The Effect of Reconstitution of Sharīʿah Compliant Index Announcement on Stock Turnover and Returns

This study aims to identify and analyze the socio-cultural factors that form the background of Islamic legal thinking, both in historical and contemporary contexts. Thus, this study seeks to understand how socio-cultural factors influence the development and interpretation of Islamic law over time. This research uses a qualitative approach by conducting a literature review as well as a historical and contemporary analysis of the development of Islamic law. Data is obtained through literature studies that include primary and secondary sources, such as classical Islamic law books, historical texts, and related academic studies. The results showed that socio-cultural factors have a significant role in shaping Islamic legal thinking. From a historical perspective, the development of Islamic law is often influenced by the socio-cultural context in which it developed, such as customs, customs of society, and political-economic conditions. Meanwhile, in the contemporary perspective, globalization, modernization, and other socio-cultural changes also affect the interpretation and application of Islamic law in society. This study concludes that understanding socio-cultural factors is very important in understanding the dynamics of Islamic legal thought. By considering the socio-cultural context, Islamic legal thinkers can develop relevant and adaptive approaches in formulating legal solutions that are by the demands of the times.

Recently there has been a heightened global concern over ‘contagion’ in the conventional financial markets. Our study is motivated by the desire to test empirically whether this contagion is reflected in both the conventional and Islamic financial markets in both Islamic and non-Islamic countries. This study is the first attempt at testing whether there has been any contagion among the Shari’ah-compliant stock markets during the most recent international financial crisis such as, the US subprime crisis of 2007-2009 with the application of a technique known as ‘wavelet approach’ which has been very recently imported to finance from engineering sciences. We analyze the daily data covering the period from June 2005 to December 2011 for the 18 MSCI conventional and Islamic stock market indexes of the Islamic (Malaysia, Indonesia, Turkey, GCC) and non-Islamic countries (Japan, China, Korea, Taiwan and Hong Kong). Our study is focused on investigating the following empirical questions: (i) Do the conventional and Shari’ah-compliant stock markets move together with the US stock market in the long run? (ii) If there is a comovement, is there any evidence of a lead-lag relationship in the short- and long-run and how has the lead-lag relationship evolved over time? (iii) If they move together, are the co-movements normal (interdependent) or excessive (contagious) (iv) If there does exist a contagion, do Shari’ah-compliant stock markets help in getting diversification benefits as far as the US-based investor is concerned? Our findings based on a few recently developed techniques tend to suggest (i) both MSCI conventional and Islamic stock markets moved together with the USA MSCI stock market in the long run as evidenced in the cointegration tests (ii) An application of the wavelet-cross-correlation analysis used to determine the lead/lag relationship between two time series on a scale-by-scale basis, tends to indicate that the asymmetry of cross-correlation function of both conventional and Shari’ah-compliant MSCI stock indexes with USA conventional MSCI index becomes more pronounced as the scale increases. The wavelet cross-correlations tend to, more or less, broadly suggest that regardless of the period considered, the USA market is the leader at different time scales. (iii) The key results of this research were that there were no contagion effects among all MSCI conventional markets during the first wave of crisis – the outbreak of U.S. mortgage bubble; However, we failed to test contagion effects for MSCI Islamic stock indexes due to the lack of data; Secondly, during the second wave of crisis - collapse of Lehman Brothers, generally, the MSCI conventional stock indexes of Far East countries display contagion effects while the rest of MSCI stock indexes which include Islamic indexes do not show any contagion effects. iv) Finally, an application of the recently-developed Dynamic Multivariate GARCH approach indicates that as far as the US-based investors are concerned, both conventional and Islamic MSCI indexes of Japan, GCC ex-Saudi, Indonesia, Malaysia and Taiwan provide better diversification benefits compared to Korea, Hong Kong, China and Turkey with strong policy implications for the international investors for their portfolio diversification as a hedge against the unforeseen risks.

Salafiyah lately has become the scourge of modern states because the banality of their interpretation of Islamic law is considered rigid and not in line with the global world that is increasingly plural. This article attempts to discuss the various variants of salafism and the purpose behind its militant movement. The fundamental question in this article is about the purpose behind a non-compromising understanding of other understandings that are different from the Salafiyah. This article first describes some variant of Salafism, namely: al-Salafiyah al-Tārīkhiyah, al-Salafiyah al-Wahābiyah, al-Salafiyah al-Ishlāhiyah, al-Salafiyah al-Ta’sīliyah dan al-Salafiyah al-Jihādīyah al-Takfīriyah , and then analyze what the similarity of theological traits of these variant. This study confirms that Salafism is a doctrinal social movement that has political efforts to establish Islam by rejecting the differences that exist. The results of this study indicate that the Salafi initially is group that calls on Muslims to return to the original sources of the Qur'an and the Hadith leads to the resurrection of a new Islamic civilization against the Western world power hegemony (especially the United States), it becomes a group which is face to face with the Muslims themselves. In addition, a rigid interpretation of Islamic law has meaning to build political strength to slowly unify differences that do not correspond with the values of salafiyah. K eywords : Variant of Salayifah , siy ā sah isl ā miyah , interpretation of Islamic law.

The development of digital technology has transformed the way Muslims interact with religious sources, particularly in obtaining fatwas and guidance on Islamic law. Social media platforms such as TikTok, Instagram, and YouTube have emerged as new channels for preachers (dai), scholars (ustaz), and public speakers to issue fatwas, respond to fiqh questions, and interpret Islamic texts in an immediate and wide-reaching manner. This study aims to examine how digitalization affects religious authority in the interpretation of Islamic law in the era of social media. The method employed is a literature review with a qualitative approach, analyzing scholarly works related to the authority of ulama, the development of fatwas, and the phenomenon of digital dakwah. Preliminary findings suggest that although social media increases access to religious information, it also presents challenges regarding authenticity, the validity of scholarly transmission (sanad), and the potential oversimplification of Islamic legal discourse. Traditional religious authorities now increasingly share the stage with digitally popular figures who may lack formal academic or scholarly legitimacy. This research highlights the importance of digital religious literacy among Muslim communities and underscores the need to strengthen the role of formal religious institutions in responding to this transformation wisely. The study is expected to contribute to the development of an adaptive Islamic legal framework that maintains both the authority and scholarly integrity of Islamic jurisprudence.

The Muslim WorldVolume 104, Issue 4 p. 442-450 Muslim Article “Interpretation of Islamic Law and the Muslims of America” Muzammil H. Siddiqi, Muzammil H. Siddiqi Chairman the Fiqh Council of North AmericaSearch for more papers by this author Muzammil H. Siddiqi, Muzammil H. Siddiqi Chairman the Fiqh Council of North AmericaSearch for more papers by this author First published: 16 September 2014 https://doi.org/10.1111/muwo.12071Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Volume104, Issue4Special Issue: Judaism and Islam in America. Edited by Prof. Zainab Alwani, Howard University Divinity School, Muslim articles editor and Prof. Burton L. Visotzky, Jewish Theological Seminary, Jewish articles editorOctober 2014Pages 442-450 RelatedInformation

Polygamy is a marriage which exceeds that of a wife, which in this study has a problem against the actions of polygamy was not recorded as well as polygamy is not healthy, where the study focused on the interpretation of Islamic law and positive law against the actions of polygamy such. The coming of the problems of the actions of polygamy in the Village Montorna District Pasongsongan Sumenep originated from the presence of one of the women (widowed) that simply give more attention to that among men in the village. Look at the state of social as well as the status of existing give a little gap as well as the chance of occurrence of polygamy, but the important points in the problems related to the act of polygamy is not recorded is a marriage performed outside the applicable provisions. Of the existing problems can be studied related to basic reasons and factors that the onset of action of polygamy as well as how interpretations of Islamic law and positive law against polygamy is not recorded. This research uses qualitative method with the approach of sociological empirical theoretical as well as primary data source and secondary methods of data collection through observation, interviews and descriptive analysis as a method of data analysis as well as the flow of thinking inductive. The results in this study show that the act of polygamy is not recorded because of the reasons and factors that describe the attitude of the offender are only limited to the desires of lust and selfishness, which the perpetrators never see the will of the welfare as well as the actors who lack understanding of the importance of registration of marriage.

The article analyses Egyptian jurisprudence on the issue of apostasy, with a focus on conversion from Islam to Christianity. It argues that the Egyptian judiciary has failed to develop a harmonious relationship between Islamic law and the principle of freedom of religion. It looks at how the majority of cases examined before the Egyptian judiciary reveal a continued tension between freedom of religion as defined in international human rights law and its judges’ interpretation of Islamic law as a constitutive element of public order. Recently, the Supreme Administrative Court tried to break through traditional barriers regarding the right of converts of Christian origin to record their re-affiliation to Christianity in their documents of identification, and pragmatically justified this precedent in light of the requirements of modern states, whereby identity cards should reflect the correct information of each citizen. Yet it argues that the court was not conscious of freedom of religion as a fundamental individual right, and moreover, that this precedent has not been followed with respect to converts of Islamic origin. Finally, the paper argues that, for a sustainable solution to the legal tensions concerning apostasy in Egyptian courts, a new perspective is required on the relationship between Islamic law and religious freedom whereby the universal understanding of freedom of religion can be legitimized from within Islamic legal traditions. The article also proposes a set of constitutional and legal measures to enhance freedom of religion in Egypt.

Shari’a compliant stocks are a recent development under Islamic finance, whereby stocks are screened through Shari’a compliance filters. This study is conducted to understand and document the important monetary factors contributing in determining stock prices of Shari’a compliant companies in Pakistan. Our sample includes all 97 non-financial Shari’a compliant companies screened by Al-Meezan Investment Management Ltd, based on accounting results of 2009. We have included ten macroeconomic variables in addition to market index in our study over a ten-year period (2001-10). We use JJ cointegration and OLS regression. Results identified the four important variables including interest rate, exchange rate, foreign direct investment and market index contributing in stock returns’ variations of Shari’a compliant securities. Evidence favors multifactor model for pricing of securities at KSE.

The article examines the trends of reporting, the sources of management decisions made by institutional investors, in particular, asset management companies, which activities are at high risk. It is determined that, due to the specifics of accounting as a science, trends in reporting are a dynamic phenomenon. There are two dominant trends in reporting, namely, those that are local (influenced by national constraints) and those that are global (reflect international trends in accounting and reporting in the world). These trends have been shown in contradiction to one another, complicating the partnership of national and foreign asset management companies due to unclear and not identical reporting. The main tendency on the part of reporting as an element of accounting and analytical support in asset management companies is distinguished, which allows an algorithm of improved preparation of different types of reporting to overcome existing contradictions between national and international reporting. The main trend in the development of reporting is the need to win the trust of users of reporting through the provision of information of high quality and reliability, which allows prediction of the future in the field of risky investment. It is shown that this trend is a priority for Ukraine because it is related to solving the existing economic problems, namely: improving the investment climate and increasing the competitiveness of innovative enterprises. A promising vector for further development of financial statements has been identified, aimed at the rejection of national accounting standards (standards) and the introduction of financial statements for all, without exception, companies of international reporting standards. In order to improve reporting, its new classification adapted for asset management companies (AMC) is proposed, which is optimally tailored to the management needs, and meets the information requirements of different user groups thanks to the unified composition of accounting information. It also meets the specifics, strategies and main goals of AMCs on the effective functioning and protection of interests of investors of funds managed by an AMC.

PurposeThis study aims to examine the role of institutional investors (using proxy voting and voice) in influencing the decisions and governance landscape of their investee firms.Design/methodology/approachThe authors use exploratory research design due to the underdevelopment of the problem phenomena, especially in the context of emerging economies. Using asset management companies (AMC) as a proxy for institutional investors, the authors use a multiple case study design. This design was relevant in the setting as it assured triangulation by studying the same phenomenon across firms with distinct characteristics. The authors sourced the data for the multiple cases from primary sources (such as semi-structured interviews) and secondary sources (such as official Webpages and social media pages of AMC and examination of archival documents). Finally, the authors used qualitative content analysis to analyse the data.FindingsThe findings suggest that shareholder activism by institutional investors has grown in India over the period, particularly in matters related to corporate governance, related party transactions, remuneration and compensation. These AMC in India use proxy voting services for advising on voting resolutions in their investee companies. However, voting by AMC does not generally affect resolution results. This is particularly true in the presence of a high concentration of promoter holdings in investee companies.Originality/valueThe study is a novel attempt in an emerging market context to explore the role of institutional investors in influencing firm decisions and improving the governance landscape of the company using proxy voting and voice. This is especially important as the institutional framework in emerging markets is not as strong as in developed markets.

slamic finance industry has been expanded in the last decade and has branched out itself from banking to other financial sectors like Islamic Assets Management and Islamic Insurance Companies. Islamic finance industry growth over the past decade is impressive comparative to conventional sector particularly at the time of financial crisis. The focus of this research study is to assess the performance of Islamic and Conventional mutual funds in Pakistan for the period of 7 years ranging from 2007 to 2013. The research also studied the impact of NAV on mutual funds and how the volatility influences the Islamic and Conventional mutual funds. This research is based on the sample of equity funds using all Asset Management Companies in Pakistan on the basis of availability of each fund‘s NAV. The findings suggest that mutual funds performance led to mixed trend. The results indicates that portfolio returns of Islamic funds are more clustered around mean that shows the level of consistency in the performance of the Islamic funds, whereas portfolio returns of the Conventional funds are more volatile and inconsistent comparatively. Concerning overall performance, Islamic funds performed better than Conventional funds.

Purpose The purpose of this paper is to investigate the response of investors to the announcements on the inclusion and exclusion of companies from the FTSE-ASE 20 index. Design/methodology/approach Data on the inclusion and exclusion of companies from the FTSE-ASE 20 index in the period 2000-2012 were used. The authors performed an event study analysis using a constant return model and a market model. Two different measures of aggregated abnormal returns, namely the cumulating abnormal returns and the buy-and-hold abnormal return, were used in this investigation. Findings The results suggest that the exclusion of a company from the index has a significant negative effect on stock returns. Specifically, such a stock takes more than 15 days to recover. However, for a company’s inclusion in the index, the authors observe short-lived positive reactions on stock returns. Practical implications Capital market regulators and investors should find the policy implications of this paper meaningful. Investment strategies can be implemented on the basis of the news of exclusion from the index, which can lead to higher performance for investors. As far as authorities are concerned, the decision of inclusion and exclusion to the most significant stock index in the Greek market should be carefully considered because it creates financial instability for a significant time period. Originality/value By using a battery of parametric and non-parametric econometric tests, the existence of abnormal returns of the FTSE-ASE 20 index is explored over a long time period, including the recent financial crisis.

The purpose of this quantitative study is to identify the factors contributing in perverse perception about performance appraisal system. Furthermore it is a brief review of some relevant approaches which have been used for measuring performance in service sector organizations. It also describes the number of factors which may consider in deciding appropriate performance appraisal system for service providing companies in Pakistan. This quantitative research was conducted through the responses collected by Pakistani employees with the help of close ended questionnaire developed on Likert scale. Moreover recommendations are made to cope up with the perverse perception among employees for performance appraisal system and to introduce performance management system for service providing companies in Pakistan.

Natural disaster often brings damage to the economy, including the decrease of stock’s market value. For this reason, this study aims to determine the effect of the tsunami earthquakes in Lombok in 2018 on abnormal returns and cumulative abnormal returns of insurance companies. This study used the event study approach, with three days window period after the three tsunami earthquakes from July to August 2018. The sample of this study is the stock price of 14 insurance companies listed on the Indonesia Stock Exchange. To test whether abnormal return exists, a one-sample t-test was used on the average abnormal and cumulative returns. The results show that the tsunami earthquake disasters in Lombok in 2018 have a significant effect on cumulative abnormal returns of insurance companies stocks, and this effect even bigger on the third tsunami. This finding shows that the market reacts to continuous disaster by considering the earthquake as negative information and thus decrease the stock price. This study implies that investors may buy the stocks after the disaster to get a cheaper price or hold the stocks to avoid loss.
 Keywords: abnormal return; event study; Lombok tsunami earthquake; signaling theory

Purpose This study aims to examine the impact of intellectual capital on the underwriting risk of insurance companies in Pakistan. Design/methodology/approach The study used a quantitative research approach and a longitudinal research design, gathering data from 23 insurance companies listed on the Pakistan stock exchange from 2010 to 2022. The value-added intellectual coefficient (VAIC) was used to measure intellectual capital (IC), and unbalanced panel data were analyzed using static and dynamic regression analyses. Findings The findings demonstrate a significant association between intellectual capital and underwriting risk in insurance companies in Pakistan. Specific components of intellectual capital, such as human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE), have a strong negative impact on underwriting risk. Control variables like return on assets, insurer size and leverage also showed significant relationships with underwriting risk. Originality/value This research provides new insights into the theoretical understanding of the insurance industry by establishing a direct link between intellectual capital and underwriting risk in the context of Pakistan. It suggests that by improving aspects of intellectual capital, specifically HCE, SCE and CEE, policymakers and managers can reduce underwriting risk.