This paper studies the short and long term relationship between S&P500 USA stock market index and the stock market indices of 30 countries around the world over the period June 2010-April 2015. We implement OLS regression and use error correction model to examine the short and long term relationship between the variables. Empirically, we find that there is a relationship on the short and long term between S&P500 and the indices of 27 countries from East Asia, Europe, Latin America, Middle East as well as the countries of Australia and Canada. These results conclude that the global financial crisis of 2007-2008 significantly and lengthy increased the already high level of co-movement between the USA financial market and the observed stock market for 27 countries around the world. The findings from our research are important; however, we believe that further research based on our findings is necessary.
Purpose: This study aims to introduce financial derivatives and their tools and the risks they cause, with an indication of their relationship to financial crises, which contributes to drawing the broad outlines of the Islamic alternative and determines the reality of the failure of the global financial system in managing risks through traditional financial derivatives.
Theoretical framework: Introduce financial derivatives and their tools and the risks they cause, with an indication of their relationship to financial crises, and alternatives from the point of view of Islamic economics.
Methodology: The study was based on a qualitative research method, as it collected information from books, reports, magazines, newspapers, and websites.
Findings: The financial derivatives increased risks and led us into crises. while Islamic Sharia provides an alternative to risk management, which focuses on avoiding fake sales and creating ethical and clean financial markets.
Research, Practical & Social implications: Financial markets, financial derivatives markets, financial institutions, banks, and insurance companies are considered. And small customers, the most important beneficiaries of these ideas.
Originality/value: This research is the original work of the authors and differs from other previous studies in that it proves the existence of a disciplined Islamic alternative within the foundations and standards of Islamic economics and shows its feasibility for successful practical application, particularly in the face of financial crises, addressing them during their occurrence and preventing them before they occur.
The main objective of this study is to explore how the Istisna’ contract is used as a financing tool for industrial clusters, and how Istisna’ contracts are being used to overcome their problems to increase their effectiveness in the national economy. The study used the descriptive analytical approach to review the scientific literature of industrial clusters and the jurisprudential references to describe the Istisna’ contract and identify its role as a financing tool. As a conclusion, it was being found that Istisna’ contract is a flexible and effective financing tool that could be employed in financing and developing industrial clusters. Also it was recommended that, Islamic Banks adopt financing all components of the industrial clusters through Istisna contract.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.