Abstract

Background: Sharīʿah-compliance and Environmental, Social, and Governance (ESG) principles represent two major ethical paradigms shaping contemporary finance. Yet, empirical evidence on their combined impact on firm performance remains limited.
Objective: This study investigates how Sharīʿah and ESG compliance, individually and jointly, affect firm performance, focusing on both accounting-based (ROA) and market-based(Tobin's Q) indicators.

Keywords

Sharīʿah-compliance; Sharīʿah screening; ESG integration; Firm performance; Ethical screening; Islamic finance;Dynamic panel analysis