Ayturk, Y. and Asutay, M. and Aksak, E. (2017) 'What explains corporate sukuk primary market spreads?', Research in International Business and Finance, 40 . pp. 141-149.
Abstract
This study investigates the determining factors of international corporate sukuk pricing in the primary market for the period of 2004–2015. We present novel evidence for a unique data set covering all 63 international corporate sukuk issuances consisting of both a fixed margin rating as well a credit rating score. Our cross-sectional analysis indicates that both credit rating and maturity are significant factors which reduce issue spreads, whereas sukuk margin rating increases issue spreads. More prominently, Shari’ah scholar reputation and the type of sukuk are not statistically significant factors in the explanation of the issue spread. Our results are comparable with determinants of conventional bond pricing, and our findings further confirm existing sukuk market practices.
| Item Type: | Article |
|---|---|
| Full text: | (AM) Accepted Manuscript Available under License - Creative Commons Attribution Non-commercial No Derivatives. Download PDF (401Kb) |
| Status: | Peer-reviewed |
| Publisher Web site: | https://doi.org/10.1016/j.ribaf.2017.01.002 |
| Publisher statement: | © 2017 This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| Date accepted: | 26 January 2017 |
| Date deposited: | 26 June 2017 |
| Date of first online publication: | 01 February 2017 |
| Date first made open access: | 01 August 2018 |
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