Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui

The main objective of this paper is to analyse the performance of both Islamic and conventional stock market indices, particularly during the financial subprime crisis period. For this purpose, we use updated data including the recent financial instability periods and a relevant methodology based on...

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Main Authors: Rejeb, Aymen Ben, Arfaoui, Mongi
Format: Article
Language:English
Published: Universiti Teknologi MARA Selangor 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/32224/
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author Rejeb, Aymen Ben
Arfaoui, Mongi
author_facet Rejeb, Aymen Ben
Arfaoui, Mongi
author_sort Rejeb, Aymen Ben
building UiTM Institutional Repository
collection Online Access
description The main objective of this paper is to analyse the performance of both Islamic and conventional stock market indices, particularly during the financial subprime crisis period. For this purpose, we use updated data including the recent financial instability periods and a relevant methodology based on the time varying parameter model combined with a GARCH specification, a Granger non-causal test and a structural break points technique. The empirical results show that the weak efficiency hypothesis is relatively verified in the Islamic context than in the conventional one. Moreover, we can conclude that Islamic markets are not fully immunised against the effects of financial crises and the strong financial fragilities. The results of the Granger non-causality test suggest that the Islamic stock markets have succeeded to relatively escape important part of the last subprime crisis harmful effects. This may encourage investment in this type of markets and therefore allows the strengthening of economic growth.
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spelling uitm-322242020-07-14T04:45:38Z https://ir.uitm.edu.my/id/eprint/32224/ Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui jeeir Rejeb, Aymen Ben Arfaoui, Mongi Investment, capital formation, speculation Stock exchanges. Insider trading in securities The main objective of this paper is to analyse the performance of both Islamic and conventional stock market indices, particularly during the financial subprime crisis period. For this purpose, we use updated data including the recent financial instability periods and a relevant methodology based on the time varying parameter model combined with a GARCH specification, a Granger non-causal test and a structural break points technique. The empirical results show that the weak efficiency hypothesis is relatively verified in the Islamic context than in the conventional one. Moreover, we can conclude that Islamic markets are not fully immunised against the effects of financial crises and the strong financial fragilities. The results of the Granger non-causality test suggest that the Islamic stock markets have succeeded to relatively escape important part of the last subprime crisis harmful effects. This may encourage investment in this type of markets and therefore allows the strengthening of economic growth. Universiti Teknologi MARA Selangor 2017-09 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/32224/1/AJ_AYMEN%20BEN%20REJEB%20B%2017.pdf Rejeb, Aymen Ben and Arfaoui, Mongi (2017) Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui. (2017) Journal of Emerging Economies and Islamic Research (JEEIR) <https://ir.uitm.edu.my/view/publication/Journal_of_Emerging_Economies_and_Islamic_Research_=28JEEIR=29.html>, 5 (3). pp. 1-18. ISSN 2289-2559 https://journal.uitm.edu.my/ojs/index.php/JEEIR/
spellingShingle Investment, capital formation, speculation
Stock exchanges. Insider trading in securities
Rejeb, Aymen Ben
Arfaoui, Mongi
Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title_full Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title_fullStr Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title_full_unstemmed Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title_short Conventional and islamic stock markets: what about financial performance? / Aymen Ben Rejeb and Mongi Arfaoui
title_sort conventional and islamic stock markets: what about financial performance? / aymen ben rejeb and mongi arfaoui
topic Investment, capital formation, speculation
Stock exchanges. Insider trading in securities
url https://ir.uitm.edu.my/id/eprint/32224/
https://ir.uitm.edu.my/id/eprint/32224/