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Debt and Equity in a Primary Financial Market: A Theory with Islamic Implications سندات الدين والأسهم في سوق مالية أولية: نظريتها ودلالاتها الإسلامية

In: Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي

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  • SEIF I. TAG EL-DIN

    (Ministry of Planning, Riyadh)

Abstract

Emphasizing risk averse nature of fund suppliers in an uncertain environment, this paper establishes the possibility of a riba-free Pareto optimality in a primary financial market, explaining real life dominance of the mixed debt/equity system in terms of deviation from informational efficiency. Risk premia normally associated with equity returns are definite indicators of risk-aversion on the part of demand side real investors. Under totally undiversifiable risk, a financial investor may prefer equity to risk free asset even though he is more risk-averse than the demand side issuer of equity. It concludes that free market dynamic forces generate a financial order giving privileges to active demanders of funds rather than sympathizing' with risk-averse suppliers of funds as conventional analysis implies. Theoretical claims of efficiency losses in the financial supply process due to Islamization appear to be groundless. يفترض هذا البحث كراهية المخاطرة لدى مقدمي الأرصدة في بيئة تتسم بعدم التأكد، ويبرهن على إمكان تحقيق أمثلية باريتو في سوق مالية أولية خالية من الربا، كما يعلل البحث ظهور النظام المختلط للتمويل بسندات الدين والأسهم بأنه نتيجة للانحراف عن حالة الكفاءة في المعلومات. ويبين أن المستثمر المالي الذي يواجه خطرًا غير قابل للتنويع (التشتيت)، قد يفضل اقتناء "الأسهم" على اقتناء سندات الدين العديمة المخاطرة حتى لو كان هذا المستثمر أكثر كراهية للمخاطرة من المصدر الأول للأسهم. ويستنتج البحث أن القوى الديناميكية في سوق حرة تولد نظامًا ماليًا يحابي طالبي الأرصدة النشطين، أكثر مما يتعاطف -كما يدعي التحليل التقليدي- مع عارضي الأرصدة الكارهين للمخاطرة. ويبدو للباحث أنه لا أساس للدعوى القائلة بأن أسلمة النظام المالي قد تؤدي إلى خسارة بعض الكفاءة في عملية عرض الأرصدة.

Suggested Citation

  • Seif I. Tag El-Din, 2009. "Debt and Equity in a Primary Financial Market: A Theory with Islamic Implications سندات الدين والأسهم في سوق مالية أولية: نظريتها ودلالاتها الإسلامية," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 9, pages 123-159, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:ieibch:109
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    References listed on IDEAS

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