Are Islamic bonds different from conventional bonds? International evidence from capital market tests
By Nafis Alam, M. Hassan, M. Haque. 2013
155 citations recorded by the source corpus.
Islamic bonds (Sukuk) emerged as an innovative capital market instrument over the last decade. This paper investigates the impact of conventional bonds and Sukuk announcement on shareholder wealth and their determinants using 79 Sukuks and 87 conventional bonds over the period of 2004e2012 in six developed Islamic financial market. The overall time frame is divided into three parts, 2004e2006 (before crisis); 2007e2009 (during crisis) and 2010e2012 (after crisis). It is revealed that the market reaction is negative for the announcements of Sukuk before and during 2007 global financial crisis. On the other hand market reaction is positive for announcement of conventional bond before the crisis period and negative during and after crisis periods. The size of bond offering appears to have a negative impact on the cumulative abnormal return in case of Sukuk and positive in case of conventional bond.
Subfields: Accounting
View Paper: https://www.semanticscholar.org/paper/f3024b10a1d695a68d3a04e5156ae90504ae6b26
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Citations in the corpus
- Islamic Banking and Finance: Recent Empirical Literature and Directions for Future Research (2015, unknown): “Both Godlewski et al (2011) and Alam et al (2013) use event study approaches to examine investor reaction to Sukuk issuance – they both find evidence of negative market reaction suggesting that investors do not view such activities in a positive light.”
- Dynamic dependence of the global Islamic equity index with global conventional equity market indices and risk factors (2014, methodology): “Using stochastic dominance method, Al-Khazali et al. (2014) investigate whether Islamic stock indices outperform conventional stock indices by comparing nine Dow Jones Islamic indices to their Dow Jones conventional counterparts.”