• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.515-521
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• 2021

The popularity of Islamic financial instruments among Muslims is not surprising. The Islamic capital market is where sharia-compliant financial assets are transacted. It works parallel to the conventional market and helps investors find sharia-compliant investment opportunities. At a time of collective confusion when the COVID-19 epidemic is contributing to unprecedented change, this paper is keen to understand how attractive conventional and Islamic stock markets have been to investors recently. Second, this paper takes advantage of the time-scale decomposition property of the wavelet to simultaneously capture risk exposure and distinguish the risks faced by short- and long-term investors. To this end, this research conducted a two-step investigation of the daily closing equity market price indices for three Islamic stock markets and their conventional counterparts. Given that different financial decisions occur with greater or less frequency, the paper examines the connectedness of stock markets operating at heterogeneous rates and identifies the timescales using wavelet-DCC-GARCH analysis to take account of both the time and the frequency domains of stock market connectedness. The paper findings highlight the strong evidence of contagion that can be seen in nearly all conventional stock markets in the COVID-19 pandemic; they reach a high level of dependency in such health crises. Furthermore, Islamic stock markets prove to be a rich ground for global diversification.

• The Journal of Asian Finance, Economics and Business
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• 제9권4호
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• pp.409-417
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• 2022

This research uses a panel data set of selected developed and emerging economies to investigate the relationship between firm value and the Islamic label. A low-debt company is a proxy for excellent governance, and good governance has a significant positive impact on a company's valuation. We can claim that the Islamic label may also be a proxy for excellent governance and will significantly impact a company's economic value because it reflects low debt Sharia-compliant companies. To explore this relationship, cross-country data from non-financial enterprises in Pakistan, the United States, Malaysia, and Indonesia was acquired from 2010 to 2015. The study's findings indicate that the Islamic label has a positive significant impact on the firm's worth in the whole sample, including all countries. With the exception of the United States, we have also collected the same information at the country level. We also discovered that the corporate governance index at the firm level has a positive significant impact on firm value. The findings show that the Islamic label reflects good governance and hence can be used as a proxy for good governance. The analysis differentiates between Islamic labeled and conventional enterprises in developed and emerging nations, adding to our understanding of who contributes to enhanced corporate financial performance.

• The Journal of Asian Finance, Economics and Business
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• 제10권1호
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• pp.145-156
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• 2023

Within the context of publicly traded Sharia-compliant companies in Malaysia, this study investigated the influence that board and company characteristics have on corporate donations. The primary focus of the study was (i) two board characteristics derived from upper echelons theory, namely gender composition and education level, and (ii) four firm variables derived from stakeholder theory, specifically company size, profitability, leverage, and industry category. This study used a total of 402 Shariah-compliant companies that operated in accordance with Shariah law. The information utilized in this study was culled by hand from the annual reports of various companies covering the years 2017 through 2019. According to the findings, the educational level of a company's board of directors has a significant impact on the amount of money donated to charitable organizations by Shariah-compliant companies. The level of expertise possessed by board members can be of assistance to businesses in becoming more aware of the necessity of making contributions or donations. Corporate contribution practices among Shariah-compliant companies in Malaysia were also significantly influenced by the firm's size, profitability, and the industry category in which the business was classified. The findings of the study contribute to a better understanding of the impact that board and company variables have on the activities of corporate donors.