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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
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
1566-0141
338-353
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Piesse, Jenifer
b85393d2-b4ae-49f2-87cd-8b5007c99e97
Strange, Roger
6f7b0a47-0014-4242-ad02-f3476a75322f
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), 338-353. (doi:10.1016/j.ememar.2011.04.004).

Record type: Article

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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More information

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
ORCID for Bruce Hearn: ORCID iD orcid.org/0000-0001-9767-0198

Catalogue record

Date deposited: 20 Sep 2018 16:30
Last modified: 26 Nov 2019 01:23

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Contributors

Author: Bruce Hearn ORCID iD
Author: Jenifer Piesse
Author: Roger Strange

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