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 Guide to Understanding Islamic Investing written by Virginia B. Morris and published by Lightbulb Press, Inc.. This book was released on 2001 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Portfolio Decisions for Faith Based Investors written by Zaheer Anwer and published by Walter de Gruyter GmbH & Co KG. This book was released on 2021-02-08 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the idiosyncratic risk, risk-return trade off and payout decisions for faith-based investors including Islamic Shariah compliant and ethical investors, who may be paying a cost for their belief system in the form of under-diversification of portfolios and additional monitoring costs owing to their unique risk profile. There is a growing number of investors who are motivated by social, environmental, and ethical considerations in their investment decisions. They apply a set of investment screens to include or exclude assets based on ecological, social, corporate governance or ethical criteria. This socially responsible investment (SRI), ethical investment or sustainable investment style is prevalent since religious or ethical values matter to investors even if the risk-adjusted returns are lower than those of conventional investments. The author addresses these issues for Islamic and socially responsible portfolios in detail by using proprietary data of Dow Jones Indices from the United States. The findings are a unique and valuable addition to the existing corporate finance, portfolio management and Islamic finance literature.

Download or read book A Muslim s Guide To Investing Personal Finance written by Virginia B. Morris and published by Lightbulb Press, Inc.. This book was released on 2008 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Guide to Islamic Asset Management written by John A. Sandwick and published by Edward Elgar Publishing. This book was released on 2021-03-26 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This original book examines how investment theory and regulatory constraints are linked to the professional processes of portfolio investments, and how the principles of Islam as defined by sharia fit into these processes. It also explores the measures required to create and grow a global Islamic asset management industry.

Download or read book Islamic Asset Management written by Bayt al-Tamwīl al-Kūwaytī and published by Euromoney Books. This book was released on 2004 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understand the aspects of structuring and investing by learning from more than 20 leading experts in the field of Islamic finance from across the globe and across the world of Islamic Asset Management.

Download or read book Islamic Capital Markets written by Obiyathulla Ismath Bacha and published by John Wiley & Sons. This book was released on 2013-08-05 with total page 389 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive examination of Islamic capital markets Taking a comparative approach to the subject, this text looks at the similarities and differences between Islamic capital markets and conventional capital markets. The book explains each particular topic from both the conventional and the Islamic perspective, offering a full understanding of Islamic capital markets, processes, and instruments. In addition to a full explanation of Islamic products, this approach also ensures a holistic understanding of the dual markets within which Islamic capital markets operate. Ideal for both students and current practitioners, The New Islamic Capital Markets fills a large gap in the current literature on the subject. Whereas most books in this field cover the topic only superficially, this book offers the depth of coverage and academic rigor needed by professionals and serious students. Fills a gap in the current literature on the subject with comprehensive coverage and in-depth explanations Takes a comparative and holistic approach to the subject and features case studies from Malaysia, Indonesia, the Middle East, and Europe Written by a professor of finance at the International Centre for Education in Islamic Finance (INCEIF) One of the few comprehensive, dedicated guides to the subject available, The New Islamic Capital Markets offers a full understanding of the subject for students and professionals alike.

Download or read book Risk and Returns in Shariah Compliant Cross Section Stocks written by Muhammad Hanif and published by . This book was released on 2020 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: This study is intends to understand and document the impact of market-based -- market returns and momentum -- as well as firm-specific -- size, book to market ratio (B/M), price to earnings ratio (PER) and cash flow (CF) -- factors on pricing of Shari'a compliant securities as explanation of variations in stock returns in an emerging market -- Pakistan's Karachi Stock Exchange. Methodology: Initially, we test Fama and French (FF) three-factor model -- market risk premium, size, and B/M -- followed by modified FF model by including additional risk factors [PER, CF and momentum] over a ten year period (2001 to 2010). Findings: Our results support superiority of FF three-factor model over single-factor capital asset pricing model (CAPM). However, addition of further risk factors -- including PER, CF and momentum -- improve explanatory power of the model as well as refine the selection of risk factors. In our study CF, B/M and momentum factors remain insignificant. Traditional B/M factor in FF model is replaced by PER. Practical implications: Based on the modified FF model, we propose a stock valuation model for Shari'a compliant securities consisting of three factors: market returns, size, and earnings which explains 76% variations in cross sectional stock returns.Originality/Value: To the best of our knowledge, this is the first study (which combines market-based as well as fundamental factors) on pricing of Islamic securities and identification of risk factors in an emerging market -- Karachi Stock Exchange.

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 Investing In Islamic Funds written by Noripah Kamso and published by John Wiley & Sons. This book was released on 2013-05-13 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt: A guide to Islamic investment opportunities from the CEO of the world's leading Islamic finance bank Offering an insider's perspective on a rapidly growing sector of the financial industry, Investing in Islamic Funds details the basic principles of Islamic investing for Muslims and non-Muslims alike. It explains how Islamic equity and fixed-income products differ from traditional funds, and how they deliver excellent results while still conforming to Sharia principles. Using hard data from the last six years, the book also reveals how Islamic funds have offered predictable, reliable returns in volatile markets and turbulent financial times. For institutional investors as well as sophisticated individual investors, the book serves as an excellent introduction to the subject and surveys the full range of products available. Additionally, the book will arm financial services professionals with the knowledge they need to explain this new investment opportunity to clients. One of the few books available that offers comprehensive data on the performance of Islamic funds in addition to the underlying theory that governs them Written by the CEO of CIMB-Principal Islamic Asset Management, the world's leading Islamic finance bank Features charts, case studies, comparative analysis, and a tabular data format Debunks the misconceptions traditional investors may have about the profitability Islamic funds For professional and institutional investors, as well as private investors looking for new opportunities, Investing in Islamic Funds offers a much-needed primer on this fast-growing market.

Download or read book Islamic Investments An Overview and Comparison of Islamic Indices written by Arthur Ritter and published by GRIN Verlag. This book was released on 2015-05-06 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (postgraduate) from the year 2015 in the subject Business economics - Investment and Finance, grade: 18, University of St Andrews (School of Management), course: Alternative Investments, language: English, abstract: The following industry and market analysis is primarily based on the most recent Islamic Financial Services Industry Stability Report (2014) provided by the Islamic Financial Services Board. The total amount of assets in the Islamic financial industry was approximately $1.8 trillion by the end of 2013. The Islamic financial industry includes 4 major subcategories, Islamic banking, Sukuk (Islamic capital markets), Takaful (Islamic insurance) and Islamic Microfinance. By far the largest subcategory is Islamic banking with an estimate of 80% of all assets. The remaining 20% split up to Sukuk $245.3 billion, Islamic funds $68.9 billion and Takaful $18.3 billion. The Islamic financial industry is still very small in comparison to the traditional industry, however it is one of the fastest growing sectors with an Compound Annual Growth Rate (CAGR) of 17,04% between the years of 2009 and 2013. The growth in the Islamic banking industry was, on average, 20% after the recovery of the global financial crisis in 2009. Most of the assets are concentrated in Islamic countries like Gulf Cooperation Council and Malaysia. Beside these major players, other countries in the Middle East or North Africa showed a rapid growth or entered the market. Further growth, mentioned by Iqbal and Tsubota (2006), is also expected because of the increasing demand of Sharia compliant investments and financing due to the growth of “oiladollars” and the immigration of Muslim people all over the world. The specialty of the regulatory framework for Islamic investments is that they all have to be Shariah confirm. The main principals for Islamic investments are (AlaSuwailem,'2006): • It is not allowed to invest money only for the sole purpose of profit. • The concept of interest (Riba) is not allowed • It is only allowed to invest in companies, which are Shariah confirm (alcohol, weapons, pornography, gambling, etc. are prohibited by the Shariah) • Gambling as itself is not allowed • No high uncertainty/risk (Gharar) can be taken • And the risk must always be shared between the lender and the borrower One of the important differences between conventional finance and Islamic finance, as far as risk is concerned, is that in Islamic finance the risk must be split between borrower and lender and very high risk investments like short selling and high leverage is not allowed.

Download or read book Islamic investments funds versus hedge Funds written by Adnan Siddiqi and published by GRIN Verlag. This book was released on 2008-08-29 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diploma Thesis from the year 2008 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Sehr gut, University of Vienna (Universität Wien), course: Macro Economics and Finance, language: English, abstract: The literature discusses Islamic investment funds and hedge funds as isolated issues. At present not much work is known, comparing these two very prominent alternative investment forms. This thesis attempts to fill this gap by providing a first insight into both and also tries to answer the following question: Can Islamic investment funds catch up with hedge funds? For this, the thesis compares Islamic investment funds and hedge funds on the basis of different factors, trying to answer three sub questions: What are the advantages and disadvantages of each? Are there differences and/or similarities between the two? How can an investment portfolio including both be balanced? As will be seen throughout the thesis, Islamic investment funds provide a handfull of advantages over hedge funds, even enabling the former to outperform the latter. Hedge funds rely mainly on gaining advantage through market inefficiencies, hedging the market risk through short-term opportunities. This construction puts the fund manager into a high risk position with high profit potential. Despite investment restrictions under Islamic law, a fund manager is not prohibited from facilitating hedge funds by these restrictions. The main difference is that Islamic investments offer more risk control by cooperative arrangements. This characteristic enables an investor to cover the risk of hedge funds by investing in Islamic investment funds. Nevertheless, such differences raise the issue of whether it is sensible to invest solely in Islamic investment funds or hedge funds. [...]

Download or read book Islamic Capital Markets written by Kabir Hassan and published by John Wiley & Sons. This book was released on 2011-04-04 with total page 481 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic Finance has experienced rapid growth in recent years, showing significant innovation and sophistication, and producing a broad range of investment products which are not limited to the complete replication of conventional fixed-income instruments, derivatives and fund structures. Islamic Finance represents an elemental departure from traditional interest-based and speculative practices, relying instead on real economic transactions, such as trade, investment based on profit sharing, and other solidary ways of doing business, and aims to incorporate Islamic principles, such as social justice, ecology and kindness, to create investment products and financial markets which are both ethical and sustainable. Products created according to Islamic principles have shown a low correlation to other market segments and are relatively independent even from market turbulences like the subprime crisis. Therefore, they have become increasingly popular with secular Muslims and non-Muslim investors, as highly useful alternative investments for the diversification of portfolios. In Islamic Capital Markets: Products and Strategies, international experts on Islamic Finance and Sharia'a Law focus on the most imminent issues surrounding the evolution of Islamic capital markets and the development of Sharia'a-compliant products. The book is separated into four parts, covering: General concepts and legal issues, including Rahn concepts in Saudi Arabia, the Sharia'a process in product development and the integration of social responsibility in financial communities; Global Islamic capital market trends, such as the evolution of Takaful products and the past, present and future of Islamic derivatives; National and regional experiences, from the world's largest Islamic financial market, Malaysia, to Islamic finance in other countries, including Germany, France and the US; Learning from Islamic finance after the global financial crisis; analysis of the risks and strengths of Islamic capital markets compared to the conventional system, financial engineering from an Islamic perspective, Sharia'a-compliant equity investments and Islamic microfinance. Islamic Capital Markets: Products and Strategies is the complete investors' guide to Islamic finance.

Download or read book Islamic Corporate Finance written by M. Kabir Hassan and published by Routledge. This book was released on 2019-06-04 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most existing texts covering topics in Islamic finance discuss the potential of Islamic banking; very few talk about other forms of financing and the investment activities of Islamic firms from the standpoint of owners and managers. This book fills this gap by looking at the traditional as well as non-traditional financing and investment activities of shariah-compliant companies. The chapters in this edited text offer a full range of topics on corporate finance for Islamic firms, including global comparisons of shariah screening, dividend policy and capital structure of Islamic firms, details of global Islamic equity markets, trends and performance of sukuk markets, and a brief account of derivative securities that can be used in Islamic finance. This is a useful reference for anyone who wishes to learn more about the performance of shariah-compliant companies vis-à-vis conventional firms. The book includes both technical and non-technical information that would be suitable for classroom teaching as well as a reference for postgraduate research students.

Download or read book Investing in Islamic Stocks written by Mehmet Saraç and published by . This book was released on 2018 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: A gradual convergence of Islamic finance towards interest-based conventional finance is one of the major concerns in the progress of Islamic finance. An important reason for this one-way convergence in the rates of returns of the two sectors is the dominance of Islamic banking in the composition of the Islamic financial sector. The investment account returns of Islamic banks depend heavily on interest rates. Whereas, Islamic stock markets are argued to be the essential domain to achieve true Islamic finance, since they are based on profit and loss sharing and are not directly dependent on interest rates. We in this paper investigate the relationship between the Islamic stock index and indicative interest rates in Turkey, using the daily data of Participation 30 index returns in Borsa İstanbul (BIST) and interest rates on indicative bonds between the years 2011-2015. We also include the BIST 100 index in the model as the control variable. The results of Maki cointegration test show that Participation 30 index is not cointegrated with interest rates, while the general index of Borsa İstanbul is significantly cointegrated with interest rates. Toda Yamamoto test based on Granger causality analysis shows that no causal relationship exists between interest rates and the Participation 30 Index, while the general index of Borsa İstanbul is influenced by interest rates. The findings provide evidence for the independency of returns on Islamic stock investments from interest rates. This result also proves that the Sharīʻah-compliant firms are less sensitive to interest rates due to their financial structure in which the interest bearing assets and sources are significantly limited.

Download or read book Shari ah Compliant Private Equity and Islamic Venture Capital written by Fara Madehah Ahmad Farid and published by Edinburgh University Press. This book was released on 2012-11-16 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the applicability of Shari'ah-based structures and Islamic venture capital to the private equity industry. It includes case studies and examples of business financial appraisals to give an in-depth view of the application and operatio

Download or read book Islamic Financial Services written by Mohammed Obaidullah and published by . This book was released on 2005 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: