Volumetric consequences of particle loss by grading entropy.

Chemical and biological processes, such as dissolution in gypsiferous sands and biodegradation in waste refuse, result in mass or particle loss, which in turn lead to changes in solid and void phase volumes and grading. Data on phase volume and grading changes have been obtained from oedometric dissolution tests on sand–salt mixtures. Phase volume changes are defined by a (dissolution-induced) void volume change parameter (Λ). Grading changes are interpreted using grading entropy coordinates, which allow a grading curve to be depicted as a single data point and changes in grading as a vector quantity rather than a family of distribution curves. By combining Λ contours with pre- to post-dissolution grading entropy coordinate paths, an innovative interpretation of the volumetric consequences of particle loss is obtained. Paths associated with small soluble particles, the loss of which triggers relatively little settlement but large increase in void ratio, track parallel to the Λ contours. Paths associated with the loss of larger particles, which can destabilise the sand skeleton, tend to track across the Λ contours.

Islamic corporate financing : does it promote profit and loss sharing?

Islamic financing instruments can be categorised into profit and loss/risk sharing and non-participatory instruments. Although profit and loss sharing instruments such as musharakah are widely accepted as the ideal form of Islamic financing, prior studies suggest that alternative instruments such as murabahah are preferred by Islamic banks. Nevertheless, prior studies did not explore factors that influence the use of Islamic financing among non-financial firms. Our study fills this gap and contributes new knowledge in several ways. First, we find no evidence of widespread use of Islamic financing instruments across non-financial firms. This is because the instruments are mostly used by less profitable firms with higher leverage (i.e., risky firms). Second, we find that profit and loss sharing instruments are hardly used, whilst the use of murabahah is dominant. Consistent with the prediction of moral-hazard-risk avoidance theory, further analysis suggests that users with a lower asset base (to serve as collateral) are associated with murabahah financing. Third, we present a critical discourse on the contentious nature of murabahah as practised. The economic significance and ethical issues associated with murabahah as practised should trigger serious efforts to steer Islamic corporate financing towards risk-sharing more than the controversial rent-seeking practice.