The Price of Faith: Performance, Bulland Bear Markets, and Screening Effectsof Islamic Investing Around the Globe

Lobe, Sebastian; Rößle, Felix; Walkshäusl, Christian

doi:10.3905/joi.2012.21.4.153

Cited by 13 publications

(7 citation statements)

References 9 publications

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“…Related in this study, Lobe et al (2012) explain that the most of the index should consist with Islamic principles. The Islamic index is also should have an independent Shariah board to ensure Islamic index that listing in the capital market are consistent with Islamic principles.…”

Section: Islamic Screeningmentioning

confidence: 83%

The Study Of Islamic Fund Performance In Indonesia: A Meta Analysis

M¹,

Arnita²,

Siregar³

et al. 2019

Proceedings of the Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 20

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This paper focuses on risk-return performance analysis, comparative between Islamic funds and indices against their conventional benchmark. This study do not show the empirical result study, on the other hand this study simply evaluate the performance of Islamic fund in Indonesia using analysis of Islamic paper in Indonesia. Following international result, the objective of this study is to know the performance Islamic investment risk-return profile and risk adjusted return measures whether Islamic funds outperform, underperform, or similar performance against the conventional benchmark. This perspectives study showed inconsistency results while some evidences analyzed in Indonesia do not supporting the portfolio theory. The stakeholder might be able to be selecting their consideration of investment decision by using the meta analysis of this study. Therefore, from this conceptual paper the Indonesian perspective of Islamic index describes performance different than conventional benchmarking.

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Section: Islamic Screeningmentioning

confidence: 83%

The Study Of Islamic Fund Performance In Indonesia: A Meta Analysis

M¹,

Arnita²,

Siregar³

et al. 2019

Proceedings of the Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 20

View full text Add to dashboard Cite

show abstract

“…They exclude non‐Shari'ah compliant industries and therefore have a smaller investment universe than conventional investments, which seems to be advantageous in crisis periods. Islamic investments, for instance, exclude financial services that suffer most during financial crisis, which might explain part of the outperformance of Islamic investment vehicles (e.g., Lobe, Rößle, and Walkshäusl (), Walkshäusl and Lobe ()). In a nutshell, we provide evidence that the assumption that Shari'ah investment constraints lead to inferior performance and riskier investment portfolios because of their limited investment universe can be rejected, which is consistent with the findings of BinMahfouz and Hassan ().…”

Section: Resultsmentioning

confidence: 99%

International Islamic funds

Lesser

Walkshäusl

2018

Rev Financ Econ

Self Cite

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Internationally‐investing Islamic equity funds from developed Islamic and non‐Islamic markets perform in general similar to the market. However, analyzing different market conditions, we provide evidence that funds domiciled in Islamic markets outperform their peers and funds from non‐Islamic markets during market turmoil, irrespective of the applied performance measurement model. We suggest that this outperformance is owed to the expertise of fund managers from developed Islamic markets who operate in a financial environment that is driven by Islamic principles. Our results are robust with respect to the standard Fama‐French three‐factor and four‐factor models as well as to the novel five‐factor model.

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“…The principal then chooses α and β to maximize expected profits net of wages, conditional on the entrepreneur's participation and subject to (4). The calculations are pretty standard and can be found, for example, in Basov [6].…”

Section: Discussionmentioning

confidence: 99%

“…This view was, however, challenged in recent empirical literature. For example, Lobe, Rößle, and Walkshäusl [4] argue that ethical screens do not have significant effect on an index performance during the bull market and improve performance in the bear market. Walkshäusl and Lobe [2] argue that, while Islamic equity indices underperform comparatively to the conventional ones in the emergent markets, they actually outperform them in the developed markets.…”

Section: Introductionmentioning

confidence: 99%

On Sharia’a-Compliance and Return to Investment

Arbi

Basov²,

Bhatti³

2014

J Stock Forex Trad

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In this paper we study the role of contract limitations on the performance of Islamic banks, in contrast to the role of asset limitations, invoked by Derigs and Marzban [1] to explain why Sharia'a-compliant strategies result in much lower portfolio performance than do the conventional strategies. Their results were, however, challenged in recent empirical paper by Walkshäusl and Lobe [2], who argued asset limitation even sometimes, is beneficial. The reason may be that they prevent excessive risk taking by the managers. Contract limitations provide a more nuanced explanation of performance of Islamic banks, and can explain why Islamic indexes seem to underperform in emergent, rather than developed markets, as documented by Walkshäusl and Lobe [3].

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The Price of Faith: Performance, Bulland Bear Markets, and Screening Effectsof Islamic Investing Around the Globe

Cited by 13 publications

References 9 publications

The Study Of Islamic Fund Performance In Indonesia: A Meta Analysis

The Study Of Islamic Fund Performance In Indonesia: A Meta Analysis

International Islamic funds

On Sharia’a-Compliance and Return to Investment

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