TY  - JOUR
T1  - Social Capital in Islamic Finance: The Case of Sukuk
AU - Sidek, Noor Zahirah Mohd AU - Ahmad, Nursilah 
JO  - International Business Management
VL  - 10
IS  - 19
SP  - 4670
EP  - 4678
PY  - 2016
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2016.4670.4678
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2016.4670.4678
KW  - Sukuk issuance
KW  -social capital
KW  -trusts
KW  -norms
KW  -social structure
KW  -network
AB  - The impact of social capital on financial development is a longstanding issue. Empirical evidences suggest that social capital has an important effect on economic growth. Given this relationship, we hypothesize the same impact on the financial market. In this study, we examine the impact of social capital on the development of Islamic finance with a special focus on <i>sukuk</i> issuance. A sample of <i>sukuk</i> issuance from 2000-2014 from sixteen countries is examined. Results suggest that social capital promotes greater <i>sukuk</i> issuance, especially in the presence of a more democratic and financially liberalized environment. An important policy implication is that government should strengthen and enhance both political and economic institutions as they are the basis for social capital development.
ER  -