Download or read book Market Performance of Sharia Compliant Companies in Indonesia written by Yunice Tumewang and published by . This book was released on 2019 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study aims to explore the factors that influence the Islamic bank profitability. The profitability rate or Return on Asset (ROA) is utilized as dependent variable whereas internal financial factor (financial ratio indicator) and external factor (economic indicator) are adopted as independent variable. This study focus on social funds such as qard and ZIS contract. This study applies qualitative description with using time series data from March 2010 to September 2014. Moreover, Panel regression model is employed, MWD test and classical assumption test. This analysis finds that, firstly, financial ration and CAR has positive and not significant relationship although equity based financing has significant and positive relationship then in economic indicator results GDP growth and inflation has positively not significant. Furthermore, social funds indicator such in qard contract has positive and significant relationship to ROA or profitability rate. However, the second regression result that utilizes ZIS variable finds that all variables do not have significant relationship excluding GDP growth.
Download or read book Shariah Compliant Investments and Stock Returns written by Devi Lusyana and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: The purpose of this paper is to investigate the impact of the Indonesia Shariah-compliant Stock Index (ISSI) on the performance of included shares. In essence, the authors ask whether the establishment of the ISSI provides abnormal returns for the firms that are not included in the Jakarta Index.Design/methodology/approach: The authors use an event study methodology to estimate cumulative abnormal returns in the days surrounding the event to examine the relationship between Shariah-compliant investments and stock returns. The estimation window of 90 trading days prior to the event (-30) to day 60 after ( 60) is adopted. They also use a range of investment performance measures to provide new evidence on whether faith-based ethical investments generate superior performance compared to their unscreened benchmarks.Findings: Using daily returns, the Indonesia ISSI and panel data model, the findings show that the inclusion of the ISSI has a positive impact on the financial performance of the included shares during the 41-day event window. The evidence also suggests that the ethical investment has a significant influence on the performance of stock market returns.Research limitations/implications: This study offers insights to policymakers, investors and fund managers interested in the indices' performance. A key conclusion that could be derived by bodies that regulate Islamic products and services is that investors are not only concerned about what is profitable but also what makes their investments ethical.Originality/value: Although the global growth of the Islamic capital market products and services has been tremendous in recent years, very few studies focus on the Indonesian market and indeed, none of them devote sufficient attention to Shariah-compliant investments and stock returns.
Download or read book Comparing the Performance of Islamic and Conventional Stocks in Jakarta Stock Exchange During Bull and Bear Market Periods written by Siti Kholifatul Rizkiah and published by . This book was released on 2018 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Sharia investment principles give Muslim investors a restriction in picking stocks under their investment portfolio. There are strict rules that must be followed to make a security or a company Sharia-compliant. The argument whether the performance of Sharia-compliant stocks is better compared to the conventional stocks still remains an open question. This paper aims to review and analyze whether Islamic stocks outperform Conventional stocks when the market is doing well (bull periods) and sustain better when the market is in the downturn (bear periods). Our finding shows a statistically insignificant difference in average return, market risk (beta), and total risk (standard deviation) between Islamic and Conventional stocks in both bull and bear periods. However, the data shows a consistent result that Islamic stocks return are higher during both bull and bear periods. Islamic stocks also show higher risk during bear periods proven with higher standard deviation and beta. However, it is less volatile during the bull period as compared to conventional stocks. Furthermore, the investigation of two types of stocks using risk-adjusted returns ratios shows that both stocks behave in a similar way. However, the Islamic stock market performed better than the conventional stock market during the bear 1 and bear 3 (Global financial crisis 2008) shown by higher performance in all three ratios although it is not statistically significant.
Download or read book The Influence of Macroeconomic to Indonesia Shariah Stocks Index written by Rowland Bismark Pasaribu and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic capital market is one of the investments that can be chosen by muslims in particular and society in general. To measure the performance of Islamic stock price in capital market used a measuring tool that Indonesian Sharia Stock Index (ISSI). Suspected Islamic stock index movement is affected by macroeconomic conditions. The purpose of this paper is to analyze the effect of macroeconomic variables on ISSI during the period May 2011 to April 2013. The method of analysis used in this paper is linear regression. Results of this study indicate that variable inflation have a negative influence on ISSI, interest rates have a positive influence on ISSI, while the money supply have a positive influence on ISSI. Then simultaneously variable inflation, interest rates, and the money supply significantly influence the ISSI. While partial test showed that only variable the money supply that has a significant influence on ISSI.
Download or read book Performance of Market Discipline on the Islamic Financial Instrument written by Erie Febrian and published by . This book was released on 2015 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Market discipline has been well recognized as effective means for preventing excessive business risk taking. Nevertheless, as the nature of investment in Islamic Finance may not meet the required characteristics, the ability of market discipline to work in its particular instrument market still needs to be proven. This study employed mixed method to answer the research questions. The quantitative analysis was carried out using event study approach, while in qualitative research we gathered qualitative information using questionnaire and Focus Group Discussion (FGD), as well as interviews. This study utilized data of daily prices of some financial instruments traded in Indonesia, including conventional stocks, syariah-compliant stocks, bond, sukuk, conventional mutual fund, syariah-compliant mutual fund, IHSG, and Jakarta Islamic Index (JII). We employed 7-day, 30-day, 60-day, and 90-day windows around the date of the Islamic gold investment Scandal revelation in 2013, in both conventional and Islamic Finance markets. The qualitative study involved individual respondents, people in the relevant supervisory agencies, academicians, and professionals working in financial institutions. We find that market discipline works well only in Sukuk market and only in shorter period. We also find that negative market actions in both capital market segments may obscure the existence of market discipline. The qualitative study results show that insufficient capability of investors for assessing the investment credibility explains the empirical findings.
Download or read book Measuring Market Performance of Shariah compliant Companies written by Yusarina Mat Isa and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Voluntary Disclosure and Company Characteristics of Indonesian Listed Companies written by Peni Nugraheni and published by . This book was released on 2012 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently, the growth of Shariah business organizations is not only dominated by Islamic banking but also by public companies that begin to operate based on Shariah compliance. The growth of Shariah compliant companies provides good opportunity for shareholders, especially religious shareholders to engage in investment activities without being fear of violating Shariah principles. As listed companies, of course Shariah compliant companies must comply with the regulation issued by capital market, including the information that should be published in the annual report as part of their responsibility toward their stakeholders. This research attempts to investigate the quantity and quality of voluntary disclosure in the annual reports of Shariah compliant companies listed in Indonesian Stock Exchange and compare it with non-Shariah compliant companies. Further, the study examined the relationship between voluntary disclosure and company characteristics (i.e. size of company, profitability, type of auditor, type of industry, and ownership structure). Voluntary disclosures were measured using 30 items of disclosure index developed by Khomsiah (2005). Based on content analysis of 2009 annual report of 55 Indonesian listed companies for each category, the findings revealed that there is statistically significant difference in the quantity and quality of voluntary disclosure value of Shariah and non-Shariah compliant companies. For regression results, the company size significantly influence the quantity of voluntary disclosure while the quality of voluntary disclosure is affected by company size and type of industry.
Download or read book The Effect of Financial Leverage on Performance of Sharia Compliant Companies Listed in Jakarta Stock Exchange written by Siti Kholifatul Rizkiah and published by . This book was released on 2018 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Among the requirement set by Otoritas Jasa Keuangan (OJK) for a company to be Sharia compliant is 40% limit on the financial leverage ratio. Taking the Islamic perspective on the limitation of using interest-bearing instrument both as a means of financing and investing, this paper attempts to investigate whether there is a significant relationship between financial leverage and performance of the company. 90 Sharia-compliant companies were selected as a sample in this study and data from 2011-2015 were taken to be observed. Several tests were applied to analyze the data; descriptive analysis, correlation analysis, and multiple regression analysis. Findings revealed that leverage factors (Debt/Asset, Debt/Capital, and ICR) have a significant negative impact to the company performance. However, the magnitude of effect and relations are small and limited. The finding in this study proves that the limitation of the interest-bearing instrument as a means for financing set for the sharia-compliant companies has a good impact on the performance though on a small scale. This negative effect of leverage factors can be explained by the disadvantage of potential financial distress that surpasses the benefit of tax shield from issuing debts.
Download or read book Portfolio Volatility of Islamic and Conventional Stock written by Aldrin Herwany and published by . This book was released on 2013 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional finance suggests that the higher the risk of an investment, the higher the return it should give. Nevertheless, whether Islamic stocks that offer alternative investment in the stock market suggest different risk-return relationship still needs to be investigated. This empirical study is aimed at assessing risk-return behavior of Islamic stocks. This study employs cross sectional data of portfolio developed using beta-rank and market capitalization, in which daily data will better reflect the real volatility. This study also measures volatility of both conventional and Islamic stocks using Value-at-Risk (VaR). To check whether Islamic stocks are immune from any impact of financial crisis, this study utilizes three periods of observation, i.e., before, during and after the 2008 crisis. This study assesses risk and return using Multi-index model, in which variables tested are the respective fundamental factors. Results of this study will provide more accurate approach in Islamic stocks analysis.
Download or read book Stock Markets in Islamic Countries written by Shaista Arshad and published by Springer. This book was released on 2016-12-22 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the volatility, efficiency and integration of stock markets in Islamic countries. It presents recent trends, growth and performance, before moving on to explore how patterns change during different business cycles for short-term and long-term investors, and ranks the efficiency of the various markets. It addresses how the level of market integration has been affected during different economic periods, and concludes by summarising the performance of the stock markets, suggesting potential future directions for these markets.
Download or read book ICOFEB 2018 written by Darmawati Muchtar and published by European Alliance for Innovation. This book was released on 2018-11-12 with total page 477 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book constitutes a through refereed proceedings of the 1st International Conference on Finance, Economics and Business(ICoFEB) 2018, conducted on November, 12 – 13, 2018 at Universitas Malikussaleh, Lhokseumawe, Aceh-Indonesia. The conference was organised by Fakultas Ekonomi dan Bisnis Universitas Malikussaleh. The 67 full papers presented were carefully reviewed and selected from 102 submissions. The scope of the paper includes the followings: Management, Economic, Digital Technology, Financial, Human Resources and Business.
Download or read book Finance Reconsidered written by Bernard Paranque and published by Emerald Group Publishing. This book was released on 2016-09-06 with total page 441 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume argues the need for a radical break with the methodological individualism that dominates economics, management and finance, asking 'How should we (re)define the concept of value?' and serving as a stepping stone for the rethinking of academic finance.
Download or read book Handbook of Research on Theory and Practice of Global Islamic Finance written by Rafay, Abdul and published by IGI Global. This book was released on 2019-12-27 with total page 888 pages. Available in PDF, EPUB and Kindle. Book excerpt: As an emerging global phenomenon, Islamic economics and the financial system has expanded exponentially in recent decades. Many components of the industry are still unknown, but hopefully, the lack of awareness will soon be stilled. The Handbook of Research on Theory and Practice of Global Islamic Finance provides emerging research on the latest global Islamic economic practices. The content within this publication examines risk management, economic justice, and stock market analysis. It is designed for financiers, banking professionals, economists, policymakers, researchers, academicians, and students interested in ideas centered on the development and practice of Islamic finance.
Download or read book Contemporary Research on Business and Management written by Siska Noviaristanti and published by CRC Press. This book was released on 2021-11-24 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book contains selected papers presented at the 4th International Seminar of Contemporary Research on Business and Management (ISCRBM 2020), which was organized by the Alliance of Indonesian Master of Management Program (APMMI) and held in Surubaya, Indonesia, 25-27 November 2020. It was hosted by the Master of Management Program Indonesia University and co-hosts Airlangga University, Sriwijaya University, Trunojoyo University of Madura, and Telkom University, and supported by Telkom Indonesia and Triputra. The seminar aimed to provide a forum for leading scholars, academics, researchers, and practitioners in business and management area to reflect on current issues, challenges and opportunities, and to share the latest innovative research and best practice. This seminar brought together participants to exchange ideas on the future development of management disciplines: human resources, marketing, operations, finance, strategic management and entrepreneurship.
Download or read book An Overview of Islamic Finance written by Mr.Mumtaz Hussain and published by International Monetary Fund. This book was released on 2015-06-02 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.
Download or read book The Growth of Islamic Banking in Indonesia written by Yasushi Suzuki and published by Routledge. This book was released on 2020-12-22 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: Indonesia is the most populous Muslim country in the world. Taking into account also its endowment and potential economic resources, the Islamic banking industry in Indonesia was expected to take on an important role in facilitating more financial resources and to contribute to the internationalization of the Islamic mode of financing particularly in the Asia-Pacific region. However, the reality is far from the expectation. This book aims to clarify the causes and fundamental constraints leading to the extraordinarily low level of Indonesia’s Islamic financial deepening. The authors draw on the traditions of Institutional Economics which are concerned with the rules or mechanisms of creating the 'incentive' and 'threat' for economic players because the rules (institutions) would matter as the determinant for economic development and economic efficiency. This book offers a fairly new analytical lens by hypothesizing that Islamic banks must earn additional profit– the authors coined as ‘Islamic bank rent’ - to maintain their franchise value as prudent Shari’ah-compliant lenders when compared to conventional banks. The authors argued that insufficient provision of the Islamic bank rent opportunity may have caused the Indonesia’s Islamic banks the opportunity to learn and improve their skill and capacity for the credit risk management. The book also offers evidence in support of implementing economic and affirmative policy necessary for incubating and developing the Islamic banking industry in Indonesia and making Indonesia an international Islamic financial hub in the Asia-Pacific region. This book will be a useful resource for policy makers and researchers interested in Islamic banking in Indonesia.
Download or read book Socially Responsible Investment in the 21st Century written by Celine Louche and published by Emerald Group Publishing. This book was released on 2014-05-23 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: Does Socially Responsible Investment (SRI) affect society in the 21st century? This book explores various facets of SRI to address its potential and limits to create societal change. Little research has been undertaken on the societal impacts of SRI. With this book we contribute to this debate, pushing the boundaries of SRI even further.
