This study investigates the impact of liquidity risk on stock returns of 149 firms in the industrial products and services sectors of Bursa Malaysia from January 2000 to December 2018 with a monthly frequency dataset. This study employed the two-stage standard procedures in asset pricing to estimate the significant effect of liquidity risk on industrial products and services stock returns. The results show that the investors require liquidity premium for stocks whose illiquidity co-moves with market illiquidity and market return while shifting their investment to liquid stocks when the market becomes illiquid, thus positive premium for stocks whose return is higher during the illiquid market. It suggests that two liquidity risks, namely commonality in liquidity and the covariances between stock illiquidity and market returns, and aggregate liquidity risk explain the cross-sectional returns variations across stocks in the industrial products and services sector, thus partly support the LCAPM model. We provide evidence on the important role of liquidity risks on the cross-sectional industrial products and services stock returns in Bursa Malaysia in the LCAPM framework. The findings of this study may be useful for investment decision-making and portfolio allocation strategy under the liquid and illiquid securities conditions. For policymakers, understanding the impact of liquidity risks on stock returns for the industrial products and services sectors may help enhance market liquidity for economic growth. Therefore, our findings contribute to the practical and policy implications.

Using a literature review and bibliometric analysis, this research aims to analyse the relationship between the Islamic economy and sustainability. The study aimed to systematically document the intellectual structure, volume, tendencies of knowledge development, the author, and source impact. Using Microsoft Excel and R Studio, information is compiled from Scopus databases and analysed. We gathered a searchable database of the 76 most relevant papers from the last twenty-two years based on a vast amount of literature. Preliminary data suggests that between 2000 and 2022, there has been an increase in the number of works written on the Islamic economy. The bibliometric study using R identifies the subject’s most influential journals, authors, and papers. This study demonstrates that a new research topic can be derived by condensing the essential aspects of the Islamic economy and sustainability into a single concept, thereby opening up new research avenues in both the expansive field of the Islamic economy and the relatively new and hotly debated field of sustainability.