Lack of Profit Loss Sharing in Islamic Banking: Management and Control Imbalances

  • Humayon A. Dar, John R. Presley, Andre van Poeck
  • Published 2000

Abstract

An imbalance between management and control rights is attributed as a major cause of lack of Profit Loss Sharing (PLS) in the practice of Islamic finance. Given this dichotomy, the agency problem gets accentuated, which may put the PLS at a disadvantage vis-à-vis other modes of financing. However, there is no theoretical reason to believe that PLS is… (More)

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Cite this paper

@inproceedings{Dar2000LackOP, title={Lack of Profit Loss Sharing in Islamic Banking: Management and Control Imbalances}, author={Humayon A. Dar and John R. Presley and Andre van Poeck}, year={2000} }