Islamic Financing: Shift from Debt to Equity | An analysis of Business Framework

Muhammad Hanif

ISBN 10: 3639253019 / ISBN 13: 9783639253016

Published by VDM Verlag Dr. Müller, 2010

About this Item

Islamic Financing: Shift from Debt to Equity | An analysis of Business Framework | Muhammad Hanif | Taschenbuch | Englisch | VDM Verlag Dr. Müller | EAN 9783639253016 | Verantwortliche Person für die EU: preigu GmbH & Co. KG, Lengericher Landstr. 19, 49078 Osnabrück, mail[at]preigu[dot]de | Anbieter: preigu.

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Bibliographic Details

• Title: Islamic Financing: Shift from Debt to Equity | An analysis of Business Framework
• Publisher: VDM Verlag Dr. Müller
• Publication Date: 2010
• Language: English
• ISBN 10: 3639253019
• ISBN 13: 9783639253016
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 220W x 150H x 8D millimeters 220 millimeters width by 150 millimeters height by 8 millimeters depth
• Weight: 229 grams
• Seller catalogs:
  • Bücher

About this title

Synopsis

Islamic Finance is classified objectively as Sharia based (risk and reward sharing) and Sharia compliant (asset based financing). Practice of Islamic banking witnesses the focus of Islamic Financial Institutions (IFIs) on Sharia compliant products (Murabaha, Leasing, Salam and diminishing Musharaka). Share of Sharia based financing (Musharaka and Mudaraba) in portfolios of IFIs is negligible. This study was intended to evaluate the suitability of existing business and accounting frame work for application of Sharia based financing. Findings suggest that existing business and accounting frame work is not conducive for application of equity financing. Loopholes in accounting frame work, dominance of conventional banking, weaker audit institution, riskiness of equity financing,lack of trust and confidence in Musharaka Partner, higher taxes, lack of awareness, lack of skilled human resource and profit manipulation behavior of business firms are identified as hurdles in the popularity of Sharia based financing. Prime difference of conventional and Islamic finance is risk and reward sharing hence application of Sharia based financing is vital for success of IFIs.

About the Author

Mr. Muhammad Hanif FCMA is Assistant Professor at National University of Computer & Emerging Sciences, Islamabad. He is a graduate of the University of Punjab (B.COM 1993, M.COM 1996, Gold Medalist). He completed MS Finance 2009, (Gold medalist) from International Islamic university Islamabad. He became Associate Member of Institute of Cost & Management Accountants of Pakistan in 2001 and Fellow Member in 2007. He achieved presidential award for securing over all first position in AJK PSC in 1998. He has 12 years of professional/managerial and teaching experience at Sialkot College of Commerce and Business Administration, Riphah International University, Bahria University, ICMAP and National University FAST. He has vast experience in financial and tax consultancy. His research areas includes corporate finance, Earnings Management and Islamic Banking & Finance. His research is accessible from ssrn.com/author=454519. For comments and suggestions please send message at hanifacma@gmail.com.