Corporate Sukuk Issuance and Firm Fundamentals: A Dynamic Causality Approach from Indonesia

Atallah Aqil (Universitas Syiah Kuala)
Suriani Suriani (Syiah Kuala University,)
Dewi Suryani Sentosa (Universitas Syiah Kuala)

Signifikan : Jurnal Ilmu Ekonomi
Vol. 15 No. 2 (2026)

Research Originality: This study extends existing knowledge on corporate sukuk by moving beyond static determinant frameworks and examining the dynamic relationships between firm fundamentals and issuance behavior. The analysis offers new insights into the factors underlying sustained access to Sharia-compliant financing. Research Objectives: This study investigates whether financial performance, capital structure, firm size, and asset growth predict the issuance behavior of Indonesian sukuk issuers. Research Methods: Using quarterly panel data from the five most active issuers during 2015Q1-2024Q4, this study applies panel Granger causality and panel VAR with impulse response and variance decomposition. Empirical Results: The findings reveal that firm size Granger-causes sukuk issuance, whereas return on equity, net profit margin, capital structure, and asset growth do not show Granger-causal effects at conventional levels. Issuance also exhibits strong persistence and responds more strongly to firm-size shocks than to other firm fundamentals. Implications: These results suggest that policies to deepen the sukuk market should reduce issuance frictions, improve disclosure quality, and expand access to Sharia-compliant financing for mid-sized firms. JEL Classification: C33, G23, G32, O16 How to Cite:Aqil, A., Suriani, S., & Sentosa, D. S. (2026). Corporate Sukuk Issuance and Firm Fundamentals: A Dynamic Causality Approach from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 15(2), 585-600. https://doi.org/10.15408/sjie.v15i2.50909.