EQUITY CAPITAL, PROFIT SHARING CONTRACTS, AND INVESTMENT: THEORY AND EVIDENCE
论证在伊斯兰金融框架下，股权资本和利润分享比例是投资的主要决定因素，构建了两期均衡模型并利用伊斯兰银行数据进行了实证检验。
The potential effect of financial variables on the level of investment is among the key issues in contemporary financial economics. Some researchers have claimed that there is an inherent risk in the Islamic profit‐and‐loss sharing scheme that replaces the western fixed‐interest rate system. This paper argues that such concerns are baseless. In an Islamic framework, equity capital (i.e., strong financial position) and the profit‐sharing ratio are primary determinants of investment. It is shown that both factors could enhance the firm's business reputation and its investment activities. The paper, in so doing, constructs a two‐period equilibrium model of profit‐sharing contracts. An optimal solution for the investment function is derived for the banking firm. Besides equity capital and the profit‐sharing ratio, other relevant determinants of investment are also considered, including depreciation and expected inflation. Moreover, unlike most previous research in this area, the resultant investment (and profitsharing ratio) functions are subjected to empirical testing using data from a representative Islamic bank.