Does venture capital substitute Islamic profit and loss sharing contracts? theoretical analysis on Musharakah and venture capital

• Main Authors: Ajmi, Hechem, Abd. Aziz, Hassanuddeen, Kassim, Salina
• Format: Article
• Language: English; English
• Published: Universiti Putra Malaysia 2020
• Subjects: BP322.3 Musharakah - Partnership; BPH437 Sukuk - Islamic Bond; HG3368 Islamic Banking and Finance
• Online Access: http://irep.iium.edu.my/83077/1/83077_Does%20venture%20capital%20substitute%20Islamic%20profit%20and%20loss%20sharing%20contracts.pdf; http://irep.iium.edu.my/83077/2/83077_Does%20venture%20capital%20substitute%20Islamic%20profit%20and%20loss%20sharing%20contracts_scopus.pdf; http://irep.iium.edu.my/83077/; http://www.ijem.upm.edu.my/vol14no1/8)%20Does%20Venture%20Capital.pdf
• Institution: Universiti Islam Antarabangsa Malaysia

This paper emphasizes on the conflicts of interest between agents in order to assess whether venture capital can be a potential model of musharakah in imperfect markets. To achieve this purpose, this study opts for the financial contracting enforceability approach and Monte-Carlo simulation to ident...