Does Islamic Label Indicate Higher use of Trade Credit? Evidence from Shar¯ı‘ah Compliant Non-financial Firms in Pakistan

Muhammad Kamran, Jaleel Ahmed, Ikram Ullah

Article Details

Does Islamic Label Indicate Higher use of Trade Credit? Evidence from Shar¯ı‘ah Compliant Non-financial Firms in Pakistan

Authors:

Muhammad Kamran, Jaleel Ahmed, Ikram Ullah

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.9 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001947821

pISSN:

2075-6291

Keywords:

Abstract:

 This study attempts to investigate the behavior of non-financial ISL firms towards usage of TC. In line with the previous literature, it is hypothesized that ISL “Shar¯ı‘ah Compliant” indicates higher use of TC by such firms, both demand and supply of TC. It is also hypothesized that TC is substitute of bank loan. The results are based on 338 non-financial firms listed on Pakistan Stock Exchange for 2008 to 2016 observation period. These include non-financial firms from all sectors. The study used random Generalized Method of Moment (GMM) estimation technique to explore the relationship of ISL and usage of TC as it is the most powerful method when sample size is large. The study found that ISL firms use more TC, as compared to conventional firms that have more access to bank loan. This study also found that firms with ISL prefer TC over the bank credit. The result of this study proves all stated hypotheses.

Article Details

Does Islamic Label Indicate Higher use of Trade Credit? Evidence from Shar¯ı‘ah Compliant Non-financial Firms in Pakistan

Authors:

Muhammad Kamran, Jaleel Ahmed, Ikram Ullah

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.9 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001947821

pISSN:

2075-6291

Islamic Label (ISL)

Trade Credit (TC)

GMM

Shar¯ı‘ah Compliance

Issues

Article Details

Does Islamic Label Indicate Higher use of Trade Credit? Evidence from Shar¯ı‘ah Compliant Non-financial Firms in Pakistan

Authors: Muhammad Kamran, Jaleel Ahmed, Ikram Ullah

Publisher: Riphah International University

Journal: Journal of Islamic Business and Management Vol.9 Issue 2, pp.0-0

Document Type: Article

Publication Date: 1/2019

Document Language: English

Document ID (Org No.): 2001947821

pISSN: 2075-6291

Islamic Label (ISL)

Trade Credit (TC)

GMM

Shar¯ı‘ah Compliance

Issues

Authors:

Muhammad Kamran, Jaleel Ahmed, Ikram Ullah

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.9 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2019

Document Language:

English

Document ID (Org No.):

2001947821

pISSN:

2075-6291