The Impact of Subprime Mortgage Crisis on Islamic Banking and Islamic Stock Market

Karim, Bakri Abdul; Lee, Wong Siew; Karim, Zulkefly Abdul; Jais, Mohamad

doi:10.1016/j.sbspro.2012.11.182

Cited by 27 publications

(18 citation statements)

References 10 publications

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“…The more recent literature has focused mostly on the relative performance of the Islamic finance industry in comparison to the conventional counterpart, particularly during the recent global financial crisis. In this aspect, the focus has been largely on the major or aggregate benchmark indexes (e.g., Annuar et al, 1997;Hussein and Omran, 2005;Abdullah et al, 2007;Hayat and Kraeussl, 2011;Milly and Sultan, 2012;Abdul Karim et al, 2012;Beck et al, 2013;Jawadi et al, 2014). For example, Hayat and Kraeussl (2011) examine the risk and return characteristics of a sample of 145 Islamic equity funds (IEFs) over the period [2000][2001][2002][2003][2004][2005][2006][2007][2008][2009] and find that IEFs are underperformers, compared to the Islamic and conventional equity benchmarks.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Abdul Karim et al (2012) examine the effect of subprime mortgage crisis on Islamic banking financing and the Islamic stock market in Malaysia over the period 2000-2011. They find that both the Islamic banking financing and stock market variables are cointegrated with several macroeconomic variables (inflation, real exchange rate, interest rate, and economic activity as represented by the industrial production index) both before and during the crisis period.…”

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confidence: 99%

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Global risk exposures and industry diversification with Shariah-compliant equity sectors

Balcılar

Demirer

Hammoudeh

2015

Pacific-Basin Finance Journal

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This paper examines the risk exposures of ten major Islamic sector indexes with respect to shocks in global conventional markets. Utilizing a dynamic three-regime, three-factor risk spillover model, we generally observe positive risk exposures of Islamic equity sectors with respect to developed market shocks. Consumer Services, Oil & Gas and Technology, however, are found to exhibit negative risk exposures during crash periods, implying possible safe haven benefits for global investors. Both in-and out-of-sample results suggest that the portfolios supplemented with positions in Islamic equity sectors yield much improved risk adjusted returns, implying significant international diversification benefits. Financials, Healthcare, Telecommunication, and Utilities particularly stand out with relatively higher weights allocated in the optimal portfolios, implying the significance of these Islamic sectors in global diversification strategies.JEL Classification: C32, G11, G15

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Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

Global risk exposures and industry diversification with Shariah-compliant equity sectors

Balcılar

Demirer

Hammoudeh

2015

Pacific-Basin Finance Journal

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“…Sedangkan Abduh dan Omar (2012) menganalisis pengaruh peristiwa pertumbuhan ekonomi di Indonesia. Selanjutnya Karima et al (2012) menempatkan bank syariah sebagai shahibul maal dalam kondisi terjadinya subprime mortgage di Malaysia.…”

Section: Hasil Dan Pembahasanunclassified

Pemetaan Penelitian Kinerja Bank Syariah dengan Menggunakan Informasi Keuangan

Yuliana

2014

JAMAL

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Abstrak: Pemetaan Penelitian Kinerja Bank Syariah dengan Menggunakan Informasi Keuangan. Artikel ini membahas pemetaan penelitian mengenai penilaian kinerja bank syariah dengan menggunakan informasi keuangan. Pemetaan tersebut bertujuan mengidentifikasi peluang penelitian mendatang terkait dengan dunia perbankan syariah di Indonesia. Hasil pemetaan menunjukkan bahwa terdapat dua kategori informasi keuangan yaitu infomasi umum dan khusus. Penggunaan informasi khusus untuk mengukur kinerja bank syariah masih relatif terbatas dan hal itu merupakan peluang bagi peneliti berikutnya. Selain itu, isu penelitian seputar bank syariah masih jauh tertinggal dibandingkan dengan isu penelitian pada bank konvensional. Namun demikian, isu tersebut ternyata relevan dengan fenomena perbankan syariah di Indonesia dan oleh karena itu semakin memperkaya ide penelitian berikutnya. Abstract: The Mapping of Financial Information-Based Syariah Bank Performance Research. This article discusses the mapping of research on performance evaluation of Islamic banking by using financial information. The purpose of the mapping is to identify opportunities for future research related to Islamic banking in Indonesia. Mapping results indicate that there are two categories of financial information that is general information and specific. The use of specific information to measure the performance of Islamic banking is still relatively limited and it is an

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“…Islamically, the legitimate form of shares is the common stocks, which lead to the legitimacy of stock market participation in Islamic perspective (Naughton & Naughton, 2000). The fastest growing segment of finance in the world is Islamic finance, with a growth rate of 15 percent per annum (Karim, Lee, Karim, & Jais, 2012). The Islamic Banking Industry (IBI) in Pakistan witnessed a growth of Rs.…”

Section: Introductionmentioning

confidence: 99%

Financial Sophistication, Emotional Quotient, and Stock Market Participation: Theory and Evidence

2017

J. Islam. bus. manag.

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Abstract. Decisions in the stock markets are made by individuals and influenced by financial sophistication and emotions. Accordingly, the current study investigates the impact of financial sophistication and emotional quotient on stock market participation. Empirical results demonstrated a positive association between motivation and stock market participation and, counter to the expectation, negative association between selfawareness and stock market participation. In today's dynamic environment, cognizant application of financial knowledge ensures efficiency, modifies the basic relations, and hence moderates the relationship between self-awareness and stock market participation. According to this study as well, financial literacy does not moderate the relationship between motivation and stock market participation. Results are in line with the Western settings and can be well-generalized to the Pakistani settings, having implications at micro and macro levels for individuals, industrial managers, Sharī'ah scholars, and Islamic financial institutions. Study paved path for authorities of Islamic stock markets to structure trading system supported by motivation, self-awareness and financial sophistication of investors.

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The Impact of Subprime Mortgage Crisis on Islamic Banking and Islamic Stock Market

Cited by 27 publications

References 10 publications

Global risk exposures and industry diversification with Shariah-compliant equity sectors

Global risk exposures and industry diversification with Shariah-compliant equity sectors

Pemetaan Penelitian Kinerja Bank Syariah dengan Menggunakan Informasi Keuangan

Financial Sophistication, Emotional Quotient, and Stock Market Participation: Theory and Evidence

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