Work

Integrating Sharia and SRI Portfolio to Achieve Kaffah and Sustainability

Year: 2026

Type: article

Abstract: This study explores integrating Sharia principles with Socially Responsible Investing (SRI) to achieve comprehensive Sharia values (kaffah) and sustainability for the case of Indonesia. Proposing screening criteria and forming a sustainable Sharia-SRI portfolio, the study compares its performance with Islamic-screened and conventional portfolios using shares from the Indonesian Sharia Stock Index (ISSI) and SRI-Kehati, and analyzing their daily closing prices for ten year period spanning from 2014 to 2023, the Wilcoxon Signed Rank Test reveals that the Sharia-SRI integrated portfolio yields higher returns than ISSI and SRI-Kehati over the long term. These findings suggest that integrating Sharia and SRI can address environmental and human rights issues, attract more investors, achieve kaffah and promote ethical investment practices.

Source: Journal of Islamic Monetary Economics and Finance

DOI: 10.21098/jimf.v12i2.2146

Authors: Farah Amalia, Ratno Agriyanto, Harjum Muharam, Andi Sri Wahyuni

Institutions: Walisongo State Islamic University, Diponegoro University, University of Szeged

Language: English

Topic: Islamic Finance and Banking Studies

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W7162079647

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