nep-isf New Economics Papers
on Islamic Finance
Issue of 2020‒09‒07
one paper chosen by

  1. Which islamic equity market is the leading one in Southeast Asia ? evidence from some select equity markets By Ariffian, Suffian; Masih, Mansur

  1. By: Ariffian, Suffian; Masih, Mansur
    Abstract: Islamic finance has been growing well around the globe since the subprime crisis of 2007-2008. The Southeast Asia is one of the top areas of growth of Islamic finance but there has not been any research done yet as to which Islamic equity market has been the leading one in the Southeast Asia. This study makes an attempt to fill in that gap. In particular this study asks the following questions:(i)which Islamic equity market is the leading one in Southeast Asia ? (ii) whether the international and conventional equity markets had any bearing on the Islamic equity markets in South East Asia and (iii) which Islamic equity index in South East Asia could be used as the benchmark index? Our findings tend to indicate that (i) amongst the South East Asia countries, Malaysia is relatively the most leading Islamic equity market (ii) the international and conventional markets appear to have a significant impact on the Islamic markets in Southeast Asia (iii) for an investor interested in Islamic equity investment in South East Asia region, he/she could use the Malaysian Islamic market as the benchmark index.
    Keywords: Islamic equity markets, Southeast Asia, VECM, VDC
    JEL: C22 C58 E44 G15
    Date: 2018–09–19

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