Title: Do Islamic stock indices perform better than their conventional counterparts?

Authors: Abdelbari El Khamlichi; Selim Baha Yildiz; Kabir Sarkar; Hafiz Hoque

Addresses: LERSEM, ENCG, Chouaib Doukkali University, El Jadida, Morocco ' Business Administration Deparment, Manisa Celal Bayar University, Manisa, Turkey ' School of Economics, Finance and Accounting, Coventry University, UK ' York Management School, University of York, UK

Abstract: Applying the preference ranking organisation method for enrichment of evaluations (PROMETHEE II), this study attempts to rank Islamic and conventional indices from 20 developed and 18 emerging markets based on the performance of their MSCI conventional and Islamic country indices between 2002 and 2016. The study finds that the Danish Islamic Index at the top of the ranking and the Hungarian Islamic Index at the bottom. Moreover, conventional indices predominantly perform better than their Islamic counterparts in emerging markets and vice versa in developed markets.

Keywords: performance measurement; ranking; Islamic finance; equity indices; screening; portfolio management; decision making; PROMETHEE II.

DOI: 10.1504/IJBPM.2021.116417

International Journal of Business Performance Management, 2021 Vol.22 No.2/3, pp.236 - 256

Received: 06 Jun 2020
Accepted: 21 Oct 2020

Published online: 08 Jul 2021 *

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