Mehri, Meryem; Jouaber, Kaouther - Université Paris-Dauphine (Paris IX) - 2012
This paper presents a theory for Islamic venture capital namely ‘Mudharabah’ contract under adverse selection problem … ratio (PSR) as a screening device. We then develop a Profit Sharing Ratio model for Islamic venture capital under adverse … selection. We find the optimal PSR as function of the respective risk aversion degree of both the entrepreneur and the IVC …