The impact of Coronavirus (COVID-19) outbreak on faith-based investments: An original analysis
Journal of Behavioral and Experimental Finance, 2020, vol. 28, issue C
This paper examines the rapid spread of Coronavirus (COVID-19) and its short-term impact on the Shariah-compliant UK Dow Jones market index to capture the dynamic behavior of stock returns at economy and industry levels. Using daily data over the period January 20 to May 20 and ten UK industrial sector groupings, the findings suggest a strong and statistically significant relationship between the COVID-19 pandemic and the performance of the conventional stock market index. The findings also suggest that the disease interacts negatively but insignificantly with the Dow Jones faith-based ethical (Islamic) index compared to its UK counterpart. In addition, through an analysis of sector groupings, the paper shows that the stock returns of the information technology sector performed significantly better than the market, while stock returns of consumer discretionary sector, which includes transportation, beverages, tourism and leisure, consumer services performed significantly worse than the market during the COVID-19 outbreak. Other sector groupings fail to yield significantly plausible parameter values.
Keywords: Coronavirus (COVID-19); Behavioral finance; Stock market indices; Faith-based investments (search for similar items in EconPapers)
JEL-codes: G02 G12 G17 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:28:y:2020:i:c:s2214635020303300
Access Statistics for this article
Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and JÃ¼rgen Huber
More articles in Journal of Behavioral and Experimental Finance from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().