View in EDS PDF Full Text

IDENTIFICATION OF RISK FACTORS: A COMPARISON OF CONVENTIONAL AND ISLAMIC STOCKS.

Saved in:
Bibliographic Details
Title: IDENTIFICATION OF RISK FACTORS: A COMPARISON OF CONVENTIONAL AND ISLAMIC STOCKS.
Authors: HANIF, Muhammad1 m.hanif@ajman.ac.ae
Source: Technological & Economic Development of Economy. 2025, Vol. 31 Issue 5, p1433-1456. 24p.
Subjects: Macroeconomics, Emerging markets, Risk assessment, Cointegration, Granger causality test, Islamic finance, Stocks (Finance), Stock price indexes
Abstract: The study identifies the difference in the long-run risk factors for Conventional Capital Market (CCM) and Islamic Capital Market (ICM) in the post-Shari'ah-screening era in an emerging market. The sample includes macroeconomic variables representing the real sector (industrial production), money market (interest rate), international market (exchange rate) and external sector (exports and workers' remittances) and two market indexes for 164 Months (01/10-08/23). Johansen cointegration and Granger causality tests are applied to document the evidence. Results support the integration of market indexes with macroeconomic indicators; however, market indexes lack mutual integration in the long run. The integrated group of variables differs slightly for ICM (exchange rate and industrial production) and CCM (industrial production). The real sector activity is reflected in the market, while the monetary sector is missing. The behaviour of the Islamic market is in line with the theory - a reflection of the real sector and lack of integration with interest rates. We recommend three policy actions, including improved facilitation of industrial production, prudent management of exchange rate, and a balanced monetary policy, as theory suggests the usefulness of stock indicators for monetary policymaking. The comparative study on macroeconomic risk factors in an emerging market enhances the understanding of a market with dual indexes, including CCM and ICM. [ABSTRACT FROM AUTHOR]
Copyright of Technological & Economic Development of Economy is the property of Vilnius Gediminas Technical University and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Engineering Source
FullText Links:
  – Type: pdflink
Text:
  Availability: 0
Header DbId: egs
DbLabel: Engineering Source
An: 189380225
AccessLevel: 6
PubType: Academic Journal
PubTypeId: academicJournal
PreciseRelevancyScore: 0
IllustrationInfo
Items – Name: Title
  Label: Title
  Group: Ti
  Data: IDENTIFICATION OF RISK FACTORS: A COMPARISON OF CONVENTIONAL AND ISLAMIC STOCKS.
– Name: Author
  Label: Authors
  Group: Au
  Data: <searchLink fieldCode="AR" term="%22HANIF%2C+Muhammad%22">HANIF, Muhammad</searchLink><relatesTo>1</relatesTo><i> m.hanif@ajman.ac.ae</i>
– Name: TitleSource
  Label: Source
  Group: Src
  Data: <searchLink fieldCode="JN" term="%22Technological+%26+Economic+Development+of+Economy%22">Technological & Economic Development of Economy</searchLink>. 2025, Vol. 31 Issue 5, p1433-1456. 24p.
– Name: Subject
  Label: Subjects
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Macroeconomics%22">Macroeconomics</searchLink><br /><searchLink fieldCode="DE" term="%22Emerging+markets%22">Emerging markets</searchLink><br /><searchLink fieldCode="DE" term="%22Risk+assessment%22">Risk assessment</searchLink><br /><searchLink fieldCode="DE" term="%22Cointegration%22">Cointegration</searchLink><br /><searchLink fieldCode="DE" term="%22Granger+causality+test%22">Granger causality test</searchLink><br /><searchLink fieldCode="DE" term="%22Islamic+finance%22">Islamic finance</searchLink><br /><searchLink fieldCode="DE" term="%22Stocks+%28Finance%29%22">Stocks (Finance)</searchLink><br /><searchLink fieldCode="DE" term="%22Stock+price+indexes%22">Stock price indexes</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: The study identifies the difference in the long-run risk factors for Conventional Capital Market (CCM) and Islamic Capital Market (ICM) in the post-Shari'ah-screening era in an emerging market. The sample includes macroeconomic variables representing the real sector (industrial production), money market (interest rate), international market (exchange rate) and external sector (exports and workers' remittances) and two market indexes for 164 Months (01/10-08/23). Johansen cointegration and Granger causality tests are applied to document the evidence. Results support the integration of market indexes with macroeconomic indicators; however, market indexes lack mutual integration in the long run. The integrated group of variables differs slightly for ICM (exchange rate and industrial production) and CCM (industrial production). The real sector activity is reflected in the market, while the monetary sector is missing. The behaviour of the Islamic market is in line with the theory - a reflection of the real sector and lack of integration with interest rates. We recommend three policy actions, including improved facilitation of industrial production, prudent management of exchange rate, and a balanced monetary policy, as theory suggests the usefulness of stock indicators for monetary policymaking. The comparative study on macroeconomic risk factors in an emerging market enhances the understanding of a market with dual indexes, including CCM and ICM. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Technological & Economic Development of Economy is the property of Vilnius Gediminas Technical University and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=egs&AN=189380225
RecordInfo BibRecord:
  BibEntity:
    Identifiers:
      – Type: doi
        Value: 10.3846/tede.2025.22918
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 24
        StartPage: 1433
    Subjects:
      – SubjectFull: Macroeconomics
        Type: general
      – SubjectFull: Emerging markets
        Type: general
      – SubjectFull: Risk assessment
        Type: general
      – SubjectFull: Cointegration
        Type: general
      – SubjectFull: Granger causality test
        Type: general
      – SubjectFull: Islamic finance
        Type: general
      – SubjectFull: Stocks (Finance)
        Type: general
      – SubjectFull: Stock price indexes
        Type: general
    Titles:
      – TitleFull: IDENTIFICATION OF RISK FACTORS: A COMPARISON OF CONVENTIONAL AND ISLAMIC STOCKS.
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: HANIF, Muhammad
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 01
              M: 09
              Text: 2025
              Type: published
              Y: 2025
          Identifiers:
            – Type: issn-print
              Value: 20294913
          Numbering:
            – Type: volume
              Value: 31
            – Type: issue
              Value: 5
          Titles:
            – TitleFull: Technological & Economic Development of Economy
              Type: main
ResultId 1