How sukuk financing can influence firm / Ibrahim Seth

This study's objective is to evaluate the effects of business performance on sukuk financing. All the data for the study was gathered quantitatively from sources including Thomson Reuters, Bank Negara Malaysia, Bursa Malaysia, and others. The dependent variable utilized to execute is sukuk. During the analysis, Size (Log of Total Asset), Leverage Ratio, and other independent variables were employed. Asset Structure (calculated as net plants, property, and equipment divided by Total Asset), Debt to Total Asset, and a company's growth (Growth Rate), Profitability Ratio (Net Income to Total Asset), and for the Total Asset). The tendency to pick sukuk indicates ethical finance based on five years of data collected from 2015 to 2019 is used in assessing the relationship between dependent and independent variables using the regression approach. The panel data is utilized for firms' commitment to social capital. According to the research, factors such as size (measured as the log of total assets), leverage ratio (the ratio of debt to total assets), and asset structure (the ratio of net plants, property, and equipment to total assets) all significantly affect the likelihood of issuing sukuk. Additionally, the findings provide no evidence that the profitability ratio (Net Income to Total Asset) and firm development (Growth Rate of Total Asset) have any bearing on a person's propensity to choose sukuk. Therefore, the success of sukuk financing shows that these variables have remained effective throughout time.