Identifying the asymmetric price dynamics of Islamic equities: Implications for international investors

Topal, Mehmet Hanefi; Camgöz, Mevlüt

doi:10.1016/j.ribaf.2022.101614

Cited by 4 publications

(1 citation statement)

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“…Zhang et al, 2022). Some investors sell their securities to divert their investments in these digital assets (Bahloul et al, 2021;Camgöz & Topal, 2022), so it can potentially harm the Global Sharia Equity index in the long term. Meanwhile, Gold prices are predicted to positively influence the Index because most companies' members of the Global Shariah Equity Index are engaged in commodities and mining, which will indirectly affect the company's revenue (Nagayev et al, 2016;Shaikh, 2021).…”

Section: Funding and Discussionmentioning

confidence: 99%

Bitcoin Vs Gold: Which One is the Most Powerful in Boosting the Shariah Equity Index? Global Evidence

Ahmad Tibrizi Soni,

Arief,

Titis

et al. 2023

Studies in Business and Economics

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The study explores the most powerful between Bitcoin and Gold in boosting the Shariah Equity Index in Malaysia, the United Arab Emirates, China, Indonesia, The United States of America (USA), Japan, Oman, and Saudi Arabia in the short and long term. The study uses analysis of the first and second stages of the Granger Causality Test and Vector Error Correction Model (VECM), then Impulse Response Function (IRF) and Variance Decomposition (VDC) over the period 2013 to 2021. The finding proves that only Gold can affect the Islamic Equity Index in the short term, then Bitcoin and Gold proved to contribute equally to the Islamic Equity Index in the long term. However, Bitcoin has the potential to provide positively correlated shocks and dominate the value of Islamic equity indices in the long term. The results demonstrate that government intervention is decisive in maintaining the stability of the Shariah Equity Index from future Bitcoin threats. The study’s finding has practical implications for Islamic capital market Investors, Managers, and Authorities.

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