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All Outputs (51)

Rationalizing Hybrid Financial Instruments from an Usūlī Perspective (2014)
Journal Article
Ebrahim, M., Salleh, M., & Sheikh, M. (2014). Rationalizing Hybrid Financial Instruments from an Usūlī Perspective. Arab Law Quarterly, 28(3), 295-306. https://doi.org/10.1163/15730255-12341284

This article attributes the prime reason for the underdevelopment of the Arab and Muslim world to the lack of advancement of their financial intermediation systems. We instigate the employment of hybrid financial instruments to re-invigorate their fi... Read More about Rationalizing Hybrid Financial Instruments from an Usūlī Perspective.

Integrating corporate ownership and pension fund structures: A general equilibrium approach (2014)
Journal Article
Ebrahim, M., Mathur, I., & Gwilym, R. (2014). Integrating corporate ownership and pension fund structures: A general equilibrium approach. Journal of Banking and Finance, 49, 553-569. https://doi.org/10.1016/j.jbankfin.2014.05.032

This paper studies pension fund design in the context of investment in the debt and equity of a firm. We employ a general equilibrium framework to demonstrate that: (i) the asset location ‘puzzle’ is purely a partial equilibrium phenomenon, conceived... Read More about Integrating corporate ownership and pension fund structures: A general equilibrium approach.

Rationalizing the value premium in emerging markets (2014)
Journal Article
Ebrahim, M., Girma, S., Shah, M. E., & Williams, J. (2014). Rationalizing the value premium in emerging markets. Journal of International Financial Markets, Institutions and Money, 29, 51-70. https://doi.org/10.1016/j.intfin.2013.11.005

We reconfirm the presence of value premium in emerging markets. Using the Brazil–Turkey–India–China (BTIC) grouping during a period of substantial economic growth and stock market development, we attribute the premium to the investment patterns of gl... Read More about Rationalizing the value premium in emerging markets.

Dynamic capital structure and political patronage: The case of Malaysia (2013)
Journal Article
Ebrahim, M., Girma, S., Shah, M., & Williams, J. (2014). Dynamic capital structure and political patronage: The case of Malaysia. International Review of Financial Analysis, 31, 117-128. https://doi.org/10.1016/j.irfa.2013.11.004

This paper investigates the effect of political patronage on firms' capital structure. The evidence is from Malaysia, a country characterised by relationship-capitalism, and covers 1988 to 2009. Using a system GMM estimator we find firms set leverage... Read More about Dynamic capital structure and political patronage: The case of Malaysia.

Can an interest-free credit facility be more efficient than a usurious payday loan? (2013)
Journal Article
Salleh, M. O., Jaafar, A., & Ebrahim, M. (2014). Can an interest-free credit facility be more efficient than a usurious payday loan?. Journal of Economic Behavior and Organization, 103, 74-92. https://doi.org/10.1016/j.jebo.2013.05.014

Inefficiencies in mainstream credit markets have pushed selected households to frequent high cost payday loans for their liquidity needs. Ironically, despite the prohibitive cost there is still persistent demand for the product. This paper rides on t... Read More about Can an interest-free credit facility be more efficient than a usurious payday loan?.

Can position limits restrain ‘rogue’ trading? (2013)
Journal Article
Gwilym, R. A., & Ebrahim, M. (2013). Can position limits restrain ‘rogue’ trading?. Journal of Banking and Finance, 37(3), 824-836. https://doi.org/10.1016/j.jbankfin.2012.10.025

This paper studies the imposition of position limits on commodity futures from the perspective of curbing excessive speculation and thus manipulation. We present a simple general equilibrium model in a static rational expectations framework and agent... Read More about Can position limits restrain ‘rogue’ trading?.

Mitigating financial fragility with Continuous Workout Mortgages. (2013)
Journal Article
Ebrahim, M., Shiller, R., Wojakowski, R., & Shackleton, M. (2013). Mitigating financial fragility with Continuous Workout Mortgages. Journal of Economic Behavior and Organization, 85, 269-285. https://doi.org/10.1016/j.jebo.2012.04.010

This paper models Continuous Workout Mortgages (CWMs) in an economic environment with refinancings and prepayments. CWMs are home loans whose balance and payments are indexed using a market-observable house price index of the pertaining locality. Our... Read More about Mitigating financial fragility with Continuous Workout Mortgages..

On the efficiency of the UPREIT organizational form: Implications for the subprime crisis and CDO's. (2013)
Journal Article
Ebrahim, M., & Mathur, I. (2013). On the efficiency of the UPREIT organizational form: Implications for the subprime crisis and CDO's. Journal of Economic Behavior and Organization, 85, 286-305. https://doi.org/10.1016/j.jebo.2012.02.015

This paper studies optimal real estate organizational forms as a means of enhancing real estate values in the ongoing subprime crisis. We model the organizational response to stakeholder conflicts and regulatory changes to show how they evolve to an... Read More about On the efficiency of the UPREIT organizational form: Implications for the subprime crisis and CDO's..

Participation Mortgages and the Efficiency of Financial Intermediation (2011)
Journal Article
Ebrahim, M., Shackleton, M. B., & Wojakowski, R. M. (2011). Participation Mortgages and the Efficiency of Financial Intermediation. Journal of Banking and Finance, 35(11), 3042-3054. https://doi.org/10.1016/j.jbankfin.2011.04.008

This paper establishes a basic framework to study three different variants of Participating Mortgages (PMs). We obtain results for Shared Appreciation Mortgages (SAMs), Shared Income Mortgages (SIMs) and Shared Equity Mortgages (SEMs) in closed-form.... Read More about Participation Mortgages and the Efficiency of Financial Intermediation.

Financial development and asset valuation: The special case of real estate. (2010)
Journal Article
Ebrahim, M., & Hussain, S. (2010). Financial development and asset valuation: The special case of real estate. Journal of Banking and Finance, 34(1), 150-162. https://doi.org/10.1016/j.jbankfin.2009.07.011

This paper studies the impact of financial development on asset valuation. We model the agency theoretic perspective of risk-averse investors and financiers in a general equilibrium setting under the framework of rational expectations (i.e., symmetri... Read More about Financial development and asset valuation: The special case of real estate..

Can an Islamic Model of Housing Finance Cooperative Elevate the Economic Status of the Underprivileged?" (2009)
Journal Article
Ebrahim, M. (2009). Can an Islamic Model of Housing Finance Cooperative Elevate the Economic Status of the Underprivileged?". Journal of Economic Behavior and Organization, 72(3), 864-883. https://doi.org/10.1016/j.jebo.2009.08.002

A formal home loan is onerous to subprime borrowers in efficient markets. This can deter homeownership for financially strapped individuals, leading to a market failure. This paper proposes a special form of cooperative mortgage financing (practiced... Read More about Can an Islamic Model of Housing Finance Cooperative Elevate the Economic Status of the Underprivileged?".

Discussion Forum: The Financial Crisis: Comments from an Islamic Perspectives. (2008)
Journal Article
Ebrahim, M. (2008). Discussion Forum: The Financial Crisis: Comments from an Islamic Perspectives. International Journal of Economics, Management and Accounting, 16(2), 111-138

I plan to summarize the discussion of my three eminent colleagues along the following framework (incorporating the Islamic perspective): (i) What is the root cause of the current subprime crisis? (ii) What is the impact of the crisis on the global ec... Read More about Discussion Forum: The Financial Crisis: Comments from an Islamic Perspectives..

Pricing home mortgages and bank collateral: A rational expectations approach. (2007)
Journal Article
Ebrahim, M., & Mathur, I. (2007). Pricing home mortgages and bank collateral: A rational expectations approach. Journal of Economic Dynamics and Control, 31(4), 1217-1244. https://doi.org/10.1016/j.jedc.2006.03.007

The efficiency of the housing finance system is of interest to homeowners, financial intermediaries and policy makers. We study the design of optimal mortgage contracts for risk-averse economic agents with access to symmetric information on the payof... Read More about Pricing home mortgages and bank collateral: A rational expectations approach..

On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies. (2005)
Journal Article
Ebrahim, M., & Rahman, S. (2005). On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies. Journal of Economic Behavior and Organization, 56(2), 273-295. https://doi.org/10.1016/j.jebo.2003.09.007

A general equilibrium approach is used to demonstrate that: (i) futures contracting (on Islamically permissible commodities) is pareto-optimal over the Islamic forward contract of Bai’ Salam; and (ii) both forms of contracting constitute a quasi-equi... Read More about On the pareto-optimality of futures contracts over Islamic forward contracts: implications for the emerging Muslim economies..

On the Pricing of an Islamic Convertible Mortgage for Infrastructure Project Financing (2002)
Journal Article
Ebrahim, M., & Khan, T. (2002). On the Pricing of an Islamic Convertible Mortgage for Infrastructure Project Financing. International Journal of Theoretical and Applied Finance, 5(7), 701-728. https://doi.org/10.1142/s0219024902001675

This paper models a default-free convertible facility to finance infrastructure projects in emerging Muslim countries. The mortgage is designed as a combination of an Islamic credit facility (allowing the collateralization of debt by the assets of th... Read More about On the Pricing of an Islamic Convertible Mortgage for Infrastructure Project Financing.

Real Estate Portfolio Diversification by Sources of Returns. (2002)
Journal Article
National, K., Wee, S., & Ebrahim, M. (2002). Real Estate Portfolio Diversification by Sources of Returns. Journal of Real Estate Portfolio Management, 8(1), 1-15. https://doi.org/10.5555/repm.8.1.n52p6144nq726u41

The basis of the superior performance of the contrarian strategy is a lively debate in the finance literature. In relation to real property, the contrarian strategy implies that properties with high running yield (i.e., value properties) could outper... Read More about Real Estate Portfolio Diversification by Sources of Returns..

Investor heterogeneity, market segmentation, leverage and the equity premium puzzle. (2001)
Journal Article
Ebrahim, M., & Mathur, I. (2001). Investor heterogeneity, market segmentation, leverage and the equity premium puzzle. Journal of Banking and Finance, 25(10), 1897-1919. https://doi.org/10.1016/s0378-4266%2800%2900164-3

Financial economists for the past two decades have attempted to explain why the equity premium is so high, now known as the equity premium puzzle (EPP). We model investor heterogeneity, market segmentation and optimal leverage, using the time separab... Read More about Investor heterogeneity, market segmentation, leverage and the equity premium puzzle..

The Pricing of Debt and Pareto-Optimal Financing under Endogenous Bankruptcy (2001)
Journal Article
Ebrahim, M., & Mathur, I. (2001). The Pricing of Debt and Pareto-Optimal Financing under Endogenous Bankruptcy. International Journal of Theoretical and Applied Finance, 4(3), 491-509. https://doi.org/10.1142/s0219024901001085

Using an agency theoretical framework, this paper extends the optimal capital structure literature by modeling the rivalry between equity and debt to arrive at some very fundamental results involving endogeneity of bankruptcy, equilibrium interest ra... Read More about The Pricing of Debt and Pareto-Optimal Financing under Endogenous Bankruptcy.