IMPACT OF ETHICAL SCREENING ON INVESTMENT PERFORMANCE: THE CASE OF THE DOW JONES ISLAMIC INDEX

Abul Hassan, Antonios Antoniou and D Krishna Paudyal
Additional contact information
Abul Hassan: Markfield Institute of Higher Education, Leicestershire, UK.
Antonios Antoniou: School of Economics, Finance and Business, Postal: University of Durham, UK
D Krishna Paudyal: School of Economics, Finance and Business, Postal: University of Durham, UK

Islamic Economic Studies, 2005, vol. 12-2, 68-97

Abstract: Islamic ethical investors apply both Shari[ah and financial criteria when evaluating investments in order to ensure that the securities selected are consistent with their value system and beliefs. This paper examines the potential impact of these restrictions on investment performance by comparing the performance characteristics of a diversified portfolio of Islamic screened stocks with conventional benchmark portfolio. In contrast to prior research on ethical investment, the performance of Islamic ethical portfolio examined in this paper is not subject to the confounding effects of transaction costs, management fees, or differences in investment policy that are associated with actively managed funds. Contrary to expectations, our findings indicate that application of Islamic ethical screens do not necessarily have an adverse impact on investment performance.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://www.irti.org/English/Research/Documents/IES/094.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:isecst:0064

Access Statistics for this article

Islamic Economic Studies is currently edited by Salman Syed Ali and Anis Ben Khedher

More articles in Islamic Economic Studies from The Islamic Research and Training Institute (IRTI) Contact information at EDIRC.
Bibliographic data for series maintained by IRTI Staff () and ().