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Application of Maqasid al-Shariah in responsible investment (MSRI) and practices towards ESG


 
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1. Title Title of document Application of Maqasid al-Shariah in responsible investment (MSRI) and practices towards ESG
 
2. Creator Author's name, affiliation, country Nur Ainna Ramli; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Fauzias Mat Nor; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Muhammad Ridhwan Ab. Aziz; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Syahidawati Shahwan; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Ainulashikin Marzuki; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Mohamad Yazis Ali Basah; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
2. Creator Author's name, affiliation, country Hisham Sabri; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia (USIM), Bandar Baru Nilai; Malaysia
 
3. Subject Discipline(s) Finance
 
3. Subject Keyword(s) environmental, social and governance (ESG); sustainable and responsible investment (SRI); Maqasid al-Shariah; MSRI
 
4. Description Abstract

This paper aims to develop a holistic framework for the Maqasid al-Shariah in Responsible Investment (MSRI) index for selected publicly listed companies in the Malaysian capital market. To test the validity of the MSRI framework, a sample of 30 publicly listed companies from 2021 was selected using purposive sampling. The framework consists of eight themes with forty-five elements to evaluate companies based on their annual reports, sustainability reports, and public disclosures. The scores are classified into three categories: Shariah compliant, Shariah non-compliant, and Hajiyyat. Out of the 30 selected companies, the summary of MSRI scores concludes that twenty (20) companies were identified as Shariah compliant, while the remaining four (4) were classified as Shariah non-compliant, and six (6) as Hajiyyat. Overall, the results of the analyses show that the sustainability of the company and society has a higher percentage than the wealth preservation of companies. This research differs substantially from prior work by offering a novel approach that develops a holistic framework integrating Maqasid al-Shariah with elements of responsible investment. This study believes it can provide valuable guidance for formulating Islamic investment public policy for selected investment portfolios.

 
5. Publisher Organizing agency, location EnPress Publisher
 
6. Contributor Sponsor(s)
 
7. Date (YYYY-MM-DD) 2024-12-25
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier https://systems.enpress-publisher.com/index.php/jipd/article/view/5864
 
10. Identifier Digital Object Identifier (DOI) https://doi.org/10.24294/jipd5864
 
11. Source Title; vol., no. (year) Journal of Infrastructure, Policy and Development; Vol 8, No 16 (Published)
 
12. Language English=en en
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
15. Rights Copyright and permissions Copyright (c) 2024 Nur Ainna Ramli, Fauzias Mat Nor, Muhammad Ridhwan Ab. Aziz, Syahidawati Shahwan, Ainulashikin Marzuki, Mohamad Yazis Ali Basah, Hisham Sabri
https://creativecommons.org/licenses/by/4.0/