Islamic Index Research Articles

Evaluating Financial Performance of Mining Companies Listed on Jakarta Islamic Index

Evaluating Financial Performance of Mining Companies Listed on Jakarta Islamic Index

Understanding the Screening Criteria for Shariah-Compliant Stocks

Islamic finance operates as an alternative system meeting the investment requirements of individuals adhering to Islamic beliefs. While conventional finance prioritizes stock exchanges facilitating small-scale investments, challenges arise for Muslims investing their savings in stocks due to potential conflicts between companies' activities and revenues and religious principles. This situation prompts Islamic scholars to deliberate on the permissibility of purchasing specific company stocks. Diverse scholars and Shariah boards have established precise criteria for determining the permissibility of buying a company's stocks, resulting in the development of indexes aimed at identifying compliant companies. Shariah-compliant stocks or companies adhere to the principles of Shariah law, governing various life aspects, including financial and economic activities. This study investigates Shariah screening methods, exploring their rationale, foundations, and potential religious influences, particularly focusing on five prominent Islamic indices. The study investigates Shariah justifications and motives behind these methods, discussing their evaluation through different standards. Despite scholars' varying opinions and evolving methodologies, the primary objective remains consistent: to facilitate halal income for Muslim investors while maintaining Islamic ethical principles in financial practices.

Analysis the Effect of Profitability, Liquidity, Company Size and Business Risk on The Capital Structure of Companies Listed in the Jakarta Islamic Index (JII) PERIOD 2015-2017

This study aims to analyze the effect of profitability (return on assets), liquidity (current ratio), company size and business risk on capital structure in companies listed in the Jakarta Islamic Index (JII) for the period 2015-2017. The samples in this study were 16 companies that met the research criteria through non probability sampling method - purposive sampling. The analysis method used in this research is multiple linear analysis method processed with eviews 9 software. The results of this study indicate that profitability and liquidity have a negative and significant effect on capital structure, while company size and business risk have a positive and significant effect on capital structure.

Pengaruh Analisis Fundamental, Teknikal dan Bandarmologi terhadap Harga Saham Syariah yang Terdaftar di Jakarta Islamic Index Periode 2018-2021

Equity-based sharia stocks that comply with Islamic principles. One of the sharia stock indices is the Jakarta Islamic Index (JII). JII is an index consisting of the 30 most liquid Islamic stocks on the IDX which was launched in 2000. To select 30 Islamic stocks to be included in the index calculation, there are additional criteria carried out by IDX, namely liquidity criteria. The liquidity indicators used are based on market capitalization and daily transaction value. Usually calculated based on the last one year period and every day there must always be transactions. This study uses a quantitative descriptive research method, namely research that emphasizes the analysis of numerical data processed by statistical models. This method is called the quantitative method because the research data uses numbers that indicate the value of the observation variable that leads to a certain time period. This research results that from the results of the t test table it is known that the fundamental analysis variables partially influence the prices of Islamic stocks listed on the Jakarta Islamic Index (JII) in 2018-2021. From the results of the t test table it is known that the technical analysis variable has a partial effect on the prices of Islamic stocks listed on the Jakarta Islamic Index (JII) for 2018-2021. From the results of the t test table it is known that the bandarmological analysis variable has a partial effect on the prices of Islamic stocks listed on the Jakarta Islamic Index (JII) for 2018-2021. From the results of the f test table it is known that the variables of fundamental analysis, technical analysis, and bandarmological analysis simultaneously influence the prices of Islamic stocks listed on the Jakarta Islamic Index (JII) for 2018-2021.
 Keywords: Fundamental Analysis, Technical, Bandarmology, Sharia Stocks, Sharia Market

Analisis Kointegrasi Antara Saham Syariah Dan Tingkat Suku Bunga

The development of Islamic economics with the application of sharia principles in economic activities is starting to be practiced in the field of sharia finance. This started with the establishment of sharia banking, then followed by the emergence of the sharia capital market as an investment tool to attract profits and seek capital. The Jakarta Islamic Index (JII) as the antithesis of the conventional capital market has challenges when carrying out investments using sharia principles, this is because securities in the form of shares are greatly influenced by macroeconomic aspects such as interest rates. So sharia share prices are very sensitive to the dynamics of interest rates. This research seeks to see the extent of the influence of interest rates on sharia sham prices at JII. The method used is VECM analysis to see long-term effects. The results of this research found that the interest rate variable did not significantly influence sharia stock prices in the long term, however the results of the VECM analysis found that there was a negative relationship, meaning that there was still an influence, although not significant. So sharia share prices can still be affected by changes in conventional interest rates.

Pengaruh Market Value dan Market Capitalization terhadap Return Saham Jakarta Islamic Indeks (JII)

The main consideration in investing to get a profitable stock return. The rate of return on stocks is influenced by several factors, such as market value and market capitalization. The purpose of this study is to determine the effect of low market value, high market value, small market capitalization, and large market capitalization on stock returns in the Jakarta Islamic Index 2020-2022.
 This study uses associatives that show the relationship of the independent variable with the dependent variable. The sample of this study is companies listed in the Jakarta Islamic Index 2020-2022. The sampling used in this study used the Purposive Sampling method with certain criteria. Companies that can be used as samples are 20 companies that have met the sampling criteria so that 60 data samples are obtained. This research data uses secondary data sourced from the 2020-2022 financial statements. This study used multiple linear regression analysis.
 The results of this study show that low market value (PBV) variables and small market capitalization do not have a significant effect on stock returns, while high market value (PBV) and large market capitalization have a positive and significant effect on stock returns.

Multiobjective Optimization of Stock Portofolio

Diversification is a method used to reduce risks by allocating several financial, industrial, and other instruments. Investors might need to use this method to allocate their companies’ funding as efficient as they should be. Mean variance portfolio is a diversification theory designated for investors who are aware of potential risks. On the other hand, multi-objective portfolio optimization is another theory that suits for investors who are more unaware, or choose to neglect potential business risks. Multi-objective optimization can boost source of income and minimize the risks while utilizing k weighting coefficient as risk aversion index. This research aims to form an optimal portfolio from each perspective of selected investors using multi-objective optimization, as well as to analyze the benefits and risks that the investors will have. Samples used in this research are sharia stocks actively involved in Jakarta Islamic Index (JII) and non-sharia stocks which are actively involved in LQ-45 from January 2013 to January 2018.

Volatility Spill-Over and Financial Contagion Effect of Conventional Stock on Islamic Equity in Nigeria: Evidence from Covid-19

This study empirically investigated volatility spill-over and financial contagion effect between conventional stocks and shariah compliant equities before and during covid-19 pandemic in Nigeria. Banking and insurance sectoral stocks indices were selected to represent conventional equities while Nigerian stock exchange lotus islamic index represent islamic stocks. Daily closing stock price data from 02-01-2018 to 26-02-2020 for pre-covid and 27-02-2020 to 31-12-2021 for pre-covid and during covid were considered. DCC-GARCH model (Dynamic conditional correlation- Generalized Autoregressive Conditional Heteroskedasticity Model) was deployed to examine the spill-over effect while t-test was applied to check the consistency of the DCC coefficient before and during the pandemic. The result of the multivariate GARCH show that both banking and insurance stocks have long run volatility spillover effect on lotus islamic index, the result also revealed no significant increase in conditional correlation during covid-19 pandemic which indicate absence of financial contagion from the conventional to islamic stocks. The results provide important information to researchers, investors, and policymakers

The Effect of Debt Policy, Profitability and Liquidity on Dividend Policy

The purpose of this study is to investigate the impact of debt policy (measured by Debt to Equity Ratio), profitability (measured by Return on Asset), and liquidity (measured by Current Ratio) on dividend policy (measured by Dividend Payout Ratio). The study focuses on companies listed on the Indonesia Stock Exchange (IDX) under the Jakarta Islamic Index 70. Secondary data from financial statements spanning three consecutive years (2019 to 2021) were utilized for the analysis. The research employed purposive sampling, resulting in a sample of 44 companies, and multiple linear regression analysis was employed to test the research hypotheses. The findings indicate that, collectively, debt policy, profitability, and liquidity significantly influence the dividend policy of companies within the Jakarta Islamic Index from 2019 to 2021. However, when considering individual variables, only profitability demonstrates a significant impact on dividend policy among the listed companies from 2019 to 2021

Determination of Optimal Portfolio by Calculating Transaction Costs using Genetic Algorithms on the Jakarta Islamic Index

The optimal portfolio is a portfolio that can provide maximum returns at the same level of risk. In investing, the term "high return, high risk" is known, meaning that the higher the return, the higher the risk. Therefore, investors need to develop an optimal portfolio to obtain the maximum return on investment at the same level of risk. This study aims to determine the optimal formation of a stock portfolio by calculating transaction costs using the genetic algorithm method on stocks that are members of the Jakarta Islamic Index. This research uses data of daily return on stocks included in Jakarta Islamic Index from 1 August 2020-1 August 2022. The dataset consists of two variables: the date of observation and daily stock returns. The method used in this study is the minimum variance method and the genetic algorithm. Data analysis was divided into two stages: model formulation and model testing through case studies. The analysis of optimal portfolio formation using genetic algorithms shows that in terms of performance, the minimum variance portfolio is superior to the genetic algorithm portfolio, as indicated by the Sharpe ratio value. Meanwhile, the genetic algorithm portfolio is superior to the minimum variance portfolio regarding transaction costs. The genetic algorithm portfolio can provide a fairly high total return, small transaction costs, and good performance compared to the minimum portfolio. Hence, the genetic algorithm portfolio is worthy of recommendation to investors.

K-Medoids Clustering dan Mean-Value at Risk untuk Optimasi Portofolio Saham Jakarta Islamic Index

<p>The problem of the portfolio is how to choose stocks and determine their weights in order to generate maximum returns with minimal risk. Portfolios are formed by selecting stocks that have different characteristics. K-Medoids Clustering can be used to group data sets that contain outliers. Validate cluster results using the Davies Bouldin Index to determine the best number of clusters. Portfolio weighting is determined using the Mean-VaR method by taking into account the expected return value and minimizing the VaR risk value. Stocks are grouped based on Return on Assets, Return on Equity, Debt to Asset Ratio, and Debt to Equity Ratio. The results of cluster formation on the Jakarta Islamic Index stocks obtained six portfolio constituent stocks based on the highest expected return value from each cluster, consisting of PTBA, ADRO, AKRA, EXCL, PTPP, and UNVR. The results of calculating the weight of the optimal portfolio with Mean-VaR obtained a weight for PTBA of 0.46536; AKRA of 0.24018; EXCL of 0.25421; and UNVR of 0.25392. ADRO and PTPP stocks have a negative weight value of -0,07775 and -0,13593 this indicates the occurrence of short selling in the weighting. At the 95% confidence level, the VaR portfolio value is 5.06%.</p><p><strong>Keywords: </strong>Clustering; K-Medoids; Daveis Bouldin Index; Portfolio; Mean-VaR</p>

ESG Disclosure Model and Financial Performance: ThThe Mediating Role of Leader Exemplarity in Sustainable Organizations

The purpose of this research is to investigate how implementing Environmental, Social, and Governance (ESG) in a planned, measured, and sustainable manner might improve the performance of the OJK in Indonesia. A quantitative technique is used in this associative research. The quantitative approach focuses on the numerical measurement of study variables and data analysis using static processes and systematic modelling to investigate parts, phenomena, and relationships. From the beginning to the end, this quantitative research method is specific and well-planned. In environmental, social and governance (ESG) performance was found to be positively correlated with financial success among companies included in the Jakarta Islamic Index Indonesia (JII). Although the leadership quality of companies listed on JII is positively correlated with environmental and social performance, this quality is not significantly correlated with governance performance. The presence of the leadership variable as a variable that moderates ESG disclosure on enhancing firm financial performance as evaluated by the capped free float index or the weight of company shares listed on the Jakarta Islamic Index is novel in this study.

The effect of liquidity and leverage on financial performance with company size as a moderating variable: A study on companies listed in Jakarta Islamic Index 30

IntroductionThe Jakarta Islamic Index is an index on the Indonesia Stock Exchange which contains companies that contribute to the halal industry in Indonesia. However, research on financial performance specifically using liquidity, leverage and company size is still limited.ObjectivesThe research aims to examine the effect of liquidity and leverage on performance financial with company size as a moderating variable. This research aims to find out which companies in the Jakarta Islamic Index 30 are influenced by factors that can improve their financial performance so that they have a more positive impact on companies and investors.MethodThe subject of this research companies listed on Jakarta Islamic Index 30 for 2020 – 2022. Data collection techniques used in this study were purposive sampling and with a sample size of 114 samples. While the data analysis techniques used in this study is classic multiple regression analysis with interaction.ResultsThe analysis show that liquidity has a significant effect on financial performance, leverage has no effect on financial performance, company size moderates liquidity on financial performance but does not moderate leverage to financial performance.ImplicationsCompanies registered on Jakarta Islamic Index 30 can utilize their debt policy to obtain additional capital as long as the use is reasonable and does not burden the company.Originality/NoveltyThis study contributes to broaden the knowledge on financial performance of companies listed in Jakarta Islamic Index 30.

Pengaruh Dividen, Pertumbuhan Aset, dan Volume Perdagangan terhadap Volalitas Harga Saham JII70

Purpose: The study is intended to empirically examine the fundamental factors of micro companies in influencing stock price volatility in the Jakarta Islamic Index 70 From the period 2019-2023. The form of Islamic stock market reaction in the Jakarta Islamic Index 70 is shown by fluctuations resulting in stock price volatility events in the 2019-2020 period. Through this research, the fundamental factors taken, namely the distribution of company dividends, the growth of company assets, and the volume of stock trading in stocks in JII70 for the 2019-2020 period. Research Methodology: With data from the Indonesian stock exchange from 2019 to 2022, comparative descriptive approaches and quantitative methodologies were employed in this study. Purposive sampling was used to sample, and it revealed 18 businesses that fit the bill. Results: The findings results of the study, which was conducted on 18 companies listed on the Jakarta Islamic Index 70 during the 2019-2022 period, showed that stock price volatility was influenced by variable dividend payout ratios with a significant value of 0.048, stock trading volume was also influential with a significant value of 0.041, and was not influenced by asset growth variables. Limitation: Some scientific limitations in this study, that this analysis only includes 3 independent variables whose capacity to explain the dependent variable is still somewhat limited. The companies listed in the Jakarta Islamic Index are 70, producing a small research sample and the research period is still relatively short. Contribution: The results of this study will likely be applied in investment decision-making. Businesses with concerns about fluctuations, and stock price volatility can also utilize this research's findings as knowledge.

RETURN ON ASSET, CURRENT RATIO, DEBT TO ASSET RATIO, AND OPERATING CASH FLOW ON STOCK PRICE OF COMPANIES LISTED IN THE JAKARTA ISLAMIC INDEX PERIOD 2016 – 2021

This study aimed to determine the effect of Return on Asset, Current Ratio, Debt to Asset Ratio, and Operating Cash Flow on the stock prices of companies listed on the Jakarta Islamic Index for the 2016 – 2021 period. The research sample was determined using the purposive sampling method so that the total sample was 12 companies. The analytical method of this research uses descriptive analysis and several types of evaluation using SPSS software. From this research, it can be concluded that only Current Ratio significantly affects stock prices. Meanwhile Return on Asset, Debt to Asset Ratio, and Operating Cash Flow do not have a significant effect on stock prices.

Evaluating Islamic Stock Portfolio Weighting Method: Application Of Global Minimum Variance In Indonesia Islamic Stock Market

Investing in stocks can be a smart alternative to saving money in a bank or keeping cash on hand due to the negative impact of inflation. It offers various advantages, such as generating income and safeguarding wealth against inflation. Investing in stocks comes with risks, which can be mitigated through strategic portfolio construction. Multiple methods exist for portfolio weighting, one of the popular portfolio weighting methods is Global Minimum Variance (GMV) by Markowitz (1952). This research aims to provide evidence about the performance of the GMV Method for Islamic retail investors using the Jakarta Islamic Index as the investment universe. The study analyzes the out-of-sample performance of GMV compared to Benchmark Indexes, which are IHSG, LQ45, ISSI, and JII. The finding of this study provides that constructing an Islamic stock portfolio using GMV help historically able to help the investor to gain a better return compared to ISSI, LQ45, and JII in the overall observation period and earned better returns compared to all benchmark indexes after the Covid-19 Period. Global Minimum Variance also helps the investor to gain better risk-adjusted return compared to ISSI and JII in the overall observation period and after the Covid-19 Period. Therefore, the retail investor could use GMV to construct their Islamic Portfolio to gain better returns than the market.

Determining Factors Affecting Islamic Social Reporting in Registered Companies at Jakarta Islamic Index 70

Determining Factors Affecting Islamic Social Reporting in Registered Companies at Jakarta Islamic Index 70

The Impact of Inflation, Interest Rates, and Exchange Rates on the Jakarta Islamic Index (JII) Stock Price Index on the Indonesia Stock Exchange

The Impact of Inflation, Interest Rates, and Exchange Rates on the Jakarta Islamic Index (JII) Stock Price Index on the Indonesia Stock Exchange

Exploring investor attention in Shariah markets, macroeconomic influences, and corporate performance: Insights from Indonesia

This study examines the influence of Investor Attention, as reflected by Google Search Volume (GSV), on the performance metrics of firms—specifically Return (RET) and Stock Liquidity (LIQ)—within Publicly Listed Companies (PLCs) listed on the Jakarta Islamic Index (JII) of the Indonesia Stock Exchange (IDX). The investigation addresses a significant gap in the existing literature by focusing on Sharia-compliant investments within emerging markets, where the interplay between internet-fuelled investor behaviour and market outcomes remains underexplored. This gap is particularly relevant given Indonesia's rapid internet adoption rates and the burgeoning interest in Sharia-compliant financial products. Incorporating a comprehensive set of macroeconomic variables, this research provides a nuanced analysis of how broader economic conditions interact with firm performance in the context of Islamic finance. The methodological approach utilizes panel regression analysis on a robust dataset comprising 792 firm-month-year observations across 11 PLCs from January 2015 to December 2020. This period was chosen to capture the dynamic shifts in market conditions, offering a timely insight into the responsiveness of Sharia-compliant firms to global economic disruptions. Empirical findings reveal a nuanced landscape of influences: while Investor Attention does not significantly correlate with RET in relation to interest rates, it does exhibit a strong positive association with LIQ. Furthermore, the analysis highlights significant adverse effects of inflation and exchange rates on RET, underscoring the sensitivity of Sharia-compliant investments to specific macroeconomic stresses. These results contribute novel insights into the differential impact of economic factors on the returns and liquidity of firms within the JII, challenging prevailing assumptions in the field of Islamic finance. The study's implications extend beyond academia to practical applications for investors, policymakers, and industry practitioners. It elucidates the importance of leveraging internet-based metrics like GSV to gauge investor sentiment and its subsequent impact on market performance. Additionally, the findings advocate for enhanced monitoring and adaptive strategies in managing Sharia-compliant investments, particularly in volatile economic climates. Ultimately, this research not only fills a critical gap by linking internet-driven investor behaviour with financial performance in Sharia markets but also paves the way for more informed decision-making in the burgeoning sector of Islamic finance.

The Impact of Tax Aggressiveness, Enterprise Value, Thin Capital, and Company Performance on Share Price on Jakarta Islamic Index Category Companies

This research is part of a continuation of previous research, namely about the Jakarta Islamic Index, but currently researchers want to know the level of influence of JII category stock prices can be influenced by Tax Aggressiveness, Company Value, Thin Capital and Company Performance of the Jakarta Islamic Index Issuers. The analysis used in this study is a Quantitative Method, with the analysis used by conducting normality tests and multiple regression tests, so that from the test results can be known the level of influence of these independent variables on the JII stock price variable. The conclusion of the study is that partially or simultaneously the variable Change in Stock Prices of issuers indexed as the Jakarta Islamic Index is positively and cynically influenced by all independent variables which include tax aggressiveness, Enterprise Value, Thin Capital and Company Performance.