Environmental conditions, fund characteristics, and Islamic orientation: An analysis of mutual fund performance for the MENA region

Ahmed El-Masry, Diego Víctor de Mingo-López, Juan Carlos Matallín-Sáez and Emili Tortosa-Ausina

Journal of Economic Behavior & Organization, 2016, vol. 132, issue S, 174-197

Abstract: Islamic funds are increasingly seen as an alternative to conventional funds, in part due to the growing prominence of Islamic finance. In contrast to most previous literature, this paper focuses on the countries of the Middle East and North African region (MENA), and compares the performance of Islamic and conventional funds during crisis and recovery periods. Results show that the relative performance of Islamic and conventional funds seem to be conditioned by several factors such as the (geographical) context in which the investment is made. Considering the entire MENA region, Islamic funds perform, on average, slightly worse than conventional funds. However, if the analysis is restricted to Gulf Cooperation Council (GCC) countries, the result opposite is found. In addition, the performance gap between the two types of funds either widens or shrinks when considering recovery or crisis times, providing evidence that Islamic funds are more stable in times of distress.

Keywords: GCC; Islamic; MENA; Mutual fund; Performance (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 G23 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:132:y:2016:i:s:p:174-197

DOI: 10.1016/j.jebo.2016.10.015

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