IDEAS home Printed from https://ideas.repec.org/a/ids/ijbfmi/v4y2018i4p458-485.html
   My bibliography  Save this article

Comparison of methodologies of Shari'ah stock screening: the case of SAC SC Malaysia, FTSE Yasaar Dubai and Dow Jones Islamic market indices

Author

Listed:
  • Aida Shaiza Ismail Zakri
  • Shaikh Hamzah Abdul Razak
  • Zainal Abidin Mohd Tahir

Abstract

On average the Islamic finance industry has grown by almost 20% per annum, a compound annual growth rate of 17% from 2009 to 2013 (IFSB, 2013) with its current assets estimated to be worth USD 2 trillion and is set to reach USD 5 trillion in year 2020. This paper aims to analyse three Shari'ah screening methodologies namely Securities Commission (Malaysia), FTSE NASDAQ Dubai Shari'ah Index Series and the Dow Jones Islamic Market Indices. A sample of 30 companies comprising Shari'ah and non-Shari'ah stocks invested by the Malaysian institutional funds were analysed. Our analysis shows that out of the 30 samples stocks, only eight companies passed the screening using the criteria of the three providers. The limitations of the study is the non-availability of detailed information such as type of bank accounts and debts, hence assumption made is that the cash are placed in conventional accounts unless indicated.

Suggested Citation

  • Aida Shaiza Ismail Zakri & Shaikh Hamzah Abdul Razak & Zainal Abidin Mohd Tahir, 2018. "Comparison of methodologies of Shari'ah stock screening: the case of SAC SC Malaysia, FTSE Yasaar Dubai and Dow Jones Islamic market indices," International Journal of Business Forecasting and Marketing Intelligence, Inderscience Enterprises Ltd, vol. 4(4), pages 458-485.
    • Handle: RePEc:ids:ijbfmi:v:4:y:2018:i:4:p:458-485
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=95161
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    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:ids:ijbfmi:v:4:y:2018:i:4:p:458-485. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=156 .

    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.