Ethical Investment Revisited

Hussein, Khaled; Omran, Mohammed

doi:10.3905/joi.2005.580557

Cited by 195 publications

(35 citation statements)

References 22 publications

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“…Most of the studies found that there is no significant difference in the performance of restricted Islamic funds from their conventional counterparts except Hussein and Omran's (2005) study, in which Islamic indices performed better than their conventional equivalents. When it comes to explicitly analyzing the persistence in Islamic mutual fund performance the literature is yet to be written.…”

Section: Introductionmentioning

confidence: 89%

Do ethics imply persistence? The case of Islamic and socially responsible funds

Abdelsalam

Duygun

Matallín‐Sáez

et al. 2014

Journal of Banking & Finance

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Citation for published item:edelslmD yF nd huygunD hF nd wtll¡ %nE¡ ezD tFgF nd ortosEeusinD iF @PHIRA 9ho ethis imply persistenec he se of sslmi nd soilly responsile fundsF9D tournl of nking (nneFD RH F ppF IVPEIWRF Further information on publisher's website: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Meryem DuygunUniversity of Leicester Juan Carlos MatallínUniversitat Jaume I Emili Tortosa-AusinaUniversitat Jaume I and Ivie January 16, 2014 AbstractWe analyse the performance persistence of Islamic and Socially Responsible Investment (SRI) mutual funds. We adopt a multi-stage strategy in which, in the first stage, partial frontiers' approaches are considered to measure the performance of the different funds in the sample. In the second stage, the results yielded by the partial frontiers are plugged into different investment strategies based on a recursive estimation methodology whose persistence performance is evaluated in the third stage of the analysis. Results indicate that, for both types of funds, performance persistence actually exists, but only for the worst and, most notably, best funds. This result is robust not only across methods (and different choices of tuning parameters within each method) but also across both SRI and Islamic fundsalthough in the case of the latter persistence was stronger for the best funds. The persistence of SRI and Islamic funds represents an important result for investors and the market, since it provides information on both which funds to invest in and which funds to avoid. Last but not least, the use of the aforementioned techniques in the context of mutual funds could also be of interest for the non-conclusive literature.

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Section: Introductionmentioning

confidence: 89%

Do ethics imply persistence? The case of Islamic and socially responsible funds

Abdelsalam

Duygun

Matallín‐Sáez

et al. 2014

Journal of Banking & Finance

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“…Previous studies that investigated the impact of Sharia screening on the investment performance, found that there were statistically significant differences between Sharia and conventional investments in the performance (Akhtar et al, 2011;Al-Zoubi & Maghyereh, 2007;Hassan et al, 2005;Hussein, 2004;Hussein & Omran, 2005;Hussein, 2007;Sadeghi, 2008;Yusof & Abdul Majid, 2007). However, some studies found that there were no significant differences between Sharia and conventional investment (Albaity & Ahmad, 2008;Charles et al, 2011;Dharani & Natarajan, 2008;Girard & Hassan, 2008;Natarajan & Dharani, 2012).…”

Section: Sharia Investmentmentioning

confidence: 99%

“…The most important difference between Islamic and other ethical investment principles is that besides excluding particular sectors, Islamic funds do not deal in the fixed-income market, and the receipt and payment of interest is not permitted (Hussein & Omran, 2005). Selection criteria should be used when determining which companies are acceptable from the point of view of Islamic investors (Wilson, 1997).…”

Section: Sharia Investmentmentioning

confidence: 99%

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How Performance of Jakarta Islamic Index (Jii) Stocks Relative to Other Stocks?

Listyaningsih

Krishnamurti

2015

JDM

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This study was conducted to assess the performance of Jakarta Islamic Index (JII) stocks and also investigate whether there was an ethical effect (JII selection restriction) and compare it with non-Sharia stocks. The main model used in this study was the Capital Asset Pricing Model (CAPM) single index model extended to the Fama and French three factors. This study employs elaborate matching data. The data used in this study was split into two periods: the 2005-2007 periods which consists of two groups: JII and non-JII and the 2008-2012 periods which consists of three groups: JII, Sharia and non-Sharia based on industry sector. This study found that basically there was no difference on performance between JII and non-JII stocks. Therefore, this result supports the previous studies in which there were no significant differences between Sharia and conventional investment.

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“…In fact, some studies (e.g. Hussein and Omran, 2005) produce results of Islamic indices having outperformed their traditional counterparts.…”

mentioning

confidence: 99%

On the comparative performance of socially responsible and Islamic mutual funds

Abdelsalam

Duygun

Matallín

et al. 2014

Journal of Economic Behavior & Organization

104

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Citation for published item:edelslmD yF nd huygun pethiD wF nd wtll¡ %nD tFgF nd ortosEeusinD iF @PHIRA 9yn the omprtive performne of soilly responsile nd sslmi mutul fundsF9D tournl of eonomi ehvior nd orgniztionFD IHQ F IHVEIPVF Further information on publisher's website: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Meryem Duygun Fethi University of Leicester Juan Carlos MatallínUniversitat Jaume I Emili Tortosa-AusinaUniversitat Jaume I and Ivie May 20, 2013Abstract This is the first study to provide comprehensive analyses of the relative performance of both Socially Responsible Investment (SRI) and Islamic mutual funds. The analysis proceeds in two stages. In the first, the performance of the two categories of funds is measured using partial frontier methods. In the second stage, we use quantile regression techniques. By combining two variants of the Free Disposal Hull (FDH) methods (order-m and order-α) in the first stage of analysis and quantile regression in the second stage, we provide detailed analyses of the impact of different covariates across methods and across different quantiles. In spite of the differences in the screening criteria and portfolio management of both types of funds, variation in the performance is only found for some of the quantiles of the conditional distribution of mutual fund performance. We established that for the most inefficient funds the superior performance of SRI funds is significant. In contrast, for the best mutual funds this evidence vanished and even Islamic funds perform better than SRI. These results show the benefits of performing the analysis using quantile regression.

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Ethical Investment Revisited

Cited by 195 publications

References 22 publications

Do ethics imply persistence? The case of Islamic and socially responsible funds

Do ethics imply persistence? The case of Islamic and socially responsible funds

How Performance of Jakarta Islamic Index (Jii) Stocks Relative to Other Stocks?

On the comparative performance of socially responsible and Islamic mutual funds

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