IslamicFinance.de

Investors treat a company’s shares differently depending on the specific types of Islamic bond it issues and the reputation of the Islamic scholars who oversee the instruments, a study by the International Monetary Fund found. About a dozen types of sukuk are in use worldwide. The study found the ijara structure tended to draw a positive reaction from the stock market, with the shares of companies using that structure performing relatively well. By contrast, equity-based structures such as musharaka met a relatively negative reaction. The IMF also looked at other characteristics of sukuk such as their tenors and pricing, but did not find these factors to be statistically significant for the responses of equity market investors.