Is it costly to introduce SRI into Islamic portfolios ?

المؤلف

Erragragui, Ilyas

المصدر

Islamic Economic Studies

الناشر

البنك الإسلامي للتنمية المعهد الإسلامي للبحوث و التدريب

تاريخ النشر

2017-04-30

دولة النشر

السعودية

عدد الصفحات

32

التخصصات الرئيسية

الاقتصاد و التجارة

الملخص الإنجليزي

Could Environmental, Social and Governance (ESG) performance be a criterion for Islamic investment? The development of socially responsible investment (SRI) has challenged the ethical approaches associated with Islamic investment as a means to promote social achievements.

Noting similarities with the positive screening approach, we investigate the integration of ESG criteria, into Islamic portfolios using KLD social ratings.

This research seeks to determine the financial price of being both Sharī‘ah-compliant and socially responsible.

We examine the financial performance of self-composed Islamic portfolios with varying ESG scoring.

The results indicate no adverse effect on returns due to the application of Islamic and ESG screens, with a substantially higher performance for positive screening on governance during post subprime crisis’ period.

Significant outperformance still arises for portfolios with bad records in community and human rights though.

Performances are controlled for market sensitivity, investment style, momentum factor and sector exposure

نوع البيانات

أوراق مؤتمرات

رقم السجل

BIM-776567

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