A Sharʽiah Analysis of ʼijāra as a Financing Mode in the wake of Parallel Banking System of Bank of Khyber

The only religion Islam provides the thorough layout for human beings not only covers the spiritual needs but also shaped the materialistic desires in a better way. The most important aspect among all is the availability of proper, smooth flowing and practical financial system as it involve almost in all fields of life. Looking at the current situation and fast growing industry, Islamic Banking System emerged as solid and firm scheme for optimum utilization of finance in full conformity of Shariʽah. ʼijāra is one of the modes frequently used in Interest free banks. The Bank of Khyber claims as Parallel Banking System i.e. It practicing conventional Banking as well as Islamic Banking System. This study emphasis on analyzing the practice of ʼijāra as a financing mode in the wake of Parallel Banking system of Bank of Khyber in the light of Sharʽiah teachings and to portray the real picture of it to enhance the level of satisfaction of customer.   

Impact of Corporate Governance of Earnings Management and Cost of Capital: Evidence from Pakistan

CoC, this study measures it through the weighted average cost of capital (WACC). CG is measured through an index developed from different factors of CG namely Board of Directors (BoD), Ownership and shareholding, and transparency, disclosure, and auditing. The study also includes control variables of the size of the firm, performance, leverage, capital expenditures, and cash flows from operations, Beta and gross domestic product growth rate. For the first stage of the thesis, the results show that CG significantly and negatively affects EM practices and this association is statistically significant. In stage two, the association of CG and CoC is negative and statistically significant. In the last stage of the thesis, the study finds that EM is positively associated with CoC and the association is statistically significant. The overall findings of the study support the theoretical justifications that a strong and efficient system of CG ensures the dissemination of information to the concerned quarters and all stakeholders through the disclosure requirements of a firm. This disclosure of information not only improves the quality of accounting information but also builds and restore the trust of investors on the firm fundamental information. Thus, investors take into account the disclosed information while making the investment decision and thus reduces the cost of capital of a firm. Moreover, conclude that earnings manipulation practices of management generate the negative signal in the capital market. Thus, investors demand extra returns on their investment as compared to non-manipulated firms.