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Following the Rules: How Do Islamic and Ethical Investing Impact Portfolio Performance?

  • Abul Hassan
  • Sabur Mollah
Chapter

Abstract

The Islamic ethical investment industry claims that while assessing a company’s social and environmental record, a better insight into an organization’s financial performance can be gained. The two models in this chapter demonstrate that the use of Islamic ethical criteria in the selection of a portfolio of shares could have a variety of positive and negative effects upon investment performance. The combination of all these factors may have the overall effect of broadly similar financial performance to conventional funds.

Keywords

Socially responsible investment Financial dealings Islamic investing Screening Portfolio performance 

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.King Fahd University of Petroleum and MineralsDhahranSaudi Arabia
  2. 2.Accounting and FinanceSwansea UniversitySwanseaUK

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