Macroeconomic Variables and Islamic Bank Stock Returns : Panel Data Evidence from GCC Countries

The Impact of Macroeconomic Variables on The Banks' Stock and Portfolio Returns: Indonesian Evidence

“…In addition, a remarkable result of the FRX was found that does not agree with the correlation result. The FRX has positively impacted Indonesian banks' equity and portfolio returns, and this result is in line with Kandir (2008); Menacer and Nurein (2017). Meanwhile, the other two banks, namely the stock returns of BNGA and BNII, are negatively affected by the FRX, and the result is in line with the studies by Kasman et al (2011);Nisha (2015).…”

“…The study, which covered July 1997 to June 2005, used adjusted stock returns for dividend distributions and focused on stock portfolios rather than individual stocks. Menacer and Nurein (2017) corroborated the discovery of a strong exchange rate effect on bank stock returns by using the GLS estimator on panel data from banks in the GCC countries. Currency changes affect profitability and investment, which is reflected in financial performance.…”

“…Macroeconomic factors include, but are not limited to, general economic conditions, reserves, and government restrictions, all of which have a different effect on stock prices in the stock market, with effects differing by the firm, industry, and historical period (Rahman, Sidek & Tafri, 2009). Menacer and Nurein (2017) found that macroeconomic variables had a beneficial effect on the equity returns of 66 Islamic banks in the Gulf Cooperation Council (GCC) nations between 2005 and 2014. This is backed by Hasan (2017), who asserted that all macroeconomic variables examined adequately explained the Bangladeshi stock market's stock values.…”

Utilizing Dynamic Strategies for Making Informed Investment Decisions in the Stock Market

“…This indicates that industryspecific factors can significantly impact asset pricing, highlighting the need for considering industryrelated variables in asset pricing models. Menacer et al (2018) examined the relationship between the stocks and overall economic variables, including the money supply, interest rates, inflation rates, and foreign exchange rates. Their empirical results demonstrated that these overall economic variables had a significant impact on stock returns.…”