The European Proceedings of Social & Behavioural Sciences

The purpose of current study is to be participated in such trends throughout testing the Index of legitimacy in the presence of shariah risks in Shariah reports. Furthermore, it aims to investigate and detect the influence of Shariah risks on legitimacy of Sukuk . Theoretical model is developed by the present study and analyzed  data of 82 Sukuk’s in Malaysian’ Bursa. The data collected from the reports of Shariah  in the period years between 2005 to 2015. The current study is a quantitative used Partial Least Squares (PLS). The study revealed that there is evidence show a negative impact of shariah risks on index legitimacy in the reports of shariah.  The unique contribution of the present study that might strongly added to the literature regarding the impact of legitimacy index and risks of shariah from the shariah reports for Sukuk Markets. In addition, this study contributes by adding some implication to be added to policy whereby the policy is made management of Islamic financial institutions (IFIs)  and shariah advisory council.

Testing The Legitimacy Index In Light Of Shariah Risks For Sukuk Markets