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.
Preview |
PDF
MPRA_paper_3013.pdf Download (150kB) | Preview |
Abstract
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 |
| Original Title: | Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance |
| 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, Pricing, and Design > D49 - Other D - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - General |
| Item ID: | 3013 |
| Depositing User: | Zubair Hasan |
| Date Deposited: | 03 May 2007 |
| Last Modified: | 01 Oct 2019 03:53 |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/3013 |
All papers reproduced by permission. Reproduction and distribution subject to the approval of the copyright owners.
 |
View Item |
