Hasan, Zubair (1985): Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance. Published in: Journal of Research in Islamic Economics , Vol. 3, No. 1 (1985): pp. 13-29.
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This paper discusses how profit and loss sharing ratios will be determined at the micro and micro levels in an interest free system of financing business operating side by side of an interest based conventional financing.It shows that leverage magnification of return on owners' equity is also available under the Islamic financing. It argues that for the bank Islamic finance may be more profitable than conventional financing
| Item Type: | MPRA Paper |
|---|---|
| Institution: | International Islamic University of Malaysia |
| Language: | English |
| Keywords: | Profit sharing; macro level model; mico model; leverage effects; relative profitability |
| Subjects: | E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General D - Microeconomics > D4 - Market Structure and Pricing > D49 - Other D - Microeconomics > D4 - Market Structure and Pricing > D40 - General |
| ID Code: | 3013 |
| Deposited By: | Zubair Hasan |
| Deposited On: | 03. May 2007 |
| Last Modified: | 07. Nov 2007 02:54 |
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