreover, we propose a convertible ijarah contract to fill this need. A convertible ijarahcontract is an ijarah (rent) contract that is convertible to a PLS contract according tothe Islamic financier’s decision. In this study, we simulate three scenarios of projectfinancing with (a) murabaha as a margin-based contract, (b) musharaka as a PLScontract and (c) a convertible ijarah contract. The aim is to evaluate whether theconvertible ijarah contract will provide a higher return for the financier compared to theother contracts. The main input of the simulation is nine sectors of Indonesian SMEs’financial performance. We found that when the financial performance of IndonesianSMEs was measured by short-term financial performance, the convertible ijarahcontract outperformed the murabaha contract for all sectors but did not outperformthe musharaka contract, except for low-margin sectors. However, when the financialperformance of Indonesians SMEs was measured by long-term economic performance,we found that the convertible ijarah contract outperformed the murabaha contract andmusharaka contract for almost all sectors.

scholarly journals THE ANALYSIS OF FACTORS AFFECTING THE DEVELOPMENT OF EQUITY FINANCING OF TRUSTEES BPRS AMANAH UMMAH BOGOR

2018 ◽  
Vol 5 (2) ◽  
pp. 276
Author(s):  
Eka Rahmawati Pangesti ◽  
Jaenal Effendi
Keyword(s):  
Error Correction ◽  
Financial Institutions ◽  
Profit Sharing ◽  
Short Term ◽  
Equity Financing ◽  
Correction Model ◽  
Factors Affecting ◽  
The Core ◽  
Islamic Financial Institutions

<p>Equity financing is a type of financing that is the core business in the Islamic financial institutions and a differentiator with conventional financial institutions. But until now, the total equity financing is still relatively low compared with other types of financing BPRS channeled. BPRS Amanah Ummah is one of the institution conducts equity financing.  This study aimed to analyze the influence of sharing profit, DPK, CAR, FDR, inflation, and the BI rate to equity financing at BPRS Amanah Ummah. This study uses Error Correction Model (ECM). The results showed DPK and FDR variables significantly influence the development of equity financing in the short term while variable DPK, CAR, FDR, and the BI rate significantly influence the development of equity financing in the long term however, Profit sharing rate and inflation variable does not significantly influence the development of equity financing. </p>

scholarly journals Islamic Banks Financing of FinTech Start-Ups in Oman: An Exploratory Study

2021 ◽  
pp. 55-65
Author(s):  
Abdelghani Echchabi ◽  
Mohammed Mispah Said Omar ◽  
Abdullah Mohammed Ayedh ◽  
Welcome Sibanda
Keyword(s):  
Financial Institutions ◽  
Islamic Banks ◽  
Short Term ◽  
Strategic Vision ◽  
Start Up ◽  
Islamic Financial Institutions ◽  
Start Ups ◽  
Depth Interviews ◽  
Infant Stage

This study mainly aims to explore the current practice and prospects of FinTech start-ups financing in Oman, particularly the IFIs (Islamic Financial Institutions) financing practices and the challenges faced by these start-ups in obtaining it. The study applies qualitative methods in procedures of in-depth interviews with eight Islamic banks’ managers in Oman. The findings revealed that the financing of the FinTech start-ups in Oman still in the infant stage and below its potential. This might be due to the general lack of interest in this area by the Omani start-up businesses. This situation might be due to the lack of clear strategic vision of Omani financial institutions, including both Islamic and conventional financial institutions with regards the Fintech start-ups. The findings also showed that the start-ups in Oman prefer long term financial schemes, while the Islamic financial institutions (IFIs) generally prefer to offer short term financing on Musharakah and Ijarah contracts. Lastly, the findings showed that the IFIs are positive regarding the prospects of growth and success of FinTech in Oman. It is noteworthy that this is one of the early studies that addresses the FinTech start-ups financing from an Islamic perspective, and hence places the ground for the future studies to be conducted in this area.

Financial Performance of ECIL, Hyderabad – An Analysis

2013 ◽  
Vol 3 (2) ◽  
Author(s):  
N. Jyothi ◽  
Dr. T. Satyanarayana Chary
Keyword(s):  
Public Sector ◽  
Performance Analysis ◽  
Private Sector ◽  
Financial Performance ◽  
Business Environment ◽  
Present Position ◽  
Short Term ◽  
Comprehensive Manner

Financial performance of individual organizations differ very significantly, however, the performance is distinguishable between public sector companies and private sector companies as their nature and size of investment and business environment is different . The ECIL is a very vast growing company which requires additional funds on a regular basis, whether internal or external. Particularly, the company needs both long term and short-term finances in view of its present position and enormous scope for improvement in the services provided. The present paper is a modest attempt to discuss the financial performance analysis of ECIL, Hyderabad in terms operating profits, capital employed ratios and turnover in a comprehensive manner over a period of 10 years.

scholarly journals Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan

2020 ◽  
Vol V (IV) ◽  
pp. 1-9
Author(s):  
Aftab Anwar ◽  
Muhammad Masood Anwar ◽  
Ghulam Yahya Khan
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Trade Openness ◽  
Short Term ◽  
Economic Progress ◽  
Critical Measure ◽  
Selection Of Variables ◽  
Guide Lines ◽  
Selection Of

Since inflation and trade openness rate are considered as critical measure of an economy's health. This article analyze the relation of Economic growth with Investment, Inflation and Trade Openness of Pakistan for 1970- 2019. The policy guide lines from analysis include promotion of policies to increase Investment and Trade-openness in short and long-terms. The study used ARDL bound-testing for long-term and Un-Restricted-Error Correction techniques to discover short-term interrelation amongst a selection of variables. Results of study revealed inflation negatively related to economic performance and positively linked to Investment and Trade-Openness. Findings of enquiry suggested government should focus more on investment friendly policies in the country.

scholarly journals AKAD MURĀBAḤAH; KONSEP DAN PELAKSANAAN DI LEMBAGA KEUANGAN ISLAM MODERN

2020 ◽  
Vol 1 (1) ◽  
pp. 88-102
Author(s):  
Ahmad Maulidizen
Keyword(s):  
Financial Institutions ◽  
Islamic Banks ◽  
Purchase Price ◽  
Short Term ◽  
Significant Growth ◽  
Library Research ◽  
Islamic Financial Institutions ◽  
The Cost ◽  
Number Of Customers ◽  
Risk Dependency

ABSTRACTIslamic banking in Indonesia has experienced significant growth, including assets, financing providedand the number of customers. Murābaḥah is the sale and purchase of goods at the original price with theagreed-upon profit. In murābaḥah the seller must tell the cost of the product he buys and determine anadditional level of profit. This research is a library research about the murābaḥah contract according tomuamalah fiqh and its application in modern Islamic financial institutions. Methods of collecting data indocumentation and various sources related to the murābaḥah contract are then analyzed inductively anddeductively. The results of the study are the murābaḥah foundation is the principle of buying and sellingwith a deferred payment system. Murābaḥah, as used in Sharia banking, is based on two main elements,namely the purchase price and related costs, and the agreement on mark-up (profit). Islamic banks adoptmurābaḥah to provide short-term financing to customers for the purchase of goods even though thecustomer does not have the money to pay. The murābaḥah financing portfolio in Islamic banks reaches 70-80%, but in practice there have never been any problems, including; collateral which is a problem of fiqh,risk dependency as a problem of the bank, bankruptcy and delay in payment are the problems of customers,and profits are too high, namely the problem of coming from the community. Therefore, Islamic banks mustmake improvements in the implementation to be in accordance with Sharia.Keyword : Murābaḥah, Financing Instruments, Modern Islamic Financing

scholarly journals “You Cannot Hide Forever Luke”: Understanding the Strategic Use of Sustainability Disclosure in the Short and Long Term

M n gement ◽  
2020 ◽  
pp. 19-37
Author(s):  
Samuel Touboul ◽  
Asli Kozan
Keyword(s):  
Longitudinal Data ◽  
Financial Performance ◽  
Stock Exchanges ◽  
Legitimacy Theory ◽  
Short Term ◽  
Sustainability Performance ◽  
Sustainability Disclosure ◽  
Short And Long Term ◽  
Detrimental Impact

This study investigates the relationships among firms’ sustainability disclosure, sustainability performance, and financial performance. Based on legitimacy theory and signaling theory, it argues that sustainability disclosure participates in two distinct mechanisms: a conformity mechanism through which disclosure shows conformity to the norms and a revelation mechanism through which disclosure reveals or hides a firm’s achieved degree of sustainability. In an attempt to contrast and reconcile the two mechanisms, the study assesses their impact on financial performance in the short and long term. Hypotheses are tested using longitudinal data (2002–2010), which cover 10,814 observations of firms from major indexes of stock exchanges worldwide. The results show that the conformity mechanism is effective in both the short and long terms, whereas the revelation mechanism is only effective in the short term. As a consequence, firms with poor sustainability performance may hide their detrimental impact and achieve higher financial performance in the short term by limiting their disclosure but not in the long term in which their lack of conformity is punished. In the long term, only conformity to the norms of disclosure leads to higher financial performance, even in the case of poor sustainability results.

scholarly journals ANALISIS PENGARUH KEBIJAKAN HUTANG TERHADAP KINERJA KEUANGAN

2020 ◽  
Vol 9 (1) ◽  
pp. 35
Author(s):  
Ari Triadi Wijaya ◽  
Muhammad Ali Fikri
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Free Variable ◽  
Short Term ◽  
Return On Equity ◽  
Total Debt ◽  
Research Population

This study aims to determine the effect of debt policy on  financial performance of coal companies listed on the Indonesia Stock Exchange. Policy debt is proxied by short term debt (STD), long term debt (LTD), and total debt (TD), while financial performance is proxied by return on equity (ROE). This research carried out for 3 (three) years, namely 2015-2017. This research is a causal research with a quantitative approach, whereas based on the level of exploration of this study, including associative research. Population research is a coal company listed on the Indonesia Stock Exchange for the period 2015-2017. Samples obtained were based on purposive sampling technique, and obtained 21 company. Data analysis technique used panel data regression. Regression with using the free variable short term debt (STD), long term debt (LTD), and total debt (TD). Based on the results of data analysis, STD has no significant effect on ROE. Variable LTD has a significant effect on ROE. The TD variable has no significant effect with ROE. so the STD and LTD variables are able to influence the ROE variable explained by other factors outside this research model.

scholarly journals Analyzing long-term empirical interactions between renewable energy generation, energy use, human capital, and economic performance in Pakistan

2019 ◽  
Vol 9 (1) ◽  
Author(s):  
Nousheen Fatima ◽  
Yanbin Li ◽  
Munir Ahmad ◽  
Gul Jabeen ◽  
Xiaoyu Li
Keyword(s):  
Human Capital ◽  
Renewable Energy ◽  
Economic Performance ◽  
Energy Use ◽  
Energy Generation ◽  
Causal Connection ◽  
Causality Analysis ◽  
Short Term ◽  
Renewable Energy Generation

Abstract Background The current research attempts to systematically investigate the causal interactions between renewable energy generation, aggregated energy use, human capital, and economic performance in Pakistan both in a short-term and long-term test for the period of 1990–2016. Methods As a primary step, a unit root analysis was conducted employing, among others, an augmented Dickey-Fuller-generalized least squares (ADF-GLS) test. Based on the order of integration I(1), the Johansen and Juselius (JJ) co-integration testing was employed to confirm a long-term causality analysis, which was followed by a vector error correction model (VECM) to calculate the short-run Granger causality analysis. Furthermore, the vector autoregressive (VAR)-based Cholesky test allowed the standard deviation impulse response functions to be generated to explain the responses of variables to arbitrary shocks in the data series under analysis. Results The empirical findings unearthed the bilateral causal connection between aggregated energy use and economic performance, renewable energy generation and economic performance, and human capital and economic performance. Thus, it confirmed the existence of feedback effects for aggregated energy use, renewable energy generation, and human capital in their relation to economic performance. Likewise, a unilateral positive causal connection was revealed running from renewable energy generation and human capital to aggregated energy use, and from human capital to renewable energy generation in both a long-term and short-term test. Additionally, the causal association running from aggregated energy use and renewable energy generation to economic performance was exposed in a long-term as well as short-term test, hence supporting the growth hypothesis. Conclusions The findings signified the importance of an enhanced generation of renewable energy along with the promotion of an aggregated energy use for the economic performance in Pakistan.

scholarly journals Debt Financing and Firm Performance: Evidence from an Emerging South-Asian Country

2019 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Mohammad Mazibar Rahman ◽  
Umme Khadija Kakuli ◽  
Shahnaz Parvin ◽  
Ayrin Sultana
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Financial Performance ◽  
Negative Influence ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Total Debt

This paper aims to empirically investigate the impact of capital structure choice on the firm performance of the firms listed under the Dhaka Stock Exchange of Bangladesh. Multiple regression has been employed in this research to determine the relationship between the capital structure and the firm’s financial performance. Three ratios of financial performance, i.e., return on assets, return on equity, and gross margin, have been used as a sample of non-financial Bangladeshi companies, selected from 2010 to 2015. The study records numerous findings. First, the result shows a significant negative influence of long-term debt (LTD) and total debt (TTD) on firm financial performance measured by return on assets (ROA), but no significant relationship is found between short-term debt (STD) and this measure of firm’s financial performance. Moreover, the research found that there is no significant effect of short-term debt, long-term debt and total debt on the firm financial performance measured by return on equity (ROE). Finally, the result shows that a significant negative influence of short-term debt and total debt on firm performance measured by GM, but no significant relationship was found between long-term debt and financial performance. In general terms, the results of this study may suggest that capital structure has a negative influence on firms’ financial performance in Bangladesh.

The effect of phosphate and potash fertilizers on cut and grazed grassland

1970 ◽  
Vol 74 (2) ◽  
pp. 397-407 ◽  
Author(s):  
J. S. Brockman ◽  
P. G. Shaw ◽  
K. M. Wolton
Keyword(s):  
Short Term ◽  
Long Term Experiments ◽  
K Fertilizer ◽  
P Fertilizer ◽  
Cutting Management ◽  
Experimental Management ◽  
Almost All ◽  
Grazed Swards ◽  
Grazed Grassland

SUMMARYAn experiment was carried out over a 5-year period on a grass/clover sward at North Wyke to compare three methods of experimental management—individually grazed plots, communally grazed plots and cutting with removal of herbage. Responses to phosphate and potash fertilizers under each management were measured.P fertilizer increased grass yields in the first 4 years and decreased clover yields in the last 2. In almost all respects cut and grazed sward responded similarly to P. Fertilizer K had no effect on grass yield but markedly increased clover yield and raised herbage K content. Grazed swards developed a higher herbage K content than cut swards, and K fertilizer increased it more in the fourth and fifth years on the individually grazed than on the communally grazed plots. Thus communal grazing resulted in appreciable transfer of K from plot to plot in animal returns.It is concluded that whilst cutting management may be used for short-term experiments, its use in long-term experiments gives different results from grazing. Communal grazing can lead to the transfer of N and K effects from plot to plot, so that plots must be grazed individually except perhaps where P is the only variable nutrient.

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