Do Muslim CEOs and Muslim stakeholders prefer Islamic debt financing?

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3 Citations (Scopus)


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 languageEnglish
Article number100625
JournalGlobal Finance Journal
Early online date12 Feb 2021
Publication statusPublished - Nov 2022
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2021 Elsevier Inc.


  • Islamic debt financing
  • Muslim CEO
  • Muslim stakeholders

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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