Islamic Performance Measurement System: Driving firms towards virtuous wealth creation

This study explores the principles of Islam applied to the development of a performance measurement system (PMS) that motivates the behavior of firms, and drive ethical behaviour internally from within. The purpose of this study was two-fold, with Stage 1 comprised of the development and validation of a new PMS based on Islamic principles (referred to as the new IPMS framework), and Stage 2 comprised the quantitative analysis comparing the performance of Shariah compliant firms versus non-Shariah compliant firms. Findings report mixed results, suggesting a revision of current screening methodologies practised by companies and imposed by regulators.