Overcoming financing constraints to corporate expansion: Evidence from a company in an emerging Islamic market / Bruce Hearn, Jenifer Piesse and Roger Strange.

Format:

Book

Government document

Author/Creator:

Hearn, Bruce, author.

Contributor:

Piesse, J. (Jenifer)

Strange, Roger.

Language:

English

Subjects (All):

International Trade and Finance.

Local Subjects:

International Trade and Finance.

Physical Description:

1 online resource (26 pages)

Contained In:

Transnational Corporations Vol. 18, no. 3, p. 1-26 18:3<1 2076-099X

Place of Publication:

[Place of publication not identified] : United Nations Conference on Trade and Development, 2010.

System Details:

text file

Summary:

The sourcing of low-cost finance to facilitate corporate expansion on competitive terms is a major challenge to firms from emerging markets. There are additional constraints in Islamic markets as financial instruments must adhere to sharia law. This paper examines the approach taken by the Sudan Telecommunications Company (Sudatel) to obtain cost effective equity financing using secondary listings on multiple Middle East and North Africa (MENA) stock exchanges. We compare the costs of equity for Sudatel stock on the Sudan and Abu Dhabi Exchanges, and compare these figures with those for Sudatel's two main regional competitors. Furthermore, we highlight the risk-return trade-off faced by investors in Sudatel stock on both Exchanges, and provide evidence of the potential benefits to investors from the overseas listing.

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