Examining the Relationship Between Risk and Resilience on Shariah Acceptance

This study aims to examine the effects of corporate risk and organizational resilience on the level of Shariah acceptance among Iranian industrial and manufacturing firms. This applied, descriptive-analytical research collected data through structured questionnaires and secondary sources. The statistical population includes 66 public and private companies listed on the Tehran Stock Exchange from 2001 to 2023. Risk was assessed through total and idiosyncratic risk indices, resilience via sales, cost structure, operating expenses, and stock price volatility, and Shariah acceptance through Dow Jones Islamic Market Index (DJIMI) screening criteria. Data analysis was conducted using SPSS, Minitab, and Excel. Multiple regression analysis revealed a significant positive relationship between corporate resilience and Shariah acceptance, and a significant negative relationship between corporate risk and Shariah acceptance. The model's R-squared was 0.784, and the regression correlation coefficient was 0.885. Moreover, Shariah-compliant companies demonstrated higher resilience and lower risk compared to their non-compliant counterparts, especially during economic crises. Shariah acceptance serves as a strategic factor in enhancing corporate resilience and reducing exposure to risk. The findings suggest that adherence to Islamic principles contributes to better organizational performance and greater stability in the face of economic shocks.