"Islamic Finance Researches" (IFR)

Evaluating of Stock Exchange Supervision over the Issuers: Adopting a Supportive Approach Islamic to Stockholders

Document Type : Science - Research (Islamic Financial Rights)

Authors

1 PhD Student in Financial Law, Department of Financial Management, Research Sciences Branch, Islamic Azad University, Tehran, Iran

2 Assistant Professor of Law, Electronic Unit, Islamic Azad University, Tehran, Iran

3 Associate Professor, Department of Accounting, North Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Supervising and assuring investors is considered as one of the most important bases for strengthening and developing the capital market. . Islam has considered customs and conditions for business, commerce and economic activity, among which we can mention fairness in transaction and protection of the rights of the parties in transactions. Transparency and certainty about respecting the investors' rights by the issuers are the concerns of those investing in different securities, including stocks and various types of Islamic securities (Sukuk). The greater the trust among the individuals in a society, the more the desire for investment, and in return, the more the issuers’ financial capabilities to launch investment projects and also to provide working capital. Thus, the capital market will succeed in financing as its main mission. The main purpose of this study is to evaluate the level of supervision sufficiency applied by the Capital Market Supervisory Authority over the issuers of various securities in the stock exchange. In this study, 200 stockholders were selected randomly as statistical samples. Data were collected using a questionnaire. The structural equation model and the opinions of experts and informants were used to assess the construct validity and content validity, consequently. The results of the study indicate that, according to the shareholders, the level of the Stock Exchange supervision over the issuers is acceptable considering financial literacy, disclosure and transparency, and training activities; while, the supervision over corporate governance, audit quality, and insider information is not acceptable enough.

Keywords

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Volume 10, Issue 2 - Serial Number 20
May 2021
Pages 875-902
  • Receive Date: 09 November 2020
  • Revise Date: 23 August 2021
  • Accept Date: 23 August 2021