A Conceptual Analysis of Financial Performance and Shari’ah Stock Values in Indonesia’s Islamic Economy
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Abstract
This conceptual article examines the relationship between the financial performance of Shari’ah-compliant companies and Shari’ah stock values within the context of Indonesia’s growing Islamic economy. Utilizing a pure literature review methodology, this study critically analyzes existing theoretical frameworks, Islamic economic principles, and contemporary literature to understand how financial metrics influence stock valuation from a qualitative perspective. The analysis reveals that while conventional financial performance indicators remain crucial for market confidence, Shari’ah stock values are deeply intertwined with ethical governance, compliance with Islamic law, and broader socio-economic impacts (Maqasid al-Shari'ah). Furthermore, the study illustrates how a robust Shari’ah stock market serves as a vital pillar for stabilizing and advancing the national Islamic economic ecosystem. By synthesizing current academic discourse, this paper provides a comprehensive conceptual model that bridges corporate financial health with Islamic economic development. It offers valuable insights for policymakers, scholars, and investors seeking a deeper theoretical understanding of Islamic capital market dynamics in Indonesia.
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