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1 – 3 of 3Salina H. Kassim and Turkhan Ali Abdul Manap
The purpose of this paper is to analyze the information content of the Islamic interbank money market rate (IIMMR), with respect to several macroeconomic indicators such as…
Abstract
Purpose
The purpose of this paper is to analyze the information content of the Islamic interbank money market rate (IIMMR), with respect to several macroeconomic indicators such as output, inflation, exports, imports, bank loans and stock market index, and compare it against that of the conventional interbank money market rate using the Malaysian data.
Design/methodology/approach
The paper relies on the causality tests based on the Toda‐Yamamoto method, focusing on the period from January 2000 to December 2006.
Findings
The results provide empirical support for the high information content of the IIMMR.
Practical implications
A major implication of this study is that the IIMMR can be a reliable variable for monetary policy implementation in the Malaysian case.
Originality/value
There have been no studies undertaken in the area of Islamic finance to analyze the information content of the Islamic money market rate to determine its possibility as a monetary policy variable. Alos, the paper enriches the literature by presenting the Malaysian experience in developing its Islamic interbank money market.
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Turkhan Ali Abdul Manap and Salina H. Kassim
The purpose of this paper is to examine the long memory property of equity returns and volatility of emerging equity market by focusing on the Malaysian equity market, namely the…
Abstract
Purpose
The purpose of this paper is to examine the long memory property of equity returns and volatility of emerging equity market by focusing on the Malaysian equity market, namely the Kuala Lumpur Stock Exchange (KLSE).
Design/methodology/approach
The study adopts the Fractionally Integrated GARCH (FIGARCH) model and Fractionally Integrated Asymmetric Power ARCH (FIAPARCH), focusing on the Malaysian data covering the period from April 15, 2004 to April 30, 2007.
Findings
The study finds evidence of long memory property as well as asymmetric effects in the volatility of the KLSE. The traditional ARCH/GARCH is shown to be insufficient in modeling the volatility persistence. The FIAPARCH specification outperforms the FIGARCH model by capturing both asymmetry effects and long memory in the conditional variance.
Research limitations/implications
The results of this study have practical implications for the investors intending to invest in the emerging markets such as Malaysia. Understanding volatility and developing the appropriate models are important since volatility can be a measure of risk which is highly relevant in forecasting the conditional volatility of returns for portfolio selection, asset pricing, and value at risk, option pricing and hedging strategies.
Originality/value
This study contributes in providing the empirical evidence on the long memory property of equity returns and volatility of an emerging equity market with reliable estimation models, which is currently lacking, particularly for emerging markets.
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Hani Amirah Juisin, Muhammad Amir Syazwan Mohd Sayuthi, Hanudin Amin and Imran Mehboob Shaikh
Gold investment is one of the essential long-term investments for many to diversify their investment portfolios. Muslims are continuously looking for halal products and services…
Abstract
Purpose
Gold investment is one of the essential long-term investments for many to diversify their investment portfolios. Muslims are continuously looking for halal products and services in any aspect of life and one of them is Shari’ah gold investments (SGI). However, evidence pertinent to Muslims’ behaviour towards Shari’ah gold is somewhat inconclusive and for that, a new empirical investigation is needed to reduce the gap, at best. Hence, the purpose of this study is to study factors determining SGI behaviour in Penang, Malaysia.
Design/methodology/approach
By using the Islamic theory of consumer behaviour (ITCB), this study examines the determinants of the SGI behaviour. The questionnaire survey was distributed and the data gathered was analysed using partial least square structural equation modeling.
Findings
All hypothesised hypotheses were instrumental in explaining the factors determining SGI behaviour in the context of Penang, Malaysia.
Research limitations/implications
This study has at least two limitations, namely, confined generalisations of the variables used and the limited context of the research conducted.
Practical implications
This study sheds light on the determinants influencing SGI behaviour, at best.
Originality/value
This study is original in terms of its final output that enlightens the significant effects of iman, Islamic altruism, maqasid consumer index on the behaviour of investors on Shari’ah gold within the ITCB’s context along with integrated religious satisfaction.
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