Search results
1 – 10 of over 10000Tauhidul Islam Tanin, Abu Umar Faruq Ahmad and Aishath Muneeza
This study explores the practical application of the Shariah screening process and how it could be enhanced by converging the same with the ethical screening of stocks.
Abstract
Purpose
This study explores the practical application of the Shariah screening process and how it could be enhanced by converging the same with the ethical screening of stocks.
Design/methodology/approach
This study adopts a qualitative research methodology by combining the qualitative descriptive approach and content analysis.
Findings
The findings of this research suggest that there is scope to converge ethical screening of stocks with Shariah Screening as the lex loci applicable to Shariah screening is derived from Shariah, which considers ethics as part of determining its rules.
Practical implications
The data from this study reveal several practical applications, the ultimate goal of which is to help the policymakers and stakeholders understand the relevance of the Shariah screening of stocks and get a streamlined screening process, paving the way to enhance the same using ethical screening criteria to develop its function to become much more relevant irrespective of the denomination of faiths.
Originality/value
This is original research, which is expected to contribute to understanding the extent to which Shariah screening can be enhanced by integrating the ethical stock screening dimension to it.
Details
Keywords
Tamsin Newlove‐Delgado, Elizabeth Murphy and Tamsin Ford
The purpose of this paper is to evaluate the feasibility of a screening test for looked after children in order to identify undetected psychiatric disorders.
Abstract
Purpose
The purpose of this paper is to evaluate the feasibility of a screening test for looked after children in order to identify undetected psychiatric disorders.
Design/methodology/approach
Children aged four to 16 in care in one London Borough for four consecutive months were eligible for screening. Carers, teachers and children aged over 11 were asked to complete the Strengths and Difficulties Questionnaire (SDQ). Where the SDQ suggested that a psychiatric disorder was “possible” or “probable”, participants were then invited to complete the Developmental and Well‐Being Assessment, which was rated by a senior psychiatrist to generate diagnoses if appropriate.
Findings
The paper finds that over one year, 23 children were eligible for screening. A total of 18 underwent the initial stage of screening, and seven were subsequently diagnosed with a formal psychiatric disorder.
Originality/value
This study illustrates the unmet need for mental health interventions among children looked after by the local authority and confirms the feasibility of a simple screening protocol.
Details
Keywords
Reports that there are lessons which can be learned from the Western ethical “green” finance industry for Islamic investors. States that these are that the criteria for investment…
Abstract
Reports that there are lessons which can be learned from the Western ethical “green” finance industry for Islamic investors. States that these are that the criteria for investment selection are different, and the modes of permissible financing may also differ, but there are screening and reporting techniques which are of potential importance to both groups of investors. First addresses ethical fund management issues, which should shed some light on the dilemmas facing Islamic investors. Goes on to consider criteria for haram and halal investment, as well as the implications of company capital gearing or leverage for riba. Covers investment specific issues, including the treatment of capital gains in Islam and the evaluation of the conduct of market participants. Finally, surveys emerging markets in the Islamic world, as these are of obvious interest to Muslim investors wishing to broaden their portfolios.
Details
Keywords
L. Manning, R.N. Baines and S.A. Chadd
Public concerns with issues including animal welfare and environmental management and stewardship have required organisations within the food supply chain to formally demonstrate…
Abstract
Purpose
Public concerns with issues including animal welfare and environmental management and stewardship have required organisations within the food supply chain to formally demonstrate their commitment to ethical issues. This has led to the development of corporate social responsibility strategies and the use of ethical risk assessment models. The purpose of the study is to review both qualitative and quantitative methods of assessment.
Design/methodology/approach
This paper begins with a discussion on ethical issues. This is followed by an evaluation of current mechanisms for determining both scientific‐ and value‐based approaches to ethical food policy.
Findings
Legislation defines governmental policy but it does not define what is “good” or “right” and this is the role of ethics. In order to have ethic reasoning embedded in food policy either at governmental or at organisational level, policy makers must be able to understand and evaluate moral arguments, be fair‐minded and make well‐reasoned decisions. Consumers need to trust that both policy makers and those manufacturing and supplying food make decisions and provide information which is accessible, accurate and affords reasoned choice when purchasing food products.
Originality/value
This paper provides a review of ethical methodology and mechanisms for assisting in ethical decision making and will be of interest to academics and to industry.
Details
Keywords
Waqar Haider Hashmi, Nazima Ellahi, Saima Ehsan and Ajmal Waheed
The purpose of this study is to highlight key issues pertaining to making use of Islamic equity indices and proposing possible solutions to address the problems faced in…
Abstract
Purpose
The purpose of this study is to highlight key issues pertaining to making use of Islamic equity indices and proposing possible solutions to address the problems faced in advancement of the concept of Shariah investing (SI) with the aim to advance the discourse on the subject.
Design/methodology/approach
Online focus group discussion (FGD) was carried out in which ten Islamic finance researchers and analysts belonging to institutions considered as authority on the subject matter participated to share their viewpoints on Islamic equity indices. Content analysis on the collected data of FGD was carried out which has revealed six key themes.
Findings
Six broader themes were identified based on the analysis of FGD, which includes criteria for constructing Islamic equity indices, utilization of Islamic equity indices for comparison with conventional stock indices, stock market efficiency perspectives, reason for integration of different equity markets, investors’ awareness of SI and future directions of Islamic equity indices. Results of the study indicate that Islamic finance researchers and analysts opined that there is a need for revising the criteria for construction of Islamic equity indices. There are conflicting viewpoints regarding performance and efficiency of Islamic indices in comparison with conventional indices and main reasons for stock market integration are trade liberalization, globalization and other factors. Moreover, there is a need for making investors and other market players aware about the attractiveness of Islamic indices from investing point of view.
Originality/value
Based on this extensive literature review and as highlighted by Masih et al. (2018) in their recap of literature on Islamic equity indices indicating that there are bulk of empirical studies carried in the past in the domain, however, there is a dearth of theoretical and qualitative studies. Hence, this preliminary qualitative study not only makes theoretical contribution but also deploys FGD, which is rarely used in the similar context, and offers candid views of the participants on key issues pertaining to Islamic equity indices. This lends novelty to this study.
Details
Keywords
Purpose – These last three years, the global reputation of microfinance has been damaged by some major crises, notably in India. The Microfinance Investment Vehicles (MIVs)…
Abstract
Purpose – These last three years, the global reputation of microfinance has been damaged by some major crises, notably in India. The Microfinance Investment Vehicles (MIVs), funded by public money and socially inclined investors, are believed by observers to be part of the causes of the crises (von Stauffenberg & Rozas, 2011). As a consequence, they now have to demonstrate their commitment to the social mission of microfinance. This chapter aims at putting forward the debate on MIVs’ ability to effectively contribute to the social mission of microfinance by analyzing how they integrate social performance in their investment decisions.
Methodology/approach – Analysis of interviews with microfinance fund managers based on a framework of recognized impediments to a socially responsible approach in investing.
Findings – While social performance is recognized by respondents to be an important topic for the industry, fund managers still do not give a strong role to social criteria in investment decisions. The findings of the qualitative analysis in the chapter demonstrate that this is linked to a number of major impediments such as the tendency to believe that microfinance is social per se, the lack of standardization in social performance tools, and also a loose regulation regarding social reporting.
Research limitations/implications – The findings of the study are limited due to the relatively small sample size and the focus on fund managers’ answers only. Future research could investigate the viewpoints of different stakeholders in the investment process, such as the back investors of microfinance funds or the regulatory institutions.
Originality/value – To the best of our knowledge, this is the first attempt to get insights on the impediments to a stronger focus on social performance by MIVs, with the application of a recognized framework from the Socially Responsible Investment (SRI) literature.
Details
Keywords
Yann Ferrat, Frédéric Daty and Radu Burlacu
The growth of socially responsible assets has been exponential over the last decade, they now account for almost a third of professional investments. As the growth persists, faith…
Abstract
Purpose
The growth of socially responsible assets has been exponential over the last decade, they now account for almost a third of professional investments. As the growth persists, faith and conviction investors reshape the equity markets. To fully comprehend the impact of socially conscious participants on security returns, this paper attempts to provide insights on how responsible investment growth has impacted the returns of sustainable stocks. The examination is split by investment horizon to account for short and long effects.
Design/methodology/approach
Using an exclusive dataset of non-financial ratings, provided by MSCI ESG research, the authors examine the cross-sectional returns of US and European sustainability-leading and lagging corporations between 2007 and 2019. Panel models robust to country, firm-year and industry effects were then employed to examine the impact of responsible investment growth on future stock returns.
Findings
The authors find evidence that the impact of responsible investment growth is dual contingent upon the timeframe considered. In the short run, sustainability-leading and lagging firms display similar stock returns. However, the spread in returns is negative over long horizons and increasing over time.
Originality/value
The examination performed in this study highlights the significant effect of responsible investment growth on future stock returns. Overall, the authors’ findings are consistent with the price pressure hypothesis in the short run and the cost of capital alteration over longer horizons.
Details
Keywords
Khaled Saadaoui and Teerooven Soobaroyen
This paper aims to analyse the similarities and differences in the methodologies adopted by corporate social responsibility (CSR) rating agencies.
Abstract
Purpose
This paper aims to analyse the similarities and differences in the methodologies adopted by corporate social responsibility (CSR) rating agencies.
Design/methodology/approach
The authors gather secondary and primary evidences of practices from selected agencies on the methodologies and criteria they rely upon to assess a firm’s CSR performance.
Findings
The authors find not only evidence of similarities in the methodologies adopted by the CSR rating agencies (e.g. the use of environment, social and governance themes, exclusion criteria, adoption of positive criteria, client/“customised” input, quantification) but also several elements of differences, namely, in terms of the thresholds for exclusion, transparent vs confidential approach, industry-specific ratings and weights for each dimension. Drawing from Sandberg et al.’s (2009) conceptualisations, the authors tentatively argue that this mixed picture may reflect competing organisational pressures to adopt a differentiation approach at the strategic and practical levels whilst recognising, and incorporating, the “globalising” tendencies of the CSR business at the terminological levels.
Social implications
Although these data are based on a relatively small number of agencies, the findings and analysis convey some implications for users of CSR ratings and policymakers, particularly in light of the recent Paris 2016 Agreement on Climate Change and the increased emphasis on the monitoring of social, environmental and governance performance.
Originality/value
The authors contribute to the literature by highlighting how key intermediate rating organisations operationalise notions of CSR.
Details
Keywords
En Te Chen and Yunieta Anny Nainggolan
Despite the benefits of international diversification, the home equity bias phenomenon is well documented in the portfolio choice literature. The purpose of this paper is to…
Abstract
Purpose
Despite the benefits of international diversification, the home equity bias phenomenon is well documented in the portfolio choice literature. The purpose of this paper is to investigate whether the same investment behavior applies to domestic socially responsible investments (SRIs) where ethical screenings should be the selection criteria.
Design/methodology/approach
The authors apply the model by Coval and Moskowitz (1999), Grinblatt and Keloharju (2001) and Agarwal and Hauswald (2010) to uncover the effect of distance relative to screenings on SRI domestic portfolio choice. For the first time, the authors test the robustness of distance effect by using time bias, which is the travel time between the fund manager and the company’s headquarter.
Findings
The authors find that SRIs exhibit a strong preference for locally headquartered firms. After controlling for screening activity and other fund characteristics, the authors still find a strong distance bias in SRI fund portfolio decision-making. The authors find that this bias is mostly observed in SRI fund with social screening and that fund holding characteristics determine the propensity of fund managers to invest locally. The results suggest that the local bias puzzle exists in SRI.
Research limitations/implications
This study provides avenue for future research to examine whether the same local bias is found in SRI investment in other countries where they have different characteristics and behavior. Also, the evidence that local bias exists in SRI investment may need further analysis as to whether this is conflicting with the objectives of SRI, which focus more on ethical beliefs.
Practical implications
The results suggest that many local firms in the same city currently held by an SRI fund will not be held by this fund if it is in another city. The implications of the findings are that geographic proximity, along with ethical screenings, is an important dimension to how SRI fund invests.
Originality/value
This study is the first that examines local bias in SRI funds by using portfolio holding data.
Details
Keywords
Ethical investment funds are among the fastest growing investment vehicles in the UK. Explores some of the environmental changes leading to the popularity of these funds and…
Abstract
Ethical investment funds are among the fastest growing investment vehicles in the UK. Explores some of the environmental changes leading to the popularity of these funds and briefly reviews some of the screening criteria used to establish ethical portfolios. Based on a sample of 172 investment professionals, analyses the relative importance of ethical and environmental screening compared to the traditional yardsticks of liquidity, return and risk. Discusses implications for the marketing of ethical investment funds and identifies future research directions.
Details