Islamic finance in frontier financial markets: An alternative or a complement to conventional finance?

La finance islamique dans les marchés financiers frontières: Une alternative ou un complément à la finance conventionnelle ?

Ayoub Rabhi and Amina Haoudi
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Amina Haoudi: CERAPE - Laboratoire de Coordination des Études et des Recherches en Analyse et Prévisions Économiques - USMBA - Université Sidi Mohamed Ben Abdellah

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Abstract: Considering the multiple failures of conventional finance to fulfill its ultimate mission of promoting economic activity, there has been a heated debate over the last few years to revise and renovate the international financial system in order to improve risk control and create alternative models of finance. In this framework, Islamic finance known as ethical finance is currently considered solid, efficient and a less risky in the financial markets. The objective of our paper is to empirically explore the efficient market hypothesis through the study of Islamic stock indexes and diversification opportunities in comparison with their equivalents of conventional finance in the context of frontier markets by using time series analysis. The choice of this market category appeared relevant since most theoretical and empirical academic studies focus on testing the efficient market hypothesis only for developed and emerging markets.

Keywords: Efficient-Market Hypothesis; Stock Indices; Time series; Frontier Markets.; Islamic Finance; Conventional Finance; Indices boursiers; Finance islamique; Marchés frontières.; Hypothèse de l’efficience du marché financier; Finance conventionnelle; Séries temporelles (search for similar items in EconPapers)
Date: 2017
Note: View the original document on HAL open archive server: https://hal.science/hal-02432619v1
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Published in Finance: vers un renouvellement des approches et des pratiques, pp.173-198, 2017

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