DETERMINANTS OF SUKUK ISSUANCE AMONG TOP 100 LISTED COMPANIES IN MALAYSIA

Nur Syahirah Sahir; Aliana Shazma Amir; Zulaikha Rabitah  Zaidi; Evawaynie Valquis Md. Isa; Azlini Che Hassan

doi:10.53840/ijiefer178

Authors

Nur Syahirah Sahir Faculty of Business & Communication, Universiti Malaysia Perlis
Aliana Shazma Amir Faculty of Business & Communication, Universiti Malaysia Perlis
Zulaikha Rabitah Zaidi Faculty of Business & Communication, Universiti Malaysia Perlis
Evawaynie Valquis Md. Isa Faculty of Business & Communication, Universiti Malaysia Perlis
Azlini Che Hassan Faculty of Business & Communication, Universiti Malaysia Perlis

DOI:

https://doi.org/10.53840/ijiefer178

Keywords:

Sukuk Issuance, Shariah Compliance, Profitability, Firm Age, Board Gender

Abstract

This study investigates the determinants of Sukuk issuance, focusing on the influence of Shariah compliance, profitability, firm age, board gender diversity, audit quality, and firm size on the decision to issue Sukuk. Using a sample of the top 100 listed companies in Malaysia, the analysis reveals that approximately 48.18% of the variance in Sukuk issuance is explained by these determinants. The results highlight the significant roles of Shariah compliance and profitability as primary drivers, while firm age and board gender diversity provide additional insights into corporate financing decisions, guided by Agency Theory and Shariah Governance Theory. The findings have practical implications for market participants, regulators, and policymakers by emphasizing the importance of aligning corporate practices with Shariah principles to enhance Sukuk adoption. Furthermore, these results can inform strategies to promote gender-diverse boards and improve audit quality, thereby fostering sustainable growth in the Islamic finance industry. This research underscores the significance of these determinants and provides a foundation for future studies and policies aimed at advancing Sukuk utilization.

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