Abstract
This study examines the relationship between religiosity and Islamic debt financing based on Malaysian non-financial listed firms from 2012 to 2018. We find that Muslim CEOs allocate more Islamic financing in their debt financing compared to non-Muslim CEOs, which support the upper echelons theory. However, we find that the sociological pressure from Muslim Stakeholders display no significant effect on Islamic financing. Interestingly, we further find that Islamic debt financing will incline no matter whether the Muslim population is high or low if the CEO was a Muslim. This implies that our findings support the upper echelon theory, but not the stakeholder orientation theory.
Original language | English |
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Article number | 100625 |
Journal | Global Finance Journal |
Volume | 54 |
Early online date | 12 Feb 2021 |
DOIs | |
Publication status | Published - Nov 2022 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2021 Elsevier Inc.
Keywords
- Islamic debt financing
- Muslim CEO
- Muslim stakeholders
ASJC Scopus subject areas
- Finance
- Economics and Econometrics