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The Malaysia enjoys the monetary and non-monetary benefits for being the sukuk hub for globe. Malaysian market has already suffered much from defaults. To save them from future defaults the periodic update must be taken for the closeness of defaults. This study calculated distance to default (DD) for 231 observations for the time period of 2011-2017 in the post-crisis era. It was noted that the sukuk issuers are although diverse in their credit profiles, on the aggregate most of them are having strong level of assets to absorb their liability pay-offs. The DD values were at highest level for logistics, industrial goods, manufacturing, real estate and construction and lowest in energy sector. Directions for future research were also discussed in concluding part of this paper.
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In-Text Citation: (Rehman et al., 2020)
To Cite this Article: Rehman, A. U., Zaidel, M. A. bin, Jais, M. bin, & Malik, A. H. (2020). Distance to default of Malaysian Corporate Sukuk Issuers: A Differential Study for Different Economic Sectors. International Journal of Academic Research in Business and Social Sciences, 10(5), 546–556.
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