IDEAS home Printed from https://ideas.repec.org/a/eme/jiabrp/jiabr-12-2019-0248.html
   My bibliography  Save this article

Determinants and market performance of Fortune 100 best companies: evidence from Islamic perspective

Author

Listed:
  • Rajesh Kumar Bhaskaran
  • Irene Wei Kiong Ting
  • Noor Azlinna Azizan
  • Kranthi Vidhatha Yelubolu

Abstract

Purpose - Islam is valid for every place and time, and it promotes fair and equitable employees’ relations as an essential corporate social responsibility (CSR) policy for successful organisations such as Fortune 100 companies. Whence, this study aims to explore Fortune 100 best companies exhibit better market performance and capitalisation relative to other companies in relation to their employees’ satisfaction as a significant contributor to better performance. Design/methodology/approach - This study conducts two-stage robust least square regressions analyses on Fortune’s best a sample of Fortune companies list in 2017. Findings - Tests of differences in mean indicate that Fortune listed companies have superior profitability, liquidity and firm size compared with the control sample data set. The regression results are also robust to the use of different measures of market performance, such as market capitalisation, price/earnings ratio and price/book ratio, as well as to the potential endogeneity problem. This study also reveals the top 10 employers with the highest number of employees with their number of times being ranked in Fortune best companies. The result is in line and compatible with the concept of CSR in Islam perspective which encompasses legal, economic, ethical and philanthropic responsibilities (Maruf, 2013). Islamic CSR promotes the behaviour of brotherhood and justice to balance employee rights and better coherence between self-interest and altruism. With that, satisfied employees contribute to firm performance. Practical implications - Overall, this study extends the insight that satisfied employees may, in turn, mean better market performances for a company. Originality/value - The findings corroborate human relations theories, as well as from the Islamic perspective, employee satisfaction results in greater market performances.

Suggested Citation

  • Rajesh Kumar Bhaskaran & Irene Wei Kiong Ting & Noor Azlinna Azizan & Kranthi Vidhatha Yelubolu, 2020. "Determinants and market performance of Fortune 100 best companies: evidence from Islamic perspective," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 12(1), pages 44-59, November.
    • Handle: RePEc:eme:jiabrp:jiabr-12-2019-0248
    DOI: 10.1108/JIABR-12-2019-0248
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2019-0248/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JIABR-12-2019-0248/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JIABR-12-2019-0248?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jiabrp:jiabr-12-2019-0248. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.