UNDERLYING ASSET AND SHARIA GOVERNANCE ON SUKUK YIELDS (CASE STUDY ON CORPORATE SUKUK LISTED ON INDONESIA STOCK EXCHANGE IN THE PERIOD OF 2015-2018)

• Main Author: Ayu Fadilah Sary, Upik
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64577
• Institution: Institut Teknologi Bandung

The aim of this study is twofold. First is to examine the difference performance of sukuk’s yield based on different underlying asset type. Second is to investigate the effect of sharia governance mechanism on sukuk’s yield. The underlying asset is differed by equity-based and asset-based. While the proxies of sharia governance mechanism include independent commissioner, number of sharia scholars, and the percentage of Muslim board. The control variables include conventional corporate governance such as institutional ownership and board size, also rating and profitability of the issuers. The data covers from 2015 to 2018 for 24 tranches of long-term and medium-term issuances of sukuk from 12 corporations. Multivariate panel robust regression and comparative test are applied. The findings show that (1) There is no significant difference of sukuk yield’s performance between different underlying asset type. (2)Better internal and sharia compliance control in the presence of Independent commissioners, Sharia scholars, and Muslim boards significantly reduce the yields of sukuk.