Testing the Survival Model: Does Sukuk Offer a Better Trade-Off Than Bonds?
نویسندگان
چکیده
The trade-off theory assumes that there are benefits to leverage up until the optimal capital structure is reached. However, fact yet remains puzzled whether sukuk companies possess same effect because holds both debt and equity characteristics. topic prominent of increasing interest issuance in market, series financial distress occurrence especially among issuers. aims study twofold, first identify survive longer than bonds companies, second factors contribute survival time. Samples were consisting all financially distressed Malaysia. Cox regression model was conducted develop model. result reveals a similar length time for companies. results show liquidity ratio, measured by operating cash flow current liability (OCFCL), most significant predictor case sukuk. Contrary expectations, none predictors tested bond These suggest new theoretical understanding even though between similar, unique factor determining Future research may explore further on importance asset-backed securities versus asset-based securities.
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ژورنال
عنوان ژورنال: International journal of academic research in accounting, finance and management sciences
سال: 2022
ISSN: ['2308-0337', '2225-8329']
DOI: https://doi.org/10.6007/ijarafms/v12-i4/15242