Understanding Islamic Corporate Finance Theory and Application

Prof. D.M.A. Mannan's 'Understanding Islamic Corporate Finance Theory and Application' breaks new ground in Islamic finance by proposing a Human Capital Certificate built on a profit-dependent wage system. The idea is to mobilize the other half of Mudarabah and redefine how Islamic banks operate. According to the author, such a certificate could tackle stagflation, raise productivity, ensure industrial peace, cut operational costs, and serve Shariah's twin goals of securing livelihood and drawing workers into profit-sharing.

The book also maps out the corporate, non-corporate, and voluntary sectors of Islamic finance and banking for the twenty-first century. It builds a conceptual and theoretical framework for the Islamic Securities Market. A key argument is that many conventional Western instruments, including preference shares, debentures, commercial papers, margin-based stock purchases, over-the-counter trading, and options, do not comply with Shariah principles. This makes the book a thoughtful reference for students, researchers, and practitioners exploring Islamic financial theory.