Shariah Compliant Firms and Risk Sharing Under Pandemic Era

In this paper we analyse the Shari’ah Compliant (here after SC) firms and how do they share the output risk under pandemic era. Firms that are accepted to be SC, have been exposed to financial ratio restrictions (like debt ratios, profit ratio or current assets). For those firm not able to use debt to eliminate the income shocks, it is expected that firms after a negative output shock would b…