{"title":"The relationship between shari’ah convergence and market-to-book value: A case study of firms in Islamic countries","authors":"Deniz Parlak , Mehmet Emin Yildiz , Naci Yilmaz","doi":"10.1016/j.bir.2024.02.001","DOIUrl":null,"url":null,"abstract":"<div><p>This study ranks 1235 companies operating in 10 different Islamic countries according to their degree of Shari'ah convergence and investigates the relationship between a firm's market-to-book ratio and convergence to Shari'ah rules. We determine Shari'ah screening variables by reviewing existing Shari'ah market indices and their screening rules; variable weights are determined using the criterion impact loss (CILOS) method, a well-known, multicriteria decision-making technique. The results show that the degree of Shari'ah convergence has a statistically significant negative effect on the market-to-book ratio, which can be seen as a proxy for the market value of equity.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":null,"pages":null},"PeriodicalIF":6.3000,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000218/pdfft?md5=bcdf67ce1c4c04cd4a89d07154b45c8d&pid=1-s2.0-S2214845024000218-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Borsa Istanbul Review","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S2214845024000218","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This study ranks 1235 companies operating in 10 different Islamic countries according to their degree of Shari'ah convergence and investigates the relationship between a firm's market-to-book ratio and convergence to Shari'ah rules. We determine Shari'ah screening variables by reviewing existing Shari'ah market indices and their screening rules; variable weights are determined using the criterion impact loss (CILOS) method, a well-known, multicriteria decision-making technique. The results show that the degree of Shari'ah convergence has a statistically significant negative effect on the market-to-book ratio, which can be seen as a proxy for the market value of equity.
期刊介绍：
Peer Review under the responsibility of Borsa İstanbul Anonim Sirketi. Borsa İstanbul Review provides a scholarly platform for empirical financial studies including but not limited to financial markets and institutions, financial economics, investor behavior, financial centers and market structures, corporate finance, recent economic and financial trends. Micro and macro data applications and comparative studies are welcome. Country coverage includes advanced, emerging and developing economies. In particular, we would like to publish empirical papers with significant policy implications and encourage submissions in the following areas: Research Topics: • Investments and Portfolio Management • Behavioral Finance • Financial Markets and Institutions • Market Microstructure • Islamic Finance • Financial Risk Management • Valuation • Capital Markets Governance • Financial Regulations
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