RT Journal Article SR Electronic T1 Momentum Strategies in Shari’ah-Compliant Stocks: The Role of Debt JF The Journal of Investing FD Institutional Investor Journals SP 90 OP 111 DO 10.3905/joi.2015.24.2.090 VO 24 IS 2 A1 Javeria Farooqi A1 Thanh Ngo A1 Daniel Huerta-Sanchez A1 Haiwei Chen YR 2015 UL https://pm-research.com/content/24/2/90.abstract AB This article examines whether investors can execute profitable momentum strategies using Shari’ah-compliant stocks to enhance returns. We find no significant profits from either the traditional return-based momentum strategy or the turnover-based momentum strategy for Shari’ah-compliant stocks from 1996 to 2009. Such nonexistence of momentum profits for Islamic equities can be attributed to their low level of debt, higher level of transparency, and the endorsement effect from the Shari’ah independent supervisory board. Our results are consistent with the credit-rating hypothesis in Avramov et al. [2007] that low-credit firms drive momentum profits.TOPICS: Security analysis and valuation, ESG investing, performance measurement, emerging