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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| Format: | Article |
| Language: | English English |
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Islamic Bank Training and Research Academy (IBTRA)
2017
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| Online Access: | 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 |
| _version_ | 1848785634759540736 |
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| author | Abdullah, Adam Hassan, Rusni Kassim, Salina |
| author_facet | Abdullah, Adam Hassan, Rusni Kassim, Salina |
| author_sort | Abdullah, Adam |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T16:56:16Z |
| format | Article |
| id | iium-61228 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:56:16Z |
| publishDate | 2017 |
| publisher | Islamic Bank Training and Research Academy (IBTRA) |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 |
| 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 |
| title | 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_short | Modeling the performance of bulk-carriers for Islamic equity investors |
| title_sort | modeling the performance of bulk-carriers for islamic equity investors |
| topic | HB126.4 Islamic Economics HE199 Freight (General) HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation |
| 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 |