A Review of Islamic Investment Literature

Hassan, M. Kabir; Aliyu, Sirajo; Paltrinieri, Andrea; Khan, Ashraf

doi:10.1111/1759-3441.12230

Cited by 45 publications

(35 citation statements)

References 108 publications

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“…Islamic finance is important for Muslims who require financial instruments that follow the Islamic legal code called Shariah [50]. Moreover, Islamic banks also have the potential to reduce risks endemic to financial transaction which have implication for economic growth [28].…”

Section: Introductionmentioning

confidence: 99%

Do Islamic versus conventional banks progress or regress in productivity level?

et al. 2021

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This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the productivity of Islamic and conventional banks in the context of the Middle East, Southeast Asia and South Asia regions. The sample is comprised of 385 banks (66 Islamic banks and 319 conventional banks) from 18 countries with data observations from 2008 to 2017. Panel data techniques with DEA-based MPI will be employed to investigate the impact of selected important factor and bank productivity as indicated by total factor productivity changes (TFPCH). Based on the results, Islamic banks are more productive than conventional banks and the results from t test are further confirmed by the results from nonparametric tests. These results are attributed to the progress in EFFCH. However, the mean difference between Islamic and conventional banks TFPCH is not statistically significant in all regions. The main benefit is that this work will hopefully provide additional insight and complement the existing studies on bank productivity of Islamic and conventional banks that are important to the banks, regulations, investors and researchers.

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Section: Introductionmentioning

confidence: 99%

Do Islamic versus conventional banks progress or regress in productivity level?

et al. 2021

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“…The sukuk market represents the secondlargest component of the Islamic financial industry after Islamic banking. Since the 2000s, sukuk has the potential to become an Islamic financial instrument for meeting the needs of the state and corporate funds (Kusuma & Silva, 2014), and is an attractive investment choice for investors in Muslim-majority and non-Muslim countries (Hassan et al, 2019;Abd. Aziz et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Institutional Quality and Sukuk Development: A Study of Five OIC Countries

Basyariah¹,

Kusuma

Qizam

2020

Shirkah

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The objective of this study is to shed some light on the effect of institutional quality on the development of the global sukuk market. Specifically, this study examines the impacts of the institutional quality that adopts three dimensions of the Worldwide Governance Indicators (WGI), i.e., Rule of Law (RL), Regulatory Quality (RQ), and Government effectiveness (GE) on the global sukuk development of the top-five countries of sukuk issuance, i.e., Malaysia, Kingdom of Saudi Arabia, United Arab Emirates, Indonesia, and Bahrain. Drawing on a quantitative study with the data in the forms of global sukuk issuance from 2002 to 2017, panel-data regression (OLS) and General Method of Moment (GMM) were applied. This study showed that RL and GE have a significantly positive effect on sukuk issuance; however, RQ did not influence the development of the global sukuk market. These results imply that a country that is capable to maintain the institutional quality, especially in terms of rule of law and government effectiveness, will most likely be the country that can successfully develop the sukuk market. These results play a crucial role in filling a research gap among previous studies and provide an empirical evidence of the government’s role and its influence on the sukuk development.

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“…We argue that conventional insurance may outperform the Takaful operators as these are very wellestablished and may exhibit an economy of scale (Shawtari et al, 2018;Shawtari, Saiti et al, 2015). Furthermore, they would have a better way of managing their risks and hence outperform Takaful operators even though Takaful operators may have increased demand, particularly among Muslims (Hassan et al, 2019). It is expected that those operators abide by the principles of Shariah (Islam) in their operations and hence may attract many participants, it faces increased monitoring costs with small size.…”

Section: Hypotheses Developmentmentioning

confidence: 95%

Ownership type, business model, market structure, and the performance of Takaful and conventional insurance companies in Malaysia

Razak

Shawtari

Elsalem

2021

Cogent Economics & Finance

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The paper evaluates the performance of the Takaful and insurance companies in Malaysia. It examines the impact of ownership, business model, and market structure on conventional and Takaful companies' performance. The interfirm comparisons provide information about the performance and competitiveness of firms operating under different modes of business. The study adopts the unbalanced panel data approach with Panel Corrected Standard Error (PCSE) regression to analyse the data of 44 Malaysian Takaful and insurance companies with 255 firm observations over the period from 2011 to 2016. The study's findings show that Takaful and insurance companies perform at par in terms of their premiums. However, Takaful has better investment income. Foreign-owned firms perform better than local firms. The efficient market hypothesis is more powerful than the structural conduct hypothesis in explaining the firms' performance. The study's implications are expected to help improve and develop the Takaful and insurance sector as an efficient industry in-line with regulation changes. To the ABOUT THE AUTHOR Shaikh Hamzah Abdul Razak is a retired professor of Takaful. Previously, he served as associate professor at the International Centre for Education in Islamic finance (INCEIF) Prior to joining INCEIF, Dr Shaikh was with Malayan Banking Berhad since 1974 and held several posts in various departments. His research interest includes among other Islamic finance in general, Takaful and wealth management in particular. Fekri Ali Shawtari is an assistant professor at Community College of Qatar. Dr Fekri earned his PhD in Islamic finance from the International Centre for education in Islamic Finance (INCEIF), Malaysia. His reseasrch interests include Islamic banking and finance, risk management, efficiency, earnings management. Teaching Assistant of Accounting at Qatar University. He is undertaking PhD at The University of Sheffield in the UK. He has extensive teaching experience in accounting modules. His research interests focus on IFRS, accounting quality and earnings management, ce, whistleblowing.

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A Review of Islamic Investment Literature

Cited by 45 publications

References 108 publications

Do Islamic versus conventional banks progress or regress in productivity level?

Do Islamic versus conventional banks progress or regress in productivity level?

Institutional Quality and Sukuk Development: A Study of Five OIC Countries

Ownership type, business model, market structure, and the performance of Takaful and conventional insurance companies in Malaysia

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