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Analyzing Syariah and Conventional Stocks Performance
in Malaysia: Statistical Analysis
Chew Wan Jun
Supervisor: Dr. Syerinna Binti Zakaria
Bachelor of Science (Financial Mathematics)
School of Informatics and Applied Mathematics
A rapid growth of Islamic finance in the past decades has attracted many investors to
focus on Shariah compliant stocks rather than conventional stocks. The argument
whether the performance of Shariah compliant stocks are better compared to the
conventional stocks still remains an open question with a lot of studies have been
conducted. Therefore, this research examines whether there are differences in
performance between the Shariah compliant stocks and the conventional stocks listed on
the Bursa Malaysia for the period 2013-2015. Second, whether there are significant
relationships between stock returns and financial ratios (EPS, ROA, Current ratio, ROE
and DER) of both Syariah and conventional stocks. By using Mann Whitney U-test and
Levene’s Test, the result shows no significant differences in returns and risk. Multiple
regression analysis finds that the financial ratios have relationship with both of Syariah
and conventional stocks returns.
796 | UMT UNDERGRADUATE RESEARCH DAY 2018