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Stock market screening: An analogical study on conventional and shariah-compliant stock markets

Zandi, Gholamreza Reza and Abdul Razak, Dzuljastri and Hussin, Nur Hidayah (2014) Stock market screening: An analogical study on conventional and shariah-compliant stock markets. Asian Social Science, 10 (22). pp. 270-279. ISSN 1911-2017

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Abstract

enchmarking Shariah-Compliant stocks listed in Bursa Malaysia, this paper examined whether the stocks which are approved by SACSC are also considered as Shariah-Compliant under International Indices. 35 top Shariah-Compliant stocks listed in Bursa Malaysia were examined against four stock screening criteria of DJIM, MSCI, FTSE and S&P. Due to the differences in stock screening criteria, the factors evaluated that lead to variances in Shariah-Compliant status for a particular stock. The results from the test indicate that Shariah-Compliant stocks listed in Bursa Malaysia are not necessarily Shariah-Compliant stocks in the four Indices of DJIM, MSCI, FTSE and S&P. The high debt and low market capitalization are the main factors of dropping the Malaysian Shariah-Compliant stocks by the four Indices. The three stages of screening which carry the most Islamic stock screening process include screening on industry, income statement and balance sheet.

Item Type: Article (Journal)
Additional Information: 4433/58526
Uncontrolled Keywords: Indices; Industry; Market capitalization; Screening; Shariah-compliant
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences
Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Dr Dzuljastri Abdul Razak
Date Deposited: 26 Sep 2017 11:28
Last Modified: 26 Sep 2017 11:28
URI: http://irep.iium.edu.my/id/eprint/58526

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