MALIK, RIZWAN and NURULLAH, MOHAMED and DAR, HUMAYON,(2015), Incorporating Socially Responsible Principles in Islamic Investments: An Empirical Analysis. , İSLAM EKONOMİSİ VE FİNANSI DERGİSİ, UNSPECIFIED
Text
Restricted to Repository staff only
Download (1MB)
Restricted to Repository staff only
Download (1MB)
Abstract
The paper examines the compatibility of United Nations (UN) Global Compact’s
principles with Islam and proposes a new “social screen” to be added in addition to
existing Shari’a complaint equity screening methodologies. The paper then empirically
analyzes the performance of SRI portfolios with portfolios that are both socially
responsible and Shari’a compliant using risk adjusted return tools and Carhart 4 factor
model. The paper further investigates the performance of seven Islamic indices with
equivalent socially responsible indices. It was found that the Islamic principles not
only endorse the principles of UN Global Compact but also enforce them and make an
individual accountable. The empirical results show that SRI and Shari’a compliant
combined portfolio performs better than the SRI portfolio, and hence Sharia compliant
investments bring value to the SRI portfolio. The paper also found that Shari’a
compliant portfolio generates better returns than the SRI portfolio in a bearish market
while the latter performs better in a bullish market. It is concluded that during market
downturn Shari’a compliant portfolios can be used to limit risk.
Keywords : | Shari’a Compliant, Socially Responsible, Ethics, Islamic Finance and Investment, UNSPECIFIED |
---|---|
Journal or Publication Title: | İSLAM EKONOMİSİ VE FİNANSI DERGİSİ |
Volume: | 1 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 27 Dec 2019 07:06 |
Last Modified: | 27 Dec 2019 07:06 |
URI: | https://repofeb.undip.ac.id/id/eprint/1065 |