Factors influencing shariah (islamic) compliant stock index: Malaysian evidence

Sakinah Jamil and Abul Masih

MPRA Paper from University Library of Munich, Germany

Abstract: There has been a surge in the issuance of shariah (Islamic) compliant stocks particularly since the financial crisis of 2007.2008. This is mainly because the Islamic stocks were found much safer compared to the conventional stocks during the period of the financial crisis. The purpose of this paper is to investigate the factors which influence the shariah (Islamic) compliant stock index. Malaysia is taken as a case study. The standard time series techniques such as (the cointegration, error-correction model and variance decompositions and impulse response functions) have been employed for the analysis. The findings tend to indicate that the Islamic stock (called EMAS shariah index) was driven mainly by the conventional factors such as, the money supply, exchange rate and conventional stocks. The findings have strong policy implications for the investors and decision makers

Keywords: Shariah (Islamic) compliant stocks; determinants of shariah stocks; Malaysia (search for similar items in EconPapers)
JEL-codes: C22 C58 E44 (search for similar items in EconPapers)
Date: 2018-04-18
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