Sukuk Rating Prediction: The Case of Corporate Sukuk in Indonesia.

The objective of this research is to discover how to set a rating for sukuk and to assess the factors that significantly influence sukuk ratings in Indonesia. The study contributes in reducing asymmetric information between investors and issuers by providing information on variables that affect suku...

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Publicado en:Pertanika Journal of Social Sciences & Humanities Vol. 27; no. S2; pp. 63 - 78
Autores principales: Ismail, Nabila, Arundina, Tika
Formato: Artículo
Publicado: Universiti Putra Malaysia 2019 Special Issue
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Sukuk Rating Prediction: The Case of Corporate Sukuk in Indonesia.
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        au:
          Ismail, Nabila
          Arundina, Tika
        affil: Islamic Economics and Islamic Business Program, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, West Java, Indonesia
      su:
        Credit ratings
        Islamic bonds
        Securities
        Bonds (Finance)
        Indonesia
      sug:
        subj:
          Indonesia
          Credit ratings
          Islamic bonds
          Securities
          Bonds (Finance)
      keyword:
        Credit rating
        sukuk
        sukuk rating
      ab: The objective of this research is to discover how to set a rating for sukuk and to assess the factors that significantly influence sukuk ratings in Indonesia. The study contributes in reducing asymmetric information between investors and issuers by providing information on variables that affect sukuk rating. Not all securities are being rated by the agencies, the suggested model, therefore could be used as one of references to compare between the non- rated securities and the rated ones in order to guide investor in their buying or selling strategy. The study applies multinomial logistic regression in order to predict the sukuk ratings made by PT. Pefindo using several independent variables such as total assets, long-term leverage ratio, current ratio, interest coverage ratio, Return on Assets (ROA), guarantees and sukuk structure. The result shows that this model could predict 90.1% of sukuk rating issuance by PT. Pefindo.
      pubtype: Academic Journal
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    language: English
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