Islamic Finance and Herding Behavior Theory: A Sectoral Analysis for Gulf Islamic Stock Market

Imed Medhioub and Mustapha Chaffai
Additional contact information
Mustapha Chaffai: Department of Management, High Business School, Sfax University, 3029 Sfax, Tunisia

IJFS, 2019, vol. 7, issue 4, 1-11

Abstract: This study examines herding behavior in four sectors of the Gulf Islamic stock markets. Based on the methodology of Chiang and Zheng (2010), results showed evidence of herding among investors in major sectors for the Gulf Cooperation Council (hereinafter GCC) Islamic stock market during falling periods. In addition, we found that conventional return dispersions have a dominant influence during both falling and rising market periods. We also found evidence of herding around the conventional sectors during down market periods only in banking, hotel and restaurant sectors. There is evidence of herding around the conventional sectors during up market periods for insurance and industrial sectors.

Keywords: Islamic stock market; GARCH model; Quantile regression; herding behavior; GCC countries; sectoral analysis; G11; G12; G15 (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2227-7072/7/4/65/pdf (application/pdf)
https://www.mdpi.com/2227-7072/7/4/65/ (text/html)

Related works:
Working Paper: Islamic finance and herding behavior theory: a sectoral analysis for Gulf Islamic stock market (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:7:y:2019:i:4:p:65-:d:283240

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().