The Nexus between Islamic Label and Firm Value: Evidence from Cross Country Panel Data

• 발행기관: 한국유통과학회
• 저자명: Naeem ULLAH Abdul WAHEED Nida AMAN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』The Journal of Asian Finance, Economics, and Business Vol. 9 No.4, 409~417쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.04.30

영문 초록

This research uses a panel data set of selected developed and emerging economies to investigate the relationship between firm value and the Islamic label. A low-debt company is a proxy for excellent governance, and good governance has a significant positive impact on a company’s valuation. We can claim that the Islamic label may also be a proxy for excellent governance and will significantly impact a company’s economic value because it reflects low debt Sharia-compliant companies. To explore this relationship, cross-country data from non-financial enterprises in Pakistan, the United States, Malaysia, and Indonesia was acquired from 2010 to 2015. The study’s findings indicate that the Islamic label has a positive significant impact on the firm’s worth in the whole sample, including all countries. With the exception of the United States, we have also collected the same information at the country level. We also discovered that the corporate governance index at the firm level has a positive significant impact on firm value. The findings show that the Islamic label reflects good governance and hence can be used as a proxy for good governance. The analysis differentiates between Islamic labeled and conventional enterprises in developed and emerging nations, adding to our understanding of who contributes to enhanced corporate financial performance.

목차

1. Introduction

2. Literature Review and Hypotheses

3. Methodology

4. Results and Discussion

5. Conclusion and Recommendations

References

키워드

Sharia Compliant Corporate Governance Non-Financial Malaysia