KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

Islamic Screening Mechanism of Islamic Capital Market—A Comparison Between the Fatwa—DSN-MUI, the Kuala Lumpur Stock Exchange Islamic Index and the Dow Jones Islamic Market Index

Published date: Nov 12 2018

Journal Title: KnE Social Sciences

Issue title: The 2018 International Conference of Organizational Innovation (ICOI-2018)

Pages:

DOI: 10.18502/kss.v3i10.3456

Authors:
Abstract:

Globally, the role of capital market is very essential. Capital market is the source of capital for a firm. According to the theory of capital structure, Pecking Order Theory, which emphasizes the hierarchy of financing, stock in capital market is the last choice for firm financing if the internal financing hasn’t sufficient funds for the operational activity of the firm. The existence of the Islamic capital market is very important because of the increasing Islamic business in the world. In Indonesia and in the world in general, Islamic product is only available in the conventional capital market, so it is necessary to decide the mechanism of screening the stock in the Islamic capital market to obtain the product of Islamic capital market according to sharia compliance. This study will compare the mechanism of stock screening according to the Fatwa DSN-MUI, the Kuala Lumpur Stock Exchange Islamic Index, and the Dow Jones Islamic Market Index. This study uses qualitative method. The result of the study gives the explanation of the mechanism of stock screening in the Islamic capital market based on the Fatwa DSN-MUI, the Kuala Lumpur Stock Exchange Islamic Index, and the Dow Jones Islamic Market Index and their role for the development of the Islamic capital market.

 

 

Keywords: Islamic screening, capital market, Fatwa DSN-MUI, the Kuala Lumpur Stock Exchange Islamic Index, Dow Jones Islamic Market Index

References:

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