The issue of high reliance on debt has raised major concern especially since its impact has been linked to the several corporate problems in United States’ big corporation ssuch as Enron and Lehman Brothers. On a wider scope, the impact of debt may also be evidenced by the Greek Depression in the year 2009. Various studies have been conducted to explain which factors determine debt of the firms, given different setting of periods, countries and methodologies. Uniquely, this study focuses on the firms which stocks are Shari’ah approved in accordance to the Malaysia’s Securities Commission guidelines. This study covers a balanced panel of 239 Shariah approved firms listed on the Bursa Malaysia for the period of analysis from 2000 to 2014. To meet its objective, this study employs a static panel regression model which includes the pooled OLS, random effect model (REM) and fixed effect model (FEM). The study also conducts a robustness test to the empirical model. Several factors have been examined and the result shows that certain firm-specific variables like growth opportunity, size, bankruptcy risk, non-debt tax shield (NDTS) and Herfindahl-Hirschman Index are significant determinants of a firm’s debt.Also macro variables such as inflation, GDP and economic crisis are also found to be significant determinants of Shariah approved firms’ debt. In contrast with the prior studies that focuses on the non-Shariah approved firms, the output from this study provides new insight and understanding on the debt determinants of Shariah approved firms.

This study aims to assess the impact of Securities Commission (SC) of Malaysia 2013 revised Shariah approved firms screening method in relation to the levels of debt and the Shariah- approved firms’ performance. Panel regressions were employed to examine the impact for firms that are consistently Shariah-approved as determined by the SC of Malaysia.The period of study is 2000 to 2014. There gression result indicatesa non-monotone association between Shariah-approved firms’ performance and debt levels. The optimum level of debt, however, is much higher than the 33% benchmark set by SC. Hence, it can be concluded that the 2013 revised Shariah- approved firms screening method which introduced the 33% debt ratio benchmark did not improve the performance of Shariah-approved firms for the period studied. Nevertheless, since the observations are only until 2014, it is possible that the observations have not capture the true impact of the change.

In Pakistan, bank lending plays a critical role in economic activities due to the scarcity of stocks and bond options. Islamic banks face an extra layer of difficulty with limited open market instruments and lender of last resort facilities, as well as tough competition with conventional banks. This study analyzes the differences in bank lending by Islamic and conventional banks in transmitting monetary policy by modeling bank credit as a dependent variable while bank-specific assets, liquidity, capital and growth, inflation, and policy rates as explanatory variables. Polled OLS fixed effect panel data models are used to analyze annual data for 2009-2018. The study finds that Islamic bank credit is influenced significantly by policy rates, inflation, and growth, as well as capital and liquidity. Conventional bank credit is significantly affected by the policy rates, growth, and inflation but capital and liquidity are less correlated. This paper concluded that Islamic banks are significant in policy transmission. However, policy tools and differences in operations and contracts affect Islamic bank equity and liquidity which may suffer long-term economic participation

The purpose of this paper is to identify the target capital structure and the speed of adjustment of Shariah approved firms listed on the Bursa Malaysia. The paper also examines the influence of firm, industry and macroeconomic determinants affecting the target capital structure. Shariah approved firms which consistently maintain their Shariah status as per the Securities Commission (SC) of Malaysia requirement, from year 2000 to 2014 are chosen as the sample of analysis. The paper employs a dynamic panel data technique specifically the Generalized Method of Moments (GMM) that is robust to the heterogeneity and endogeneity issue. The study found the existence of target capital structure of Shariah approved firms in Malaysia and in terms of speed of adjustment, Shariah approved firms are under-adjusted. Several factors seemed to have significant impact on the target capital structure ranging from the firm, industry and macroeconomic determinants. The study contributes largely in the sampling selection that focuses only on the Shariah approved firms which consistently maintain their Shariah status from the year 2000 to 2014.