16. ve 18. Asırlarda Osmanlı Fetva Literatüründe Mudârebe Ortaklığı

Author(s): Ahmet İnanır / Language(s): Turkish / Issue: 40/2020

Mudārabah is a type of partnership that was founded by putting labor on the one hand and capi-tal on the other, dating back thousands of years before Islam. In Islam, this partnership has been accepted as legitimate and used by Muslim societies. This partnership has included in the classic fiqh books as a separate section from the şarikah subjects. Mudārabah partnership continues to exist in various ways today. Participation finance which is developing day by day collects capital based on this partnership. Some researchers even recommend it as an alternative method to participation banking based on contemporary usury especially the interest finance system. For this reason, whether the partnership in question is of a nature to perform the task expected from it will only be revealed by knowing the historical experience. Furthermore, determining the change that this partnership has undergone in the historical process will help to understand its current situation and the way it will take in the future. Because, depending on the human expe-rience in the historical process, it is seen that some provisions and consequences of the partners-hip have changed. The partnership structures, which were simple in the first periods, have gained more and more technical features. For this reason, it is of great importance in terms of economic history to determine and how the Ottoman period partnerships were established in the 16. and 18. centuries, which business lines were widely used, and what legal problems and solutions were produced during this period. In this way, functional determinations can be made as to whether the contract will be able to fulfill the function expected today.This research tries to put forward the various legal problems and solutions faced by the conflict partnership based on Ottoman fatwa literature in the 16. - 18. centuries. Because the current problems encountered with the application have been the subject of fatwas as well as fiqh books. Fort this purpose, fatwa journals belonging to Ibn Kemal (d. /9401534), Ebu’s-su‘ud Efendi (Abū l-Su‘ūd) (d. 982/1574), Sun‘ullah Efendi (d. 1021/1612), Feyzullah Efendi (d. 1115/1703) and Yenişe-hirli Abdullah Efendi (d. 1156/1743), who stand out in terms of recognition and accessibility in the aforementioned centuries have been collected and fatwas that can be determined on the subject have been evaluated.In the Ottoman period fatwa literature, the contractual contract takes place in separate titles separate from the company department, as in the tradition of fiqh. It is understood that fatwas related with mudārabah mostly reflect the problems and solutions that arise during the applica-tion. When the prominent fatwa journal of the research subject are examined, it is seen that the mudārabah partnership has been widely used in Ottoman society in terms of both number and issues. Due to the fact that this partnership can be said to be one of the most useful tools for the capitalist to operate his capital and to meet the financing needs for the entrepreneur. It seems that some people especially women, who do not have the opportunity to trade, prefer this part-nership.Expressions such as “Zeyd Captain”, “Black Sea and the Mediterranean”, which are frequently mentioned in mudārabah related to fatwas are observed that a partnership has been made mainly in the Istanbul-centered, Mediterranean and Black Sea basins for the agricultural and commercial works in the Ottoman Empire in the aforementioned centuries. Thus, entrepreneurs seem to meet their short-term financing needs. It can be said that the fact that the mudārabah partner is active in the partnership and the passivity of the capital owner causes the parties to have more reflecti-ons in the fatwa than the other partnership types. Because, it is seen that if the mudārabah part-ner is not unjust due to the mudārabah partnership, he is not responsible for the loss in his capi-tal, and if the profits are due to the transactions against the immigration of the capital owner, the probability of the mudārabah partner is to take more risks. This situation causes the capital owner to try to impose various restrictions on the place, time and duration in order to protect the capital from loss, and even to go further, to put forward some conditions contrary to the spirit of the depository, as the depository is common to the loss in the capital or to be a guarantor to the capital. Nevertheless, it is understood that the deposi-tory did not comply with the relevant conditions too much and that in some cases the capital was lost, this was considered within the scope of injustice. One of the main points of disagreement between the capital owner and the mudārabah partner whether the capital is given as debt, treatment or mudarabah. Especially, in case mudārabah partnership makes a loss, it is seen that capital owner is trying to save his main capital, while the mudārabah partner is trying to avoid the obligation of compensation. Even, in some fatwas, capital may claim that while he took profit from the mudārabah partner, he made a profit in the event that the loss occurred while the nature of the capital was not on the agenda. He claims that he/she took the ruin in response to his/her claim that the capital owner lent. In fatwas, if the partners can not put forward any evidence or if both parties present the evidence, the evidence of debt is accepted, if no preference can be made a selection between the evidences, it is seen that if capital get lost, debt is preferable, if profit is obtained, the evidence of mudārabah is preferred. Because, the mudārabah partner with the permission of capital owner, admits that he/she delive-red the goods in capital owner, according to which he embraced capital. In this case, mudārabah partner may file suit a compensation case. However, if there is no evidence related capital owner lends, it is accepted that his/her oath related to mudārabah partner is a mudarabah. It is seen that the capital owner is trying to make a capital such as wheat, hemp, cloth and sheep in fatwas. However, if he gave a power of attorney and told him to use it, it is seen that the cont-ract of mudārabah could not draw up. In addition, except for the labor of the mudārabah partner, the claim that he added capital and was the permission of the capital owner etc. is accepted in some circumstances. It can be said that the issues of loss and detriment related to mudārabah are subject to more fatwa than other issues. Some of them appear to be due to negligence and male-volent attitude of the destructor, some to be due to negative market conditions, and others to physical adverse conditions such as the sinking of the ship. From these point, it is also possible to identify the areas where the damage was caused in these centuries. Among them, the sinking and side lying of the sea vehicles come to the fore. It can be said that in the centuries of research in the example of Mudarabah, there is no incompatibility between the fatwas and the tradition of fiqh, that is between theory and practice.

16. Yüzyıl Osmanlısında Kur’ân Okuma Karşılığı Ücret Alma Tartışmaları: Birgivî Zeyrekzâde Örneği

Author(s): Abdullah Kavalcıoğlu / Language(s): Turkish / Issue: 54/2020

One type of the pious foundations which subsisted from the fifteenth century until the collapse of the empire in the Ottoman Empire, which is described as a civilisation of foundation, is the money foundations. Among these money foundations, there are foundations established for the recitation of Qur’an. These foundations, like the others, had subsisted till the collapse of the Ottoman Empire, but discussions about them continued. One of the works which discusses the recitation of Qur'ān for a fee is the epistle named as “İnkāzü’l-hâlikîn” written by Birgivī Mehmed Efendī (d. 1573). He alleges in this epistle, which is well known among the modern researchers and about which there are some studies, that the recitation of Qur’an for a fee is not licit. This epistle is not only discussed today, but at the time it was written it had been discussed among the scholars. For example, Zeyrekzāda Emrullah al-Husaynī had written a refutation titled as “Risala fi cavazi akhzi’l-ucrati li-qıraati’l-Qur’an” against the epistle of Birgivi. Also, this is very rare work that discussed widely with the proofs that the recitation of Qur'ān is licit. In this article, the views of two authors will be treated comparatively only in terms of common points. The aim of this study is to discuss the juridical issue which has a social aspect from the view of two authors that have different approaches.

A Fresh View On Zakah As A Socio-Financial Tool To Promote Ethics, Eliminate Riba And Reduce Poverty

Author(s): Magda Ismail Abdel Mohsin / Language(s): English / Issue: 1/2020

Current statistical data shows that almost all Muslim countries are facing economic and social problems such as the spread of poverty, mounting outstanding external debt due to compound interest and widespread unethical behaviour. Some contemporary scholars relate these problems to the oppression and the crippling policies of former colonial administrations, while others point to the governmental incompetence and corruption that triggered the last Arab spring. However, this paper contends that although the above mentioned issues may have served as catalysts that led to the worsening of socio-economic situation in many countries, the main reason for the overwhelming problems plaguing Muslim countries is their neglect of many Islamic financial and socio-financial duties, including zakah (alms) which is conceived to spread ethical behaviour, eliminate riba (interest), empower the poor and needy and so reduce and may even end poverty. This study aims to demonstrate how zakah, as a socio-financial tool, can help promote sound standards of ethics, generate funds to counter external borrowing endorsed by anti-poverty programmes, empower the poor, and eradicate poverty in Muslim societies. This paper uses a secondary source based meta-analysis of books, articles, journals, annual reports, and websites, besides referring to the Quran and the Sunnah of the Prophet (PBUH) whenever necessary. The findings show it is imperative that zakah to be recognised as an effective socio-financial tool to counter the ills currently plaguing Muslim societies. Adequately managed and distributed zakah can help to promote good ethics, overreliance on external borrowing, empower the poor and end their poverty hence, resulting in a just and a caring society.

ACCREDITATION RANKING IMPROVEMENT STRATEGY (A CASE STUDY AT IAIN AMBON)

Author(s): Mar’atun Shalihah,Mohammad M. Holle / Language(s): English / Issue: 1/2020

Accreditation is a fundamental thing for every study program. Because, accreditation becomes one of quality benchmark for study programs. Nonetheless, every study programs commence every strategies and efforts to improve their accreditation. This study aims to (1) to reveal the effort of Shariah Economy study program in improving their maximum accreditation ranking, (2) to find obstacles that prevent Shariah Economy study program in improving their maximum accreditation ranking, (3) to reveal effective and correct strategy for Shariah Economy study program in order to improve quality and achieve maximum accreditation ranking. This study applies several concepts which are strategy, analysis, SWOT, university, accreditation, and nine criteria of study program accreditation. This study is field research type with case study approach. Next, in order to determine the informant, snowball technique is applied. Meanwhile, data collection technique uses observation, interview, documentation, and literature study. To analyze data, the study applies EFE Matrix, IFE Matrix, and SWOT Matrix technique. The result of study shows that (1) there are several factors that prevent Shariah Economy improvement, (2) total amount of EFI matrix 2,806 and EFE matrix 2,902. It means that Shariah Economy program study of IAIN Ambon takes quadrant V rank, it is on secure and defend strategy, (3) based on EFI and EFE matrix, Shariah Economy program study of IAIN Ambon takes quadrant V rank. It means the study program is on integration and development stage.

Ahkâm Ayetlerini Yorumlamada Fıkhî Mezhep Faktörü: Cessâs, Ebû Bekr İbnü’l-Arabî ve Kiyâ el-Herrâsî Örneklemleri

Author(s): İlyas Yıldırım / Language(s): Turkish / Issue: 2/2019

The Quranic verses have a wide range of topics. They are sometimes revealed directly and do not need interpretation, but sometimes they lack clarity. This makes it necessary for the person dealing with the verse to have a certain method and knowledge to understand the text correctly. Therefore, the person’s perspective will affect the process of understanding and interpreting the text. Hence, when we examine the verses that put forward a provision, it is seen that they are limited and regulating some areas. In addition, they have a style that can be interpreted in different ways. This provides a broad interpretation area for the scribes, who try to understand the verses. On the other hand, the element of accountability is important in interpreting a verse. In this tension, the legal verses subjected to various interpretations by the scribes. These scholars, who try to make judgments from the verses, carry out this process under various factors. One of these factors may be the practical sect that is followed. This article focuses on this aspect of the issue through three faqīh-mufassīr who have the first legal exegesis of Quran, but belong to different sects. Thus, it is possible to obtain an idea about the extent of the existing effect.

AKADEMIK MEHMED BEGOVIĆ

Author(s): Mustafa Hasani / Language(s): Bosnian / Issue: 14/2010

Mehmed Begović (1904.-1990.) is the first professor of Sharia law at the Sharia Law Department, founded in 1926, at the Faculty of Law, Belgrade University. He received his doctorate in Algeria in 1930. He is the author of numerous books and articles and has shown a special interest for Sharia law studies. After arrival of communist to power Begović had to reduce his interest in these studies, but dropped it. His scientific work was recognised here and abroad where he was a member of many scientific associations and his membership of Serbian Academy of Sciences in Belgrade, and Arts and Bosnian Academy of Sciences and Arts in Sarajevo, should be especially noted. He was the member of the Founding Committee of the Islamic Theology Faculty (now Faculty of Islamic Studies). He wrote first Curriculum for Sharia law at ITF, and was the member of commissions for promotion into higher scientific and teaching titles for many members of the faculty. Therefore this paper is published as a reminder of the academician Begović who argued his knowledge and authority in the establishment and operation of this Faculty, on the occasion on twenty years of his move to the Hereafter.

Allah Hakkı ve Kul Hakkı Arasında Hanefi Ceza Hukukunun Kamusallığı

Author(s): Muharrem Midilli / Language(s): Turkish / Issue: 1/2017

Modern criminal law is generally regarded as a public domain because it primarily aims at protecting general interests and has dominant vertical relationships between public institutions and the individual. This understanding corresponds to a certain extent in the Hanafi criminal law. According to Hanafi jurists, the fixed penalties such as adultery, theft, and drinking wine/getting drunk are applied only to the benefit of all people. The fixed penalty for the false accusation of adultery and the retaliation (kısas) protect the benefit of all people, as well as the the interests of individuals. The public authority is able to impose discretionary chastisements (ta´zîr) and administrative punishments (siyâsa) for the benefit of the society. It is his responsibility to investigate crimes, to prosecute suspects and to impose punishments. In all these steps, vertical relations are formed between the public authority and the perpetrator. On the other hand, the Hanafi criminal law has unique features such as the determination of public interests by the Lawgiver and the penalties imposed directly on behalf of individuals.

Application of Tawarruq in Islamic Banking in Malaysia: Towards Smart Tawarruq

Author(s): Muhammad Faruq Roslan,Omar Bamahriz,Aishath Muneeza,JinZi Chu,Zakariya Mustapha,Mohamad Zabidi Ahmad / Language(s): English / Issue: 2/2020

The objective of the paper is to discuss the application of tawarruq in Islamic banking generally. The modus operandi of tawarruq in Islamic banking is an essential discussion in jurisdiction like Malaysia, where most Islamic banks use tawarruq to structure Islamic banking products. This paper employs a systematic literature review on best practice models and mechanism of current tawarruq application. The outcome of the research helps to understand the modus operandi of tawarruq transactions practically with a view towards understanding its future prospects in the era of Fintech. It is envisaged that this research will assist the growing understanding of the existing application of tawarruq in Islamic banking as well as its future development using technology.

Arhivski fond Vrhovni šerijatski sud Sarajevo (1879. – 1946.) kao izvor za lokalnu historiju na primjeru Gračanice

Author(s): Mina Kujović / Language(s): Bosnian / Issue: 50/2020

Archival documents created through the work of both lower and higher judicial bodies in Bosnia and Herzegovina are very interesting for the study of local history. However, they are often very sparsely presented in the scientific research of our past due to their extensive nature, the fact that they are often not processed and in disorder. The archive fund of the Supreme Sharia Court of Sarajevo, 1879 – 1946, stored in the Archive of Bosnia and Herzegovina in Sarajevo, has been archivally arranged and analytically processed. Unfortunately, it has not been used yet. The Supreme Sharia Court of Sarajevo ruled on the basis of Sharia regulations. This was a second instance court and its decisions were final. The court operated from 1879 to 1946, but the court cases for the whole territory of Bosnia and Herzegovina have not been preserved for every single year. The archive material is stored in 196 archive boxes and 58 court cases refer to the area of Gračanica and its surroundings. This article was written on the basis of the data in the analytical inventory of the Supreme Sharia Court of Sarajevo, while the archive material itself, the 198 boxes, would have to be consulted for more detailed research.

Bej‘at el-imam: ugovor o postavljenju poglavara islamske države

Author(s): Fethi Osman / Language(s): Bosnian / Issue: 1/2015

BEYU’L-ÎNE ve YAKIN KAVRAMLAR

Author(s): Arif Atalay / Language(s): Turkish / Issue: 46/2020

The sales contract forms the basis of such mutual contracts. In this case, the necessity and acceptance of the parties, the words they use while saying these, the conditions, the halal and haram in their behavior are by the nature of the contract. When the same process is used with different words, it is sometimes valid and sometimes it is not. In this case, shopping tools are important. Although it is not haram, there are some vehicles that take people to haram. However, some of these vehicles are vehicles that are involved in vehicles that will not lead to haram. Vehicles leading to haram sometimes have two ends, there is a possibility for both sides. For example, on the one hand, while it looks like a sale contract, on the other hand, even though the wording used is different, interest shopping can be made considering its application. Some of the contracts in Islamic law are controversial due to their damages, losses, interest, safqateyn and similar suspicions. Although there is a controversial issue in the contract called contract, it is one of the contracts that are frequently applied both in the classical period and in the economy world today. When dealing with a subject, it is important to reveal the relevant concepts in terms of understanding the subject. When evaluated in general, the îne contract arises due to the needs of people for gold and silver. Someone who needs money buys goods and sells it for the amount they need. In fact, nobody needs property, only money.

Bir Mezhebe Ait Fürû-i Fıkıh Eserinin Diğer Mezhepleri Temsil Problemi: El-Hidâye’nin Kitâbu’l-Büyû’ Örneği

Author(s): Muhittin Özdemir / Language(s): Turkish / Issue: 47/2017

One of the most important works of the Hanafî madhab, al-Hidaya Sherh Bidaye al-mubtedi, have included the views of other madhabs’ imams at some parts. In Kitab al-buyû, which is the book that we have taken as the basis for our work, Imam Malik was briefly mentioned only in one place. At twenty-seven places, sometimes brief mentions of Imam al-Shafi’i’ was made, sometimes only opinions of him were transmitted and sometimes the bases of his views were explained. And Ahmed b. Hanbal has never been mentioned. In this respect, the views of Hanafi madhab in al-Hidaya, the views of Shafi’i among all the madhab imams have been addressed in a comparative way. It is important that, to what extent the views of the other madhab imams and especially of Shafi’i, which are included in the work, are handled with a good sense. The Hanafi scholars have noted that the views of other madhabs’ imams were mistakenly located in a wrong way in few places of the work. In the work, the views of Shafi’i are addressed in the sections that are considered to be important. The views of Shafi’i have sometimes been in consistence with the views of the Hanafi madhab imam and his students. The views of Shafi’i in the work have been addressed in a precise way. Since it is partly concise, there are no details in the work; and thus some records and details of Shafi’i’s views have not been handled. In fact, his views, which are conditional, were considered as absolute views in the work, and in this respect, the work has become far from being able to represent Shafi’i’s views.

Building Strategic Planning Models Based on Digital Technology in the Sharia Capital Market

Author(s): Basrowi Basrowi,Pertiwi UTAMI / Language(s): English / Issue: 49/2020

Digital technology is able to give a new face to the development of the capital market industry in Indonesia. Licensing process, wider reach and ease in transactions (financial technology) become faster, more efficient, cheaper, and transparent. However, the development of digital or scripless systems is still constrained by various factors. The purpose of this study is to try to dig deeper into the basic concepts of digital planning for issuers in the list of Islamic securities. A development model based on the results of the literature review is expected to contribute to the acceleration of digital technology in the capital market. The results of the study suggest that it is important for digital planning so that organizations have planning standards with special characteristics to create a 'positioning' that is in accordance with Islamic principles. The novelty in this research is that social cognitive theory and technology adoption can also be applied to sharia-based digital planners in the capital market. Sharia based digital technology will have a positive impact on the empowerment of issuers, prospective issuers, and investors in the list of sharia securities.

CILJEVI ŠERIJATA: PREGLED SAVREMENE LITERATURE NA ARAPSKOME JEZIKU

Author(s): Nedim Begović / Language(s): Bosnian / Issue: 14/2010

In the second half of the twentieth and the beginning of the twenty-first century there has been a strong revival of interest to study the aims of Sharia law (mekasidu-š-Šeri'ah), in Muslim world as well as in the West. The researchers have recognized two basic functions of dealing with mekasidu-š-Šeri'ah, and they are: understanding of Islamic law heritage and formulation of new legal solutions and theories. Some modern Islamic authors have pointed out the role of mekasidu-š-Šeri'ah, which they can have in the revival of Islamic law methodology. This paper gives a panoramic survey of the contemporary law literature in Arabic language which treats various aspects of the Sharia law goals.

Ciljevi šerijata: pregled savremene literature na engleskome jeziku

Author(s): Nedim Begović / Language(s): Bosnian / Issue: 24/2020

In the second half of the 20th and the beginning of the 21st century, there was a strong revival of interest in studying the higher objectives of Sharia (maqasid al-Shariah), both in the Muslim world and in the West. Researchers in this field have identified two basic functions of dealing with maqasid, namely: understanding the Islamic legal heritage and formulating new legal solutions and theories. Some modern Muslim authors have pointed to the role that maqasid may play in restoring the methodology of Islamic law. This paper will offer a panoramic survey of contemporary literature in English language that addresses various aspects of the higher intents of Shariah.

CIVIS ROMANUS SUM

Author(s): Nataliya Kiselova / Language(s): Bulgarian / Issue: 2/2020

Citizenship is a political and legal relationship between a person and a state. The expression Civis Romanus sum! declares the full realization of the rights of the Roman citizen in the Roman state and guarantees him immunity during his stay outside Rome. This understanding of citizenship is carried over into the modern state and as an social institution has played an important role. In Roman law Status includes three main elements inherent in every person – freedom (Status libertatis), Roman citizenship (Status civitatis) and marital status (Status familiae), and the change in this status leads to loss of civil rights (capitis deminutio). The modern elements of the status of Bulgarian citizens will also be considered.

DALLA CULTURA DELL’'EDUCAZIONE DELL'ANTICA ROMA ALL'INTEGRAZIONE DEI MINORI STRANIERI E ALL'EDUCAZIONE MULTICULTURALE

Author(s): Carmela Zaffino / Language(s): Italian / Issue: 2/2020

From Rome come the educational and humanism principles that inspired our culture. In light of these principles, the problem of immigration is analyzed in particular of foreign minors, who have made up a significant part of the migration phenomenon in recent years. The educational debate on multiculturalism that has been addressed among researchers wants to overcome the concept of emergency policies and aims to address reception in a systematic way. In the foreground, action must be taken to improve inclusion practices and that must be dealt with organically in order to implement the constitutional principle of the right to study. In the part that deals with intercultural education, pedagogical science, in an attempt to respond to various needs and different educational realities, aims to implement the regulations on multicultural education. The work outlines some of the main laws enacted for the regulation of the migration phenomenon and the school legislation envisaged for the inclusion of foreign minors.

DEKLARACIJA O LJUDSKIM PRAVIMA U ISLAMU IZ KAIRA

Author(s): Oliver P. Nikolić / Language(s): Serbian / Issue: 3/2020

U radu autor prikazuje Deklaraciju o ljudskim pravima u islamu, jedan od najvažnijih pravnih dokumenata o pravima čoveka koji je donela Organizacija islamske saradnje u Kairu 1990. godine. Iako ova deklaracija pretenduje da unapredi Univerzalnu deklaraciju UN, mora se konstatovati da je ona prihvatljiva samo u državama sa većinskim stanovništvom islamske veroispovesti. Ono što najviše narušava univerzalnost primene jeste njena duboka ukorenjenost i doslovno zavisnost od šerijatskog prava.U radu su ukratko opisana sva prava i slobode koji se pominju u Kairskoj deklaraciji. Na prvi pogled ova deklaracija pruža zaštitu i garantuje mnoga ljudska prava, čak i više od Univerzalne deklaracije, ali sva ta prava moraju biti u skladu sa šerijatskim pravom. Ta obaveznost usklađenosti sa šerijatskim pravom često obesmišljava i sputava pravu zaštitu zagarantovanih prava. Prikazana su i pozitivna ali i negativna razmišljanja i pogledi na Kairsku deklaraciju, u zavisnosti da li su o njoj pisali teoretičari islamske veroispovesti ili zapadnih zemalja. Kako god da se posmatra, ova deklaracija će imati smisla i važiće samo u muslimanskim zemljama, bez ikakvih mogućnosti da se primeni u nekim drugim državama.

DETECTING THE IDEOLOGICAL POSITION OF POLITICAL ISLAM TOWARDS LIBERAL DEMOCRACY IN MUSLIM COUNTRIES

Author(s): Nikola Gjorshoski,Goran Ilik / Language(s): English / Issue: 03/2020

The question of the correlation between Islam, political Islam and liberal democracy has so far been the most exposed topic in exploring the democratic capacity of political Islam and Islamic societies in general. What is particularly intriguing about the relationship between political Islam and liberal democracy is the fact of its westernized triviality that has received a pejorative tone in Islamic political circles. Simplified, the triviality of liberal democracy for the Islamic political campus implies imposing a model of democracy that cannot be fully compatible with the original Muslim notion of society and government. Hence, the following paper analyzes exactly the relations of political Islam to specific inherent categories of liberal democracy such as the rule of law, representative government, the separation of powers and secularism as diferenta specifica of liberal western democratic discourse. Through the methods of induction and deduction, the author will illustrate how appropriate tangent or divergence is illustrated and how this is reflected in the general ideological positioning of political Islam towards liberal democracy in Muslim countries through an axiological and praxeological perspective.

Determinants of Debt Maturity Structure in Shariah and Non-Shariah Firms in Pakistan: A comparative Study

Author(s): Naveeda Karim Katper,Azian Madun,Karim Bux Shah Syed,Muhammad Nawaz Tunio / Language(s): English / Issue: 50/2017

Despite the global emergence of Shariah-complaint firms and the resulting interest of investors and policy makers, the research on these companies is still at an embryonic stage. This paper addresses this issue by investigating the capital structure decisions of Shariah compliant firms in comparison with the conventional or non-Shariah firms. Using the theories of corporate debt maturity structure, we carried out the empirical analysis of firm-level factors influencing the debt maturity structure among Shariah firms in Pakistan. Since Shariah compliance entails some specific firm characteristics such as lower debt ratio, lower liquidity, and higher tangibility, we argue that the debt maturity structure of Shariah and conventional firms would differ significantly. Our purpose, therefore, is to explore how Shariah compliance translates into debt maturity structure decisions of these firms. Our results show some significant variations among the impact of various determinants of debt maturity among the Shariah and conventional firms. Our most striking finding is that the debt maturity among Shariah firms is significantly shorter than conventional firms. Amid the dearth of studies investigating the relationship between Shariah compliance and firm’s choice of financial decisions, our study would be a source of unfolding the debate and understanding the nature of capital and debt maturity structure of Shariah firms. The research findings are also expected to benefit large and growing clientele of the Shariah firms by providing better insights on the capital and debt maturity structure of these firms.