 Sailing with the non-conventional stocks when there is no place to hideA.S.M. Azad, Saad Azmat, Abdelaziz Chazi and Amirul Ahsan Journal of International Financial Markets, Institutions and Money, 2018, vol. 57, issue C, 1-16 Abstract: This paper provides both theoretical and empirical support on how non-conventional (i.e., Islamic) stocks could act as a hedge during a tranquil environment and provide a shelter in times of a systematic economic and financial crisis. We build a three period model that focuses on Islamic equities’ financial filters, market wide liquidity and the role of Shariah conscious customers to show how Islamic stocks could provide a shelter during a financial crisis. We then offer empirical support by using quantile regressions to analyse the relation between conventional and non-conventional (i.e., Islamic) stock markets. Using major indices from around the world, we provide strong support for Islamic stocks as a hedge for majority of the markets under study suggesting that they offer a safe haven against most international markets. We suggest that during the major economic and financial crises, investors could use Islamic stocks to diversify their risks. Keywords: Conventional stocks; Islamic stocks; Hedge; Safe haven; Financial crisis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:57:y:2018:i:c:p:1-16 DOI: 10.1016/j.intfin.2018.04.001 Access Statistics for this article Journal of International Financial Markets, Institutions and Money is currently edited by I. Mathur and C. J. Neely More articles in Journal of International Financial Markets, Institutions and Money from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.