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Is the Performance of Conventional and Shariah-Compliant Portfolios Two Sides of the Same Coin? Evidence from Bursa Malaysia

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  • Hani Nuri Rohuma

Abstract

This study arises from the rapid global growth of the Shariah-compliant financial services industry and the evident paucity of research on the direct comparison between a conventional portfolio and a Shariah-compliant portfolio. Therefore, this study undertakes to investigate the differences in the performance between a hypothetical conventional portfolio and a hypothetical Shariah-compliant portfolio on Bursa Malaysia over the 1 December 2005-28 February 2018 examination period. The examination period is divided into- (1) the overall period (1 December 2005-28 February 2018); (2) the bullish 1 period (1 December 2005-30 June 2007); (3) the crisis period (1 July 2007-28 February 2009); (4) the bullish 2 period (1 March 2009-30 June 2014); and (5) the consolidation period (1 July 2014-28 February 2018). The risk and return characteristics, the risk-adjusted return measures, the return correlation measure, and the sample paired t-test are the performance evaluations employed in this research. The results revealed that the performance of the conventional and Shariah-compliant portfolios was broadly similar in different economic regimes.

Suggested Citation

  • Hani Nuri Rohuma, 2023. "Is the Performance of Conventional and Shariah-Compliant Portfolios Two Sides of the Same Coin? Evidence from Bursa Malaysia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 18(2), pages 101-101, June.
    • Handle: RePEc:ibn:ijbmjn:v:18:y:2023:i:2:p:101
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    References listed on IDEAS

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    2. Longin, Francois & Solnik, Bruno, 1995. "Is the correlation in international equity returns constant: 1960-1990?," Journal of International Money and Finance, Elsevier, vol. 14(1), pages 3-26, February.
    3. Hesham Merdad & M. Kabir Hassan & Yasser Alhenawi, 2010. "Islamic Versus Conventional Mutual Funds Performance in Saudi Arabia: A Case Study أداء الصناديق الاستثمارية الإسلامية مقارنة بأداء الصناديق الاستثمارية التقليدية في المملكة العربية السعودية: دراسة عم," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 23(2), pages 161-198, July.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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