DOES OF SUKUK ISSUE INFLUENCE THE PROFITABILITY PERFORMANCE OF PUBLIC LISTED FIRM IN MALAYSIA?

Abstract

The purpose of this study is to investigate the relationship between amount of sukuk issued and their profitability performance. This study focus on issuer firm that issues sukuk in Malaysia by considering 46 samples of public listed companies that issues sukuk from year 2012 until 2016. The data are collected from Securites commission and Bursa Malaysia. The profitability performance of sukuk issuer firms are measured by return on asset (ROA) as a dependent variable while, size of issues sukuk as independent variables. Other variables, for instance, size of firm, operating revenue and growth domestic product (GDP) are control variables. Regression test are utilized to identify the relationship between dependent variables and independent variables. The results show that there is a significant relationship between ROA and size of sukuk issued.  Thus, this study highly to build confident level for investor to invest in sukuk since the issuances can influence the performance of sukuk issuer. For future researcher need to make comparison between performance of sukuk and conventional bonds or cover broader region of studies in ASEAN emerging market economies.