What Are The Contributing Factors For Firms Considering Issuing Sukuks

Thirty years ago, in response to the demand for the Shariah-compliant financial security, Sukuks was introduced in Malaysia in the form of debt securities as certificates resembling a conventional bond backed by securitized assets. I will examine in this study, the different financial performance areas and firm characteristics that motivate issuers to issue sukuks tested through the logistic regression. I will also consider how the financial crisis of 2008 may have impacted the decision process of issuers choosing to issue sukuks and which industries are relevant to these companies. Findings from my paper suggest there are several internal characteristics of the firm and financial performance areas a firm considers before issuing a Sukuk.