Dynamics of Leverage Policies: Comparative Analysis of Shariah Compliant and non- Compliant Firms

Authors

  • Naila Hameed
  • Humaira Anwar Riphah International University Islamabad,Pakistan
  • Muhammad Naveed Bahria University Islamabad Pakistan
  • Talha Siddiqui SZABIST University Karachi Pakistan

Keywords:

Shariah-Compliance, Corporate Governance, Dynamic leverage policies, Speed of adjustment

Abstract

This study aims to check the influence of corporate governance on the leverage policies of Shariah-compliant and NSC firms. Also, their speed of adjustment toward optimal leverage is compared. The dynamic system GMM technique confirms that corporate governance is an essential feature in leveraging the policies of Shariah-compliant and NSC firms. However, the board size, board independence, CEO duality, and auditor reputation determine the leverage policy of Shariah-compliant firms. Board size, ownership concentration, and auditor reputation determine the leverage policy in NSC firms. Additionally, NSC firms adjust their leverage more quickly than Shariah-compliant firms.

 

Author Biographies

Naila Hameed

 

 

Talha Siddiqui , SZABIST University Karachi Pakistan

 

 

Downloads

Published

2023-12-31

How to Cite

Hameed , N., Anwar, H., Naveed, M., & Siddiqui , T. (2023). Dynamics of Leverage Policies: Comparative Analysis of Shariah Compliant and non- Compliant Firms. Journal of Contemporary Business and Islamic Finance (JCBIF), 3(2), 296–307. Retrieved from https://journals.iub.edu.pk/index.php/jcbif/article/view/1906

Issue

Vol. 3 No. 2: Journal of contemporary Business and Islamic Finance

Section

Articles

License

Copyright (c) 2023 Journal of Contemporary Business and Islamic Finance (JCBIF)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

After paper acceptance in JCBIF,the author(s) has (have) must accepted the publication in the JCBIF by releasing the copyright to the Islamia University Bahawalpur-IUB-Pakistan.

Journal of contemporary business and Islamic finance (JCBIF) is licensed under a Creative Commons Attribution 4.0 International License.

The material presented by the authors does not necessarily represent the viewpoint of editorial team and the management of the Islamia University of Bahawalpur,IUB,Pakistan as well as authors institute.

 

Bookmark and Share