Title: Using VIKOR method to prioritise sharia-compliant equivalents for short selling (based on evidence of Iran's stock market)

Authors: Maysam Ahmadvand; Hossein Tamalloki

Addresses: Allameh Tabataba'i University, Tehran, Iran ' Allameh Tabataba'i University, Tehran, Iran

Abstract: Short selling is a transaction which clearly violates general rules of sharia, so using it in Islamic financial markets has some difficulties. For this reason, financial researchers, along with Islamic scholars, have tried to benefit from aforementioned instrument for the development of capital markets. In order to take advantage of short selling, particular methods and strategies need to be identified. Islamic clerics have proposed various alternatives for simulating short selling. This paper, by means of VIKOR method, evaluates and prioritises sharia-compliant equivalents for short selling and introduces the most proper approach (approaches) for implementing in Iran's stock market.

Keywords: short selling; Salaf; Wa'ad; Murabaha; VIKOR; Iran's stock market.

DOI: 10.1504/AAJFA.2017.085560

Afro-Asian Journal of Finance and Accounting, 2017 Vol.7 No.3, pp.281 - 303

Accepted: 15 Dec 2016
Published online: 12 Jul 2017 *

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