ISRA-Bloomberg Shari’ah stock screening and income cleansing methodologies : a conceptual paper
Joint Authors
Habib, Faruq
Isaacs, Zayyat
Hashim, Ashraf Md.
Gadhum, Muhammad Anwar
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 9, Issue 1 (30 Jun. 2017), pp.27-42, 16 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2017-06-30
Country of Publication
Malaysia
No. of Pages
16
Main Subjects
Financial and Accounting Sciences
Abstract EN
Purpose The purpose of this paper is to explain and critically analyse the Sharīʿah screening criteria and cleansing process for income generated from stocks with a special focus on a newly developed ISRA-Bloomberg methodology.
Design/methodology/approach The paper focuses on the methodology of ISRA-Bloomberg in terms of Sharīʿah screening of stocks and the income cleansing process.
To achieve this objective, this paper adopts a descriptive approach.
Findings The methodology of ISRA-Bloomberg is unique in terms of its criterion for screening stocks, the cleansing process and coverage of the universe of stocks.
It facilitates the investors by offering a novel colour-coding scheme to indicate the Sharīʿah compliance of a stock.
It also provides the exact ratios of the Sharīʿah-compliance criteria to the investors so they can closely observe changes in the trend of ratios and decide beforehand whether or not a company is likely to remain within the Sharīʿah-compliant list.
The paper further discusses the issues in the screening and cleansing practices faced by the industry.
Research limitations/implications This research is limited to the criteria of screening and income purification of stocks which have been used by ISRA-Bloomberg from a Sharīʿah perspective.
Practical/implications The robust screening criteria and comprehensive analysis of the stocks will enhance the confidence of Islamic capital market participants.
The investors, regulators and index providers will be equally able to benefit from this initiative.
Originality/value The paper focuses on the recently established methodology of ISRA-Bloomberg, which has not been discussed in the literature until now.
The methodology, because of its exceptionality, may add a new dimension to Sharīʿah screening and cleansing of stocks.
American Psychological Association (APA)
Hashim, Ashraf Md.& Habib, Faruq& Isaacs, Zayyat& Gadhum, Muhammad Anwar. 2017. ISRA-Bloomberg Shari’ah stock screening and income cleansing methodologies : a conceptual paper. ISRA International Journal of Islamic Finance،Vol. 9, no. 1, pp.27-42.
https://search.emarefa.net/detail/BIM-965043
Modern Language Association (MLA)
Hashim, Ashraf Md.…[et al.]. ISRA-Bloomberg Shari’ah stock screening and income cleansing methodologies : a conceptual paper. ISRA International Journal of Islamic Finance Vol. 9, no. 1 (2017), pp.27-42.
https://search.emarefa.net/detail/BIM-965043
American Medical Association (AMA)
Hashim, Ashraf Md.& Habib, Faruq& Isaacs, Zayyat& Gadhum, Muhammad Anwar. ISRA-Bloomberg Shari’ah stock screening and income cleansing methodologies : a conceptual paper. ISRA International Journal of Islamic Finance. 2017. Vol. 9, no. 1, pp.27-42.
https://search.emarefa.net/detail/BIM-965043
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 41
Record ID
BIM-965043