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The purpose of this paper is to describe the application of the Islamic financing method based on direct musharakah to the conventional capital asset pricing model yielding several interesting hypotheses.

Theoretical methodology, with maximin criteria, and rational economic optimization.

There are four major findings. First, an Islamic financing partnership based on complementary capital is proven to necessarily yield a lower beta‐risk of investments than that compared to the market. Second, in order for the above conclusion to hold, capital lenders (such as banks) must abide by a maximum partnership share inversely proportional to project risk and increasing with opportunity cost of capital. Third, the sum of lender's share and relative risk level balances to unity at equilibrium. Hence, tradeoffs exist in risk‐shares and not in risk‐returns. Fourth, without accounting for inflation, and in contrast to predetermined fixed interest, a maximin strategy of financing partnerships (maximum return with minimum risk) imply an existence of an optimum zero risk‐free rate.

The paper's findings are limited to a Direct Musharakah Partnership.

A comparison between Islamic risks and returns to conventional risk management is deduced. Several implications on the conduct of Islamic financing are discussed.

Heritage buildings are significant for their historical and architectural value. Due to the lack of rating systems designed specifically for heritage buildings, it is essential to develop and validate a heritage building assessment tool that considers its specific characteristics. The purpose of this study is to provide an extensive review of research on Sustainability of Heritage Buildings (SHBs).

This review highlights methodologies applied in SHBs research and analyzes major global rating systems in order to identify their deficiencies for SHBs assessment. A systematic review was employed and articles from the top 10 high impact factor journals were studied. Twelve major global rating systems and their assessment criteria were identified.

Significant variability was observed among the assessment tools since each tool assesses several criteria, factors and indicators that fit its local context. Part of this variability can also be seen in the rating scales, threshold values and accreditation titles. As a result, the final sustainability ranking for a given building cannot be compared among the 12 rating systems. Most importantly, these systems fail to analyze some factors such as energy that are considered important with respect to heritage building assessment.

Since no specific rating system could be identified in this review as the most appropriate for heritage buildings, a new sustainability assessment tool that is specific to heritage buildings should be developed. Such a tool will enable facility managers to evaluate and improve the sustainability of their heritage buildings while preserving them.

The purpose of this study is to examine the effect of Islamic financing (IF) and labor relationship development (LRD) toward nonperforming financing (NPF) in Islamic banks. This research aims to identify the connection between IF products and the practice of loan officers building a relationship with loan customers (also known as LRD) and its influence on NPF.

This study uses a quantitative field research that emphasizes upon analysis of numerical data which are processed with statistical methods. Furthermore, the source is secondary data from financial statements of Islamic banks such as annual reports or financial disclosures. These sources of data are used to examine NPF facilities from 2008 to 2012. Moreover, primary data collected via questionnaire are used to investigate IF and LRD. The banks where the study was conducted are: Bank Muamalat Indonesia and Bank Danamon Shari’ah in Surakarta, Indonesia. The population in this study is 15 employees who work as account officers in Bank Muamalat Indonesia and Bank Danamon Shari’ah. The techniques of data collection in this study are documentation, questionnaires and literary study. In this study, the data analysis technique was multiple regression analysis and examination using SPSS version 21. These methods were used for analyzing the effect of IF and LRD toward NPF.

IF has a significant effect on NPF. In contrast, the LRD has no effect on NPF in Islamic banks. In addition, both IF and LRD simultaneously had an effect on NPF in Islamic banks.

This study does not cover all Islamic banks in Surakarta because of limited data; thus, in future research, the sample size could be increased by including all Islamic banks in Surakarta, Indonesia. Furthermore, this study does not take into consideration the fact that IF includes product financing. For future studies, the population and samples should be improved and take into consideration that product financing does exist in Islamic banks; moreover, future studies could provide other variables which are appropriate for current studies.

The results support the recommendation for Islamic banks in Surakarta to enhance the capability of employees to develop their knowledge in IF. Because the performance of a bank does not only depict financial performance but also nonfinancial performance such as services, knowledge and employees’ performance.

Reactive power in radial distribution networks (RDN) leads to detrimental effects like power factor degradation, voltage profile alterations and increased power losses, ultimately impacting network stability. This paper aims to present a novel two-phase optimization approach to address the challenging task of locating, sizing and determining the optimal number of capacitors in RDNs.

The first step of the proposed methodology is using a hybrid technique that combines the loss sensitivity factors (LSF) with voltage sensitivity factors (VSF) to identify network nodes requiring capacitor installation efficiently. The second step uses an external approximation technique to optimize the size and number of capacitors for each identified node, achieving significant power loss reductions.

The effectiveness of this new approach is evaluated on two RDNs: 33- and 69-bus. Simulations on these test systems demonstrate the effectiveness of the proposed approach, reducing total power loss by 34.7% in the first case and 35.3% in the second. The method’s robustness compared to other approaches further highlights its potential for practical implementation in RDNs, contributing to improved network stability and efficient power distribution.

This paper presents a novel, efficient and robust approach to determining the optimal number, location and size of an RDN capacitor. The problem is addressed through a new formulation with modified constraints. The method consists of two stages: initially, a hybrid LSF–VSF method identifies potential capacitor locations, followed by an external approximation-based mixed-integer nonlinear programming (MINLP) solver to optimize capacitor numbers and sizes. The proposed methodology is applied to the widely used 33-bus and 69-bus RDN test systems. Comparative analysis with existing methods highlights the proposed approach’s effectiveness. Key contributions of this study include the following: Proposes a new problem formulation with modified constraints. Proposes a novel two-stage framework for optimally locating and sizing capacitors in RDNs. Introduces a hybrid LSF–VSF algorithm to identify promising capacitor locations efficiently. Using an external approximation-based MINLP for optimal sizing. Demonstrates the effectiveness of the proposed approach through rigorous testing on standard benchmark systems. Provides a comprehensive comparative analysis against state-of-the-art methods, highlighting the proposed approach’s superior performance.