Do Islamic stock indices perform better than their conventional counterparts?

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El Khamlichi A., YILDIZ S. B., Sarkar K., Hoque H.

International Journal of Business Performance Management, vol.22, no.2-3, pp.236-256, 2021 (ESCI, Scopus) identifier identifier

  • Publication Type: Article / Article
  • Volume: 22 Issue: 2-3
  • Publication Date: 2021
  • Doi Number: 10.1504/ijbpm.2021.116417
  • Journal Name: International Journal of Business Performance Management
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, Aerospace Database, Business Source Elite, Business Source Premier, Communication Abstracts, INSPEC, Metadex, Civil Engineering Abstracts
  • Page Numbers: pp.236-256
  • Keywords: performance measurement, ranking, Islamic finance, equity indices, screening, portfolio management, decision making, PROMETHEE II
  • Open Archive Collection: AVESIS Open Access Collection
  • Manisa Celal Bayar University Affiliated: Yes

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.