The choice between debt and equity financing has been directed to seek the optimal capital structure. Under the agency costs hypothesis, a high leverage or a low equity/asset ratio reduces the agency costs of outside equity and increases firm value. Several studies show that a firm with high...

This research attempts to analyze whether Rupiah overshoots when the crisis hit Indonesia in mid of 1998. It also try to find out the fundamental macroeconomic factors that influence exchange rate when economic crisis hit Indonesia. It uses ordinary least square method and also cointegration in...

The relationship between monetary policy and economic activity is one of the basic questions of macroeconomics. Economists have addressed this question in a number of ways. The traditional approach focuses on the importance of the liability side of the bank balance sheet. However, the...

This paper shows how a risk management mechanism through selling debt can affect the value of the Islamic banks. The Islamic banks are able to maximize their value from the sale of murabahah on housing debt in order to manage their risk arising from fluctuations in interest rates. A tractable...

Religion and work are seldom discussed. The two have caused scholars to question the religion’s role with work. This paper reviews research on the integrate between religion and work by examining issues of concept, definition, measurement, and reviewing research that examines the relationship...

This paper seeks to provide a framework for addressing supervisory issues which impact operations and institutional development of Islamic banks. We argue against universal supervision or creating separate specialized supervisions, the approach in this paper uses the risk based supervisory...

The paper intends to contribute to the ongoing debate of whether group-lending policy are sustainable and able to achieve and maintain sound repayment performance, while serving poor borrowers without the support of third parties such as takaful operator. By aiding new features in better...

Regulation is crucial for many reasons. More important than that is to produce an effective regulatory framework. In this paper, we will find that the first step in this framework is the philosophical foundation of Islamic microfinance institution’s establishment that is formulated in their...

Purpose – The purpose of this paper is to discuss zakat for business entities, in this regards Islamic banking institutions. There is a debate on whether or not business entities are obliged to pay zakat. However a sort of consensus has been concluded that a business entities owned by Moslems...

The current evaluation of Islamic Banks performance uses the conventional measurs, which is not unacceptable as the current Islamic Banks’ structure is mainly equal of its conventional counterparts in the sense that they are developed in the frame of business entity, thus businessbased...