Sustainability of Sukuk and conventional bond during financial crisis in the perspective of Malaysia / Athirah Shazali

This paper attempts to identify the relationship of exchange rate, inflation, gross domestic product, between bond and sukuk index during the financial crisis in respective of Malaysia. This research paper uses quarterly basis time between 2006 until 2016. These variables use quarterly data of 44 samples of observation. The purpose of this research paper to determine which macroeconomic variables are the most significant with the bond and sukuk performance in Malaysia. The existence of relationship between macroeconomic variables and bond and sukuk growth is tested using multiple regression. The methodology used in this study is norrnality test, serial correlation test, heteroskedasticity test, and functionality test. The findings reveal that there is negative significant relationship between inflation and performance of conventional bond and sukuk. Thus, sukuk and bond does consider inflation rate as a driving force.