The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia

PurposeThis study aims to examine the impacts of global geopolitical risks (GPRs) and COVID-19 pandemic stringency on the size of Sukuk issuance in Malaysia.Design/methodology/approachTo examine the issue, this paper collected yearly data for the Sukuk issuance from the DataStream, and the rest of t...

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Published in:JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
Main Authors: Zakaria, Nor Balkish; Musa, Kazi; Kabir, Mohammad Rokibul; Sobhani, Farid A.; Abdillah, Muhammad Rasyid
Format: Article; Early Access
Language:English
Published: EMERALD GROUP PUBLISHING LTD 2024
Subjects:
Online Access:https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001263525100001
author Zakaria
Nor Balkish; Musa
Kazi; Kabir
Mohammad Rokibul; Sobhani
Farid A.; Abdillah
Muhammad Rasyid
spellingShingle Zakaria
Nor Balkish; Musa
Kazi; Kabir
Mohammad Rokibul; Sobhani
Farid A.; Abdillah
Muhammad Rasyid
The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
Business & Economics
author_facet Zakaria
Nor Balkish; Musa
Kazi; Kabir
Mohammad Rokibul; Sobhani
Farid A.; Abdillah
Muhammad Rasyid
author_sort Zakaria
spelling Zakaria, Nor Balkish; Musa, Kazi; Kabir, Mohammad Rokibul; Sobhani, Farid A.; Abdillah, Muhammad Rasyid
The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
English
Article; Early Access
PurposeThis study aims to examine the impacts of global geopolitical risks (GPRs) and COVID-19 pandemic stringency on the size of Sukuk issuance in Malaysia.Design/methodology/approachTo examine the issue, this paper collected yearly data for the Sukuk issuance from the DataStream, and the rest of the variables, including the control variables from the World Bank, were from 2018 to 2022. Several econometric approaches have been used, that is, ordinary least square (OLS), two-stage least squares (2SLS) and generalized method of moment (GMM) with fixed effects and random effects in examining the impacts.FindingsThe results demonstrate that global GPRs negatively impact the size of Sukuk issuance due to the investment risk during the high global geopolitical conflicts, war and rampant terrorism. Besides, the COVID-19 pandemic-related stringency also similarly affects the country's Sukuk issuance market because of the long-time lockdown measures, border closures, travel restrictions and low access to the market. The control variables also demonstrate similar results except for the gross domestic products, which shows positive and significant impacts on the Sukuk market of Malaysia.Originality/valueThe study's policy implications for Sukuk investors and issuers stress the importance of disclosing risk mitigation procedures, strengthening the regulatory framework and raising investor knowledge to attract and protect investors in the Sukuk sector.
EMERALD GROUP PUBLISHING LTD
1759-0817
1759-0825
2024


10.1108/JIABR-06-2023-0190
Business & Economics

WOS:001263525100001
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001263525100001
title The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
title_short The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
title_full The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
title_fullStr The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
title_full_unstemmed The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
title_sort The impact of geopolitical risk and COVID-19 pandemic stringency on Sukuk issuance in Malaysia
container_title JOURNAL OF ISLAMIC ACCOUNTING AND BUSINESS RESEARCH
language English
format Article; Early Access
description PurposeThis study aims to examine the impacts of global geopolitical risks (GPRs) and COVID-19 pandemic stringency on the size of Sukuk issuance in Malaysia.Design/methodology/approachTo examine the issue, this paper collected yearly data for the Sukuk issuance from the DataStream, and the rest of the variables, including the control variables from the World Bank, were from 2018 to 2022. Several econometric approaches have been used, that is, ordinary least square (OLS), two-stage least squares (2SLS) and generalized method of moment (GMM) with fixed effects and random effects in examining the impacts.FindingsThe results demonstrate that global GPRs negatively impact the size of Sukuk issuance due to the investment risk during the high global geopolitical conflicts, war and rampant terrorism. Besides, the COVID-19 pandemic-related stringency also similarly affects the country's Sukuk issuance market because of the long-time lockdown measures, border closures, travel restrictions and low access to the market. The control variables also demonstrate similar results except for the gross domestic products, which shows positive and significant impacts on the Sukuk market of Malaysia.Originality/valueThe study's policy implications for Sukuk investors and issuers stress the importance of disclosing risk mitigation procedures, strengthening the regulatory framework and raising investor knowledge to attract and protect investors in the Sukuk sector.
publisher EMERALD GROUP PUBLISHING LTD
issn 1759-0817
1759-0825
publishDate 2024
container_volume
container_issue
doi_str_mv 10.1108/JIABR-06-2023-0190
topic Business & Economics
topic_facet Business & Economics
accesstype
id WOS:001263525100001
url https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001263525100001
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