Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar

Firms raise their capital via the common external funds either debt or equity. However, under certain conditions, firms are required to issue more complex financial engineering instruments namely hybrid securities. Literatures showed that very little studies have been conducted on Islamic Capital Ma...

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Main Author:	Jaafar, Mohamad Nizam
Format:	Book Section
Language:	English
Published:	Institute of Graduate Studies, UiTM 2016
Subjects:	Malaysia
Online Access:	http://ir.uitm.edu.my/id/eprint/19713/ http://ir.uitm.edu.my/id/eprint/19713/1/ABS_MOHAMAD%20NIZAM%20JAAFAR%20TDRA%20VOL%209%20IGS%2016.pdf

id	uitm-19713
recordtype	eprints
spelling	uitm-197132018-03-12T03:23:40Z http://ir.uitm.edu.my/id/eprint/19713/ Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar Jaafar, Mohamad Nizam Malaysia Firms raise their capital via the common external funds either debt or equity. However, under certain conditions, firms are required to issue more complex financial engineering instruments namely hybrid securities. Literatures showed that very little studies have been conducted on Islamic Capital Market and in establishing the determinants of hybrid securities. Based on theories of capital structure which related to non hybrid capital structure, the variables and the models on hybrid financing are developed. In further filling the gap of the preceding studies, we developed a dynamic model by incorporating important variables that are associated to macroeconomic indicators that are economic growth (GDP), interest rate (BFR), level of stock market development and bond market development. Several estimation models are developed namely convertible bond plus loan stock which signify for debt treat hybrid (model 1) and warrant which is represent equity treat hybrid (model 2) respectively. This study employs the static model via panel ordinary least square (OLS), fixed effects model and random effects model to identify the best estimation model. Besides that, the study also include dynamic model via General Method of Moment (GMM) – first and second generation GMM, to get the most excellent model. From the analysis of static model, it reveals that the best estimation models for both hybrid securities are from model 1 and 2 of fixed effect model. Meanwhile from dynamic analysis, system GMM is considered the most excellent model. As inferences to the body of knowledge, this research has established several factors that are significant in determining hybrid securities for both debt and equity feature hybrid respectively… Institute of Graduate Studies, UiTM 2016 Book Section PeerReviewed text en http://ir.uitm.edu.my/id/eprint/19713/1/ABS_MOHAMAD%20NIZAM%20JAAFAR%20TDRA%20VOL%209%20IGS%2016.pdf Jaafar, Mohamad Nizam (2016) Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar. In: The Doctoral Research Abstracts. IGS Biannual Publication, 9 (9). Institute of Graduate Studies, UiTM, Shah Alam.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Malaysia
spellingShingle	Malaysia Jaafar, Mohamad Nizam Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
description	Firms raise their capital via the common external funds either debt or equity. However, under certain conditions, firms are required to issue more complex financial engineering instruments namely hybrid securities. Literatures showed that very little studies have been conducted on Islamic Capital Market and in establishing the determinants of hybrid securities. Based on theories of capital structure which related to non hybrid capital structure, the variables and the models on hybrid financing are developed. In further filling the gap of the preceding studies, we developed a dynamic model by incorporating important variables that are associated to macroeconomic indicators that are economic growth (GDP), interest rate (BFR), level of stock market development and bond market development. Several estimation models are developed namely convertible bond plus loan stock which signify for debt treat hybrid (model 1) and warrant which is represent equity treat hybrid (model 2) respectively. This study employs the static model via panel ordinary least square (OLS), fixed effects model and random effects model to identify the best estimation model. Besides that, the study also include dynamic model via General Method of Moment (GMM) – first and second generation GMM, to get the most excellent model. From the analysis of static model, it reveals that the best estimation models for both hybrid securities are from model 1 and 2 of fixed effect model. Meanwhile from dynamic analysis, system GMM is considered the most excellent model. As inferences to the body of knowledge, this research has established several factors that are significant in determining hybrid securities for both debt and equity feature hybrid respectively…
format	Book Section
author	Jaafar, Mohamad Nizam
author_facet	Jaafar, Mohamad Nizam
author_sort	Jaafar, Mohamad Nizam
title	Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
title_short	Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
title_full	Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
title_fullStr	Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
title_full_unstemmed	Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar
title_sort	capital structure determinants of islamic hybrid securities / mohamad nizam jaafar
publisher	Institute of Graduate Studies, UiTM
publishDate	2016
url	http://ir.uitm.edu.my/id/eprint/19713/ http://ir.uitm.edu.my/id/eprint/19713/1/ABS_MOHAMAD%20NIZAM%20JAAFAR%20TDRA%20VOL%209%20IGS%2016.pdf
first_indexed	2023-09-18T23:03:07Z
last_indexed	2023-09-18T23:03:07Z
_version_	1777418305926070272

Capital structure determinants of Islamic hybrid securities / Mohamad Nizam Jaafar

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