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Article
Publication date: 23 January 2007

Fikriyah Abdullah, Taufiq Hassan and Shamsher Mohamad

One of the implications of Islamic investment principles is the availability of Islamic financial instruments in the financial market. The main aim of this research is to…

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Abstract

Purpose

One of the implications of Islamic investment principles is the availability of Islamic financial instruments in the financial market. The main aim of this research is to observe the differences in terms of performance between Islamic and conventional mutual fund in the context of Malaysian capital market.

Design/methodology/approach

To achieve the major objectives of this paper standard methods wereused for evaluating the mutual funds performance, for example, Sharpe index and adjusted Sharpe index, Jensen Alpha, Timing and selectivity ability. The scope of the paper is to measure the relative quantitative performance of funds which was managed based on two different approaches.

Findings

The basic finding of the paper is that Islamic funds performed better than the conventional funds during bearish economic trends while, conventional funds showed better performance than Islamic funds during bullish economic conditions. In addition to that finding, both conventional and Islamic funds were unable to achieve at least 50 per cent market diversification levels, though conventional funds are found to have a marginally better diversification level than the Islamic funds. The results also suggest that fund managers are unable to correctly identify good bargain stocks and to forecast the price movements of the general market.

Research limitations/implications

The main limitation is that the samples of conventional and Islamic mutual funds were from one developing market. The findings could be better validated if the sample included the mutual funds from other developed and developing economies, where both Islamic and conventional funds are available.

Practical implications

The findings suggest that having Islamic mutual funds in an investment portfolio helps to hedge the downside risk in an adverse economic situation.

Originality/value

So far there is no published evidence on the relative performance of Islamic and conventional mutual funds in Malaysia as well as other developing countries. Therefore, this paper adds new knowledge to the mutual funds literature.

Details

Managerial Finance, vol. 33 no. 2
Type: Research Article
ISSN: 0307-4358

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Book part
Publication date: 19 December 2016

Ezlika Ghazali and Dilip S. Mutum

This chapter discusses whether marketing can ever be Islamic given the common view of marketing functions as unsustainable and sometimes unethical, for example, how…

Abstract

Purpose

This chapter discusses whether marketing can ever be Islamic given the common view of marketing functions as unsustainable and sometimes unethical, for example, how marketing promotes materialism.

Methodology/approach

This chapter reviews extant literatures in Islamic marketing, with a particular emphasis on stakeholder orientation in marketing.

Findings

We argue that Islamic marketing is indeed compatible with the concepts of ethical and sustainable marketing encompassing social, environmental as well as economic perspectives and encourages ethical behaviour.

Originality/value

This chapter highlights that discussions on Islamic marketing should include sustainable marketing and emphasises the growing importance of stakeholder orientation in marketing.

Details

Advances in Islamic Finance, Marketing, and Management
Type: Book
ISBN: 978-1-78635-899-8

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Book part
Publication date: 20 May 2019

Salman Ahmed Shaikh, Abdul Ghafar Ismail and Mohd Adib Ismail

Muslim investors must comply with the ethical injunctions prescribed for them while making financial investments. As per Islamic principles, the use of Riba (interest)…

Abstract

Muslim investors must comply with the ethical injunctions prescribed for them while making financial investments. As per Islamic principles, the use of Riba (interest), Maysir (gambling) and Gharar (uncertain or contingent payoff contracts) is prohibited. This chapter provides some recent post great financial crisis evidence on the comparative performance of Islamic and conventional market indices. Islamic indices outperformed conventional market indices in terms of annualized returns except for emerging markets. In the overall period of 2007-16, it is found that Islamic indices have a lower coefficient of variation and hence higher reward to variability ratio. This suggests that Islamic indices are superior to conventional market indices adjusting for variability in returns. In most comparable Islamic and conventional indices, a strong co-movement and long-term co-integrating relationship is found. The results also highlighted causality running from conventional indices to the Islamic indices in most of the market groups, except for the S&P Global.

Details

Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice
Type: Book
ISBN: 978-1-78973-007-4

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Article
Publication date: 8 March 2013

Yusniza Kamarulzaman and Azian Madun

The rapid growth of Islamic banking in Malaysia warrants banking institutions being more proactive and innovative in marketing their products. The purpose of this paper is…

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Abstract

Purpose

The rapid growth of Islamic banking in Malaysia warrants banking institutions being more proactive and innovative in marketing their products. The purpose of this paper is to re‐evaluate the progress and achievements of Islamic banking in Malaysia, particularly in the area of sales and marketing of Islamic banking services.

Design/methodology/approach

This paper adopts a comprehensive literature review from various published sources. All related references were discovered through electronic databases, journals and books in the area of the relevant literature in Islamic finance, banking and services marketing.

Findings

The driving force for the growth of Islamic banking and financing products is the corporate clients, and not the Muslim individuals. In fact, the non‐Muslim individuals also use Islamic banking if they find that the service is good and meets their expectations. This paper shows evidence that the marketing activities of Islamic banking products is relatively ineffective compared to the conventional banking products in Malaysia. This paper also discusses the reasons for the ineffectiveness of marketing Islamic banking products at the micro and macro‐level. Depending on religion alone is not the best strategy to attract customers.

Practical implications

The products offered by the Islamic banking system have to compete with those of the conventional banking system. Hence, a continuous review of marketing strategies for Islamic banking products is crucial in every Islamic financial institution.

Originality/value

This paper fulfils a need to study whether the common methods in marketing conventional banking products would be effective in the context of marketing Islamic banking products.

Details

Business Strategy Series, vol. 14 no. 2/3
Type: Research Article
ISSN: 1751-5637

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Article
Publication date: 26 July 2021

Mohammad Kabir Hassan, Muneer Maher Alshater, Mamunur Rashid and Sutan Emir Hidayat

This paper aims to study the performance of the Journal of Islamic Marketing (JIMA). This study identifies the influential scientific actors and identifies the major…

Abstract

Purpose

This paper aims to study the performance of the Journal of Islamic Marketing (JIMA). This study identifies the influential scientific actors and identifies the major dimensions and themes of the journal.

Design/methodology/approach

This study adopts a bibliometric method. A total of 483 articles and 27 reviews of the journal were collected from the Scopus database. This paper analyses the data using RStudio, VOSviewer and Microsoft Excel. Analyses were divided into three main categories: general performance indicators, citations analysis and cross-dimensional keywords analysis.

Findings

Islamic marketing establishes itself as an industry of its own, not as a cohort of Islamic finance. This study finds that JIMA played an active role in that respect. Islamic marketing has been primarily an Asian-dominated industry. Malaysia has led the development and publication of resources on Islamic marketing, followed by recent initiatives in Indonesia, Iran and Pakistan. There are also unique cases of Islamic marketing growth in non-Asian Muslim-minority countries, including the USA, the UK and Australia. Finally, loyalty, religiosity, halal food and intention of the Muslim consumers are the key dimensions covered by JIMA authors. This paper expects that JIMA will cater to the growing needs of Islamic marketing in diversified sectors, Islamic social marketing analytics, post-purchase attributes and multidimensional integration of Islamic marketing research in the dominance of diverse leadership styles and ownership structures.

Originality/value

The study provides an objective evaluation of the journal’s progress through a decade of its operation; it highlights the achievements and discusses the progress and contribution of the journal to the scientific community.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 2 September 2021

Irfan Ali, Waheed Akhter and Naukhaiz Chaudhry

The Islamic Holy days are among the most celebrated spiritual traditions in the world and are observed by more than 1.5 billion Muslims. This study aims to investigate the…

Abstract

Purpose

The Islamic Holy days are among the most celebrated spiritual traditions in the world and are observed by more than 1.5 billion Muslims. This study aims to investigate the effect of these events on the regular returns of stock exchanges in selected Muslim countries.

Design/methodology/approach

This study examines data from eight Asian and African stock exchanges from 2001 to 2019. Isolating the effect of Gregorian calendar anomalies, it aims to evaluate the effect of Islamic Holy days on stock returns by running a pooled random effect panel regression on all the stock exchanges examined.

Findings

The results reveal the positive impact of Eid-ul-Fitr on Asian markets, the negative impact of Eid Milad-un-Nabi on the African stock market’s returns and the positive effect of the Holy month of Ramadan on both markets. Some Gregorian calendar anomalies also were found in these markets.

Practical implications

The research has significant implications for marketing professionals to recognize business opportunities and investors to efficiently manage their stock portfolio during Islamic events of Eid-ul-Fitr, Eid Milad-un-Nabi and Ramadan in relevant Muslim countries.

Originality/value

Given the research gap between Gregorian and Islamic calendar anomalies, this paper contributes by combining the effect of Islamic Holy days on the returns of selected Muslim-dominated financial markets.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Book part
Publication date: 29 December 2016

Mahfod Aldoseri and Andrew C. Worthington

The purpose of this chapter is to review the risks Islamic financial institutions face in an emerging market context, including risk sharing in Islamic financing and…

Abstract

The purpose of this chapter is to review the risks Islamic financial institutions face in an emerging market context, including risk sharing in Islamic financing and Shari’ah (Islamic law) compliance risk. We explore current risk management practices and establish the link between risk management and the financial performance of banks and the efficiency and effectiveness of financial sectors in emerging markets. Because of their distinctive risk profile, Islamic finance institutions face challenges in risk management. We show that Islamic banking is riskier in emerging markets because of the presence of immature money markets, limitations in the availability of lender of last resort facilities, and deficiencies in market infrastructure. There is also no evidence that Islamic banks have developed effective solutions for managing the risks conventional banks face as well as their own unique risks. We suggest that the countries that do this best are those that prioritize the structure of risk management knowledge and capabilities in a single financial regulator.

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Article
Publication date: 11 February 2021

Syed Adil Shah, Maqsood Hussain Bhutto and Sarwar M. Azhar

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for…

Abstract

Purpose

The purpose of this study is to integrate and synthesize the Islamic marketing literature, understand the phenomenon and related concepts and provide suggestions for future research.

Design/methodology/approach

The study uses an integrative review method that emphasizes summarizing and synthesizing the previous literature related to a phenomenon.

Findings

The findings indicate the emergence of five major themes, namely, Islamic marketing and its perspectives, activities in Islamic marketing, opportunities, controversies and challenges in Islamic marketing, Islamic principles and determinants of consumers’ behavior and awareness toward Islamic products. Each of the major themes consists of sub-themes discussed in detail in the results and discussion sections.

Research limitations/implications

Like other studies, this integrative literature review has some limitations. These include the methodology undertaken, the lack of explanation of inter-relationship among themes and lack of Islamic theory-based review. These limitations lead to future research directions.

Practical implications

Marketing managers need a thorough understanding of the Islamic standards and need to develop strategies. Further, there are inter-differences among Muslims, which need to be thoroughly understood by managers. Moreover, marketers can effectively use advertising in creating awareness and increasing demand of halal products.

Originality/value

This study provides an integrative review of the literature and synthesizes the Islamic marketing literature, which has not been done before.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 6 April 2021

Noman Arshed and Rukhsana Kalim

This study aims to develop and estimate the Musharaka demand and supply model for full-fledged Islamic banks to explore patterns and stability of Musharaka equilibrium in…

Abstract

Purpose

This study aims to develop and estimate the Musharaka demand and supply model for full-fledged Islamic banks to explore patterns and stability of Musharaka equilibrium in the market.

Design/methodology/approach

This quantitative study uses a deductive approach to explore financial statement-level data of 30 Islamic banks of six countries between 2012 and 2017.

Findings

The results show that the Musharaka market is stable when Musharaka demand is purchase price elastic and supply is sale price inelastic. It indicates that the current banking industry is unable to increase supply when there is an increase in Musharaka returns. In comparison, industry demand for Musharaka is increasing at a higher rate, corresponding to a decrease in Musharaka price.

Practical Implications

This study is fundamental in estimating the market stable market returns and market quantity of Musharaka financing. If market returns and quantity deviate, market forces will push it to equilibrium.

Originality/value

The theoretical and empirical studies worked on the application and suitability of Musharaka financing. However, they failed to explain demand and supply forces in determining the level of Musharaka financing in the economy using empirical data. Without an equilibrium model, policymakers would be unable to predict the movement of the Islamic stock market index (the price of Musharaka financing) and the incidence of Musharaka financing. Further, it is not possible to apply expansionary intervention by policymakers if the stability of the market is unknown.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 3
Type: Research Article
ISSN: 1759-0817

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Article
Publication date: 8 March 2021

Ayesha Latif Shaikh and Syed Hasnain Alam Kazmi

The purpose of this paper is to scrutinize the marketing orientation and market-oriented cultural elements of integrated Islamic schools. These integrated schools teach…

Abstract

Purpose

The purpose of this paper is to scrutinize the marketing orientation and market-oriented cultural elements of integrated Islamic schools. These integrated schools teach modern science curriculum alongside comprehensive religious instruction in an Islamic environment.

Design/methodology/approach

This is an inductive, exploratory research from an interpretivist study. Narrative inquiry was undertaken to understand the perceptions, attitudes and actions of school senior management and teachers. Content analysis of the school websites and social media pages was carried out. In total, 7 schools and 16 respondents became part of the purposive sample.

Findings

The presence of several integrated Islamic schools, experienced Islamic education leadership and Islamic education consultants are evidence of a growing sector. The schools are technologically enabled, strongly customer-oriented and adept at inter-functional coordination. The need-gap found in this sector is in competitor orientation, curriculum development and recruitment of specific criteria-based staff.

Practical implications

With the mushrooming of integrated Islamic schools in Pakistan, the level of competition has also risen. The schools have made a considerable investment and strives to maintain and increase the enrollment rate of the institute. This research can enlighten integrated Islamic educators about effective education marketing practices and the prevalence of marketing orientation in such schools.

Originality/value

In Pakistan, private primary schools strive to differentiate themselves and competitively position their value proposition. The marketization of education has begun to affect perceptions of school staff, teachers, students and academic work itself. Yet, there is scarce exploratory research on marketing done by integrated Islamic primary schools. This study will contribute foundational work for the development of a holistic marketing model tailored to the requirements of integrated Islamic schools.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

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