Risk and Return: Comparative Study of Active Sukuk Markets of Nasdaq Hsbc Amanah Sukuk and Nasdaq Dubai Listed Sukuk

Abstract

This study attempted to identify the different types of risk embedded in the sukuk structure of Nasdaq HSBC Amanah sukuk and Nasdaq Dubai listed sukuk. Data were collected from seven groups of the sukuk market from 2005 to 2015 on a periodic monthly basis. Collected secondary data were undergone descriptive, correlation and multiple regression analysis. The results revealed that Nasdaq HSBC Amanah sukuk and Nasdaq Dubai listed sukuk assured that two models explain 61% to 72% of the variation. While Nasdaq HSBC Amanah sukuk return is 61% exposed to risk, Nasdaq Dubai listed sukuk return is 72% exposed to risk. F statistics shown that the models are significant at the 5% level and all models are acceptable. Analysis of results on the basis of special sectorial indicated that when Nasdaq HSBC Amanah sukuk is compared with Nasdaq Dubai listed sukuk, the risk impact is higher in Nasdaq Dubai listed sukuk. The test results confirmed the significant influence of market risk, credit risk, operational risk and liquidity risk on the sukuk returns in different ways.This study recommends that conducive environment should be given to promote secondary markets for sukuk. In addition to that Government regulators and policy makers should pay attention on these issues periodically. As such sukuk market can be more active.