The effect of corporate governance towards Sukuk ratings in Malaysia / Ainahajira Yusoff

• Main Author: Yusoff, Ainahajira
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Corporate organization. Corporate governance; Investment, capital formation, speculation
• Online Access: https://ir.uitm.edu.my/id/eprint/98454/1/98454.pdf; https://ir.uitm.edu.my/id/eprint/98454/

Malaysia Capital market is currently in a good track especially for Islamic investment products such as Sukuk. The Sharia capital market is growing thanks to a stronger market and a wide range of investment options especially in Islamic products. However, despite growing in a stronger market, the research on company that issues Sukuk is quite rare. Thus, this study is being conduct to know whether Sukuk rating is depend on the corporate performance since corporate governance reveals can improved operational efficiency and management, which can lead to better decision-making. The objective of this study is to provide findings whether corporate governance have a significant influence on sukuk rating. The study draws on data from top 30 FBM 100 high remunerations in Bursa Malaysia, by using multiple linear regression model. The variables used are board of independence, bard size and chairman duality. This study focuses on Malaysia, with annual data for 5 years from 2015 to 2020. Data analysis will be done using 3 tests, which are descriptive analysis, regression analysis, and correlation analysis on EViews software. The results showed that the all the variables which is board of independence, board size and chairman duality have a positive and significant relationship with the sukuk rating. The existing literature shows that the corporate governance gives a great image to the company sukuk rating. The result of the study also suggested that company need to take a responsibility in managing company according the corporate governance to maintain their company rating.