The Influence of the Islamic Profit and Loss Sharing Scheme on Returns from Investment and Deposit Accounts: An Empirical Study

• Main Authors: Charoenwong, C., Maysami, R.C., DING, David K.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/713
• Institution: Singapore Management University

The prevalence of Interest-Free Banking, based on the Profit-and-Loss Sharing premise has attracted researchers and practitioners over the last decade. An important area of concern is whether, in addition to philosophical and religious concerns, “financial returns” are determining factors when investor and/or depositors search for financial institutions and products. The first goal of the current study, then, is to compare the returns from Islamic banking systems to the returns from conventional banking, through evaluating the differences in equity returns from the two banking types.