DETERMINANTS OF SUSTAINABLE GROWTH RATE (SGR) BY USING ZAKON'S MODEL TO ENCOUNTER WITH SHARIAH COMPLIANCE REQUIREMENTS FOR SHARIAH SECURITIES COMPLIANCE FIRMS IN MALAYSIA

Abstract

An issue on sustainability is one of area that received more comprehensive attentions by managers, and investors to handle and invest their business investment. Sustainable growth rate (SGR) is a pivotal indicator to the firm in gauging their business prosperity performance. The existing SGR models are fit to non-shariah firm since the element included in their model equation was not parallel with the maqasid al-shariah. These diverse indicators in the existing models mentioned become main objective of this study to be conducted. In addition to that, most of the public listed firms in Malaysia are going for shariah compliance. Thus, the development of the iSGR model is very useful in enhancing their business performance as regards to profitability, leverage, dividend and liquidity. Furthermore, iSGR model can gauge the future business prosperity and as benchmarks for Shariah Securities Compliance Firms based on shariah compliant requirements.