Comparative analysis between Islamic finance and venture capital: do ifis and venture capitalists adopt the same investment decision process?

Chia sẻ: Huỳnh Ngọc Toàn | Ngày: | Loại File: PDF | Số trang:20

Thêm vào BST

Báo xấu

14
lượt xem 3
download

Download Vui lòng tải xuống để xem tài liệu đầy đủ

This paper proposes, to compare two modes of financing namely: venture capital and certain practices of Islamic finance (Musharakah and Mudarabah).

Chủ đề:

Bình luận(0) Đăng nhập để gửi bình luận!

Lưu

Nội dung Text: Comparative analysis between Islamic finance and venture capital: do ifis and venture capitalists adopt the same investment decision process?

International Journal of Management (IJM) Volume 9, Issue 4, July–August 2018, pp. 40–59, Article ID: IJM_09_04_006 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=9&IType=4 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication COMPARATIVE ANALYSIS BETWEEN ISLAMIC FINANCE AND VENTURE CAPITAL: DO IFIS AND VENTURE CAPITALISTS ADOPT THE SAME INVESTMENT DECISION PROCESS? A. Sakouili and M. EL Azhari PhD student at the University Hassan the 1st, 26000 Settat, Morocco R. Chroqui and S. Hattab Professor at the University Hassan the 1st, 26000 Settat, Morocco ABSTRACT This paper proposes, to compare two modes of financing namely: venture capital and certain practices of Islamic finance (Musharakah and Mudarabah). In this comparison, we will focus on the decision-making process to invest in a risky project and following the results found, we will evoke the notion of bounded rationality through its reliability models, with the aims of questioning the applicability thereof in the field of Islamic finance. The analysis carried out shows that these two modes are very similar, particularly in their approach to investment and their conception of partnership in business. Despite the undeniable advantages of the Musharakah and Mudarabah modes of financing, we noticed that these practices are rarely used the Islamic financial institutions because of the difficulties encountered by financial operators during the application of funds granting procedures. Also, this study shows that the modeling of decision-making process in participatory finance is a necessity and this will be the subject of our next paper. Keywords: Venture Capital, Musharakah, Mudarabah, Project Selection, Limited Rationality, Reliability Models Cite this Article: A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab, Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process?, International Journal of Management, 9 (4), 2018, pp. 40–59. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=9&IType=4 http://www.iaeme.com/IJM/index.asp 40 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? 1. INTRODUCTION In contrast to conventional finance, which links economic agents with a need for financing and those with the capacity to meet that need for an interest-based compensation, Islamic finance admits a different definition of this compensation, including moral criteria inherent in Islamic ethics. Accordingly, one of the fundamental principles of this practice is the prohibition of interest in all transactions (Benammara, 2015), for the purpose of creating instruments constituting an alternative based on the principle of Risk sharing. Indeed, the Islamic economic system believes that any agent providing capital in the form of money to a commercial enterprise assumes the risk of loss. This does not necessarily mean that he cannot make profit (Siddiqui 1987) as he is entitled to a proportionate share of the real benefits (Siddiqui, 1994). In this way, the system protects the entrepreneur who, in a conventional economy, should pay fixed interest even when the business loses money (Usmani, M.I. 2002,). This principle of 'sharing' is manifested in the practice of the Musharakah and Mudarabah contracts. Despite their undeniable advantages, these instruments remain seldomly used by Islamic financial institutions (IFIs), because of the complexity of their forms and rules of use. Khan & Mirakhor (1987) argue that “Even though in practice the role of profit-sharing and partnership is very small at present, they continue to dominate the theory of' Islamic banking. They are regarded as the norms towards which practice should and would, eventually gravitate.” (p.185-199). These contracts are often likened to the practice of Venture Capital (VC), which also enable the realization of projects with a level of risk that does not enable the access to a traditional financing through conventional banks. In fact, this method of financing has proven itself in developed countries, particularly the US model which is an undeniable success. It is a profession, structured and organized in all developed economies, playing a major role in funding and supporting high-risk projects (De Fontaine Vive, 2008; Frémiot, 2007). Hence, although the concept of VC is often linked to that of innovation, several studies comparing this financing mode to certain practices of Islamic finance (notably Musharakah and Mudarabah) have been carried out in recent years. However, we have noticed on one hand, that these studies have attempted to bring elements of comparison in a general way through the decortication of the terms‟ simple definitions. On the other hand, we have noticed that few studies have treated this issue deeply from the point of view of the project selection process. In this sense, our contribution aims to enrich the existing literature in this subject by comparing the Mudarabah and Musharakah contracts with private equity (of which VC is a component) and try eventually to study the applicability of the decision-making analytical tools, used in the field of VC, particularly those provided by the theory of bounded rationality in the field of Islamic finance. In order to achieve this goal, in the first part of this paper, we will try to present the history of the two modes of financing, before proceeding to define them in depth, in order to explain their functioning. Thereupon, we will conduct in a second part, a comparative analysis of these two modes according to five criteria namely:  Investment Type;  Partner Type;  Management;  Profit and Loss Sharing;  Partnership Duration; http://www.iaeme.com/IJM/index.asp 41 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab Finally, in the third part, we will discuss the analytical tools provided by the theory of bounded rationality, particularly the reliability model, in order to study its applicability in the field of Islamic finance. 2. HISTORY AND DEFINITIONS 2.1. History Financing instruments such as Musharakah and Mudarabah are one of the first forms of trade that were used by the people of the Arabian Peninsula, even before Islam emerged and started to expend. In fact, these methods were already beginning to gain space compared to other commercial procedures. Ref The Holy Prophet (PBUH) authorized the practice of these instruments by using them himself; it is reported in the Sunnah manuscripts that the Prophet (PBUH) was a Mudarib with the money of Khadija (his wife) before even his advent as a prophet (Sabiq, 1983). Once the Hijra took place, the Prophet announced that the Muhajireen [1] and Ansar [2] are brothers. Because of this, they have partnered in business through Musharakah and Mudarabah and other forms of commerce. Subsequently Fiqh scholars adapted and created new forms from what was practiced at the time of the Prophet and this with the implementation of the IFIs in 1970. The purpose of these instruments (especially the Mudarabah) is to find opportunities for cooperation between the financing funds provided by the owners, on one hand, and the experiences, physical, intellectual and creative efforts provided by the people who work on the other hand. In fact, in any society, many people owning money do not know how to invest, do not know the right means or may not have the time to invest and directly supervise their project. Similarly, there are a number of project developers with the expertise, the investment methods and enough time to develop and support investment projects but they do not have access to the appropriate funds. In a like manner VC financing fits in this perspective. The venture capital industry emerged and expanded in the United States in the mid-1940s. It‟s in 1946 that the first American Research & Development (ARD) VC fund was created by a group of private individuals 'Business Angels', to take off ten years later under the name 'Venture Capital', together with the development of the electronics industry (manufacturing of semiconductors, computers, instrumentation ...) (Cerveaux, 2014; Duboucage, 2003; Paulré, 2007). Thirteen years later (in 1958) the 'Small Business Investment Act' was born; the purpose of this act was to codify the practices of VC firms and establish what the professionals called 'Small Business-Investment Companies' (SBIC) (Emmanuelle and Galindo, 2008; Poncet, 2013). As a result, the tax measures undertaken by the financial authorities and the explosion of the High-Tech sector favoured the VC‟s expansion. Unlike the United States, VC in France begin to emerge in the 1970s, thanks to the action of public authorities, this resulted in the creation of the first legal framework for this kind of practice (Cerveaux, 2014). Today, the VC market is characterized by the multiplicity of stakeholders and the diversity of status (Ekeland and al., 2016a). As a result, the venture capitalists‟ profession is evolving and has gradually moved towards financial specialization in development operations (Ekeland and. al., 2016b). In Morocco, the VC industry is relatively new and dates from the 1990s, with the creation of the first VC firm named 'Moussahama', the latter has dominated the Moroccan VC market for a considerable time. Starting from 1999, VC companies have multiplied. This has created a favourable climate for the creation of AMIC (Moroccan Association of Capital Investors) by http://www.iaeme.com/IJM/index.asp 42 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? VC professionals (AMIC Report, 2016; Belalia. A and al, 2015; Ndour. A. D, 1998; Diamane and Koubaa, n.d.). The reading of the recent annual reports, provided by AMIC, makes it possible to note numerous remarks, two of which are important, namely:  A dominance of development capital funds, unlike those of venture capital that are significantly marginalized, leads us to conclude that Moroccan venture capitalists are more risk-averse  The absence of specialized venture capital funds and the existence of a limited number of specialist funds oriented to particular sectors (Ed-dafali .S, Bouzahir .B, Chakir .A, n.d.) 2.2. Definitions 2.2.1. Musharakah and Mudarabah 2.2.1.1. Musharakah (Partnership) Musharakah meaning in Arabic Sharing, derives from the word „Shirkah‟ which signify partnership (Abu Al-Fadl. M.J, n.d.; Al-Hamiri. N.B, 1999; Al-Qorafi. A.C, 1994). It is a word recently introduced by scholars in the field of Islamic finance, it does not exist in Fiqh manuscripts, the term recurrently used is Shirkah. It has a broader meaning and include two type of partnership, Shirkat-al-„Aqd (contract partnership) and Shirkat al-Milk (partnership of ownership).(Usmani, 2004) a. Shirkat-al-Milk (partnership of ownership): it‟s a partnership where the ownership of a particular property is shared between two persons for one of the following reasons: they purchased it, they inherited it, it was gifted to them or was given to them as part of a testament. (Hammad, 2008), the losses or profits generated by this partnership are distributed according to their ownership shares.(Nassar, 2010). This kind of Shirkah comes to existence in two different ways (Nassar, 2010):  Shirkah Ikhtiyarya (Optional partnership): when two people decide by choice to enter a partnership, with or without a contract (Hammad, 2008), the scholars explain that it‟s when, willingly, two partners create or enter in a joint ownership of a property, if they purchased it, was gifted to them or was given to them in a Will (Al-Zohaili. W., 1985; Journal of the Judicial Verdicts, n.d.; )  Shirkah Jabriyah (Automatic or forced partnership): when the shared ownership is created without the partner‟s free will, as in the case of inheritance(Al-Zohaili, 1985; Hammad, 2008; Journal of the Judicial Verdicts, n.d.). b. Sharikat al-‘Aqd (joint commercial enterprise): it‟s a contract between two persons or more, by which they enter a partnership where each brings a share of the capital and in return have a part of the profits (Al-Zohaili, 1985; Hammad, 2008; Nassar, 2010; Usmani, 2004). It is divided into four types:  Sharikat al-Amwal (capital partnership): it‟s a partnership where two persons or more invest their money in a commercial enterprise, in which the profits are distributed according to their capital shares or according to predefined percentages agreed upon. This type is subdivided into two kinds:  Shirkat Al-Mofawada: it‟s when the partners are equal, in the investment shares, in the right to manage the business and in the profit distribution provided that the contractors specify at the beginning that it is a Mofawada partnership otherwise it‟s a „Anaan partnership. http://www.iaeme.com/IJM/index.asp 43 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab  Shirkat Al-‘Anaan: it‟s when the evenness between the partners‟ investment shares is not a requirement, the partners contributions and the profit distribution shall be as agreed between them. (Al-Barkati, 2003; Al-Jurjani, n.d.; Al-Qadiri, 2005; Al- Zohaili, 1985; Nassar, 2010; Usmani, 2004)  Shirkat al-A’mal (partnership in service): it‟s an agreement between two persons or more, through which they jointly undertake to carry out a service to their customers sharing the earnings according to predefined percentages. It is called also Shirkat al-Abdan, Shirkat al-Taqabbul or Shirkat al-Sanai‟. (Al-Zohaili, 1985; Hammad, 2008; Nassar, 2010; Usmani, 2004)  Shirkat al-Wojouh ( Liability partnership): in this kind of partnership, the partners have no investment, they use their relations and connexions to purchase commodities on credit (delayed payment) and sell them for cash, the profits are distributed between them equally or according to the ratio they‟ve agreed upon.(Hammad, 2008; Nassar, 2010; Usmani, 2004)  Mudarabah: we‟re going to discuss this type of Shirkah in dept in the next part because it‟s one of the two major equity financing instruments used by Islamic financial institution. The diagram presented below sums up the different types of Shirkah [3]: Source: Nassar. A.M. 2010, Investment using Musharakah in Islamic banks, P 33 The term Musharakah is a bit limited in comparison with the term Shirkah, Usmani (2004) explains that Musharakah, the term used nowadays, is narrowed to Shirkat al-Amwal. According to Usmani (2002) “Under Islamic jurisprudence, Musharakah means a joint enterprise formed for conducting some business in which all partners share the profit according to a specific ratio while the loss is shared according to the ratio of the contribution.”. Through a Musharakah contract, two partners jointly invest in a capital-profit sharing project, whereas the losses are borne by both parties in proportion to the capital invested (Daly and Frikha, 2015; Supreme Sharia Supervisory Authority of the banking system and financial institutions, 2006). http://www.iaeme.com/IJM/index.asp 44 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? Figure 1 Musharakah contract Another type of Musharakah contract has been developed by the IFIs with the aim of achieving various objectives, tolerating the possibility of its implementation in the current banking and commercial environment. It is Musharakah Motanaqissa (Diminishing Musharakah). It is a type of partnership where one of the partners accepts and commits to gradually give up his share in the business to the other partner until there is only one owner. Both operations must be independent because it is not allowed to require the progressive sell option in the main contract, there must be a contract for each transaction (Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI, 2014; Usmani, 2004). The transfer takes place in three forms, namely (AAOIFI, 2014) :  The partners agree that the transfer is made after the completion of the participation contract, so that the partners have complete freedom to sell their shares to the other partner or to others.  The partners agree that in addition to the part of the income obtained under the partnership agreement, the transferring partner will obtain a relative share of the other partner's net income as a payment for the sale of his share and thus there will be only one owner of the project after a period of time.  Each partner will have a specific proportion in the form of shares representing the total value of the project. One of the partners may periodically acquire a certain number of these shares, so that the shares of one diminish by increasing the other‟s, until one owns all the shares and becomes the sole owner. 2.2.1.2. Mudarabah (financial tutelage) There is some difference in the naming of this type of contract among the four Madahib [4]. It is called Mudarabah by the Hanbali School and Hanafi school (Al-Kassani. A, 2003), and Qirad by the Maliki school and Chafi‟i school (Al-Qorafi. A.C, 1994b). It refers to the situation where one person gives a sum of money to another, through a Mudarabah contract, to invest in a business enterprise. The money for the investment is provided by the fund-raiser named Rab-al-Mal, while the work and management of the company is the exclusive responsibility of the other person named Mudarib. The profits generated are allocated according to predefined ratios, whereas any loss is only suffered by Rab-al-Mal, unless there is negligence, fraud or breach of contract conditions on the part of the Mudarib (Abu Al-Fadl. M.J, n.d.; AAOIFI, 2014; Al-Jurjani, n.d.; Al-Qadiri, 2005; Hammad, 2008; “Journal of the Judicial Verdicts,” 1877; Qorchi, 2005; Usmani, 2002). http://www.iaeme.com/IJM/index.asp 45 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab Figure 2 Mudarabah contract The scholars distinguish two types of Mudarabah videlicet (Al-Tahnaoui, 1996; Al- Zohaili, 1985; Hammad, 2008; “Journal of the Judicial Verdicts,” 1877; Nassar, 2010; Usmani, 2002):  Mudarabah Motlaqah (Unrestricted Mudarabah): in this type of Mudarabah the Mudarib has full freedom to choose and manage the business the way he deems right, rabu-al-mal cannot impose any condition on the Mudarib, such as the place where, the time when, the persons with whom or the way the business is conducted, he is a sleeping partner.  Mudarabah Moqayadah (Restricted Mudarabah): conversely, it‟s when Rab-al- Mal imposes one of the conditions specified above in order to invest in the enterprise. The validation of these contracts from a Sharia point of view requires a number of terms to be respected (AAOIFI, 2014; Al-Kassani. A, 2003; Al-Khafif, 2008; Al-Sarkhassi, 1989; Al-Zohaili, 1985; Nassar, 2010; Sabiq, 1983). We chose to present only a few terms, the others we presented and used in the comparative analysis. The table below sums up these terms: Musharakah Mudarabah The contract is concluded on the The contract is concluded on the expression of the offer and the expression of the offer and the acceptance. Validation acceptance, otherwise it is not Rab-al-mal must specify in his valid. offer that it is a Mudarabah or Qirad contract. Like Musharakah, the eligibility Partners must be eligible and sane of Rab-al-Mal and Mudarib is a Contractors to make the commitment that a necessary condition for the Mudarabah contract requires. validation of the contract. Rab-al-Mal must be the owner of the invested capital. This capital cannot be considered as a loan to the Mudarib. The contribution of each partner must be specified at the time of The capital invested must be Equity capital specified at the time of signing the signing the contract, to know its amount and its nature. contract. The capital must be invested exclusively in the project concerned, except with the consent of the rab-al-mal. http://www.iaeme.com/IJM/index.asp 46 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? 2.2.2. Venture Capital Venture capital is a capital injection intended to finance nascent, or very young, companies with high growth potential, which are rapidly developing and operate in activities requiring significant capital during their first years of existence (start-up) (Duboucage 2003,Ekeland et al., 2016a; Paulré, 2007; Savignac, 2006; Garnier 2009). This financing takes the form of a minority and temporary participation in the capital of these companies, not listed on the stock market, so that the majority stays with the project holder (Diamane and Koubaa, n.d.). It is a medium-term "partnership" contract between a young entrepreneur and a financier who acts as an intermediary facilitating access to financing for high-risk projects(Chatti, 2010; Cherif, 1999; Garnier, 2009). Financing through VC proves crucial when traditional solutions do not allow the financing of the project. Schier (2006) discern two main reasons for using VC financing, namely:  Access to a private equity market without going through the financial market, since in the latter the constraints in terms of communication such as information asymmetry and adverse selection constitute obstacles to the financing of the project;  Access to significant amounts of capital in the absence of tangible personal guarantees, since venture capitalists bear the risk inherent in the funded project At the beginning of its emergence, venture capital has often been used to finance the early stages of start-up‟s development. Afterwards, his role was widened by the professionals so that it touches all development phases of a project. Thus, its terminology varies depending on the funded phase (Kharis .M, 1997). The following table illustrates the appropriate funding for each phase of a project's life cycle: Project phase Funding concerned Research and development Seed capital [5] Creating Venture Capital Growth Development Capital Project Survival Capital transmission Adjustment (in case of difficulty) Rollover capital Source: AMIC,2016 However, the term VC is often used to refer to these different phases of the investment cycle. There are generally three types of capital, namely: seed capital, creation capital and post-creation capital (the financing required for the stages following start-up) (Chatti, 2010). http://www.iaeme.com/IJM/index.asp 47 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab Figure 3 Company life cycle Source: Dylan Tylor, The Next Wave of Space Investors,2016 Figure 4 company funding life cycle Source: Dylan Tylor, The Next Wave of Space Investors,2016  Seed Capital: This is the riskiest (and most unsuccessful) investment among all the different types of VC. It concerns the earliest stage of a company's life where the product is not yet developed. Generally, this kind of fund is dedicated to the study of the feasibility of the project (Stanislas De Zutter, 2010).  Creation capital (Start-up): This type of financing represents the main part of VC. It concerns companies (with less than one year of existence) that have already validated their business plans and are looking for financing to start their activities; It is used for the purchase of materials or equipment and the acquisition of the business premises, etc…. This type of capital is also very risky (but less risky compared to seed capital) due to the sensitivity of the creation phase and to the http://www.iaeme.com/IJM/index.asp 48 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? risks that it generates namely : technical, commercial and managerial (Chatti, 2010; Diamane and Koubaa n.d.; Stanislas De Zutter, 2010).  Post-creation capital: it is a financing intended for companies that have already started for some time their activities and whose development requires external and additional financing, this type of financing is less risky than the previous ones (AMIC, 2017; Chatti, 2010; Ed-dafali.S, Bouzahir.B, Chakir.A, n.d.) Other researchers including Douchane and Rocchi (1997) classify the field of intervention of VC into two sub-categories only: seed capital and capital-creation. In the following table, they summarize the differences between seed capital and creation capital: Seed Capital Creation Capital Turnover 0 >0 Loss by absence of cashed Loss (inability to reach the dead Net profit products point) Amount invested Low, due to high risks Higher, due to lower risk - Feasibility study - Industrialization - Prototypes tests Nature of needs covered -Marketing - Preproduction -Research and investment -R & D Potential added value Very high High Probability close to hitting Risk taking intensity Very high the jackpot Product, technological, - Industrial Risk nature concept - Market Absence (creator working in Organizational model Informal his garage) Maturation From one to five years From one to three years Source: Douchane Amar & Rocchi Jean Michel (1997), Technique of Financial Engineering: Practical and Technical Financial Arrangements, Ed. SEFI. Paris, P23 3. COMPARATIVE ANALYSIS: VENTURE CAPITAL VS MUSHARAKAH / MUDARABAH After having studied each of these financing modes separately. We will try in this part, which will be dedicated to the search for points of similarity as well as the points of dissimilarity between the Musharakah and Mudarabah contracts on one hand and the risk capital on the other hand, to draw up tables facilitating this comparison. These tables consist of three lines representing Standard Musharakah, Diminishing Musharakah and Mudarabah contracts. Three columns representing the three phases of private equity (venture capital, development capital and capital transmission). To illustrate our analysis, suppose a young entrepreneur with a project 'P'. The latter, lacking the financial means necessary to implement his ideas, is in a situation of choice between three sources of financing [6] existing on a given economy, namely:  Conventional banks: the destination traditionally solicited by young entrepreneurs.  Financing funds offered by VC.  IFIs, through the Mudarabah and Musharakah contracts. http://www.iaeme.com/IJM/index.asp 49 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab Due to the absence of tangible guarantees, the lack of experience of the young entrepreneur, the lack of traceability of the project and the strong presence of information asymmetry and moral hazard, the chances of rejection of the project by a conventional bank are very high. Thus, we will not consider the possibility of obtaining funding from these institutions. In that case, access to finance is limited to the two remaining sources of funding. The question that arises at this point is as follows: How these two organizations proceed to fund the project P? In order to answer this question, we have chosen five main elements for the financing of a project that allows a comparison between the two financing methods namely:  Investment Type;  Partner type;  Management;  Profit and loss Sharing;  Partnership Duration; These criteria will help to facilitate the comparison in terms of the investment decision making process. 3.1. Investment Type Private equity Development Transmission Venture Capital Musharakah Capital Capital Mudarabah Standard Musharakah Diminishing Musharakah Mudarabah Key: Similarity Dissimilarity „Investment Type‟ refers to the nature of the capital invested in the 'P' project. For Mudarabah contracts, the capital invested in a project must be in the form of the popular currency used in the country where the agreement is made. While for Musharakah it is permissible for one of the partners to provide the capital in kind (in the form of goods or materials), provided that its value must be determined by an expert and approved by the partners when signing the contract (Al-Kassani. A, 2003; Al-Sarkhassi, 1989; Al-Zohaili, 1985). In the same way, venture capitalists provide an investment in the form of equity intended to finance the project (Ekeland et al., 2016a; Emmanuelle and Galindo, 2008; Schier, 2006). http://www.iaeme.com/IJM/index.asp 50 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? 3.2. Partner Type Private equity Development Transmission Venture Capital Musharakah Capital Capital Mudarabah Standard Musharakah Diminishing Musharakah Mudarabah Key: Similarity Dissimilarity As it was explained in the definitions, for the Musharakah contract, the invested capital is brought by all the partners, each brings a proportion. So, we have only one type of partner. Whereas, in a Mudarabah contract, we have two types: Rab-al-Mal who brings all the invested capital, and the Mudarib who come up with the project idea and takes care of the management (AAOFI, 2014; Al-Zohaili, 1985; Nassar, 2010). As far as VC is concerned, when it comes to financing the preliminary stages (where the product is not yet commercialized) it can be said that there is a resemblance to the Mudarabah contract. Indeed, it is the venture capitalist who brings all (or almost) the amount invested in the project, while the idea is properly brought by the young entrepreneur (Paulré, 2007). Beyond these phases, VC is approaching the Musharakah contract as the company now has its own resources and therefore any fund provider will act as a partner. 3.3. Management Private equity Development Transmission Venture capital Musharakah Capital Capital Mudarabah Standard Musharakah Diminishing Musharakah Mudarabah (restricted) Key: Similarity Dissimilarity Regarding the Mudarabah contract, with the exception of Mudarabah Moqayadah, where Rab-al-mal outlines the project (Hammad, 2008), the Mudarib is authorized to perform the various tasks and make all the decisions to guarantee the survival, growth and success of the project. He has the exclusive right to manage the project ( AAOIFI, 2014). While Rab-al-Mal cannot participate in managing the affair or impose conditions that limit the ability of Mudarib to act and make decisions (Nassar, 2010). In cons, in a Musharakah contract, the partners share the right of management and decision-making. In fact, there are three scenarios (AAOIFI, 2014):  All the partners participate in a complementary way to the management and decision-making process that concerns the various project departments. http://www.iaeme.com/IJM/index.asp 51 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab  They can choose one of them, granting him the exclusive ability to manage the project and make all the necessary decisions.  They can appoint a stranger to manage the project, for a fee that will be recorded as an expense in the project activity report. As for VC, among the clauses that can be established in the shareholders' pact, there is often that of management which gives a large margin to the venture capitalist and thus plays the role of a veto right on certain strategic decisions (Schier, 2006). Therefore, we can understand that the entrepreneur does not have all the freedom of management. We also note that the role of the venture capitalist is not only limited in the contribution of funds but also in consulting (Duboucage, 2003, Emmanuelle and Galindo, 2008; Vololona Rabeharisoa, 1998). Thus, the young entrepreneur can benefit from the experience of the latter and also from his wide network of professionals. We can therefore conclude that VC converges in this respect with the Mudarabah Moqayadah contract. 3.4. Profit and loss Sharing Venture Capital Development Transmission Venture capital Musharakah Capital Capital Mudarabah Standard Musharakah Diminishing Musharakah Mudarabah Key: Similarity Dissimilarity The main purpose of the Musharakah and Mudarabah contracts is the realization of profits, some rules of profit sharing have been specified by the Sharia:  It can be shared only after deduction of the invested capital (Nassar, 2010)  It must be known and declared accurately (Al-Kassani, A, 2003)  To avoid any conflict, profit distribution ratios between Rab-al-Mal and Mudarib must be specified at the time of conclusion of the contract, otherwise the contract is not valid (Usmani, 2002).  It is not allowed to distinguish one of the partners with a specific amount of the profit, it must be distributed according to the predefined ratios (AAOFI, 2014).  The only distinction between the two contracts is the way in which the profits are shared. In fact, in the Mudarabah contract the profit sharing is done according to predefined ratios, while in a Musharakah contract the profit is shared either according to the ratios as in the Mudarabah or depending on the contribution of each partner. With regard to the losses sharing, in the Mudarabah contract only Rab-al-Mal can suffer tangible losses, the Mudarib only loses the time and effort he has put into the project. However, if it turns out that the losses were caused by negligence, a fraudulent activity or breach of the contract terms by the Mudarib, he also bears some of the losses (AAOIFI, 2014; Nassar, 2010). On the other hand, the losses are shared in the Musharakah contract according http://www.iaeme.com/IJM/index.asp 52 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? to the amount of capital that each partner has brought to the company (AAOIFI, 2014; Al- Zohaili, 1985; “Journal of the Judicial Verdicts,” 1877). About VC, among the practices used in this financing method, is the step-by-step funding; in fact, venture capitalists undertake funding one stage of the life cycle of the start-up at a time. The main purpose of this practice is to reduce the risks inherent in financing high-risk projects, it is called 'Stage Financing'; it consists of allocating the investment according to each phase of the project's life cycle and intervening according to the evolution of the environment and the achievement of the different objectives set by both partners (Nasica and Dufour, 2011). This leads us to conclude that during the initial phase of the business life cycle, we cannot talk of profit as the product it is not yet commercialized. It is for this reason that venture capitalists use a medium-term investment, and therefore aim for a sale of their shares within a horizon of five to ten years, with a surplus value. They cannot in any case withdraw from the investment or request a return of investment before the completion of the phase concerned by the financing. Their profit is realized therefore, either by selling their part at the end of this phase to another investment fund for a capital gain, or on an IPO in the event of success (through the sale of their stock shares). Both partners negotiate the profit distribution rate at the beginning of their partnership (Schier, 2006; Soulignac, 1991). It can thus be deduced that VC financing in the development and transmission phases is resembling to an extent the Musharakah contract. On the other hand, the loss of invested capital is a very likely event because of the high risk during the early stages of the nascent enterprise's life cycle, and it is up to the venture capitalist to bear the loss alone. The entrepreneur, in case of failure, loses his innovative project (Cerveaux, 2014; Pommet and Rainelli, 2012). On this point, VC financing is similar to the loss sharing mechanism of the Mudarabah contract. Beyond the completion of these phases, and when the company begins to commercialize its products, the losses will eventually be shared among the unitholders according to the ratios on which they have agreed upon in advance (Financial Markets Authority, 2015; Cerveaux, 2014; Pommet and Rainelli, 2012), The principle of this sharing converges with the Musharakah contract. 3.5. Partnership Duration Private equity Development Transmission Venture Capital Musharakah Capital Capital Mudarabah Standard Musharakah Diminishing Musharakah Mudarabah Key: Similarity Dissimilarity With the exception of the last two forms of the Diminishing Musharakah contract, where the transfer of shares from one partner to another takes place during the execution of the contract (see definition), none of the partners has the right to withdraw before the completion of the agreed duration. Likewise, as mentioned above, VC financing is executed per phase (stage financing) and therefore the investor cannot recover his investment at any time, he has to wait for the http://www.iaeme.com/IJM/index.asp 53 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab completion of the phase (which may take several years) (Chatti, 2010) for the fund to be "closed" in order to sell his shares to another investor (Emmanuelle and Galindo, 2008). We can conclude from these analyses that in theory these financing methods are similar, but it seems that VC fits perfectly with the first form of Diminishing Musharakah. 4. BOUNDED RATIONALITY AND APPLICATION Given the specificities of the decision-making environment of the two modes of financing in terms of the risk inherent in an investment project, information asymmetry, moral hazard and the limited cognitive abilities of the investors (Cherif .M, 1999). We have been led to propose a projection of the analytical tools provided by the theory of bounded rationality used by VC companies, notably the reliability models. From what has been said in the previous sections, it can be easily seen that the decision- making environment of venture capitalists and IFIs is not just risky but uncertain. This observation has important implications for the choice of analytical tools appropriate to the study of the relationship between IFI / young enterprise on the one hand and VC / young enterprise on the other hand. Unlike the first relationship where the literature allowing its analysis is rare or absent, the literature on the second relationship is very rich. So, a multitude of ways have been explored in recent years using several tools including those provided by the theory of real options (Nasica and Dufour, 2007). However, these tools have shown some limits to the particularities of the decision-making environment of venture capitalists by ignoring the reality and the complexity they‟ve faced. This has led other researchers to analyze this relationship with the analytical tools provided by the approaches in terms of "bounded" rationality (specifically the work of Nasica & Dufour, 2011; Laville, 1998 and others). The concept of bounded rationality was developed by Herbert Simon in 1947, in his book 'Administrative Behavior'. According to the author, the rationality of the decision-maker is necessarily limited; the decision integrates into a complex environment that restricts the perception of choices and imposes many constraints on the decision maker. The latter is limited in the amount of information that he can integrate in the process of decision making in a given period of time. It is therefore a question of seeking a satisfactory solution rather than an optimal one. Thus, we are in the presence of a decision maker always rational but within limits set by his environment (Diemer .A, n.d.). Among the models of bounded rationality widely used in the analysis of the venture capitalists / young companies relationship, we find the model of reliability. This model come from the decision theory, which, unlike other models of the same theory (satisfaction models and cost models), describe the behavior of economic agents as resulting from a tacit evolution attributing to agents only weak cognitive abilities (Laville, 1998). This is perfectly applicable to the decision-making environment of venture capitalists. In 1983, Heiner developed a model defending the following thesis: because their cognitive abilities are limited, agents are pushed to restrict their range of choices which makes their behaviors regular and predictable. This creates a gap between the cognitive abilities of an agent and the complexity of the environment he‟s confronted with: Competence-Difficulties (C-D) It is characterized by two types of variables: p: perception variables, it summarizes the cognitive limits of the agent and determine his competence; e : environment variables; it summarizes the complexity of the environment and determine the difficulty of the decision problem.  Internal uncertainty http://www.iaeme.com/IJM/index.asp 54 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? The C-D difference introduces an uncertainty in the determination of the optimal action: due to this uncertainty, the agent cannot always choose the optimal action. Its structure is represented by the following function: Let‟s take back the case of the 'P' project illustrated in the previous section, to better understand the model. The model parameters are the following: Action A: the decision to finance the „P‟ project; : the set of circumstances in which choosing the action A is appropriate; : the set of circumstances in which choosing the action A is inappropriate; : the probability that the circumstances will be favorable to finance the „P‟ project; : the probability that the circumstances are unfavorable to finance the „P‟ project; : the anticipated gain from financing the „P‟ project when this choice is optimal; : the anticipated loss from financing the „P‟ project when this choice is not optimal; ⁄ : probability of financing the 'P' project when this choice is optimal; ⁄ : the probability of financing the 'P' project when this choice is not optimal; Therefor a venture capital firm will agree to invest in the „P‟ project if: The model is written as follows: Consequently: Or, in condensed form: with: : the reliability ratio associated with the investment decision, in other words the confidence given to the choice of financing the project „P‟. : the minimum threshold of tolerance that the reliability ratio must reach so that funding is granted. Therefore, the more the ratio is higher than the threshold, the more the venture capitalist will adopt a more or less flexible behaviour vis-à-vis the financing of the 'P‟ project Otherwise, (if is lower than ) the venture capitalist will not grant funding to the 'P' project and will probably move to another project that achieves the condition of reliability. As above mentioned, the decision-making environment of venture capitalists and IFIs is similar and after having broken down the components of this model, it is appropriate to conclude that this model will constitute an analytical tool for decision making that can be used by IFIs in the future. However, it should be noted that the area of investment in Islamic finance, in addition to financial constraints, is governed by "extra-financial" rules (Hernalsteen .M, 2012). http://www.iaeme.com/IJM/index.asp 55 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab Indeed, Islamic finance is supported by five basic pillars; no interest, no uncertain speculation, no financing of socially harmful "illegal" activities (companies involved with goods or services deemed haram, such as weapons, pork or gambling), profit and loss sharing and the need for all financial transactions to be backed by tangible assets. This will limit the diversity of projects to be funded and will influence the likelihood of acceptance or rejection of a given project, accordingly, this will create a certain rigidity in the behavior of IFIs compared to a VC firm. In addition, instruments used by an IFI to finance a project must be Sharia compliant. However, the lack of harmonization in banks 'and jurisdictions' interpretations of what is acceptable under Sharia law leads to less standardization in the products available (Chittilapally.J, 2016). 5. CONCLUSION In this paper, we tried to compare the concept of VC with the participatory techniques of Islamic finance, especially Musharakah and Mudarabah. We can conclude that these two concepts have a lot in common, and in particular their approach to investment and their conception of partnership in business. Thus, the venture capitalists and IFIs (via their practices: Mudarabah and Musharakah) generally adopt the same investment behavior. In fact, these techniques are specific modes of financing since they agree to share the risk with the entrepreneurs they finance, which is different from the design of the most of conventional financing products. However, studies conducted on the practices of Mudarabah and Musharakah have shown that, even in developed countries in the field of Islamic finance, they are rarely used by the IFIs despite their undeniable advantages because of the difficulties encountered by financial operators during the application of the procedures of funds granting. On the other hand, despite the development of VC in some Arab countries such as Tunisia and Morocco, start-ups still find it difficult to access financing. Indeed, we can estimate that the introduction of the Mudarabah & Musharakah contracts in the Moroccan financial market can be another source of funding to facilitate access for them. Finally, it should be noted that this contribution opens avenues for research in the modelling of decision-making processes in participatory finance that will be the subject of our next contributions. NOTES 1. Muhajirun (The Emigrants): were the first converts to Islam and the Islamic Prophet Muhammad's advisors and relatives, who emigrated with him from Mecca to Medina, the event known in Islam as The Hijra. See https://en.wikipedia.org/wiki/Muhajirun, visited the 01/15/2018 2. Ansar (The Helpers): is an Islamic term for the local inhabitants of Medina who took the Islamic Prophet Muhammad and his followers (the Muhajirun) into their homes when they emigrated from Mecca (hijra). See https://en.wikipedia.org/wiki/Ansar_(Islam), visited the 01/15/2018 3. We did not take into account a third type of Shirkah called Shirkat Al-Ibaha, since it will not be used in the rest of our analysis and we have added Mudarabah as a form of Shirkat Al-'Aqd ( see (Al-Zohaili, 1985)) 4. Madahib: Al Madahib are scientific schools that try to understand and explain religious texts to develop jurisprudential rules that Muslims need in their lives to know the appropriate decision to take in a given situation http://www.iaeme.com/IJM/index.asp 56 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? 5. Several authors consider Seed Capital as a component of venture capital as: Stanislas De Zutter, 2010 6. We suppose in our study case that there are only these three sources of funding, ignoring any other source of funding. REFERENCES [1] A committee composed of several scholars and jurists of the Ottoman empire, 1877, "Journal of the Judicial Verdicts", www.moj.ps/images/majallatalhkam.pdf [2] Abu Al-Fadl. M.J, n.d. " Lissan Al-‟Arab", Dar Sadir. [3] Accounting and Auditing Organization for Islamic Financial Institutions, 2014, "Al-Ma‟yiir Al-Char‟iah".d. The Market for “Lemons”: Quality Uncertainty and the Market Mechanism 15. [4] Al-Barkati, M. ‟Amim A.I., 2003. "Al-Ta‟rifat Al-Fiqhiya", 1st ed, Dar Al Kotob Al Ilmiyah [5] Al-Hamiri. N.B, 1999, "Chams Al-‟Oloum", 1st ed. Dar Al-Fikr Al-Mo‟assir. [6] Al-Jurjani. A. ibn M, n.d, " Jurjani Definitions", Dar al-Fadilah. [7] Al-Kassani. A, 2003, "Badai‟ Al-Sanai‟ Fi Tartib Al-Chari‟", 2nd ed, House of scientific books. [8] Al-Khafif, A., 2008, "Ahkam Al-Mo‟amalt Al-Char‟ia", Dar Al-Fikr Al-‟Arabi. [9] Al-Qadiri, A.I.A., 2005, "Journal of Legal Rulings following Hanbali Madhab", 3rd ed, Tohamah, Jeddah. [10] Al-Qorafi. A.C, 1994a, "Al-Zakhira", Dar Al-Gharb Al-Islami. [11] Al-Qorafi. A.C, 1994b, "Al-Zakhira", Dar Al-Gharb Al-Islami. [12] l-Sarkhassi, C.A., 1989, "Al-Mabssout", 1st ed, Dar Al-Ma‟rifa. [13] Al-Tahnaoui. M.A, 1996, "Kachchaf Istilahat Al-Fonoun Wa Al-‟Oloum", 1st ed, Lebanon‟s library. [14] Al-Zohaili. W, 1985, "Al-Fiqh Al-Islami Wa Adilatoh", 2nd ed, Vol.4, Dar Al-Fikr. [15] AMIC, 2017. "La dématérialisation des titres pour les sociétés non cotées", Rapport annuel. [16] Autorité des marchés financiers (AMF), 2015, "s‟informer sur Les fonds de capital investissement (FCPR, FCPI, FIP), Guide pratique. [17] Ba. I, 1993, "PME et institutions financières islamiques", Bureau International du travail, Département de développement des entreprises et coopératives, Document de travail N°6. [18] Belahsen. S, 2010, "Capital-risque au Maroc réalités et perspectives", BMU Genève. [19] Belalia. A, M., Bellamine. A, Ibenrissoul. A, Driouchi. A,Dris. M, Zejl. S, 2015, " Comment faire du Maroc un hub régional en matière de recherche scientifique et d‟innovation ?", Institut Royal des Etudes Stratégiques. [20] Bessière. V, Stéphany. É, 2015, "Le financement de l‟innovation: Nouvelles perspectives théoriques et pratiques", 1st ed, De Boeck Supérieur, Business School. [21] Cerveaux. L.K, 2014, "Analyse de la pertinence du modèle de financement du capital investissement", PhD Thesis, Université de la Réunion. [22] Chatti. M.A, 2010, "Analyse comparative entre la finance islamique et le capital-risque", Etudes en économie islamique, Vol. 4, N°1. [23] Cherif. M, 1999, "Asymétrie d‟information et financement des PME innovantes par le capital-risque", Revue d'économie financière, N°54, pp. 163-178,. [24] Cherif. M, 2007, "La méthode Discounted cash flows", in:Techniques Modernes d‟évaluation Des Entreprises, Optimum, Elipses. [25] Cozic. M, 2009, "Anti-réalisme, rationalité limitée et théorie expérimentale de la décision", Social Science Information, Vol.48, pp. 35–56. http://www.iaeme.com/IJM/index.asp 57 editor@iaeme.com
A. Sakouili, M. EL Azhari, R. Chroqui and S. Hattab [26] Cozic. M, 2008, "La rationalité limitée", Economie cognitive, MSH/Ophrys, pp. 199-222. [27] Daly. S, Frikha. M, 2015, "Islamic Finance A Support to Development and Economic Growth: The Principle of Zakat as an Example", Journal of Behavioural Economics Finance Entrepreneurship Accounting and Transport, Vol. 3, pp. 1–11, [28] De Fontaine. V.P, 2008, "L‟Europe et le capital-risque", Revue d‟économie financière, Vol. 93, pp. 45–53, [29] Diamane. M, Koubaa. S, 2017, "Financement des entreprises innovantes au Maroc : Etat des lieux ", Revue de l'entrepreneuriat et de l'innovation, Vol. 1, N°3. [30] Ed-dafali. S, Bouzahir. B, Chakir. A, 2016, "Le marché du capital-investissement au Maroc : état des lieux et perspectives de développement", Revue d‟Etudes en Management et Finance d‟Organisation, N°4 . [31] Ekeland. M, Landier. A, Tirole. J, 2016, "Renforcer le capital-risque français", Notes du conseil d‟analyse économique, N° 33, pp. 1-12. [32] Dubocage. E, Galindo. G, 2008, "Le rôle des capital-risqueurs dans l‟isomorphisme stratégique des biotechs", Revue Finance Contrôle Stratégie, Vol. 11, N°4, pp. 5–30. [33] Fenies. P, 2011, "Une approche pour la prise en compte de la rationalité limitée des acteurs dans les modèles d‟aide à la décision : mise en œuvre en contexte de logistique hospitalière", Management & Avenir, N°4, pp. 179–201. [34] Frémiot. E, 2007, "L‟incubateur public, une innovation organisationnelle permettant la réduction des risques associés aux spécificités de l‟entrepreneuriat cognitif", Vie & sciences de l‟entreprise, N° 176–177, pp. 9-42. [35] Geoffron. P, 1987, "L‟État et la dynamique du capital-risque européen", Revue d‟économie financière, Vol. 3, pp. 72–89. [36] Gompers. P, Lerner. J, 2001, "The Venture Capital Revolution", The Journal of Economic Perspectives, Vol. 15, N°2, pp. 145–168. [37] Hammad. N, 2008, " Mo'jam Al-Mostalahat Al-Maliya Wa Al-Iqtisadia Fi Loghat Al- Fiqhia", Dar Al-Qalam. [38] Kabbaj. M, 2015, "Le Maroc, une destination privilégiée des fonds de capital-risque étrangers", Maroc Hebdo International. [39] Kettani. G, Villemeur. A, 2012, "Le capital-risque : un financement efficace de l‟innovation sur le long terme", Revue d‟économie financière, N°108, pp. 91–104. [40] Krychowski. C, 2007, "Apports et limites des options réelles à la décision d‟investissement stratégique : Une étude appliquée au secteur des télécommunications", PhD Thesis, Sciences de l'homme et société, HEC Paris. [41] Laville. F, 1998, "Modélisations de la rationalité limitée : de quels outils dispose-t-on ?", Revue économique, Vol. 49, pp. 335–365. [42] Ndour. A.D, 1998, "Capital-risque : Nouvelle étape pour Moussahama ", L‟Economiste, N°324. [43] Nasica. E, Dufour. D, 2007, "Incertitude, rationalité et confiance dans les choix d‟investissement : Une analyse de la relation entre marchés financiers et capital-risque", Revue d‟économie industrielle, N°119, pp. 103–124. [44] Nassar. A.M, 2010, " Al-Istitmar Bi Al-Musharakah Fi Al-Bonuk Al-Islamia (Sokuk, Sanadat, Asshom, Mudarabah, Al-Sharikat", Dar Al Kotob Al Ilmiyah, ISBN. 978-2-7451- 7008-8 [45] Organisation for Economic Co-operation and Development (OCDE), European Communities, Statistical Office, 2005, " Manuel d‟Oslo: Principes directeurs pour le recueil et l‟interprétation des données sur l‟innovation ", 3rd éd. [46] Paulré. B, 2003, "Le capital-risque aux Etats-Unis", Rapport effectué dans le cadre d'une convention avec l'institut CDC. http://www.iaeme.com/IJM/index.asp 58 editor@iaeme.com
Comparative Analysis between Islamic Finance and Venture Capital: do IFIS and Venture Capitalists Adopt the Same Investment Decision Process? [47] Pommet. S, Rainelli. M, 2012, "Capital-investissement et performances des firmes : le cas de la France", Vie & sciences de l‟entreprise, N°190, pp. 30–45. [48] Poncet. C, 2013, "Le développement des opérateurs en capital-risque: le poids du contexte institutionnel", Document de travail ART-Dev 2013-06. [49] Qorchi. M.E, 2005, "Islamic Finance Gears Up", Finance & Development, Vol. 42, p. 7 [50] Revest. V, Guehennec. C.L, 2007, "Capital-risque, intervention publique et marché: le cas des biotechnologies françaises". [51] Ross. S.A, 1977, "The Determination of Financial Structure: The Incentive-Signalling Approach", The Bell Journal of Economics, Vol. 8, p. 23. [52] Sabiq. A.S, 1983, "Fiqh Al-Sunna", 4th ed, Dar Al-Fikr. [53] Savignac. F, 2006, "Le financement des entreprises innovantes", PhD Thesis, Université Panthéon Sorbonne, Paris [54] Schier. G, 2006, "Capital-risque : le mode d‟emploi de la négociation", L‟Expansion Management Review, N°120, pp. 66–69. [55] Soulignac. C, 1991, "Mesure des performances financières du capital-investissement en France", Revue d‟économie financière, Vol. 16, pp. 79–103. [56] Sridi. M, 2015, "Critères de décision d‟investissement utilisés par les sociétés de capital- risque vis-à-vis des nouvelles propositions de financement : cas appliqué aux SCR africaines", Université du Québec à Trois-Rivières, Québec. [57] Stanislas. D.Z, 2010, "Les 4 segments du capital-investissement (Private Equity)", ESSEC Transaction. [58] Supreme Sharia Supervisory Authority of the banking system and financial institutions, 2006, "Al-Marashid Al-Fiqhiya", 1st ed, Dar Al-Sadad, ISBN. 6 - 4 - 831 - 99942. [59] Tirole. J, 2006, "The Theory of Corporate Finance", Princeton University Press. [60] Usmani. M.I.A, 2002, "Meezan Banks Guide to Islamic Banking", 1st ed, Darul-Ishaat Karashi. [61] Usmani. T, 2000, "An introduction to Islamic finance", Arham Shamsi. [62] Vololona Rabeharisoa, 1998, "Le rôle du capital-risque dans le développement des petites entreprises innovantes", Les nouvelles formes d‟organisations de la recherche, Annales des Mines. http://www.iaeme.com/IJM/index.asp 59 editor@iaeme.com