The Islamic effect: Exploring the dynamics of Islamic events on sustainable performance of Islamic and conventional stock markets

Almaida, Asty, Abbas, Ulfat, Watto, Waqas Ahmad, Asdullah, Muhammad Ashar ORCID: https://orcid.org/0000-0003-1256-1158, Fahlevi, Mochammad and Ichdan, Dany Amrul (2023) The Islamic effect: Exploring the dynamics of Islamic events on sustainable performance of Islamic and conventional stock markets. Uncertain Supply Chain Management, 12. pp. 235-248. ISSN 2291-6830

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Abstract

This study attempts to investigate the effects of Islamic events on both Islamic and conventional stock markets and analyze which market reacts more pronouncedly to these events. From 2012 to 2022, the research used daily stock return data from eight nations: Kuwait, India, Nigeria, Malaysia, Pakistan, Qatar, Saudi Arabia, and the United Arab Emirates. The study examines how Islamic holidays such as Ashura, Eid Meelad ul Nabi, Eid ul Azha, and Ramadan affect both Islamic and Western stock markets. The researchers use the Generalized Autoregressive Conditional Heteroscedastic (GARCH) model to analyze the data. The results of this analysis show that Islamic events in India, Nigeria, Malaysia, Pakistan, and Qatar have a strong and favorable link with Islamic stock returns. However, it was discovered that there is a little correlation between Islamic events and Islamic stock returns in the remaining three nations. The study also reveals a strong and favorable correlation between Islamic events and conventional stock performance in all countries. By offering a comparative analysis of the effect of Islamic events on Islamic stock markets and mainstream stock markets, these findings add to the body of current material. Every religion has its own set of rituals that its adherents observe, and these rituals frequently have an impact on different economic and non-economic activities. This study sheds light on the precise connection between these events and stock market performance by examining the impact of Islamic occasions on both Islamic and conventional stock markets.

Item Type: Article
Uncontrolled Keywords: islamic stock,sustainable performance,islamic stock market return,islamic anomalies,conventional market return,stock market return,business and international management,management information systems,statistics, probability and uncertainty,strategy and management,management science and operations research ,/dk/atira/pure/subjectarea/asjc/1400/1403
Faculty \ School: Faculty of Social Sciences > Norwich Business School
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 22 May 2024 09:31
Last Modified: 28 May 2024 08:31
URI: https://ueaeprints.uea.ac.uk/id/eprint/95278
DOI: 10.5267/j.uscm.2023.10.002

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