Handbook of Empirical Research on Islam and Economic Life
Show Less

Handbook of Empirical Research on Islam and Economic Life

Edited by M. Kabir Hassan

In Islamic jurisprudence, a comprehensive ethic has been formulated governing how business and commerce should be run, how accountability to God and the community is to be achieved, and how banking and finance is to be arranged. This Handbook examines how well these values are translated into actual performance. It explores whether those holding true to the system are hindered and put at a disadvantage or whether the Islamic institutions have been able to demonstrate that faith-based activities can be rewarding, both economically and spiritually.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 22: Do stock returns react to an Islamic label?

Raphie Hayat and Celia de Anca


We study the effects of an Islamic label on US stock returns and the effect of this label by analysing abnormal returns of US stocks when they are added to or removed from an Islamic index. Unlike in previous research, we find that neither addition to nor deletion from an Islamic index leads to abnormal returns. This holds for short-term periods (announcement and actual inclusion date) as well as for longer periods. Furthermore, we did not find convincing evidence that addition to an Islamic index signals higher liquidity, profitability, investor awareness or lower risk. We conclude that an Islamic label for stocks does not convey any additional financial information to investors.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.