Determinants of ROI in Mudarabah & Musharakah Contracts: The Case of Pakistan

This study attempts to analyze the determinants of ROI in Mudarabah and Musharakah contracts in Pakistan. The findings of this study will give a clear view on what these determinants are, and will state a better understanding onhow these determinants affect the ROI of these contracts. The data of this study was collected from 23 Mudarabahcompanies in Pakistan, listed in Pakistan stock exchange. The results state that for Mudarabah, 3 out of 4 independent variables (Agency cost, Risk and Monitoring cost)are statistically significant at 1% and 5%, which means that 3 ofthese variables are affecting the ROI of Mudarabah contracts in Pakistan. As for Musharakah contracts, 2 out of 4 variables (Agency cost and Monitoring cost) are significant at 1% and 5%. This study extends the literature on the determinants of ROI in Islamic partnership contracts by highlighting their importance and providing empirical evidence to support the literature.

کلیدواژه ها:

Mudarabah ، Musharakah ، Return on investment ، Agency cost ، Risk ، Monitoring cost ، Taxation