Incentive-compatible sukukmusharkah for private sector funding: Comment

Hasan, Zubair (2012): Incentive-compatible sukukmusharkah for private sector funding: Comment.

Abstract

This paper is a comment on an article of Abdou Diaw; Obiyathullah Ismath Bacha and Ahsene Lahsusna that appeared in ISRA: International Journal of Islamic Finance,Volume 4, Issue 1, June 2012 under the title 'Incentive-compatible sukukmusharkah for private sector funding' The comment is limited to correcting misinterpretations of some positions taken in Hasan 2002 on profit sharing ratios in mudarabah contracts.

• Item Type: MPRA Paper
• Language: English
• Keywords: Islamic finance; profit sharing ratios; mudarabah; sukuk
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

1.Ahmad, Habib (2002): 'Incentive Compatible Profit-Sharing Contracts: A Theoretical Treatment'. In Iqbal, Munawar& Llewellyn, David T (Editors) Islamic Banking and Finance: New Perspectives in Profit Sharing and Risk.. Edward Elgar. PP. 40-54.

2.Bacha, Obiyathulla Ismath (1997): Adapting mudharabah finance to contemporary realities: A proposed financing structure, The Journal of Accounting, Commerce and Finance, Vol.1 No. 1 June

3.Hasan, Zubair (2010): Islamic Banks: Profit sharing, equity, leverage lure and credit control, JKAU: Islamic Economics, Vol.13, No. 1, pp. 1-19

4.Hasan, Zubair (2002): “Mudarabah as a Mode of Financing in Islamic Banking: Theory, Practice, and Problems” Middle East Business and Economic Review Vol.14, No.2, Sydney, Australia, December pp.41-53

5.Hasan, Zubair (1985):“Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance”, Journal of Research in Islamic Economics, Jeddah Vol. 3, No. 1, 1985, pp. 13-27.

6.Usmani, Muhammad Taqi (2010): Musharkah and mudarbah as modes of financing, Journal of Islamic Banking & Finance, Vol.27. No. 3