Harmonisation of Shari’ah Screening in International Markets: The Case of Nigeria

Balqis Oyindamola Adedokun and Mamunur Rashid ()
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Balqis Oyindamola Adedokun: Independent Research
Mamunur Rashid: Universiti Brunei Darussalam

A chapter in Management of Shari’ah Compliant Businesses, 2019, pp 71-84 from Springer

Abstract: Abstract This study examines the differences among the world’s leading Shari’ah equity screening criteria and offers insights on how these differences affect the classification of equities into Shari’ah-compliant and non-Shari’ah-compliant. Financial ratios adopted by DJIM, FTSE and KLSE (used by Shari’ah Advisory Council of Malaysia) were calculated on Nigeria Stock Exchange Lotus Islamic Index (NSELII) and listed Shari’ah-compliant companies. The results indicate that a large percentage of companies in NSELII can be closely categorised using Shari’ah screening criteria used by SAC Malaysia. In a Muslim-dominant environment, Nigeria offers an interesting atmosphere for Islamic companies. It is important to investigate sustainable business performance, while Islamic companies by principle are required to follow Islamic Shari’ah. The findings of this case study are expected to help understand the screening of Islamic firms to enable Muslim investors and Islamic capital market regulators arrive at a more synchronised investment and regulatory decision.

Keywords: Shari’ah screening criteria; DJIM; FTSE; SAC; NSELII; Nigeria; Islamic (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-030-10907-3_7

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DOI: 10.1007/978-3-030-10907-3_7

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