The Islamic effect: Exploring the dynamics of Islamic events on sustainable performance of Islamic and conventional stock markets

Asty Almaida, Ulfat Abbas, Waqas Ahmad Watto, Muhammad Ashar Asdullah, Mochammad Fahlevi, Dany Amrul Ichdan

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


This study attempts to investigate the effects of Islamic events on both Islamic and conventional stock markets and analyze which market reacts more pronouncedly to these events. From 2012 to 2022, the research used daily stock return data from eight nations: Kuwait, India, Nigeria, Malaysia, Pakistan, Qatar, Saudi Arabia, and the United Arab Emirates. The study examines how Islamic holidays such as Ashura, Eid Meelad ul Nabi, Eid ul Azha, and Ramadan affect both Islamic and Western stock markets. The researchers use the Generalized Autoregressive Conditional Heteroscedastic (GARCH) model to analyze the data. The results of this analysis show that Islamic events in India, Nigeria, Malaysia, Pakistan, and Qatar have a strong and favorable link with Islamic stock returns. However, it was discovered that there is a little correlation between Islamic events and Islamic stock returns in the remaining three nations. The study also reveals a strong and favorable correlation between Islamic events and conventional stock performance in all countries. By offering a comparative analysis of the effect of Islamic events on Islamic stock markets and mainstream stock markets, these findings add to the body of current material. Every religion has its own set of rituals that its adherents observe, and these rituals frequently have an impact on different economic and non-economic activities. This study sheds light on the precise connection between these events and stock market performance by examining the impact of Islamic occasions on both Islamic and conventional stock markets.
Original languageEnglish
Pages (from-to)235-248
Number of pages14
JournalUncertain Supply Chain Management
Publication statusPublished - 4 Oct 2023


  • Islamic stock
  • Sustainable performance
  • Islamic stock market return
  • Islamic anomalies
  • Conventional market return
  • Stock market return

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