Is conservatism good news? The case of stocks of Jakarta Islamic index

Rudiawarni, Felizia Arni; Sulistiawan, Dedhy; Sergi, Bruno S.

doi:10.1016/j.heliyon.2022.e09292

Cited by 9 publications

(8 citation statements)

References 57 publications

(98 reference statements)

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“…The policies implemented by various countries, such as restrictions on gatherings and lockdowns, have further amplified the negative impact of the pandemic on the economy. Consequently, Islamic capital markets worldwide, including those in Indonesia, have experienced an unprecedented and severe downturn in Islamic stocks and Islamic stock indices (Rudiawarni et al, 2022;Muarif, Ibrahim, & Amri, 2021).…”

Section: Discussionmentioning

confidence: 99%

Global Market Reaction to the Indonesian Islamic Capital Market During Covid Outbreak

Habibi

Normasyhuri

Ma'rifah

2023

SJEKI

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The COVID-19 pandemic has impacted the global Islamic capital market, including Indonesia. As a result, it is critical to investigate the global stock market reaction to this issue. This study seeks to comprehend the global Islamic stock market's reaction to the Indonesian Islamic stock market, as represented by the Jakarta Islamic Index (JII), during the COVID-19 outbreak. To test the hypothesis, this study employs the Error Correction Model (ECM) techniques. The findings revealed that the global Islamic stock market had a significant influence on the Indonesian Islamic stock market during that time, both in the short and long term. This is due to the Islamic stock market's interconnected nature, which attracts investors as it allows foreigners to own Islamic stocks in Indonesia, and also offers valuable long- and short-term prospects. In addition, the globalization of the world economy, social and political relations are interrelated between countries, especially in the era of COVID-19. Because the outbreak was unavoidable, it caused global economic chaos and extreme crises, including investments in the Islamic stock market. In light of crisis, the findings of this study can be used as practical guidance for investors considering investing in the Islamic stock market.============================================================================================================== ABSTRAK - Reaksi Pasar Global Terhadap Pasar Modal Syariah Indonesia Dalam Masa Covid-19. Pandemi COVID-19 berdampak pada pasar modal syariah global, termasuk Indonesia. Oleh karena itu, kajian yang berkaitan dengan hal tersebut sangat penting dilakukan. Penelitian ini bertujuan untuk mengkaji reaksi pasar modal syariah global terhadap pasar modal syariah Indonesia yang diwakili oleh Jakarta Islamic Index (JII) dalam masa COVID-19. Untuk menguji hipotesis, penelitian ini menggunakan teknik Error Correction Model (ECM). Hasil temuan menunjukkan bahwa pasar modal syariah global memiliki pengaruh signifikan terhadap pasar modal syariah Indonesia, baik dalam jangka pendek maupun jangka panjang. Hal ini disebabkan oleh sifat interkoneksi pasar modal syariah, yang menarik investor karena memungkinkan orang asing untuk memiliki saham syariah di Indonesia, dan juga menawarkan prospek jangka panjang dan jangka pendek yang menguntungkan. Selain itu, akibat globalisasi ekonomi, hubungan sosial dan politik antar negara saling berkaitan, terutama di era COVID-19. Karena pandemi tersebut tidak terhindarkan, kondisi ekonomi global dan krisis terjadi dalam berbagai sektor, termasuk pasar modal syariah. Temuan penelitian ini berimplikasi sebagai pedoman praktis bagi investor dalam berinvestasi di pasar modal syariah di Indonesia.

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Section: Discussionmentioning

confidence: 99%

Global Market Reaction to the Indonesian Islamic Capital Market During Covid Outbreak

Habibi

Normasyhuri

Ma'rifah

2023

SJEKI

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“…This implies that religious conservatism has spread in various aspects of life in Indonesia. For example, conservatism has given rise to new economic forms that rely on ties primordial religion (Kirana & Garadian 2020;Pribadi 2021;Rudiawarni, Sulistiawan & Sergi 2022). In religious life, an attitude of conservatism emerges with a tendency to interpret religion and scriptures literally (Whitehouse 2019).…”

Section: Introductionmentioning

confidence: 99%

The scale of religious conservatism among Muslim students in Indonesia: A Rasch Analysis

Jamin,

Damni

2024

HTS Teologiese Studies / Theological Studies

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This study aimed to develop a ‘religious conservatism’ scale tailored for university students, employing the Rasch Analysis approach in a four-step process. Firstly, a psychometric scale comprising 29 unidimensional items was formulated based on a thorough literature review. Secondly, items generated from literature studies underwent validation, resulting in the retention of 23 items after eliminating irrelevant ones. Thirdly, a psychometric analysis was conducted using the Rasch Model Approach with a sample of 549 randomly selected students from three universities in Sumatra, Indonesia. In all, 15 items met the Rasch Analysis criteria, with unnecessary items removed because of logit value overlap. Fourthly, an empirical comparison of study results based on gender and student categories (first-year, second-year, junior and senior) was performed, revealing insights into the average logit level of student conservatism. As a result, the study identified the highest logit score based on gender criteria and student categories, contributing valuable information on the nuanced aspects of religious conservatism among university students. The development of this scale provides a valuable tool for future research exploring the dynamics of religious conservatism within the university context.Contribution: This research introduces a meticulously validated psychometric scale designed specifically for assessing religious conservatism among Islamic university students. Setting it apart from comparable studies, this scale demonstrates distinct advantages, such as its precise focus on the Islamic context, rigorous psychometric validation process, elimination of irrelevant items and contextual applicability within university settings. By providing researchers and educators with a more accurate tool, the scale facilitates a deeper understanding and targeted approach to addressing religious conservatism among Muslim students in Indonesia.

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“…These methods than applied in determining optimal portfolio in stocks that comprise the Jakarta Islamic Index (JII). In general, JII are selected stocks that have undergone a rigorous review process by liquidity and sharia' principles (Rudiawarni et al, 2022). This index is important in practice since the majority of Indonesia's population is Muslim, so the growth potential of the Islamic market is large.…”

Section: A Introductionmentioning

confidence: 99%

Determination of Optimal Portfolio by Calculating Transaction Costs using Genetic Algorithms on the Jakarta Islamic Index

Fadhila,

Abadi,

Setiawan

2024

JTAM

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The optimal portfolio is a portfolio that can provide maximum returns at the same level of risk. In investing, the term "high return, high risk" is known, meaning that the higher the return, the higher the risk. Therefore, investors need to develop an optimal portfolio to obtain the maximum return on investment at the same level of risk. This study aims to determine the optimal formation of a stock portfolio by calculating transaction costs using the genetic algorithm method on stocks that are members of the Jakarta Islamic Index. This research uses data of daily return on stocks included in Jakarta Islamic Index from 1 August 2020-1 August 2022. The dataset consists of two variables: the date of observation and daily stock returns. The method used in this study is the minimum variance method and the genetic algorithm. Data analysis was divided into two stages: model formulation and model testing through case studies. The analysis of optimal portfolio formation using genetic algorithms shows that in terms of performance, the minimum variance portfolio is superior to the genetic algorithm portfolio, as indicated by the Sharpe ratio value. Meanwhile, the genetic algorithm portfolio is superior to the minimum variance portfolio regarding transaction costs. The genetic algorithm portfolio can provide a fairly high total return, small transaction costs, and good performance compared to the minimum portfolio. Hence, the genetic algorithm portfolio is worthy of recommendation to investors.

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Is conservatism good news? The case of stocks of Jakarta Islamic index

Cited by 9 publications

References 57 publications

Global Market Reaction to the Indonesian Islamic Capital Market During Covid Outbreak

Global Market Reaction to the Indonesian Islamic Capital Market During Covid Outbreak

The scale of religious conservatism among Muslim students in Indonesia: A Rasch Analysis

Determination of Optimal Portfolio by Calculating Transaction Costs using Genetic Algorithms on the Jakarta Islamic Index

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