The Market Uncertainty of Ethically Compliant Equity: An Integrated Screening Approach  

Omneya Abdelsalam, Norhidayah Abu Bakar, Ahmed Elmasry, Abderrahim Taamouti

Research output: Contribution to journalArticlepeer-review


This study investigates the uncertainty of market returns for ethically-compliant equity using the comprehensive ethical screening methodology. The analysis also compares the effect of different ethical screening stages on firm uncertainty. We develop a comprehensive ethical screening framework that fulfils the intrinsic value of religion and responds to contemporary ethical challenges. Using the comprehensive framework, a set of non-financial companies are screened for their fulfilment of religious and ethical values. The framework is not only focused on basic screening methodologies that are currently used in the industry but will also cover the aspect of environmental, social and governance (ESG) performances, as well as earnings qualities. The analysis reveals that the ethically-compliance firms display lower uncertainty as compared to the non-ethical compliance firms. The level of firm uncertainty is also different between the screening stages, where ethical firms screened using a more intense approach are exposed to lower uncertainty. The results are robust to various estimations and consistent during the 2008 financial crisis.
Original languageEnglish
Article number101759
Pages (from-to)(In-Press)
JournalJournal of International Financial Markets, Institutions and Money
Early online date10 Mar 2023
Publication statusPublished - Jul 2023


This research received partial funding from the El Shaarani Research Centre for Ethical Finance, Accountability & Governance at Durham University. Publisher Copyright: © 2023


  • ethical screening
  • ethical-compliance
  • uncertainty
  • volatility
  • returns stability


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