Modeling the performance of bulk-carriers for Islamic equity investors

This paper investigates the performance of bulk-carriers as a primary shipping segment for Islamic equity investors. Shipping is a strong growth industry with 84% of global trade carried by the shipping industry, although 75% of ship lending is debt-based. Moreover, many Islamic investors have minim...

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Main Authors:	Abdullah, Adam, Hassan, Rusni, Kassim, Salina
Format:	Article
Language:	English English
Published:	Islamic Bank Training and Research Academy (IBTRA) 2017
Subjects:	HB126.4 Islamic Economics HE199 Freight (General) HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/61228/ http://irep.iium.edu.my/61228/ http://irep.iium.edu.my/61228/1/61228_Modeling%20the%20performance%20of%20bulk-carriers.pdf http://irep.iium.edu.my/61228/2/61228_Modeling%20the%20performance%20of%20bulk-carriers_SCOPUS.pdf

id	iium-61228
recordtype	eprints
spelling	iium-612282018-03-20T10:28:56Z http://irep.iium.edu.my/61228/ Modeling the performance of bulk-carriers for Islamic equity investors Abdullah, Adam Hassan, Rusni Kassim, Salina HB126.4 Islamic Economics HE199 Freight (General) HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation This paper investigates the performance of bulk-carriers as a primary shipping segment for Islamic equity investors. Shipping is a strong growth industry with 84% of global trade carried by the shipping industry, although 75% of ship lending is debt-based. Moreover, many Islamic investors have minimal exposure to ship-finance and investment. We adopt an investment analysis of a full population of historical data over 20 years, to evaluate performance involving a maritime return on investment, IRR, net yield and standard deviation measures of risk and return. Our findings reveal that whilst earnings are volatile in comparison to capital market expectations, unlevered, tax-free returns on bulk-carrier investments out-perform other assets. By communicating risk and reward more effectively, Islamic equity investors, will realize the benefit of equity finance on the basis of profit sharing, is more efficient at allocating investible resources than debt finance at interest, thereby increasing investment and economic growth. Islamic Bank Training and Research Academy (IBTRA) 2017-12-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61228/1/61228_Modeling%20the%20performance%20of%20bulk-carriers.pdf application/pdf en http://irep.iium.edu.my/61228/2/61228_Modeling%20the%20performance%20of%20bulk-carriers_SCOPUS.pdf Abdullah, Adam and Hassan, Rusni and Kassim, Salina (2017) Modeling the performance of bulk-carriers for Islamic equity investors. Journal of Islamic Economics, Banking and Finance, 13 (4). pp. 91-118. ISSN 2070-4658 http://ibtra.com/pdf/journal/v13_n4_article5.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HB126.4 Islamic Economics HE199 Freight (General) HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
spellingShingle	HB126.4 Islamic Economics HE199 Freight (General) HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation Abdullah, Adam Hassan, Rusni Kassim, Salina Modeling the performance of bulk-carriers for Islamic equity investors
description	This paper investigates the performance of bulk-carriers as a primary shipping segment for Islamic equity investors. Shipping is a strong growth industry with 84% of global trade carried by the shipping industry, although 75% of ship lending is debt-based. Moreover, many Islamic investors have minimal exposure to ship-finance and investment. We adopt an investment analysis of a full population of historical data over 20 years, to evaluate performance involving a maritime return on investment, IRR, net yield and standard deviation measures of risk and return. Our findings reveal that whilst earnings are volatile in comparison to capital market expectations, unlevered, tax-free returns on bulk-carrier investments out-perform other assets. By communicating risk and reward more effectively, Islamic equity investors, will realize the benefit of equity finance on the basis of profit sharing, is more efficient at allocating investible resources than debt finance at interest, thereby increasing investment and economic growth.
format	Article
author	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_facet	Abdullah, Adam Hassan, Rusni Kassim, Salina
author_sort	Abdullah, Adam
title	Modeling the performance of bulk-carriers for Islamic equity investors
title_short	Modeling the performance of bulk-carriers for Islamic equity investors
title_full	Modeling the performance of bulk-carriers for Islamic equity investors
title_fullStr	Modeling the performance of bulk-carriers for Islamic equity investors
title_full_unstemmed	Modeling the performance of bulk-carriers for Islamic equity investors
title_sort	modeling the performance of bulk-carriers for islamic equity investors
publisher	Islamic Bank Training and Research Academy (IBTRA)
publishDate	2017
url	http://irep.iium.edu.my/61228/ http://irep.iium.edu.my/61228/ http://irep.iium.edu.my/61228/1/61228_Modeling%20the%20performance%20of%20bulk-carriers.pdf http://irep.iium.edu.my/61228/2/61228_Modeling%20the%20performance%20of%20bulk-carriers_SCOPUS.pdf
first_indexed	2023-09-18T21:26:50Z
last_indexed	2023-09-18T21:26:50Z
_version_	1777412248190320640

Modeling the performance of bulk-carriers for Islamic equity investors

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