TY - JOUR
AU - Al-Deehani, Talla
AB - Because Islamic banks are prohibited from entering into transactions based on riba (interest), they mobilise funds mainly on the basis of the mudaraba (profit-sharing) form of contract. Thus, in the place of interest-bearing customer deposits, Islamic banks offer investment accounts the return on which depends on the return on the pool of assets in which the customers' funds are invested by the bank. In contrast to conventional deposits, such investment accounts therefore yield a variable periodic return which may be negative (a loss). Islamic investment accounts are thus a form of limited-duration equity investment.
TI - Financial Contracting, Governance Structures and the Accounting Regulation of Islamic Banks: An Analysis in Terms of Agency Theory and Transaction Cost Economics
JF - Journal of Management & Governance
DO - 10.1023/A:1009985419353
DA - 2004-10-14
UR - https://www.deepdyve.com/lp/springer-journals/financial-contracting-governance-structures-and-the-accounting-S8Aq0e3Pcd
SP - 149
EP - 170
VL - 2
IS - 2
DP - DeepDyve
ER -