The role of the stock market in the provision of Islamic development finance: Evidence from Sudan

Hearn, Bruce; Piesse, Jenifer; Strange, Roger

doi:10.1016/j.ememar.2011.04.004

“…Borrowing from Hearn et al(2011), Islam represents a system of beliefs founded on the interpretation of passages from the Qu'ran and various Had'ith & Sunnah that are short texts regarding customs of the Muslim community and relating experiences of the prophet Mohammed (Pryor, 2007). These form the basis of Shari'ya law, that permeates all areas of the wider Islamic system, including economics, finance, law, politics & government and that have common values of Islamic social justice (Asutey,2007).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Government Quality Determinants of Stock Market Performance in African Countries

Asongu

¹

2012

Journal of African Business

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractHow do government policies and institutions affect stock market performance? As stock markets grow broader and deeper in African countries, the question becomes more critical.Government quality dynamics of corruption-control, government-effectiveness, political-stability or no violence, voice & accountability, regulation quality and rule of law are instrumented with income-levels, religious-dominations, press-freedom degrees and legal-origins to account for stock market performance dynamics of capitalization, value traded, turnover and number of listed companies. The results demonstrate a significant positive association between stock market performance measures and the quality of government institutions. These findings suggest countries with better developed government institutions would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded and greater number of listed companies.

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“…In 2002, Tag El-din further mentioned that most of the stock exchanges in Muslim countries are basically western-style markets with tolerated practices that do not comply with Islamic principles. Recently, Hearn et al (2010) mentioned that due to the limited focus on Islamic finance, there are limited literatures available on the role and principles of the Islamic stock market. Thus, based on the limited experiences, here, the researchers provide a few evaluations from past researches on Islamic capital market around the world.…”

Section: Performance and Prospects Of The Journey To "Guided Rationalmentioning

confidence: 99%

Rationality of the Capital Market: Capitalistic System vs. Islamic System

Alam

¹

,

Akbar²

2019

Preprint

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Efficient Market Hypothesis (EMH) is founded on the theory of expected rationality but the theory of behavioural finance concludes that stock market investors are quasi-rational. Therefore, under the capitalistic system, the efficient markets have already failed to protect the rights of investors that have led to chronic capital market crashes and failure to achieve efficiency, justice, fairness, accountability, fair distribution of benefits, and a rational behaviour among investors. However, recently, Islamic financial institutions and markets have been emerging, which stand on the Shariah provisionthe guided way to behave rationally or guided rationality. Based on the empirical experiences and evidences of both market systems, this paper discusses and compares the performances of the markets under the theoretical arguments of "rationality", "quasi-rationality", and "guided rationality". This paper suggests that capital market based on guided rationality under the Islamic System can be a better alternative over the conventional market system.

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“…Borrowing from Hearn et al(2011), Islam engenders a system of beliefs founded on the interpretation of passages from the Qu'ran and various Had'ith and Sunnah that are short texts concerning customs of the Muslim community and relating experiences of the prophet Mohammed (Pryor, 2007). These form the basis of Shari'ya law, that permeates all areas of the wider Islamic system, including economics, finance, law, politics and government (as integral parts) and that have common values of Islamic social justice (Asutey,2007).…”

Section: Theoretical Background To Religion In Financementioning

confidence: 99%

New Indicators for the Mobile Banking Nexus

A

¹

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Design/Methodology: We decompose financial depth into formal, semi-formal and informal sectors and then assess the incidence of mobile banking on each constituent. Thus the IFS (2008) definition of the financial system is extended to incorporate an informal financial sector in line with Asongu(2011). Three hypotheses based on eight propositions are tested using a plethora of endogeneity-robust and HAC standard errors estimation techniques. Terms of use: Documents in Findings:The informal financial sector (a previously missing component in the definition of money supply: M2) is positively affected by mobile banking, while the incidence of mobile banking is negative on formal and semi-formal financial intermediary development. The paper contributes at the same time to the macroeconomic literature on measuring financial development and responds to the growing field of economic development by means of informal financial sector promotion, microfinance and mobile banking. It suggests a practicable way to disentangle the effects of mobile banking on various financial sectors. Research implications:Since empirical research on the phenomenon has been hampered by lack of data, we make available macroeconomic financial indicators to the research community. The present paper is also in response to the numerous calls on the research gap in the literature that emphasize the need for research on mobile banking. The mobile-finance nexus is gaining momentum, yet relatively little scholarly research explores the incidence of these m-banking/m-payment (systems) on financial development. Practical implications:(1) There is a burgeoning role of informal finance in developing countries. (2) The incidence of the growing phenomenon of mobile banking cannot be effectively assessed at a macroeconomic level by traditional financial development indicators.(3) It is a wake-up call for scholarly research on informal financial intermediary development indicators which will guide monetary policy; since a great chunk of the monetary base (M0) in less developed countries is now captured by mobile banking.1 Simplice A. Asongu is Lead economist in the Research Department of the AGDI (asongus@afridev.org).

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The role of the stock market in the provision of Islamic development finance: Evidence from Sudan

Cited by 31 publications

References 25 publications

Government Quality Determinants of Stock Market Performance in African Countries

Government Quality Determinants of Stock Market Performance in African Countries

Rationality of the Capital Market: Capitalistic System vs. Islamic System

New Indicators for the Mobile Banking Nexus

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