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Financial Sustainability of A Firm: Debt-based or Equity-based Financing to Pursue

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dc.contributor.authorUmul Ain’syah Sha’arien_US
dc.contributor.authorSiti Raihana Bt Hamzahen_US
dc.contributor.authorKarmila Hanim Kamilen_US
dc.date.accessioned2024-05-29T02:28:45Z
dc.date.available2024-05-29T02:28:45Z
dc.date.issued2023
dc.date.submitted2024-2-22
dc.descriptionVol 9 No 2en_US
dc.description.abstractThis study examines the potential of utilizing equity-based financing by companies in achieving financial sustainability as compared to debt-based financing. To this end, a conceptual framework of equity-based financing over debt-based financing is developed to provide an understanding of the concept of equity-based financing. Subsequently, this study analyses the credit risk exposure between equity and debt for selected sectors in Malaysia. More specifically, a Monte Carlo method is employed to examine the feasibility of the equity-based financing model in fostering the financial sustainability of companies through simulation of equity-based and debt-based financing models from the global financial crisis (GFC) period to the Covid-19 phase. This study finds that equity-based financing can reduce credit risk exposure when returns are tied to the company’s performance. The findings also show that equity-based financing can achieve financial sustainability regardless of any economic events. To conclude, equity-based financing can thus be a viable capital financing option for companies because it can contribute to long-term financial sustainability.en_US
dc.identifier.citationSha’ari, U. A., Hamzah, S. R. B., & Kamil, K. H. (2023). Financial Sustainability of A Firm: Debt-based or Equity-based Financing to Pursue. Journal of Islamic Monetary Economics and Finance, 9(2), 199–224. https://doi.org/10.21098/jimf.v9i2.1653en_US
dc.identifier.doi10.21098/jimf.v9i2.1653
dc.identifier.epage224
dc.identifier.issn2460-6618
dc.identifier.issue2
dc.identifier.spage119
dc.identifier.urihttps://jimf-bi.org/index.php/JIMF/article/view/1653
dc.identifier.urihttps://www.scopus.com/record/display.uri?eid=2-s2.0-85164520580&origin=resultslist&sort=plf-f&src=s&sid=0e0cc298ecf5c768c5f20709b52d364a&sot=b&sdt=b&s=TITLE-ABS-KEY%28Financial+Sustainability+Of+A+Firm%3A+Debt-based+Or+Equity-based+Financing+To+Pursue%29&sl=130&sessionSearchId=0e0cc298ecf5c768c5f20709b52d364a&relpos=0
dc.identifier.urihttps://oarep.usim.edu.my/handle/123456789/10779
dc.identifier.volume9
dc.language.isoen_USen_US
dc.publisherBank Indonesia Instituteen_US
dc.relation.ispartofJournal of Islamic Monetary Economics and Financeen_US
dc.subjectEquity-based financing, Financial sustainability, Monte carlo simulation, Economic crisisen_US
dc.titleFinancial Sustainability of A Firm: Debt-based or Equity-based Financing to Pursueen_US
dc.typeArticleen_US
dspace.entity.typePublication

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