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on Islamic Finance |
| By: | Weni Susanti (Universitas Tridinanti Palembang, Indonesia Author-2-Name: Kamaludin Author-2-Workplace-Name: "Universitas Bengkulu, Indonesia " Author-3-Name: Berto Usman Author-3-Workplace-Name: "Universitas Bengkulu, Indonesia " Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - This study investigates the phenomenon of herding behavior among investors in Indonesia's Shariah banks. In this situation, market participants tend to follow prevailing market trends without engaging in comprehensive fundamental analysis. Methodology/Technique – Specifically, the research examines the influence of investors' religious understanding as a mediating variable on their decision-making processes within the Shariah financial sector. Notably, the study addresses whether investors are more inclined to mimic market movements or rely on independent analysis when investing in Sharia-compliant banks. It is commonly observed that rumors can precipitate rash trading decisions among investors, leading to the buying or selling of shares even in the absence of substantial changes in asset fundamentals (Bommel, 2003). Findings – Employing a quantitative approach, this study utilizes path analysis to explore the impact of religious understanding on herding behavior. Although prior research has extensively investigated herding behavior, the introduction of religious understanding as a mediating variable offers a new dimension to assess the correlation between religiosity and market behavior. This aspect has not been widely examined in previous segmentations. The sample comprises data from 15 Islamic Banks in Indonesia, analyzed using associative data analysis techniques with AMOS software. Findings indicate significant positive relationships between stock returns and herding behavior, trading volume and herding behavior, and the level of Islamic understanding and herding behavior in these banks. Novelty – However, these relationships do not hold when Islamic understanding is applied as a mediating variable. This suggests that the level of religious understanding acts as a direct influencer rather than a mediator in herding behavior among investors in Indonesian Islamic banks. Type of Paper - Empirical" |
| Keywords: | Herding behavior, Stock returns, Trading volume, Level of Understanding of Islam. |
| JEL: | G41 D81 C58 |
| Date: | 2024–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr222 |
| By: | Nurrachmi, Rininta; Duasa, Jarita; ariffin, muhammad irwan; afroz, rafia |
| Abstract: | The purpose of the study is to examine the relationship between income inequality and environmental degradation in ASEAN-6 countries namely Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam. It also provide analysis from the Islamic perspective based on result of the econometric regression. The study utilizes annual panel data from1992 until 2015 where the region suffered from high income distribution and environmental degradation. The analytical tool used in the study is Bias-Corrected Least Squared Dummy Variable (LSDVC), which is sufficient for small panel data. The methodological approach leads to two main findings. First, income inequality, measured by Gini coefficient, is contributing to environmental degradation (proxied by CO2 emission and Natural Resources Depletion) in the short- and long-run term. Other explanatory variables namely GDP per capita and energy consumption, also impact significantly on environmental degradation level in the short- and long-term. From the findings, it is recommended that greater investment is required in addressing high level of income inequality and environmental issues. Instruments in Islam such as zakat and waqf provide solution to overcome issue of high income gap and environmental degradation in ASEAN-6 countries, moreover majority of Muslim population located in ASEAN countries. Hence, collaboration should be enhanced among the ASEAN-6 countries where wealth distribution, technology and knowledge sharing from high income countries to low and middle-income in ASEAN countries to mitigate the negative impact of high income inequality and environmental issue in the region. |
| Keywords: | ASEAN, environmental degradation, income inequality. |
| JEL: | C0 C01 E6 Q56 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121513 |