Islamic finance and market segmentation: Implications for the cost of capital

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dc.contributor.authorHearn B.
dc.contributor.authorPiesse J.
dc.contributor.authorStrange R.
dc.date.accessioned2012-02-01T14:17:36Z
dc.date.available2012-02-01T14:17:36Z
dc.date.issued2012
dc.descriptionArticle
dc.description.abstractThis paper considers the impact of full Islamic shari'ya compliance on developing stock exchanges in their effective provision of development capital. Evidence from a unique study focussing on the Sudan telecommunications company and its listings on the Khartoum as well as Arabian Gulf stock exchanges reveals that costs of capital are considerably higher in the former than latter markets. While there are firm governance benefits arising from Islamic finance monitoring costs are substantial and the banking system is better placed to administer financing arrangements. Larger firms are better placed to circumvent this segmentation through cross-listing on regional exchanges. © 2010 Elsevier Ltd.
dc.identifier.citationInternational Business Review
dc.identifier.citation21
dc.identifier.citation1
dc.identifier.citation102
dc.identifier.citation113
dc.identifier.issn9695931
dc.identifier.other10.1016/j.ibusrev.2010.11.007
dc.identifier.urihttp://hdl.handle.net/10019.1/19478
dc.titleIslamic finance and market segmentation: Implications for the cost of capital
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