Islamic Approach towards Social Construction: An Analytical Study in the Light of Hazrat Umar Farooq’s (RA) Wisdom and Thought

تعمیرِسماج کا اسلامی منہج : حضرت عمر فاروقؓ کی فکر و بصیرت کی روشنی میں تجزیاتی مطالعہ The modern era is considered as advanced and humanized in terms of materialized advancement only. Today the leading societies of the world have created a self-sufficient religion in the name of humanism and have set standards ignoring Divine guidance. Thus, man has the right to decide the rules and norms of society on his own goodwill. As a result, the breaking of family system, appearance of gay and homosexual relations, etc. Are being considered as legitimate in many countries where religion is no more considered a guiding principle. On the other hand, revealed religions have focus on the development of humanity in terms of both the ethical and materialistic perspectives. Islam as religion has provided a model of such an advancement and social change in history that has proven that Divine guidance is major source for betterment and development of civilization and humanity. This was practically proven in the time of Muslim golden rule in the world. The caliph Umar (R.A) was the man who introduced for the first time, the principles and values, which has changed the Arabs to a civilized and humanized nation. This huge change was made possible in the light of Divine guidance. In this academic article all such norms, values, and principles that were introduced by Sayyīdnā Umar (R.A) which brought a social change in his Era are discussed. Facts have been collected from historic books and presented following the descriptive and analytical method. Although, the information was narrated and scattered in the books, no proper study was introduced where the role of these reforms in the social construction was analyzed. The aim of the study has to investigate the historic facts of social change in the era of the righteous Caliph Sayyidna Umar bin Khattāb and prepare a guideline for the humanity in present era.  

The Role of Credit Rating Agencies in the European Financial Markets

This thesis investigates the role of Credit Rating Agencies (CRAs) in European financial markets. Traditional activities of CRAs include information supply, certification, and monitoring services for corporations and rating sovereign debt. Any change in the opinion of CRAs on the sovereign debt has strong implications on the financial markets and the real economy. This thesis contributes to literature by investigating: (i) the effect of sovereign rating and outlook changes on the shape of the sovereign yield curve; (ii) the impact of sovereign rating and outlook changes on stock markets at different levels of business cycle; (iii) the effect of financial liberalization on the growth in sovereign ratings; and (iv) the impact of sovereign rating and outlook instability on the access to credit by firms.In order to properly investigate these research questions, we employ a variety of pertinent statistical and econometric tools as required in every chapter. These techniques include but are not limited to state space modelling, vector autoregressions, maximum likelihood estimations, Kalman filter approach, generalized method of moments, and limited dependent variable methods. Findings of this thesis reveal, inter alia, that sovereign rating and outlook announcements play an important “confirmation role” in the financial markets; however, the extent of the effect depends on the announcement type, CRA specificity, kind of market and country characteristics. Specifically, the second chapter shows a significant effect of rating downgrades and an insignificant effect of rating upgrades on the sovereign yield curve; however, we observe mixed results for the effect of changes in outlook status of a sovereign country. The third chapter identifies that stock markets react more negatively to rating downgrades in recovery phases and more positively to rating upgrades in the contractionary period. However, we do not find any evidence of a pro-cyclical effect of sovereign rating and outlook change on stock returns. The fourth chapter indicates a positive impact of financial liberalization on sovereign ratings, and we show that we cannot reject the hypothesis that financial stability is iv independent of financial liberalization. Moreover, we show in this chapter that sovereign ratings tend to be stable and persistent, otherwise. The fifth chapter suggests a significant negative effect of sovereign rating and outlook instability on the access to credit by firms. The last chapter concludes the thesis with implications of these findings for understanding the role of rating agencies in financial markets, policymaking, designing regulations and for investors and firm owners, both in developing and developed economies