On the investors' sentiments and the Islamic stock-bond interplay across investments' horizons

Aloui, Chaker; Shahzad, Syed Jawad Hussain; Hkiri, Besma; Hela, Ben hamida; Khan, Muhammad Asif

doi:10.1016/j.pacfin.2020.101491

Cited by 11 publications

(6 citation statements)

References 58 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“… The author documented the heterogeneous effects of investors’ attention on the stock returns (for example, consumer staples, healthcare and IT having better performance in COVID-19 and gaining more attention). Aloui et al. (2021) By using the high-frequency domain, this paper draws the data from October 7, 2005 to September 25, 2020 with the methodology of the continuous wavelet transform.…”

Section: Literature Reviewmentioning

confidence: 99%

Feverish sentiment and global equity markets during the COVID-19 pandemic

Huynh

Foglia

Nasir

et al. 2021

Journal of Economic Behavior & Organization

117

View full text Add to dashboard Cite

This paper proposes a new approach to estimating investor sentiments and their implications for the global financial markets. Contextualising the COVID-19 pandemic, we draw on the six behavioural indicators (media coverage, fake news, panic, sentiment, media hype and infodemic) of the 17 largest economies and data from January 2020 to February 2021. Our key findings, obtained using a time-varying parameter-vector auto-regression (TVP-VAR) model, indicate the total and net connectedness for the new index, entitled ‘feverish sentiment’. This index provides us insight into economies that send or receive the sentiment shocks. The construction of the network structures indicates that the United Kingdom, China, the United States and Germany became the epicentres of the sentimental shocks that were transmitted to other economies. Furthermore, we also explore the predictive power of the newly constructed index on stock returns and volatility. It turns out that investor sentiment positively (negatively) predicts the stock volatility (return) at the onset of COVID-19. This is the first study of its kind to assess international feverish sentiments by proposing a novel approach and its impacts on the equity market. Based on empirical findings, the study also offers some policy directions to mitigate the fear and panic during the pandemic.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Feverish sentiment and global equity markets during the COVID-19 pandemic

Huynh

Foglia

Nasir

et al. 2021

Journal of Economic Behavior & Organization

117

View full text Add to dashboard Cite

show abstract

“…Item creation is the initial phase of scale development (Ftiti & Hadhri, 2019; Sulphey & Jasim, 2020). Following a thorough examination of the literature, many aspects of Islamic investor attitudes were discovered (Aloui et al, 2021), and suitable scales were employed to assess the constructs (Roberts & Lattin, 1991). The topics discussed include IIE, RF, PRO, SI, information availability, and IIS.…”

Section: Methodsmentioning

confidence: 99%

“…The relationship between sentiment of the investors and stock returns and performance has been the subject of extensive study (Abbes & Abdelhédi-Zouch, 2015; Adam et al, 2022; Aloui et al, 2021; Di et al, 2021). Brown and Cliff (2005) examined how an investor behavior affects collection and portfolio cross-sectional lot size and book returns to market returns.…”

Section: Literature Reviewmentioning

confidence: 99%

Development and Validation of an Islamic Investor’s Sentiment Scale for Stock Market Investment

Begam

Babu

Sulphey

2023

Business Perspectives and Research

View full text Add to dashboard Cite

Islamic law prohibits Muslims from investing in certain businesses such as banking, alcohol, and speculation. As such, Islamic investment is different from traditional investment, as investment principles emphasize ethical investing and compliance with Shariah, the Islamic rule that controls every aspect of a Muslim’s life. However, a fair review of the literature failed to find any questionnaire to measure Islamic investor sentiment. In order to create and standardize a technique to gauge Islamic investors’ attitudes about share market investment, a research was conducted. Islamic investors’ attitudes were the dependent variable, while the study identified Islamic investing ethics, religious considerations, profitability, social impact, and information accessibility as independent variables. Python programming was used to evaluate the data gathered from 391 respondents using a 24-item structured questionnaire. According to the study’s findings, each of the characteristics has a big influence on how Islamic investors feel. Furthermore, this study shows that participation in religious activities elevates the spirits of Islamic investors. The verified Islamic investor’s feelings questionnaire in this study is expected to inspire more investigation in this fascinating field.

show abstract

“…In financial screening, the scholars look at the structure of the company’s financial statements to assess Sharia’s suitability (Alahouel and Loukil, 2020; Aloui et al , 2021). This is done because modern companies usually have assets and liabilities in financial instruments, which may conflict with Sharia.…”

Section: Literature Reviewmentioning

confidence: 99%

Sharia vs non-sharia compliant: which gives much higher financial-based brand equity to the companies listed in the Indonesian stock market?

Hati

Prasetyo

Hendranastiti

2022

JIMA

View full text Add to dashboard Cite

Purpose The study aims to examine the difference of financial-based brand equity of Sharia-compliant and non-Sharia-compliant companies listed in the stock market. Design/methodology/approach The five-year data were collected from 561 companies listed in the Indonesian stock market (349 Sharia-compliant firms and 212 non-Sharia-compliant firms). Findings Based on five years of observations, the study shows that Sharia-compliant companies have much higher brand equity than companies that are not Sharia-compliant. However, the study did not find consistent results when the study examined the differences between brand equity in newly listed Sharia-compliant firms in the short run (two-quarters of the observations). In other words, Sharia-compliant status positively impacted a company’s brand equity only in the long run. Research limitations/implications The study examines only the brand equity of Sharia- and non-Sharia-compliant companies in the Indonesian stock market. Practical implications The study suggests that companies should list their equity in the Islamic stock market as the empirical evidence shows that the companies listed in the Sharia index have much higher brand equity than companies listed in the non-Sharia index, although this impact can only be seen in the long run. Originality/value The study integrates finance and marketing perspectives, which are often disconnected in daily business. In addition, the study provides a piece of empirical evidence on the effect of financial decision to be listed in the Islamic stock market on the establishment of brand equity, which represents the long-term intangible assets of the firm in the eyes of the customers.

show abstract

On the investors' sentiments and the Islamic stock-bond interplay across investments' horizons

Cited by 11 publications

References 58 publications

Feverish sentiment and global equity markets during the COVID-19 pandemic

Feverish sentiment and global equity markets during the COVID-19 pandemic

Development and Validation of an Islamic Investor’s Sentiment Scale for Stock Market Investment

Sharia vs non-sharia compliant: which gives much higher financial-based brand equity to the companies listed in the Indonesian stock market?

Contact Info

Product

Resources

About