Shariah Compliant Stocks in India : A Viable and Ethical Investment Vehicle

Natarajan, P.; Dharani, M.

doi:10.12816/0002108

Cited by 21 publications

(17 citation statements)

References 4 publications

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“…Our results confirm the results reported by Natarajan and Dharani (2012) for India. However, our results are different to those reported by Rahmayanti (2003) and Hussein and Omran (2005) that compared to a conventional portfolio, the performance of Shariah portfolio is relatively dissimilar within the same period.…”

Section: Risk Adjusted Return Performance Resultssupporting

confidence: 93%

Does Shariah Compliant Stocks Perform Better than the Conventional Stocks? A Comparative Study Stocks Listed on the Australian Stock Exchange

Fu²

2014

AJFA

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A rapid growth of Islamic finance in the past decades has motivated many investors to focus on Islamic stocks rather than conventional stocks. The argument whether the performance of Shariah compliant stocks are better compared to the conventional stocks still remains an open question. Therefore, this research examines whether there are differences in performance between the Shariah compliant stocks and the conventional stocks listed on the Australian Stock Exchange (ASX) for the period 2001-2013. Our findings show that there is a statistically significant difference in performance of the Islamic and conventional stocks listed on the ASX in terms of risk, otherwise the performance of the Islamic stocks tends to be similar to the conventional stocks. In addition, we report a statistically significant relationship between the returns of Shariah compliant and conventional stocks.

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Section: Risk Adjusted Return Performance Resultssupporting

confidence: 93%

Does Shariah Compliant Stocks Perform Better than the Conventional Stocks? A Comparative Study Stocks Listed on the Australian Stock Exchange

Fu²

2014

AJFA

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“…This result is consistent with the previous studies in which there is no different performance between Sharia and conventional one (Albaity & Ahmad, 2008;Charles et al, 2011;Dharani & Natarajan, 2008;Girard & Hassan, 2008;Natarajan & Dharani, 2012).…”

Section: Regression Results For Performance Of Jii and Non-jii Stockssupporting

confidence: 93%

“…Additionally, some studies also found that there were no significant difference between ethical or Sharia and non-ethical or conventional stocks in performance (Albaity & Ahmad, 2008;Bauer et al,2005;Charles et al, 2011;Dharani & Natarajan, 2008;Girard & Hassan, 2008;Natarajan & Dharani, 2012). Thus, further investigation regarding to this issue is necessary.…”

Section: The Performance Of Ethical and Sharia Investmentmentioning

confidence: 99%

“…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). Additionally, Lean and Parsva (2012) found that Islamic indices in Malaysia have high risk adjusted returns and low risks, while after the crisis all the Malaysian Islamic indices have been converted into risky and sensitive indices.…”

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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“…The paper proved that Nifty Shariah is not performing as well as the BSE Tasis Shariah Index. Natarajan and Dharani (2012) tried to find answers to some of the questions related to Islamic investments. In their paper, they not only mention the risk and returns of the Shariah shares and Islamic investments but also about the thoughts of ethical investors in Shariah investment in India.…”

Section: Literature Reviewmentioning

confidence: 99%