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The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data

In this study, we extend the recently heated debate that compares the performance of Shariah compliant equities with their non-Shariah compliant counterparts especially during the Covid-19 shock. Unlike the existing literature, which uses stock market index level data to reach controversial conclusi...

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Detalles Bibliográficos
Autores principales: shear, Falik, Ashraf, Badar Nadeem
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8821027/
https://www.ncbi.nlm.nih.gov/pubmed/35153365
http://dx.doi.org/10.1016/j.ribaf.2022.101622
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author shear, Falik
Ashraf, Badar Nadeem
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Ashraf, Badar Nadeem
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description In this study, we extend the recently heated debate that compares the performance of Shariah compliant equities with their non-Shariah compliant counterparts especially during the Covid-19 shock. Unlike the existing literature, which uses stock market index level data to reach controversial conclusions, we use firm-level stock returns data to find robust evidence that Shariah compliant stocks outperformed their conventional counterparts during the Covid-19 market meltdown. More specifically, we find that the prices of Shariah compliant stocks reacted to the increase in Coronavirus confirmed cases and government social distancing measures with lower negative returns than the prices of non-Shariah compliant stocks. Overall, our findings imply that Shariah compliant stocks fared better during the Covid-19 crisis episode.
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spelling pubmed-88210272022-02-08 The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data shear, Falik Ashraf, Badar Nadeem Res Int Bus Finance Full length Article In this study, we extend the recently heated debate that compares the performance of Shariah compliant equities with their non-Shariah compliant counterparts especially during the Covid-19 shock. Unlike the existing literature, which uses stock market index level data to reach controversial conclusions, we use firm-level stock returns data to find robust evidence that Shariah compliant stocks outperformed their conventional counterparts during the Covid-19 market meltdown. More specifically, we find that the prices of Shariah compliant stocks reacted to the increase in Coronavirus confirmed cases and government social distancing measures with lower negative returns than the prices of non-Shariah compliant stocks. Overall, our findings imply that Shariah compliant stocks fared better during the Covid-19 crisis episode. Elsevier B.V. 2022-04 2022-02-08 /pmc/articles/PMC8821027/ /pubmed/35153365 http://dx.doi.org/10.1016/j.ribaf.2022.101622 Text en © 2022 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Full length Article
shear, Falik
Ashraf, Badar Nadeem
The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title_full The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title_fullStr The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title_full_unstemmed The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title_short The performance of Islamic versus conventional stocks during the COVID-19 shock: Evidence from firm-level data
title_sort performance of islamic versus conventional stocks during the covid-19 shock: evidence from firm-level data
topic Full length Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8821027/
https://www.ncbi.nlm.nih.gov/pubmed/35153365
http://dx.doi.org/10.1016/j.ribaf.2022.101622
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