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Two Essays In Islamic Finance And Investment, Hesham J. Merdad May 2012

Two Essays In Islamic Finance And Investment, Hesham J. Merdad

University of New Orleans Theses and Dissertations

The main purpose of this dissertation is to lessen the gap in the Islamic finance and investment literature by providing new answers to the most vital question raised in that literature: Is the adherence to the Shariah law associated with at any cost?

The first chapter provides a primer on Islamic finance. It discusses several restrictions and necessary adaptations that must be made to have a Shariah-compliant product. The takeaway is that Shariah law mandates is related to fundamentals and, thus has a direct effect on the risk-return profile of all sorts of different products. This is referred to as …


Two Essays: “Does Corporate Governance Affect The Adjustment Speed Towards Target Capital Structure?” And “Do Option Traders On Reits And Non-Reits React Differently To New Information?”, Li-Kai Liao May 2012

Two Essays: “Does Corporate Governance Affect The Adjustment Speed Towards Target Capital Structure?” And “Do Option Traders On Reits And Non-Reits React Differently To New Information?”, Li-Kai Liao

University of New Orleans Theses and Dissertations

The first chapter investigates how corporate governance influences firms’ capital structure behavior. Based on the premise that costs associated with deviations from the target capital structure are positively correlated to the extent of deviation, we hypothesize that the initial deviation from the target will be shorter for a firm with good corporate governance than for a firm with poor corporate governance. We also hypothesize that the former group will employ a higher speed of adjustment towards target than the latter group due primarily to the following reasons. First, a firm with well-placed governance system will adjust at a faster rate …


Analyzing Earnings Management For Cross-Listed Firms And Interaction Between Two Futures Exchanges, Chia-Sheng Chen Dec 2011

Analyzing Earnings Management For Cross-Listed Firms And Interaction Between Two Futures Exchanges, Chia-Sheng Chen

University of New Orleans Theses and Dissertations

The first essay examines the impact of investor protection, market monitoring, and liquidity on the firm-level and country-level earnings management using a sample of 432 firms from 34 countries cross-listed in the U.S. The major findings are as follows: First, cross-listed firms from countries with strong legal system, strong outside investor rights, more institutional investors, and higher financial transparency are less likely to engage in earnings management. In addition, in countries with strong investor protection or market monitoring, the level of earnings management is more pronounced for illiquid firms as compared to liquid firms. Second, cross-listed firms following IFRS have …