<p>This paper examines the effect of Shariah screening on performance. We use the constituents of the ASX200 to identify Shariah-compliant investments (SCI) using eight different Shariah screening methods (SSMs) and investigate the effect of quantitative screening ratios and purification ratios on performance. We find significant differences in the constituents of the SCI universe and performance across SSMs. Our results demonstrate consistent evidence that the debt and purification ratios are negatively associated with SCI performance. However, we find mixed results for the impact of liquidity ratios on performance.</p>
Publication Date
2021-09-01Journal
Accounting and FinanceVolume
61Issue
3Article Number
acfi.12735Pagination
50p. (p.4339-4388)Publisher
WileyISSN
0810-5391Rights Statement
© 2020 Accounting and Finance Association of Australia and New Zealand. This is the peer reviewed version of the following article: El Saleh AI & Jurdi DJ (2021). Stock performance under alternative Shariah screening methods: Evidence from Australia. Accounting and Finance, 61(3), 4339-4388, which has been published in final form at http://doi.org/10.1111/acfi.12735. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
