The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries

The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahr...

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Main Author:	Rahman, Maya Puspa
Format:	Conference or Workshop Item
Language:	English English
Published:	2016
Subjects:	HA Statistics HB Economic Theory HG Finance
Online Access:	http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF

id	iium-56683
recordtype	eprints
spelling	iium-566832017-05-02T06:57:38Z http://irep.iium.edu.my/56683/ The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries Rahman, Maya Puspa HA Statistics HB Economic Theory HG Finance The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahrain and Indonesia to name a few. In view that sovereign security are not totally free from default such as the sovereign debt crisis of Greece, this paper attempts to unveil the behaviour of sovereign sukuk yields issued by the Muslim countries and whether they are influenced by the movement of the macroeconomic variables. By employing the panel data approach from 2006 to 2013, this study shows that only the inflation rate is able to explain the movement of the sovereign sukuk yields. The insignificance of other macroeconomic variables such as the GDP growth and money supply indicate that tagging the economic growth of the issuing country into the pricing of sovereign sukuk yields may not be feasible at this juncture. Being one of the most important topics to the regulator and market players, this study paves ways for more empirical analysis to be undertaken on the sovereign sukuk pricing mechanism. 2016 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf application/pdf en http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF Rahman, Maya Puspa (2016) The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries. In: The 18th Malaysian Finance Association Annual Conference (MFAC) 2016 and The 7th Islamic Banking, Accounting and Finance Conference (iBAF) 2016, 29th-31st May 2016, Hotel Equatorial, Melaka. (Unpublished) https://submit.confbay.com/contact-us?view=contactus&acid=323
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HA Statistics HB Economic Theory HG Finance
spellingShingle	HA Statistics HB Economic Theory HG Finance Rahman, Maya Puspa The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
description	The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahrain and Indonesia to name a few. In view that sovereign security are not totally free from default such as the sovereign debt crisis of Greece, this paper attempts to unveil the behaviour of sovereign sukuk yields issued by the Muslim countries and whether they are influenced by the movement of the macroeconomic variables. By employing the panel data approach from 2006 to 2013, this study shows that only the inflation rate is able to explain the movement of the sovereign sukuk yields. The insignificance of other macroeconomic variables such as the GDP growth and money supply indicate that tagging the economic growth of the issuing country into the pricing of sovereign sukuk yields may not be feasible at this juncture. Being one of the most important topics to the regulator and market players, this study paves ways for more empirical analysis to be undertaken on the sovereign sukuk pricing mechanism.
format	Conference or Workshop Item
author	Rahman, Maya Puspa
author_facet	Rahman, Maya Puspa
author_sort	Rahman, Maya Puspa
title	The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
title_short	The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
title_full	The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
title_fullStr	The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
title_full_unstemmed	The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
title_sort	influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected muslim countries
publishDate	2016
url	http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF
first_indexed	2023-09-18T21:20:01Z
last_indexed	2023-09-18T21:20:01Z
_version_	1777411818750214144

The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries

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