MODELING OF ZAKAT IN THE CAPITAL STRUCTURE THEORY

Authors

  • N. A. Sanusi School of Social Development and Economics,Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu
  • A. G. Talattov School of Social Development and Economics,Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu
  • S. Kusairi School of Social Development and Economics,Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu
  • A. H. S. M. Nor School of Economics,Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor

DOI:

https://doi.org/10.4314/jfas.v9i6s.67

Keywords:

wealth tax, optimal capital structure, Islamic financial instrument

Abstract

Islamic financial instruments are subject to taxes and zakat for Muslim shareholders and debt holders. Therefore, it is important to investigate the implementation of corporate taxes and corporate zakat in capital structure compositions. In order to model corporate zakat in terms of conventional capital structure theories, this study will discuss the conventional view of those theories in depth. The introduction of zakat are based on the conventional static trade-off theory developed by previous researchers.

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Published

2017-11-10

Issue

Section

Research Articles