Do Islamic stock indexes outperform conventional stock indexes? A stochastic dominance approach

Issues in Islamic banking and finance: Islamic banks, Shari’ah-compliant investment and sukuk

“…These include Al-Khazali et al (2014), Ashraf and Mohammad (2014), Jawadi et al (2014), andHo et al, (2014). Despite applying different empirical methodologies to different sets of Shari"ah-compliant stock indexes and conventional indexes, they are in conformity in noting the better performance of the Islamic stock indices during crisis periods.…”

Cross-sectoral interactions in Islamic equity markets

“…Although, as the investments in Islamic finance have accelerated and attention from academic world has also increased, most of the research accomplished until now is about the comparison of performance of Islamic finance instruments with conventional ones (Hussein and Omran, 2005;Girard and Hassan, 2008;Jawadi et al, 2014;Al-Khazali et al, 2014;Ho et al, 2014;Ashraf and Mohammad, 2014;Kamil et al, 2014). Chong and Liu (2009) claimed that Islamic deposits are not interest-free and found that Islamic banking is not very different from conventional banking from the perspective of profit loss sharing.…”

Stock Market Return and Volatility Spillovers: The Case of Selected Muslim Majority Countries

“…On the other hand, the countries sharing borders or same region are more connected like Turkey and Egypt, Indonesia and Japan, etc. The low value of connectedness index within the Muslim markets shows that they are less prone to risk transversal from the global market as empirically proved in the case of the Islamic indices (Al-Khazali, Lean, & Samet, 2014;El Mehdi & Mghaieth, 2017;Walkshausl & Lobe, 2012). Islamic indices are Sharī'ah-compliant and hence, we can conjecture that the prohibition of interest and gharrar is not only a structural or institutional factor in the financial markets but also a behavior deeply rooted in the Muslim population which translates into risk preferences collectively.…”