Rosylin Mohd Yusof

This study investigates the impacts of financial performance—assessed through blockholding, board size, and capital structure (debt-to-equity ratio/DER) variables—on firm value, with profitability (ROA) acting as a moderating variable. Data obtained from a sample of manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023 were analyzed using panel data regression analysis in EViews 13. The findings reveal that blockholding exerts a negative and significant influence on firm value, indicating that ownership concentration may lead to agency conflicts and weaken investor confidence. Conversely, DER shows a positive and significant relationship with firm value, suggesting that a sound capital structure can enhance firm performance and signal financial stability to the market. Meanwhile, board size does not have a significant effect on firm value, implying that governance quality is more vital than the number of directors. Furthermore, profitability (ROA) does not moderate the relationship between blockholding, board size, or DER and firm value. These results emphasize that ownership and capital structures remain the key determinants of firm value, and profitability alone cannot strengthen these relationships. This study has practical implications for management and investors seeking to increase firm value through effective governance and optimal capital structure management.

A construction company is a company that operates in the field of infrastructure development, physical facilities and infrastructure for the benefit of the general public.This study aims to determine and provide empirical evidence related to the determinants of factors that affect firm value in construction companies listed on the Indonesia Stock Exchange in 2020-2023. The type of data used in this study is secondary data in the form of quantitative documentary data.The results of this study indicate that: Liquidity has a significant positive effect on financial distress. Leverage has a significant positive effect on financial distress. Liquidity Profitability has a significant positive effect on financial distress. Liquidity has a significant negative effect on firm value. Leverage has a significant positive effect on firm value. Profitability has a significant positive effect on firm value. Financial distress has an insignificant positive effect on firm value. Financial distress can mediate liquidity on firm value. Financial distress can mediate leverage on firm value. Financial distress can mediate profitability on firm value.

The construction sector in Malaysia grew at 8.1% from 2013 to 2016 supported by the growth in commercial property and the residential sectors at 12.5% and 9.8% respectively and has been on an increasing trend since the last four years (2013: 10.9%, 2014: 11.6%, 2015: 12.1 %, 2016: 10.3%) (Department of Statistics Malaysia, 2016). The Knight and Frank survey 2015 reported that commercial property financing comprised of 60% of properties priced at more than RM2 million and another 40% for properties priced below RM2 million. Commercial property prices have been on an increasing trend due to increased cost and interest rates as well as uncertain economic fundamentals. For Malaysia, interest rates (BLR) differ across banks ranging from 6.6% to 6.9% and the base rate (BR) ranges from 3.0% to 4.1% due to economic bubbles. Commercial property financing remains a vital issue for borrowers of both conventional and Islamic banks. For borrowers of conventional banks, an increase in interest rates means higher monthly installments which in turns may increase the default risk particularly in times of economic uncertainties. For borrowers of Islamic banks, although the financing is interest-free, the pricing of commercial property financing is still benchmarked against the conventional interest rates. This study highlights the problems that arise when Islamic financing still relies on the interest rates. In macroeconomic theory, financing strongly depends on the movement of the interest rates. In contrast, Islam prohibits interest due to the existence of price manipulations by some parties, considered as unfair, and the lack of risk- sharing mechanism. Therefore, this study seeks to gather opinions from Islamic scholars on the acceptability of using interest rates in determining commercial property rentals as well as identifying a potential Islamic financing model where the features of the potential Islamic financing model are discussed.

Purpose: The purpose of this paper is to propose the use of Islamic moral transaction mode as a moderator in sustainable Islamic microfinance banks (IMFBs) business model. Design/methodology/approach: The paper highlighted the major issues of microfinance banks in Nigeria and presented an integrated model that will suffice the long-term survival of the institution. Moreover, regression analysis is also employed to examine the impacts of financial outreach on the Nigerian economic growth. Findings: The authors find that Islamic moral transaction mode will moderate the sustainable Islamic banking business which can influence the sustenance of IMFBs and the well-being of the society through financial outreach. Research limitations/implications: The paper has empirically tested the impact of financial outreach on growth, and suggested future studies to investigate the existing relationships among the proposed model components. Therefore, further studies have the opportunity to develop measurements that will guide in testing the model, as well as strengthening its components. Practical implications: Implementing this model will enhance the sustainability of IMFBs and socio-economic well-being of the society through financial outreach. Consequently, this study also suggests other policy measures that will improve the sustenance of IMFBs and the society as a whole. Originality/value: The paper contributes to the existing literature of microfinance banks by linking the components of the sustainable business model to primary evidence of Sharia coupled with an in-depth link to generosity.

Purpose: This paper aims to contribute to the banking and housing market literature by proposing an alternative measure of rate of return for Islamic banks that is based on the rental rate of the property. This alternative Islamic mortgage pricing mechanism could be adopted by Islamic banks as a replacement for mortgage rates if it is found to be independent from any form of interest rates as required by Islamic law. Design/methodology/approach: By investigating the short run and long run dynamics between rental price index (RPI) and the proposed Islamic Rental Rate (RR-I) and, three selected macroeconomic indicators in the UK via autoregressive distributed lag model, the authors examine the link between RPI, RR-I and the real economy. Findings: The findings provide evidence that while RPI in the UK is significantly related to three leading macroeconomic variables, namely, gross domestic product (GDP), real effective exchange rate and interest rates measures, while RR-I is only impacted by changes in GDP. More importantly, the authors show that there is no short or long run dynamics between the rental rate and any form of interest rates. Research limitations/implications: This paper did not attempt to investigate the impact of the physical attributes of the rental property to formalize the model describing the relationship between RPI and RR-I. Also, other macroeconomic factors like household income growth, risk, house value growth rate and taxation could be included in future models. Practical implications: As Rental Rate is not linked to the macroeconomic determinants, it is therefore more stable, resilient and sustainable and, at the same time, making the financing less risky for both parties, as they are less susceptible to economic vulnerabilities. Social implications: Some calculations incorporating the proposed RR-I can also be extended to the pricing of products based on other contracts such as Tawarruq, Bai Bithaman Ajil or even Murabahah for a fairer and just pricing to both the banks and customers. Originality/value: The results suggest that Islamic banks should consider incorporating the proposed rental rate (RR-I) when pricing their home financing products, as this will lead to less dependence on interest rates for benchmarking. In addition, using the proposed rental rate (RR-I) reduces the exposure to the subjective evaluation by property valuators and speculative macroeconomic elements.