IDEAS home Printed from
   My bibliography  Save this article

Sharī‘ah and SRI Portfolio Performance in the UK: Effect of Oil Price Decline



    () (Durham University)


In accordance with decline in oil price and portfolio performance, this study attempts to examine the effect of oil price on Sharī‘ah portfolio performance, which Socially Responsible Investment (SRI) portfolio is also constructed as a comparison. This study is different from other empirical studies which use stock index as proxy for stock market returns since this study constructs its own Sharī‘ah and SRI portfolio investment in the UK taking the companies included in FTSE 100 from 2008 up to 2015. This study shows that the decline in oil price has higher impact on Sharī‘ah portfolio compared to SRI portfolio, which is shown by lower value of Sharpe’s ratio and Treynor ratio. On the other hand, Sharī‘ah portfolio has higher beta and Jensen’s alpha compared to SRI portfolio. It provides insight to the regulatory body and scholars to reconsider the Sharī‘ah screening criteria in order for Sharī‘ah portfolio to be able to have better performance and more sustainable in the long run in order to be able to overcome different type of crisis.

Suggested Citation

  • Hendranastiti, Nur Dhani, 2016. "Sharī‘ah and SRI Portfolio Performance in the UK: Effect of Oil Price Decline," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 24, pages 77-103.
  • Handle: RePEc:ris:isecst:0158

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    1. Ahdi Noomen Ajmi & Ghassen El-montasser & Shawkat Hammoudeh & Duc Khuong Nguyen, 2014. "Oil prices and MENA stock markets: new evidence from nonlinear and asymmetric causalities during and after the crisis period," Applied Economics, Taylor & Francis Journals, vol. 46(18), pages 2167-2177, June.
    2. Kang, Wensheng & Ratti, Ronald A. & Yoon, Kyung Hwan, 2015. "The impact of oil price shocks on the stock market return and volatility relationship," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 34(C), pages 41-54.
    Full references (including those not matched with items on IDEAS)

    More about this item


    oil price; portfolio; Sharī‘ah; SRI; performance;


    Access and download statistics


    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:ris:isecst:0158. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRTI Staff) or (). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.