Capital structure and speed of adjustment of shariah-compliant firms: does the shariah screening criteria influence the results?

What is it about?

Researchers have been investigating how Shariah restrictions shape the corporate finance decisions of firms. Among the core of these decisions is the capital structure decision. However, different global Shariah screening criteria use different measurements and thresholds for debt and liquidity ratios. While analyzing the capital structure decisions of Shariah-compliant firms, we focus on the question of whether the differences in global Shariah screening criteria affect the results.

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