Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul
Islamic indices provide a guideline for deciding which stocks to invest in; however, they mostly ignore investment purification. Despite the vitality of purification, the related literature is not well developed for several reasons. This paper aims to develop a purification method by considering the...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-12-01
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| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845022001211 |
| _version_ | 1797903412418838528 |
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| author | Zeyneb Hafsa Orhan Murat Işıker Hüseyin İçen |
| author_facet | Zeyneb Hafsa Orhan Murat Işıker Hüseyin İçen |
| author_sort | Zeyneb Hafsa Orhan |
| collection | DOAJ |
| description | Islamic indices provide a guideline for deciding which stocks to invest in; however, they mostly ignore investment purification. Despite the vitality of purification, the related literature is not well developed for several reasons. This paper aims to develop a purification method by considering the existing literature and applications. In this regard, ten Shariah-compliant firms listed in Borsa Istanbul from different industries were selected for 2021. Three scenarios are applied, suggesting holding shares for different periods. The findings suggest that investors are obliged to purify non-compliant income even when their rate of return is negative. The cost of purification can be severe when the investment firm has a high purification ratio. Conversely, investors should also purify their investments when there is a capital gain. |
| first_indexed | 2024-04-10T09:32:29Z |
| format | Article |
| id | doaj.art-e212925e2df44f1aa14f553906dc311f |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-04-10T09:32:29Z |
| publishDate | 2022-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-e212925e2df44f1aa14f553906dc311f2023-02-19T04:25:48ZengElsevierBorsa Istanbul Review2214-84502022-12-0122S24S34Developing a purification method for the stock exchange market gains: An application for Borsa IstanbulZeyneb Hafsa Orhan0Murat Işıker1Hüseyin İçen2Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, Kucukcekmece, Istanbul, TurkiyeDepartment of Business Administration, Istanbul Sabahattin Zaim University, Kucukcekmece, Istanbul, Turkiye; Corresponding author.Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, Kucukcekmece, Istanbul, TurkiyeIslamic indices provide a guideline for deciding which stocks to invest in; however, they mostly ignore investment purification. Despite the vitality of purification, the related literature is not well developed for several reasons. This paper aims to develop a purification method by considering the existing literature and applications. In this regard, ten Shariah-compliant firms listed in Borsa Istanbul from different industries were selected for 2021. Three scenarios are applied, suggesting holding shares for different periods. The findings suggest that investors are obliged to purify non-compliant income even when their rate of return is negative. The cost of purification can be severe when the investment firm has a high purification ratio. Conversely, investors should also purify their investments when there is a capital gain.http://www.sciencedirect.com/science/article/pii/S2214845022001211Islamic financeStock exchange investmentPurification methodBorsa Istanbul |
| spellingShingle | Zeyneb Hafsa Orhan Murat Işıker Hüseyin İçen Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul Borsa Istanbul Review Islamic finance Stock exchange investment Purification method Borsa Istanbul |
| title | Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul |
| title_full | Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul |
| title_fullStr | Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul |
| title_full_unstemmed | Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul |
| title_short | Developing a purification method for the stock exchange market gains: An application for Borsa Istanbul |
| title_sort | developing a purification method for the stock exchange market gains an application for borsa istanbul |
| topic | Islamic finance Stock exchange investment Purification method Borsa Istanbul |
| url | http://www.sciencedirect.com/science/article/pii/S2214845022001211 |
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