The Impact of Profit Rate, Sharia Committee, Leverage, Profit Growth, Cash Flow, and BI Rate on the Issuance of Sukuk Types in Indonesia

This study aims to analyze the effect of the rate of return, Sharia Committee, leverage, profit growth, cash flow, and the BI Rate on sukuk issuance in Indonesia. The research utilizes a quantitative approach with secondary data from 34 companies and 73 sukuk types (ijarah and mudharabah) issued between 2012 and 2021. The findings reveal that 34.94% of sukuk issuance is explained by the independent variables, with significant effects from the Sharia Committee, leverage, and cash flow. Meanwhile, the rate of return, profit growth, and BI Rate show no significant influence. The Sharia Committee emerges as the most influential factor. The study concludes that companies must ensure compliance with Sharia principles, carefully manage their financial obligations, and maintain good cash flow management to enhance investor interest. The remaining 65.06% of sukuk issuance is likely driven by factors not included in this study, such as profitability and corporate governance, indicating potential areas for future research.

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Publication Details

Published
2024-11-27
DOI
https://doi.org/10.1109/sibf63788.2024.10883853
Primary Topic
Islamic Finance and Banking Studies
Type
article
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article

The Impact of Profit Rate, Sharia Committee, Leverage, Profit Growth, Cash Flow, and BI Rate on the Issuance of Sukuk Types in Indonesia

Evi Mutia, Maulana Ishak
Islamic Finance and Banking Studies
article

The Impact of Profit Rate, Sharia Committee, Leverage, Profit Growth, Cash Flow, and BI Rate on the Issuance of Sukuk Types in Indonesia

Evi Mutia, Maulana Ishak
article en

Abstract

This study aims to analyze the effect of the rate of return, Sharia Committee, leverage, profit growth, cash flow, and the BI Rate on sukuk issuance in Indonesia. The research utilizes a quantitative approach with secondary data from 34 companies and 73 sukuk types (ijarah and mudharabah) issued between 2012 and 2021. The findings reveal that 34.94% of sukuk issuance is explained by the independent variables, with significant effects from the Sharia Committee, leverage, and cash flow. Meanwhile, the rate of return, profit growth, and BI Rate show no significant influence. The Sharia Committee emerges as the most influential factor. The study concludes that companies must ensure compliance with Sharia principles, carefully manage their financial obligations, and maintain good cash flow management to enhance investor interest. The remaining 65.06% of sukuk issuance is likely driven by factors not included in this study, such as profitability and corporate governance, indicating potential areas for future research.

Universitas Syiah Kuala (ID)
Decent work and economic growth
Openalex Percentile: Top 55%
Islamic Finance and Banking Studies
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