Sustainable and Responsible Investment: Concept and the Commonalities with Islamic Financial Institutions

Wahab, Muhammad Zarunnaim Haji; Naim, Asmadi Mohamed

doi:10.15408/etk.v19i1.13772

Cited by 7 publications

(3 citation statements)

References 12 publications

(15 reference statements)

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“…This point is in line with studies by Mohamad et al (2016) and Wahab and Naim (2020), which found that the IFIs require careful identification and investigation of a desired outcome. By simply adopting the SRI concept, it may raise Shariah issues, that later may affect the product offerings.…”

Section: Lead To Shariah Issuessupporting

confidence: 86%

Developing Islamic sustainable and responsible investment criteria: an overview

Wahab

Naim

2022

IJOES

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Purpose The purpose of this study is to explore the necessity for developing Islamic sustainable and responsible investment (i-SRI) criteria based on environmental, social and governance issues. Design/methodology/approach To address the above objective, this study adopted a qualitative method via content document analysis and interviews with experts. Findings Based on the analysis, this study discovered five primary aspects that lead to the necessity for developing i-SRI criteria. First, Malaysia has yet to develop i-SRI criteria. Second, the absence of i-SRI criteria will eventually lead to Shariah issues. Third, any Islamic financial instrument is bound to encounter numerous issues and challenges, thereby making it difficult to be marketed globally if it does not have a proper and standardized framework. Fourth, the establishment of i-SRI criteria can serve as a key reference point for the players in the industry, including investors, policymakers and other parties. Finally, the development of i-SRI criteria can play a vital role in enhancing the current Islamic capital market products offering in Malaysia. Practical implications There are several implications identified in this study. First, continuous research on the i-SRI criteria can offer numerous benefits to the regulatory bodies and policymakers who can use the findings in their decision-making process. Second, in terms of investors, the results can help them to make better investment choices by referring to the i-SRI criteria. Third, this study will be valuable to the academicians in terms of opportunity to explore a new research area, i.e. the i-SRI criteria, besides adding to the extant literature on this topic which is still scant currently. Originality/value This study discovered five primary aspects that lead to the necessity for developing i-SRI criteria.

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Section: Lead To Shariah Issuessupporting

confidence: 86%

Developing Islamic sustainable and responsible investment criteria: an overview

Wahab

Naim

2022

IJOES

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“…One of the sharia products that attract investors is Sukuk. Sukuk has a significant potential to evolve as innovative Islamic financial instruments that obey the sharia principles (Ahmed et al, 2014;Haji Wahab & Naim, 2020;Zakaria et al, 2012a).…”

Section: Introductionmentioning

confidence: 99%

Effects of Leverage, Liquidity, and Profitability on The Rating of Sukuk

2020

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The rating of sukuk becomes the reflection of the capital markets' activities. The better rating of sukuk, the more investor’s interested to purchase a sukuk. This study aimed at explaining the effects of leverage, liquidity, and profitability towards the rating of sukuk. The technique of data analysis employed was ordinal logistic regression. The research result revealed that the leverage and liquidity affected the sukuk. Meanwhile, the profitability did not affect the rating of sukuk. The test result simultaneously showed that the leverage variable and liquidity affected the sukuk rating. On the other hand, the result of a pseudo test of R-square showed the impact of leverage and liquidity towards sukuk rating was as big as 100%. Overall, the research result in this study supported the previous research which discovered the impacts of leverage and liquidity variables towards the rating of sukuk.

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“…Regarding this matter, issues such as the preservation of life, improvement of life quality, and preservation and promotion of mind/intellect of youth are directly related to the Dharruriyat (necessities) of Maqasid Shariah. Apart from that, the SRIs concept also denotes the principles that promote socio-economic justice, repulsion of harm, and encouragement of ethics and morality in financial practice, which aligns with Islamic principles (Wahab & Naim, 2020).…”

Section: Sris Practices Based On Maqasid Shariah and Maslahahmentioning

confidence: 99%

The Reviews on Sustainable and Responsible Investment (SRIs) Practices According to Maqasid Shariah and Maslahah Perspectives

Wahab

Naim

2021

Etikonomi

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The present study aims to explore SRIs practices based on Maqasid Shariah and Maslahah's points of view. A qualitative method via content analysis document was advocated to address the link between all concepts. The analysis revealed that SRIs, Maqasid Shariah and Maslahah share similar aims and goals to promote better environmental practices and social and governance issues. Thus, the paper concludes that the concept of SRIs does not contradict Maqasid Shariah and Maslahah in Islamic perspectives. However, a few criteria in the Environmental, Social and Governance (ESG) concept that govern the SRIs practices like promoting human rights, freedom of expression, and censorship need further clarification to align with Shariah principles. The paper can enlighten the reader, especially in terms of the capabilities of SRIs practices (which is from West philosophy) to suit Maqasid Shariah and Maslahah in Islamic perspectives.JEL Classification: G2, G4, I13, N2How to Cite:Wahab, M. Z. H., & Naim, A. M. (2021). The Reviews on Sustainable and Responsible Investment (SRIs) Practices According to Maqasid Shariah and Maslahah Perspectives. Etikonomi, 20(2), xx – xx. https://doi.org/10.15408/etk.v20i2.18053.

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Sustainable and Responsible Investment: Concept and the Commonalities with Islamic Financial Institutions

Cited by 7 publications

References 12 publications

Developing Islamic sustainable and responsible investment criteria: an overview

Developing Islamic sustainable and responsible investment criteria: an overview

Effects of Leverage, Liquidity, and Profitability on The Rating of Sukuk

The Reviews on Sustainable and Responsible Investment (SRIs) Practices According to Maqasid Shariah and Maslahah Perspectives

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