This monograph aims to tie together many of the important ideas in moderncorporate finance and explores how these could be presented from an Islamic perspective.Courses in corporate finance in universities across the globe are a significant componentof graduate programs in business administration, finance and economics. Invariably,corporate finance figures in their curriculum as a
course. In this monograph we focuson the ideas and concepts that form part of a
course in corporate finance.In order to make it simple for an instructor attuned to teaching corporate financeat Business Schools, we follow a structure similar to most standard textbooks on thesubject. The following popular texts in this field are worth mentioning:1.
Brealey, Richard A. and Stewart C. Myers,
Principles of Corporate Finance
Edition, Mcgraw Hill, 20042.
Ross, Westerfield and Jordan,
Essentials of Corporate Finance
Edition,Mcgraw Hill Irwin, 20043.
Brigham, Eugene F. and Joel F. Houston,
Fundamentals of Financial Management
Edition, The Dryden Press, 19984.
Brigham, Eugene F. and Louis C. Gapensky,
Financial Management: Theory and Practice
Edition, The Dryden Press, 1991While the coverage in some of the texts may be broader, we have made anattempt to deal with all the major ideas and concepts, keeping in mind the latestcontribution of Islamic scholars to the field. To our mind, teaching corporate finance islikely to be quite challenging for an instructor for the simple reason that there is a dearthof literature on the concepts and issues covered therein. There is no published text as yetdealing with this subject from an Islamic perspective and we had to rely mostly on rare published articles and papers in various journals in order to cull together some relevantideas and concepts. Some of the ideas and concepts are entirely original, and are being presented for the first time by the author. The only exceptions to the rule have been thechapters on Sources of Funds. There is fortunately no dearth of books, monographs andarticles on Islamic banks, financial institutions and markets. In this monograph, I have presented some material from my own text,
Islamic Financial Services
, published by theIslamic Economics Research Center in a summarized form in chapters 6 and 7.Instructors may relate the contents of these two chapters with relevant sections from this book. An online version of this book is available for free download at the website of theCentre.We have opted for brevity wherever we find that the materials presented inconventional textbooks are in the nature of tools of analysis, theories that do not need anyadaptation in the light of Islamic principles, numerical examples and empirical evidence.In order to avoid duplication, we advise the Instructor to follow the relevant contents