Academic Journal
The dynamic interplay of Shariah compliance rank and financial performance: nonfinancial listed firms in Saudi Arabia as a testing ground
| العنوان: | The dynamic interplay of Shariah compliance rank and financial performance: nonfinancial listed firms in Saudi Arabia as a testing ground |
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| المؤلفون: | Boulanouar, Zakaria, Grassa, Rihab, Alqahtani, Faisal |
| المصدر: | Journal of Financial Reporting and Accounting ; ISSN 1985-2517 1985-2517 |
| بيانات النشر: | Emerald |
| سنة النشر: | 2024 |
| الوصف: | Purpose This paper aims to assess the rank of Shariah compliance (SC) and its impact on the financial performance of non-financial companies listed on the Saudi Stock Exchange. It seeks to understand the relationship between adherence to Shariah principles and the financial success of these companies, providing insights into the importance of SC in the Saudi Arabian context. Design/methodology/approach The study adopts a quantitative research approach, using financial and SC data from non-financial companies listed on the Saudi Stock Exchange. SC is measured using the Accounting and Auditing Organization for Islamic Financial Institutions standards. Financial performance is evaluated using various financial indicators, including return on assets (ROA), return on equity (ROE) and return on investments (ROI). Statistical analysis, including regression analysis, is conducted to examine the relationship between SC and financial performance. Findings The findings indicate a positive association between SC and financial performance in non-financial companies listed on the Saudi Stock Exchange. Companies with higher ranks of SC demonstrate superior financial performance, as evidenced by higher ROA, ROE and ROI. This suggests that adhering to Shariah principles can contribute to improved financial outcomes for companies operating in the Saudi Arabian market. Practical implications The study highlights the practical implications of maintaining SC for non-financial companies in Saudi Arabia. It emphasizes the importance of aligning business practices with Shariah principles to enhance financial performance. The findings suggest that companies can benefit from implementing Shariah-compliant strategies and practices, potentially attracting investors and improving their overall competitiveness in the market. Social implications The social implications of SC in the Saudi Arabian context are significant. Adhering to Shariah principles not only ensures compliance with religious and cultural norms but also promotes ethical and ... |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| DOI: | 10.1108/jfra-07-2023-0405 |
| DOI: | 10.1108/JFRA-07-2023-0405/full/xml |
| DOI: | 10.1108/JFRA-07-2023-0405/full/html |
| الاتاحة: | http://dx.doi.org/10.1108/jfra-07-2023-0405 https://www.emerald.com/insight/content/doi/10.1108/JFRA-07-2023-0405/full/xml https://www.emerald.com/insight/content/doi/10.1108/JFRA-07-2023-0405/full/html |
| Rights: | https://www.emerald.com/insight/site-policies |
| رقم الانضمام: | edsbas.DA3C08AA |
| قاعدة البيانات: | BASE |
| DOI: | 10.1108/jfra-07-2023-0405 |
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