International Journal of Financial Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Comparative Study on Financial Performance of Shariah Compliant Stocks and Conventional Stocks in India


Affiliations
1 Maulana Azad National Urdu University, Hyderabad, Telangana, India
     

   Subscribe/Renew Journal


Islamic Equity Market consist the companies which follow the Shariah norms in their business activities to be Shariah compliant. The objectives of this study are to examine the performance of select Shariah-compliant shares listed in BSE (Bombay Stock Exchange), India and to compare the performance of Shariah-compliant stocks with select conventional stocks. The study reveals that the performance of Shariah-compliant stocks is better than conventional stocks during the select period of study and the return of Shariah-compliant securities is less volatile than the conventional securities.

Keywords

Islamic Finance, Shariah Indices, Islamic Capital Market.
Subscription Login to verify subscription
User
Notifications
Font Size

  • Abdul Rahman, A., Azlan Yahya, M., & Herry Mohd Nasir, M. (2010). Islamic norms for stock screening. International Journal of Islamic and Middle Eastern Finance and Management. Retrived from https://doi.org/10.1108/17538391011072426

  • Abedifar, P., Molyneux, P., & Tarazi, A. (2013). The risk in Islamic banking. Review of Finance. Retrieved from https://doi.org/10.1093/rof/rfs041

  • Ariff, M. (1988). Islamic Banking. Asian Pacific Economic Literature. Retrieved from https://doi.org/10.1111/j.1467-8411.1988.tb00200.x

  • Ariss, R. T. (2010). Competitive conditions in Islamic and conventional banking: A global perspective. Review of Financial Economics. Retrieved from https://doi.org/10.1016/j.rfe.2010.03.002

  • Ayub, M. (2009). Understanding Islamic Finance.John Wiley & Sons. Retrived from https://doi.org/10.1016/j.pacfin.2013.09.002

  • Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking and Finance. Retrieved from https://doi.org/10.1016/j.jbankfin.2012.09.016

  • Beik, I. S., & Arsyianti, L. D. (2015). Construction of cibest model as measurement of poverty and welfare indices from islamic perspective. Al-Ittihad. Retrieved from https://doi.org/10.15408/ijies.v7i1.1361

  • Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific Basin Finance Journal. Retrieved from https://doi.org/10.1016/j.pacfin.2007.12.003

  • Dixon, R. (1992). Islamic Banking. International Journal of Bank Marketing. Retrieved from https://doi.org/10.1108/02652329210020321

  • Dusuki, A. W., & Abdullah, N. I. (2007). Why do Malaysian customers patronize Islamic banks? International Journal of Bank Marketing. Retrieved from https://doi.org/10.1108/02652320710739850

  • Hakim, S., & Rashidian, M. (2004). Risk & return of Islamic stock market indexes. Economic Research Forum Annual Meetings Shariah UAE.

  • Harris, M., & Raviv, A. (1991). The theory of capital structure. The Journal of Finance. Retrieved from https://doi.org/10.1111/j.1540-6261.1991.tb03753.x

  • Hassan, M. K., & Bashir, A.-H. M. (2005). Determinants of islamic banking profitability. In Islamic perspectives on wealth creation. Retrieved from https://doi.org/10.3366/edinburgh/9780748621002.003.0008

  • Hearn, B., Piesse, J., & Strange, R. (2011). The role of the stock market in the provision of Islamic development finance: Evidence from Sudan. Emerging Markets Review. Retrieved from https://doi.org/10.1016/j.ememar.2011.04.004 https://www.bseindia.com/indices/IndexArchiveData.aspx. (2018). BSE, Historical - Indices.

  • Hussein, K. A. (2004). Ethical investment: Empirical evidence from FTSE Islamic Index. Islamic Economic Studies. Retrieved from https://doi.org/10.3905/joi.2005.580557

  • Ibrahim, M. H., & Mirakhor, A. (2014). Islamic finance: An overview. Pacific Basin Finance Journal. Retrieved from https://doi.org/10.1016/j.pacfin.2014.02.002

  • Imam, P., & Kpodar, K. (2016). Islamic banking: Good for growth? Economic Modelling. Retrieved from https://doi.org/10.1016/j.econmod.2016.08.004

  • Karim, B. A., Lee, W. S., Karim, Z. A., & Jais, M. (2012). The Impact of Subprime Mortgage Crisis on Islamic Banking and Islamic Stock Market. Procedia – Social and Behavioral Sciences. Retrieved from https://doi.org/10.1016/j.sbspro.2012.11.182

  • Kenourgios, D., Naifar, N., & Dimitriou, D. (2016). Islamic financial markets and global crises: Contagion or decoupling? Economic Modelling. Retrieved from https://doi.org/10.1016/j.econmod.2016.04.014

  • Khan, F. (2010). How “Islamic” is Islamic Banking? Journal of Economic Behavior and Organization. Retrieved from https://doi.org/10.1016/j.jebo.2010.09.015

  • Loo, M. (2010). Attitudes and perceptions towards islamic banking among muslims and non-muslims in Malaysia: Implications for marketing to baby boomers and X-Generation. International Journal of Arts and Sciences, 3(13), 453–485.

  • Mahdy, S. S. (2012). Risk management in Islamic banking. Quality - Access to Success. Retrieved from https://doi.org/10.1093/oxfordhb/9780199640935.013.0004

  • Masih, M. (2017). Islamic Finance and Banking. Emerging Markets Finance and Trade. Retrieved from https://doi.org/10.1080/1540496X.2017.1361650

  • Mohamed, A., & Rubi, A. (2008). Performance of Syariah and composite indices: Evidence from bursa Malaysia. Asian Academy of Management Journal of Accounting and Finance. Retrieved from https:// doi.org/10.1007/s00244-011-9676-9

  • Munuswamy, S. (n.d.). Islamic finance in India: A study on the perception of college teachers in Chennai.

  • Shakrani, M. S., Abdullah, H., Bakar, A. S. A., & Taib, H. M. (2005). Volatility trends of syariah index returns and kuala lumpur composite index. Journal Syariah.

  • Shamshad, A. (2011). Interest-free islamic banking in india for inclusive growth and social uplift: Scopes and challenges, 1(1), 110–112.

  • Spence Laschinger, H. K., Wong, C. A., & Grau, A. L. (2012). The influence of authentic leadership on newly graduated nurses’ experiences of workplace bullying, burnout and retention outcomes: A crosssectional study. International Journal of Nursing Studies, 49(10), 1266–1276. Retrieved from https://doi.org/10.1016/j.ijnurstu.2012.05.012

  • Usmani, M. T. (2002). An Introduction to Islamic Finance. The Hague: Kluwer Law International.

  • Wajdi Dusuki, A. (2008). Banking for the poor: The role of Islamic banking in microfinance initiatives. Humanomics. Retrieved from https://doi.org/10.1108/08288660810851469

  • Yusof, R. M., & Majid, M. S. A. (2007). Stock market volatility transmission in Malaysia: Islamic Versus Conventional Stock Market. J.KAU: Islamic Econ. Retrieved from https://doi.org/10.4197/islec.20-2.2

  • Zaher, T. S., & Kabir Hassan, M. (2001). A comparative literature survey of islamic finance and banking. Financial Markets, Institutions, and Instruments. Retrieved from https://doi.org/10.1111/1468-0416.00044


Abstract Views: 346

PDF Views: 0




  • A Comparative Study on Financial Performance of Shariah Compliant Stocks and Conventional Stocks in India

Abstract Views: 346  |  PDF Views: 0

Authors

K. Saidalavi
Maulana Azad National Urdu University, Hyderabad, Telangana, India
Rashid Farooqi
Maulana Azad National Urdu University, Hyderabad, Telangana, India

Abstract


Islamic Equity Market consist the companies which follow the Shariah norms in their business activities to be Shariah compliant. The objectives of this study are to examine the performance of select Shariah-compliant shares listed in BSE (Bombay Stock Exchange), India and to compare the performance of Shariah-compliant stocks with select conventional stocks. The study reveals that the performance of Shariah-compliant stocks is better than conventional stocks during the select period of study and the return of Shariah-compliant securities is less volatile than the conventional securities.

Keywords


Islamic Finance, Shariah Indices, Islamic Capital Market.

References