Market Performance Of Sharia Compliant Companies In Indonesia
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| Author | : Yunice Tumewang |
| Publisher | : |
| Total Pages | : 8 |
| Release | : 2019 |
| Genre | : |
| ISBN | : |
This study aims to explore the factors that influence the Islamic bank profitability. The profitability rate or Return on Asset (ROA) is utilized as dependent variable whereas internal financial factor (financial ratio indicator) and external factor (economic indicator) are adopted as independent variable. This study focus on social funds such as qard and ZIS contract. This study applies qualitative description with using time series data from March 2010 to September 2014. Moreover, Panel regression model is employed, MWD test and classical assumption test. This analysis finds that, firstly, financial ration and CAR has positive and not significant relationship although equity based financing has significant and positive relationship then in economic indicator results GDP growth and inflation has positively not significant. Furthermore, social funds indicator such in qard contract has positive and significant relationship to ROA or profitability rate. However, the second regression result that utilizes ZIS variable finds that all variables do not have significant relationship excluding GDP growth.
| Author | : Devi Lusyana |
| Publisher | : |
| Total Pages | : |
| Release | : 2020 |
| Genre | : |
| ISBN | : |
Purpose: The purpose of this paper is to investigate the impact of the Indonesia Shariah-compliant Stock Index (ISSI) on the performance of included shares. In essence, the authors ask whether the establishment of the ISSI provides abnormal returns for the firms that are not included in the Jakarta Index.Design/methodology/approach: The authors use an event study methodology to estimate cumulative abnormal returns in the days surrounding the event to examine the relationship between Shariah-compliant investments and stock returns. The estimation window of 90 trading days prior to the event (-30) to day 60 after ( 60) is adopted. They also use a range of investment performance measures to provide new evidence on whether faith-based ethical investments generate superior performance compared to their unscreened benchmarks.Findings: Using daily returns, the Indonesia ISSI and panel data model, the findings show that the inclusion of the ISSI has a positive impact on the financial performance of the included shares during the 41-day event window. The evidence also suggests that the ethical investment has a significant influence on the performance of stock market returns.Research limitations/implications: This study offers insights to policymakers, investors and fund managers interested in the indices' performance. A key conclusion that could be derived by bodies that regulate Islamic products and services is that investors are not only concerned about what is profitable but also what makes their investments ethical.Originality/value: Although the global growth of the Islamic capital market products and services has been tremendous in recent years, very few studies focus on the Indonesian market and indeed, none of them devote sufficient attention to Shariah-compliant investments and stock returns.
| Author | : Siti Kholifatul Rizkiah |
| Publisher | : |
| Total Pages | : 11 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
The Sharia investment principles give Muslim investors a restriction in picking stocks under their investment portfolio. There are strict rules that must be followed to make a security or a company Sharia-compliant. The argument whether the performance of Sharia-compliant stocks is better compared to the conventional stocks still remains an open question. This paper aims to review and analyze whether Islamic stocks outperform Conventional stocks when the market is doing well (bull periods) and sustain better when the market is in the downturn (bear periods). Our finding shows a statistically insignificant difference in average return, market risk (beta), and total risk (standard deviation) between Islamic and Conventional stocks in both bull and bear periods. However, the data shows a consistent result that Islamic stocks return are higher during both bull and bear periods. Islamic stocks also show higher risk during bear periods proven with higher standard deviation and beta. However, it is less volatile during the bull period as compared to conventional stocks. Furthermore, the investigation of two types of stocks using risk-adjusted returns ratios shows that both stocks behave in a similar way. However, the Islamic stock market performed better than the conventional stock market during the bear 1 and bear 3 (Global financial crisis 2008) shown by higher performance in all three ratios although it is not statistically significant.
| Author | : Rowland Bismark Pasaribu |
| Publisher | : |
| Total Pages | : |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Islamic capital market is one of the investments that can be chosen by muslims in particular and society in general. To measure the performance of Islamic stock price in capital market used a measuring tool that Indonesian Sharia Stock Index (ISSI). Suspected Islamic stock index movement is affected by macroeconomic conditions. The purpose of this paper is to analyze the effect of macroeconomic variables on ISSI during the period May 2011 to April 2013. The method of analysis used in this paper is linear regression. Results of this study indicate that variable inflation have a negative influence on ISSI, interest rates have a positive influence on ISSI, while the money supply have a positive influence on ISSI. Then simultaneously variable inflation, interest rates, and the money supply significantly influence the ISSI. While partial test showed that only variable the money supply that has a significant influence on ISSI.
| Author | : Erie Febrian |
| Publisher | : |
| Total Pages | : 14 |
| Release | : 2015 |
| Genre | : |
| ISBN | : |
Market discipline has been well recognized as effective means for preventing excessive business risk taking. Nevertheless, as the nature of investment in Islamic Finance may not meet the required characteristics, the ability of market discipline to work in its particular instrument market still needs to be proven. This study employed mixed method to answer the research questions. The quantitative analysis was carried out using event study approach, while in qualitative research we gathered qualitative information using questionnaire and Focus Group Discussion (FGD), as well as interviews. This study utilized data of daily prices of some financial instruments traded in Indonesia, including conventional stocks, syariah-compliant stocks, bond, sukuk, conventional mutual fund, syariah-compliant mutual fund, IHSG, and Jakarta Islamic Index (JII). We employed 7-day, 30-day, 60-day, and 90-day windows around the date of the Islamic gold investment Scandal revelation in 2013, in both conventional and Islamic Finance markets. The qualitative study involved individual respondents, people in the relevant supervisory agencies, academicians, and professionals working in financial institutions. We find that market discipline works well only in Sukuk market and only in shorter period. We also find that negative market actions in both capital market segments may obscure the existence of market discipline. The qualitative study results show that insufficient capability of investors for assessing the investment credibility explains the empirical findings.
| Author | : Yusarina Mat Isa |
| Publisher | : |
| Total Pages | : |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
| Author | : Peni Nugraheni |
| Publisher | : |
| Total Pages | : 216 |
| Release | : 2012 |
| Genre | : Corporations |
| ISBN | : |
Recently, the growth of Shariah business organizations is not only dominated by Islamic banking but also by public companies that begin to operate based on Shariah compliance. The growth of Shariah compliant companies provides good opportunity for shareholders, especially religious shareholders to engage in investment activities without being fear of violating Shariah principles. As listed companies, of course Shariah compliant companies must comply with the regulation issued by capital market, including the information that should be published in the annual report as part of their responsibility toward their stakeholders. This research attempts to investigate the quantity and quality of voluntary disclosure in the annual reports of Shariah compliant companies listed in Indonesian Stock Exchange and compare it with non-Shariah compliant companies. Further, the study examined the relationship between voluntary disclosure and company characteristics (i.e. size of company, profitability, type of auditor, type of industry, and ownership structure). Voluntary disclosures were measured using 30 items of disclosure index developed by Khomsiah (2005). Based on content analysis of 2009 annual report of 55 Indonesian listed companies for each category, the findings revealed that there is statistically significant difference in the quantity and quality of voluntary disclosure value of Shariah and non-Shariah compliant companies. For regression results, the company size significantly influence the quantity of voluntary disclosure while the quality of voluntary disclosure is affected by company size and type of industry.
| Author | : Siti Kholifatul Rizkiah |
| Publisher | : |
| Total Pages | : 8 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Among the requirement set by Otoritas Jasa Keuangan (OJK) for a company to be Sharia compliant is 40% limit on the financial leverage ratio. Taking the Islamic perspective on the limitation of using interest-bearing instrument both as a means of financing and investing, this paper attempts to investigate whether there is a significant relationship between financial leverage and performance of the company. 90 Sharia-compliant companies were selected as a sample in this study and data from 2011-2015 were taken to be observed. Several tests were applied to analyze the data; descriptive analysis, correlation analysis, and multiple regression analysis. Findings revealed that leverage factors (Debt/Asset, Debt/Capital, and ICR) have a significant negative impact to the company performance. However, the magnitude of effect and relations are small and limited. The finding in this study proves that the limitation of the interest-bearing instrument as a means for financing set for the sharia-compliant companies has a good impact on the performance though on a small scale. This negative effect of leverage factors can be explained by the disadvantage of potential financial distress that surpasses the benefit of tax shield from issuing debts.
| Author | : Aldrin Herwany |
| Publisher | : |
| Total Pages | : 36 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Conventional finance suggests that the higher the risk of an investment, the higher the return it should give. Nevertheless, whether Islamic stocks that offer alternative investment in the stock market suggest different risk-return relationship still needs to be investigated. This empirical study is aimed at assessing risk-return behavior of Islamic stocks. This study employs cross sectional data of portfolio developed using beta-rank and market capitalization, in which daily data will better reflect the real volatility. This study also measures volatility of both conventional and Islamic stocks using Value-at-Risk (VaR). To check whether Islamic stocks are immune from any impact of financial crisis, this study utilizes three periods of observation, i.e., before, during and after the 2008 crisis. This study assesses risk and return using Multi-index model, in which variables tested are the respective fundamental factors. Results of this study will provide more accurate approach in Islamic stocks analysis.
| Author | : Shaista Arshad |
| Publisher | : Springer |
| Total Pages | : 136 |
| Release | : 2016-12-22 |
| Genre | : Business & Economics |
| ISBN | : 3319478036 |
This book explores the volatility, efficiency and integration of stock markets in Islamic countries. It presents recent trends, growth and performance, before moving on to explore how patterns change during different business cycles for short-term and long-term investors, and ranks the efficiency of the various markets. It addresses how the level of market integration has been affected during different economic periods, and concludes by summarising the performance of the stock markets, suggesting potential future directions for these markets.
