The role of the stock market in the provision of Islamic development finance: Evidence from Sudan
The role of the stock market in the provision of Islamic development finance: Evidence from Sudan
This paper assesses the impact of stock exchange funding in the Shari'ya compliant Islamic economy of Sudan. Evidence suggests that while Islamic financial instruments have considerable potential in facilitating development finance through their emphasis on partnership this is better achieved by the banking system rather than the Khartoum Stock Exchange. A case study of the Sudan Telecommunications company shows that larger firms able to cross-list elsewhere are likely to choose regional markets in preference to their domestic one thus benefiting from lower costs of equity. However, governance preferences are likely to favour block shareholders following the Islamic finance partnership concept.
Emerging financial markets, Islamic finance, Sudan
338-353
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Piesse, Jenifer
b85393d2-b4ae-49f2-87cd-8b5007c99e97
Strange, Roger
6f7b0a47-0014-4242-ad02-f3476a75322f
December 2011
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Piesse, Jenifer
b85393d2-b4ae-49f2-87cd-8b5007c99e97
Strange, Roger
6f7b0a47-0014-4242-ad02-f3476a75322f
Hearn, Bruce, Piesse, Jenifer and Strange, Roger
(2011)
The role of the stock market in the provision of Islamic development finance: Evidence from Sudan.
Emerging Markets Review, 12 (4), .
(doi:10.1016/j.ememar.2011.04.004).
Abstract
This paper assesses the impact of stock exchange funding in the Shari'ya compliant Islamic economy of Sudan. Evidence suggests that while Islamic financial instruments have considerable potential in facilitating development finance through their emphasis on partnership this is better achieved by the banking system rather than the Khartoum Stock Exchange. A case study of the Sudan Telecommunications company shows that larger firms able to cross-list elsewhere are likely to choose regional markets in preference to their domestic one thus benefiting from lower costs of equity. However, governance preferences are likely to favour block shareholders following the Islamic finance partnership concept.
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Accepted/In Press date: 10 April 2011
e-pub ahead of print date: 30 April 2011
Published date: December 2011
Keywords:
Emerging financial markets, Islamic finance, Sudan
Identifiers
Local EPrints ID: 423324
URI: http://eprints.soton.ac.uk/id/eprint/423324
ISSN: 1566-0141
PURE UUID: 0225f043-b7e2-427d-985d-f1139cc504f8
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Date deposited: 20 Sep 2018 16:30
Last modified: 16 Mar 2024 04:37
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Contributors
Author:
Jenifer Piesse
Author:
Roger Strange
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