Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Analysis of Financial Faktors of Sukuk Issuance by Public
Companies Compared With Bonds Issuance and Issuance
Using Ijarah and Mudarabah Contract
Tettet Fitrijanti and Prima Yusi Sari
There are not so many researches on the Islamic banking product named sukuk
(Islamic bonds). In Indonesia, 31 out of 300 public companies have issued
sukuk. This research is trying to find out any financial factors that caused those
31 companies for issuing sukuk, instead of conventional bonds. Those financial
factors are either internal / fundamental or macro economical. Indonesian’s
public companies had issued sukuk using Ijarah or Mudarabah contract. Ijarah
contract is a lease agreement, while Mudarabah is a contract whereby one
party is the investor and the other party the manager. This research other
question is whether there is any financial factors that influence the selection of
Ijarah or Mudarabah contract.
The research was made in 25 public companies out of 31 companies issuer of
sukuk in Indonesia, the reason why the other 6 companies are not part of the
study is that, those companies do not present a complete public financial report.
Using the independent comparison test and logit regression analysis, the
research found out that the main objective of issuing sukuk is to absorb the
available funds for solving conventional debt. Although the financial risk of the
company before the issuance of sukuk is higher, at the same time the
profitability of the company issuing the sukuk is also higher than the issuer. The
sukuk was seen as a debt instrument rather than equity instruments, with any
kind of contract (Aqad). A company issued sukuk not because of his financial
situation but as an financial alternative in form of debt instead of equity, thus
sukuk is seen as a debt, with any kind of the contracts or Aqad. There were
other considerations than inflation and fluctuations in stock returns in the
selection process of sukuk as financing instruments by companies that have
higher probability of choosing Mudarabah rather than Ijarah contract, those
companies have high profitability, high financial risk, high market value, and in
the economic condition of low inflation and low risk in form of fluctuations in
their stock returns.
1. Research Background
The issuance of sukuk is one of the funding strategy that give a positive value for
both companies and countries, by encouraging the development of the company and
the development of the country, including in Indonesia. Development of Sukuk in
Indonesia is driven by the private sector initiation. Initiated by the Mudarabah sukuk
issuance in 2002 by the company named Indosat with a value of 175 billion, the
development of corporate sukuk in Indonesia is generally an initiation of the
underwriters, instead of corporate sukuk issuer itself. This happened due to a lack of
understanding of the strengths and weaknesses of sukuk (Ascarya, 2007).
____________________________________________
Dr. Tettet Fitrijanti, MSi, Ak, CA, SAS, Accounting & Finance Lecturer, Padjadjaran University, Bandung,
Indonesia, Email: tfitry@yahoo.com, tettet.fitrijanti@fe.unpad.ac.id
Prima Yusi Sari, ME, Ak, CA, Accounting & Finance Lecturer, Padjadjaran University, Bandung,
Indonesia, Email: primayusi@yahoo.com, prima.sari@fe.unpad.ac.id
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The development of sukuk issuance in Indonesia from 2002 to 2008 was growing
faster with the highest level of sukuk emissions noticed in 2009 with 14 emission sukuk
with a value of Rp2.32 trillion, and then declined until it reaches its lowest level in 2011
in which there is only one emission sukuk with a value Rp 100 billion (Bapepam-LK,
2012).
Table 1: Corporate Sukuk in Indonesia Year 2002 – 2012 Published Data
Year
Number of
Value of Emissions (in billions
Emissions
of Rp)
2002
1
175,0
2003
5
565,,0
2004
7
684,0
2005
3
585,0
2006
1
273,0
2007
4
892,0
2008
14
2.324,0
2009
8
1.517,0
2010
4
800,4
2011
1
100,0
August 2012
4
1.475,0
Total
52
9.390,4
This study therefore aims to find out if there is any difference in the financial condition of
the issuer of sukuk by the company issuing the bond, what are the internal factors that
cause companies to sukuk issuance, and what are the factors that led to the company
issuing sukuk to choose Mudarabah instead of Ijarah contract.
2. Theoretical Framework
The Accounting and Auditing Organization for Islamic Financial Institutions
(AAOIFI) found that the sukuk certificates value are presented after the close of
registration, the receipt of the value of the certificate is used according to the plan, as
well as parts and ownership of tangible assets, goods, or services, or capital of a
particular project or capital of an investment in a particular activity. As described in the
Decision of the Chairman of the Capital Market Supervisory Agency and Financial
Institution No. KEP-181 / BL / 2009 on issuance of Islamic securities, Sukuk as Islamic
securities in the form of a certificate or proof of ownership of the same value, represent
a certain part (integral or not divided (syuyu / Undivided share) for (a) certain intangible
assets (ayyan maujudat); (b) the value of benefits on tangible assets (manafiul ayyan)
specified either already exist or will exist; (c) services (al khadamat) that already exist
and will exist; (d) the assets of particular projects (maujudat masyru 'muayyan); or (e)
investment activities that have been determined (nasyath ististmarin khashah). Excess
sukuk namely: (a) Can reach a broader investor, especially for investors who are
concerned about the aspects of Sharia, (b) to diversify the portfolio as a source of funds,
(c) the offer is still relatively low, with a high level of demand, (d) In general, sukuk has a
low price or at least as compared to conventional bonds. While some of the
weaknesses of sukuk, among others, are; (a) The structure is more complicated
because it requires the assets to came in (the underlying asset), (b) Tax and legal
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
uncertainty, (c) Does not have an official benchmark, because the government has not
issued sukuk (Ascarya, 2007).
AIMS sukuk are divided into four groups based on asset or project that became
the basis of the transaction, those groups are as follows:
1) Sukuk that represent ownership in tangible assets (mostly in the form of sale and
lease back transactions or direct lease);
2) Sukuk representing expediency or services (based on a sub-lease or sale transaction
services / sale of service);
3) Sukuk that represent part of the equity in a particular business or portfolio investment
(based on Musharaka or Mudarabah contract);
4) Sukuk that represent the items received or receivable in the future (based on
Murabahah, Salam, or istishna).
Referring to the Decision of the Chairman of the Capital Market Supervisory Agency
and Financial Institution (Bapepam-LK) No. KEP-430 / BL / 2012 on the Akad Agreement Used In The issuance of Islamic securities in the capital market: The
sukuk contract are:
1. Ijarah: An agreement (contract) between the lessor / providers (mu'jir) and the tenant
/ service user (musta'jir) to transfer rights (benefit) on an object that can be Ijarah
benefits of goods and / or services within a certain time with the payment of rent and /
or wages (ujrah) without being followed by the transfer of ownership of the object of
Ijarah itself.
2. Istishna: An agreement (contract) between the buyer / purchaser (mustashni ') and
the manufacturer / seller (shani') to create objects Istishna purchased by the buyer /
purchaser (mustashni ') with the criteria, requirements, and specifications have been
agreed by both parties.
3. Kafalah: An agreement (contract) between the insurer (kafiil / guarantor) and a
guaranteed party (makfuul 'anhu / ashiil / person who owes) to guarantee the
obligations of which are guaranteed to other parties (makfuul lahu / person indebted).
4. Mudarabah (Qiradh): An agreement (contract) cooperation between the owners of
capital (sahib al-mal) and the manager of the business (mudharib) by way of capital
owners (sahib al-mal) submit capital and business manager (mudharib) manages the
capital in a business.
5. Musharakah: An agreement (contract) cooperation between two or more parties
(syarik) by way of capital to include both in the form of money or other assets to
conduct business.
6. Wakalah: An agreement (contract) between the authorizer (muwakkil) and the
recipient of the (vice) by means of the authorizing party (muwakkil) provides power to
the authorized representative (representative) to perform certain actions or deeds.
Akads that are internationally known and has been getting "endorsement" of the
Accounting and Audting Organization for Islamic Financial Institutions (AAOIFI), are
among others:
1. Ijarah, where one party acting alone or through a representative, to sell or lease the
rights to the benefits of an asset to another party based on the price and the agreed
period without being followed by the transfer of ownership of the asset itself.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
The Sukuk Ijarah contract is divided into 2 parts, muntahiya bittamliek (sale and lease
back) and ijara headlease and sublease
2. Mudarabah, whereby one party provides capital (rab al maal) and other parties
providing labor and expertise (mudharib), the advantage of such cooperation will be
divided based on a pre-agreed ratio. Losses incurred will be borne solely by the
capital yangmenyediakan.
3. Musharaka, in which two or more parties working together combining the capital to
build a new project, developing an existing project, or fund operations. Gains and
losses are shared according to the amount of the capital participation of each party.
4. Istishna, where the parties agreed to the sale and purchase in order to finance a
project or item. As for the price, delivery time, and the specification of goods / project
determined in advance by agreement. (Directorate of Islamic Financing Policy, 2008).
When referring to the National Fatwa Council of Sharia Islamic Bonds, the covenants
that can be used for the issuance of Islamic bonds are: Mudarabah (muqaradah) /
Qardh, Musharaka, Murabahah, Salam, Istisna, and Ijarah (DSN, 2006).
1. Mudarabah Agreement or Muqaradah (Trust Financing, Investment Trust).
Mudarabah is a business cooperation agreement between the two parties with the first
providing capital, while others become managers. The National Fatwa Council of Sharia
bonds mentioned that Mudarabah Sharia Bonds is an Islamic Bonds based on
Mudarabah with regard to the substance MUI Fatwa National Sharia Board 7 / DSNMUI / IV / 2000 on the Mudarabah financing.
2. Ijarah Agreement (Operational Lease)
Ijarah is a contract based on one party buying equipment needed and rent it to a
particular client. Holders of Ijarah Securities as the owner, is fully responsible for
everything that happens on their property. In the National Sharia Board Fatwa No. 41
/ DSN-MUI / III / 2004 on Sharia Ijarah Bonds stated that the Sharia, Ijarah Bonds are
bonds that are based on the Ijarah contract agreement for the transfer of rights
(benefits) for an item within a certain time with rent payments (ujrah), without being
followed by the transfer of ownership of the goods themselves. Coupled with due
regard to the substance of the National Sharia Board MUI Fatwa No. 09 / DSN-MUI /
IV / 2000 on ijara financing.
3. Musharaka Agreement (Partnership, Project Financing Participation).
Musharaka Securities contracts are based on an almost resembles Securities than
Mudarabah. The main difference is the intermediary would be a group of people who
became Musharaka bondholders in a combined partnership, in Mudarabah capital
resources are hold only from one side. In the National Sharia Board Fatwa No. 08 /
DSN-MUI / IV / 2000 on Musharaka financing mentioned that Musharaka financing is
financing based on the cooperation agreement between two or more parties for a
specific business, where each party contributes to the funds providing, and where the
benefits and risks will be shared in accordance with the agreement.
4. Salam Agreement (In-Front Payment Sale)
Salam is a sale of a commodity, where the quality and quantity of the goods that will
be given to the buyer at a specified time in the future at current prices are determined
in advance. In the National Sharia Board Fatwa No.05 / DSN-MUI / IV / 2000
regarding the sale and purchase greetings mentioned that the sale of goods by
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
means of ordering and payment of the price in advance with certain conditions is
called with greetings.
5. Istisna Agreement (Purchase by order or manufacture)
Istisna is a contract that is used to sell manufactured goods. In the National Sharia
Board Fatwa No. 06 / DSN-MUI / IV / 2000 regarding the sale and purchase Istisna, it
is mentioned that buying and selling is the sale and purchase agreement in the form
of reservations of certain items with certain criteria and conditions agreed between
the buyer (buyer, mustashni) and sellers (maker, shani).
6. Murabahah Agreement (Deferred Payment Sale)
Murabahah is sale contract, of goods at the original price with an agreed advantage
added. In the National Sharia Board Fatwa No. 04 / DSN- MUI / IV / 2000 on
Murabahah, it is mentioned that the first customer to buy the necessary goods in the
name of the first party itself, and this purchase should be valid and usury free. Then the
customer pays the agreed price of the goods in a certain period of time agreed upon.
Among all companies that go public, there are only a few one that issue sukuk,
not bonds. Which lead to ask the question, what are the factors that affect the issuance
of sukuk, both macro and micro factors. There are several types of contract in the
issuance of sukuk in Indonesia, sukuk is presently more use in the form of Ijarah and
Mudarabah contract, therefor the interest to find out why companies chose Ijarah or
Mudarabah contract.
One Previous research on the effect of the issuance of sukuk on the issuing
company's fundamentals and capital market reaction, was made by Selim Cakir and
Faezeh Raei (2007) who concluded that the value at risk is smaller than Eurobond
sukuk and sukuk returns are relatively smaller. Nafiah Afaf (2008) concluded that the
issuance of the bonds causes an increase in the leverage of the company. Mujahid &
Tettet (2010) concluded that the value of corporate sukuk issuance has no significant
effect on cumulative abnormal stock return. Other finding in the Mujahid & Tettet (2010)
research is that, Sukuk Company does not have a significant effect on the market
reaction to cumulative abnormal stock return.
Contract based Sharia sukuk are different compared to other funding
instruments, namely bonds or stocks. In sukuk contract, agreed funding are recognized
as a debt, such as Ijarah contract, or the nature of the contract is recognized as capital
but has matured as a debt, such as Mudarabah contract.
There are two types of factors in Islamic transactions, emotional and rational
factors. The characteristics of rational factors in Islamic transactions are the use of
financial considerations, if the contract is projected to be more profitable than
conventional, and vice versa. If there is a consistent difference in the financial situation
of the company issuing sukuk compared with bonds, the companies allegedly issuing
sukuk choose more to improve the financial situation, not an excuse adherence to
sharia. Financial reasons include differences in financial circumstances as indicated by
differences in key financial ratios such as ROA, ROE, DER, and other ratios. As a
complementary analysis, or control of variables, we tested the effect of macroeconomic
factors on the selection of the type of financial instrument, such as inflation. The same
thinking is also applied to the analysis of the factors causing companies to choose the
type of contract in the issuance of sukuk, between Mudarabah and Ijarah.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
3. The Research Method
The data used in this study were obtained from a variety of sources with the
following details:
ROA
Value obtained using the formula
ROE
Value obtained using the formula
Debt to Equity ratio
Value obtained using the formula
Debt to Asset ratio
Value obtained using the formula
Market to Book value
Value obtained using the formula
Stock Price fluctuations
Fluctuations in the value of stock prices obtained from the standard deviation of daily
stock price amount for 1 year.
Inflation
Inflation rate is obtained using the formula
,
4. Population and Sample
The population in this study is the 31 companies that issue sukuk in Indonesia, namely:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
PT Indosat Tbk
PT Mitra Adiperkasa Tbk
PT Adhi Karya (Persero) Tbk
PT Matahari Putra Prima Tbk
PT Perusahaan Listrik Negara (Persero)
PT Ricky Putra Globalindo Tbk
PT Apexindo Pratama Duta Tbk
PT Humpus Intermoda Transportasi Tbk
PT Berlina Tbk
PT CSM Corporatama
PT Citra Sari Makmur
PT Sona Topas Tourism & Industry Tbk
PT Bank Mandiri Syariah
PT Cilliandra Perkasa
PT Bank Syariah Muamalat Indonesia Tbk
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
PT Bank Bukopin Tbk
PT Berlian Laju Tanker Tbk
PT Mayora Indah Tbk
PT Sumarecon Agung Tbk
PT Metrodata Elektronic Tbk
PT Aneka Gas Industry Tbk
PT Salim Ivomas Pratama
PT Pupuk Kalimantan Timur (Persero)
PT Titan Petrokimia Nusantara
PT Tiga Pilar Sejahtera Food Tbk
PT Adira Dinamika Multi Finance Tbk
PT Sumberdaya Sewatama Tbk
PT Bank Muamalat Indonesia Tbk
PT Bank Pembangunan Daerah Sumatera Barat (Bank Nagari)
PT Bank Pembangunan Daerah Sulawesi Selatan
PT PTPN VII
From the population above, we selected 25 companies as a sample, because there are
six companies that the data are not available for all variables. Those six companies are:
1.
2.
3.
4.
5.
6.
PT Adira Dinamika Multi Finance Tbk
PT Bank Pembangunan Daerah Sulawesi Selatan
PT Bank Mandiri Syariah
PT Cilliandra Perkasa
PT CSM Corporatama
PT PTPN VII
The analysis of the differences between companies that issue sukuk and those
issuing bonds, is made using different test, T test or Mann Whitney U test. The Analysis
of the causal factors (internal) company issuing sukuk is made using logit regression
with the pooled data. Finally the analysis of the factors causing a company issuing
sukuk to choose Mudarabah or Ijarah is made using logit regression.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
5. Research Findings
5.1. Analysis of Financial Situation of a Company before Sukuk and Bonds
issuance
Table 2: Independent Samples Test Results - Difference in Financial Situation of a
Company before Sukuk and Bonds issuance: Debt To Asset
Average Debt To Asset 7134.5 (Rank Sum)
Before
Issuance
of
Sukuk
Average Debt To Asset 5906.5 (Rank Sum)
Prior to Issuance
p-value
0.0958
Inference
There is a significant difference Debt To Asset before the
issuance of sukuk and before the issuance of bonds.
The company Debt To Asset before the issuance of sukuk
on average is larger than the Debt To Asset of the company
before the issuance of bonds
The results showed that companies issue sukuk when their Debt To Asset is high
relative to their financial condition prior to the issuance of bonds, and statistically
significant. Thus it can be presumed that such sukuk issuance is for the company to
absorb the available funds beyond conventional debt that has been obtained as shown
in the balance as a high debt to assets.
Table 3.
Independent Samples Test Results - Difference in Financial Situation of a
Company before Sukuk and Bonds issuance: Debt To Equity
Average Debt To Equity 6725.5 (Rank Sum)
Before
Issuance
of
Sukuk
Average Debt To Equity 6315.5 (Rank Sum)
Prior to Issuance
p-value
0.777
Inference
There is no significant differences between, Debt To Equity
before Sukuk issuance and before bonds issuance.
The Company Debt To Equity before the issuance of Sukuk in
average is greater than the Debt To Equity of the company
before the issuance of bonds
The results showed that the companies issue sukuk when their Debt To Equity is high
relative to the financial condition prior to the issuance of bonds, but the difference was
not statistically significant. Although not statistically significant, but the debt to equity
sukuk issuer are higher than the bonds issuer, consistent with the results of the
analysis of the differences in debt to asset.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 4.
Independent Samples Test Results - Difference in Financial Situation of a
Company before Sukuk and Bonds issuance: Return on Assets
Average Return on Assets Prior 6720 (Rank Sum)
to Issuance of Sukuk
Average Return on Assets Prior 6321 (Rank Sum)
to Issuance
p-value
0.7920
Inference
There is no significant difference in return on assets
before the issuance of sukuk and before the issuance of
bonds
Return on assets of the company before the issuance of
sukuk on average higher than the return on assets of the
company before the issuance of bonds
The results showed that companies issue sukuk when its return on assets is relatively
high compared to the financial circumstances before the issuance of the bonds, but the
difference was not statistically significant. Although not statistically significant, but ROA
of sukuk issuer is higher than the ROA of bonds issuer, so it was concluded that
although the financial risks of sukuk issuer is higher, but at the same time the company
issuing the sukuk is also more profitable than corporate bond issuers.
Table 5.
Independent Samples Test Results - Difference in Financial Situation of a
Company before Sukuk and Bonds issuance: Return on Equity
Average Return on
Issuance of Sukuk
Average Return on
Issuance
p-value
Inference
Equity
Prior
to 6361.5 (Rank Sum)
Equity
Prior
to
6679.5 (Rank Sum)
0.3429
There is no significant difference in the
return on equity before the issuance of
sukuk and before the issuance bonds
The Return on Equity of the company
before the issuance of sukuk on average is
smaller than the return on equity of the
company before the issuance of bonds
The results showed that companies issue sukuk when its return on equity is low relative
to the financial condition prior to the issuance of bonds, but the difference was not
statistically significant. Although not statistically significant, but ROE of sukuk issuer is
lower than ROE of bond issuer, so it was concluded that when the financial risks of
sukuk issuer is higher, at the same time the performance of the company's equity
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
management of the sukuk issuers are also lower than the company issuing bonds. The
results of this study can be considered as an indication that sukuk is seen as a debt
instrument rather than equity instrument, for any kind of contract.
5.2. Analysis of a Company (Internal) Factors That Cause the
Issuance of Sukuk
Table 6.
Logit Test Results
Debt to Equity and ROE
Constant
0.3545965
Debt To Equity Coefficient
0.1713596
Return
On
Equity 0.0322672
Coefficient
Probability > chi2
0.3778
Pseudo R2
0.0229
Number of Observations
62
Table 7.
Logit Test Results
Debt to Asset & ROA
Constant
Debt To Asset Coefficient
Return On Asset Coefficient
Probability > chi2
Pseudo R2
Number of Observations
-0.382
0.114
-2.384
0,5691
0,0133
62
Based on the results of the logit analysis it can be concluded that the Debt To Equity
ratio, the ROE as well as ROA are not the variable that cause companies to issue
bonds or sukuk. Thus it can be presumed that companies issued sukuk not because of
the financial situation which is different from companies that issued bonds.
When the variable market-to-book value is added to the regression equation, then
obtained the following results are obtained:
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
Table 8
Logit Test Results
Debt to Equity, ROE and Market to Book Value
Constant
Coefficient Debt To Equity
Coefficient Return On Equity
Coefficient Market to Book
Value
Probability > chi2
Pseudo R2
Number of Observations
0.0327958
0.1658241
-0.1634761
0.4235076*
0.1410
0.0643
62
*: significant
Based on the above regression equation, we concluded that if the market to book value
increases, then the selection of sukuk by the company as debt instruments decreased
compared with bonds. The results of this study is consistent and logic, companies
issuing sukuk as an alternative to equities, as bonds, sukuk thus might be seen by the
company as debt, whatever kind of contract it is.
5.3. Analysis of the Financial Factors that cause a Company to
Choose between Sukuk Mudarabah or Sukuk Ijarah.
Table 9
Sukuk Scheme Difference between Mudarabah and Ijarah
Iteration
Iteration
Iteration
Iteration
Iteration
Iteration
Iteration
0:
1:
2:
3:
4:
5:
6:
log
log
log
log
log
log
log
likelihood
likelihood
likelihood
likelihood
likelihood
likelihood
likelihood
=
=
=
=
=
=
=
-7.9219874
-6.0323548
-5.4384587
-5.3145179
-5.3132587
-5.313258
-5.313258
Logistic regression
Log likelihood =
Number of obs
LR chi2(5)
Prob > chi2
Pseudo R2
-5.313258
ijarah
Coef.
roe
debt_to_eq~y
inflasi
pergerakan~r
book_value
_cons
-12.10283
-.129127
.0137275
.0109682
-2.283965
3.561127
Std. Err.
15.93216
.5930658
.2267577
.0093281
2.195114
2.856717
z
-0.76
-0.22
0.06
1.18
-1.04
1.25
P>|z|
0.447
0.828
0.952
0.240
0.298
0.213
=
=
=
=
17
5.22
0.3899
0.3293
[95% Conf. Interval]
-43.32928
-1.291515
-.4307095
-.0073146
-6.58631
-2.037935
19.12363
1.033261
.4581644
.029251
2.018379
9.16019
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
From the regression results, can be concluded that the probability of companies issuing
sukuk Ijarah compared to Mudarabah decrease when the ROE of the companies is
high, decrease when D / E of companies is high, decreases also when M / B of
companies is high, declined when companies stock returns is high, rise up when the
inflation rate is high, and rise up when the fluctuations of stock return sis high.
Eventhough the overall model was not significant, but the effect of variable X on Y is
0.3293%. And the results of this study indicate that companies that have a higher
probability of choosing Mudarabah contract rather than ijara contract tends to be a
company that have a high ROE, D / E, high M / B, high stocks return, but low inflation
rate and low fluctuations in stock returns.
6. Conclusion
There are not so many researches on the sukuk (Islamic bonds). In Indonesia, 31
companies out of 300 public companies have issued sukuk. This research was
conducted to find out any financial factors that caused those 31 companies to issue
sukuk, instead of conventional bonds. Those causal factors are either internal /
fundamentals or macro. Indonesia's public companies have issued Sukuk Ijarah or
sukuk Mudarabah. Ijarah is a lease agreement, while the Mudarabah contract is a
contract whereby one party is the investors and the other parties as the manager. This
research other question was whether there is any financial factors that influence the
selection of Ijarah or Mudarabah contract.
The sample of this study was 25 public companies out of the population of 31
companies issuer of sukuk in Indonesia, using independent comparison test and logit
regression analysis, this research concluded :
Differences in Corporate Financial Analysis before Issuing Bonds and Sukuk
(Based on the independent samples t- test)
- Debt to Asset before issuing sukuk is higher relative to the financial condition prior to
the issuance of bonds and statistically significant, so the objective of issuing sukuk is
to absorb the available funds out of conventional debt.
- Debt to Equity before issuing sukuk is higher relative to the financial condition prior to
the issuance of bonds. Although not statistically significant, this result is consistent
with Debt to asset.
- Company that issued sukuk had relatively higher Return on Assets than their
financial circumstances before the issuance of bonds. Although not statistically
significant, but it can be presumed that the financial risk of companies before the
issuance of sukuk is higher, at the same time the profitability of those companies
issuing sukuk is also higher than the issuer.
- Company that issued Sukuk had a relatively lower Return on Equity compared to
their financial circumstances before the issuance of bonds. Although not statistically
significant, but it can be presumed that not only the financial risk of the company
before the issuance of sukuk is higher, but the performance of the equity
management of the company issuer sukuk is also lower than the one issuer of bonds.
Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
It is also an indication that the sukuk was seen as a debt instrument rather than
equity instruments, in any kind of the contract (aqad).
Analysis of the internal factors that lead a Company to issue Sukuk or Bonds and
the Macro Factors (Based on Logit Regression Analysis)
- Debt to Equity, ROE and ROA are not variables that cause companies to issue
sukuk, so it can be presumed that the company issuing sukuk not because of the
financial situation, in comparison to bond issuance reasons.
- If the market value to book value before issuing sukuk increased, the probability of
selection of sukuk by the company as debt instruments decreased compared to
probability to issuance of bonds, so it presumed that company issue sukuk as an
financing alternative in form of debt instead of equity, thus sukuk is seen as a debt, in
any kind of the contract.
- Macroeconomic variables such as inflation and fluctuations in stock returns are not
significantly affecting the company in choosing between issuing sukuk or bonds. This
means that there were other considerations in selection process of sukuk as
financing instruments.
Analysis of Financial & Macro Factors in Choosing between Contract/Aqad
Mudarabah and Ijarah (Based on Logit Regression Analysis)
- Probability of companies issuing sukuk with Ijarah ccontract/aqad compare with
Mudarabah contract/aqad decreased as ROE was high, Deb/Equity high either, as
well as a high Market/Book and stock returns.
- Probability of companies issuing sukuk with Ijarah contract/aqad in compare with
Mudarabah contract/aqad increase as inflation rate was high, and fluctuations in
stock returns were high.
- Although the overall model was not significant, but the effect of variable X on Y was
0.3293%
- These results indicated that companies, whose probability of choosing Mudarabah
rather than Ijarah contract is higher, tend to also had high profitability, high financial
risk, high market value, in the economic condition of low inflation and low risk in form
of fluctuations in their stock returns.
7. References
Ascarya dan Diana Yumanita, 2007, Comparing The Development Islamic
Financial/Bond Market in Malaysia and Indonesia, IRTI Publications (2008) : Saudi
Arabia.
Badan Pengawas Pasar Modal dan Lembaga Keuangan. 2012. Statistik Pasar
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
statistik_pm/2012/2012_IX_4.pdf. diakses pada 23 Juni 2013
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Himpunan Fatwa Dewan Syariah Nasional, 2004, Cet. Kedua
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Dalam Penerbitan Efek Syariah
Sakti, Ali. 2011. Peran Lembaga Keuangan Syariah dalam Pengembangan Ilmu
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Proceedings of Annual Tokyo Business Research Conference