The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia

The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia

In order to be more compatible with the global screening norms, Securities Commission of Malaysia recently introduced a new screening methodology for Shari’ah compliant securities listed on Bursa Malaysia.The new screening criteria was announced on 18 June 2012, and the effective outcome of this is...

Full description

Bibliographic Details
Main Authors: Prima Sakti, Muhammad Rizky, Barom, Mohd Nizam
Format: Conference or Workshop Item
Language:English
Published: 2014
Subjects:
HD72 Economic growth, development, planning
Online Access:http://irep.iium.edu.my/41971/
http://irep.iium.edu.my/41971/
http://irep.iium.edu.my/41971/1/The_Impact_of_Stock_Delisting_from_Shari%27ah-compliant_List-_Evidence_from_Bursa_Malaysia.pdf
id iium-41971
recordtype eprints
spelling iium-419712018-06-11T03:30:27Z http://irep.iium.edu.my/41971/ The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia Prima Sakti, Muhammad Rizky Barom, Mohd Nizam HD72 Economic growth, development, planning In order to be more compatible with the global screening norms, Securities Commission of Malaysia recently introduced a new screening methodology for Shari’ah compliant securities listed on Bursa Malaysia.The new screening criteria was announced on 18 June 2012, and the effective outcome of this is reflected in the list of Shari’ah compliant securities released by the Securities Commission on 29 November 2013. As a result, 158 companies were removed from the list. This paper seeks to analyse the stock price reactions of the affected companies to the announcement of the new screening methodology (Event 1) and their actual delisting from the list of Shari’ah compliant securities (Event 2). The daily abnormal returns of the securities are estimated by employing a market model regression and the calculation of the cumulative abnormal returns (CAR). The estimation period spans from 150 days before the event to 72 days after event date. The findings of this study will provide empirical evidence on the link between Shari’ah compliant status and stock performance of listed companies, particularly on the potential negative impact of being delisted from the list of Shari’ah compliant securities. 2014-11 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/41971/1/The_Impact_of_Stock_Delisting_from_Shari%27ah-compliant_List-_Evidence_from_Bursa_Malaysia.pdf Prima Sakti, Muhammad Rizky and Barom, Mohd Nizam (2014) The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia. In: 2nd ASEAN International Conference on Islamic Finance (2nd AICIF), 12-14 Nov., 2014, Royal Ambarukmo Hotel, Yogyakarta, Indonesia. http://febi.uin-suka.ac.id/page/news/view/40/2nd%20%20ASEAN%20INTERNATIONAL%20%E2%80%A6ERENCE%20ON%20ISLAMIC%20FINANCE.html
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HD72 Economic growth, development, planning
spellingShingle HD72 Economic growth, development, planning
Prima Sakti, Muhammad Rizky
Barom, Mohd Nizam
The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
description In order to be more compatible with the global screening norms, Securities Commission of Malaysia recently introduced a new screening methodology for Shari’ah compliant securities listed on Bursa Malaysia.The new screening criteria was announced on 18 June 2012, and the effective outcome of this is reflected in the list of Shari’ah compliant securities released by the Securities Commission on 29 November 2013. As a result, 158 companies were removed from the list. This paper seeks to analyse the stock price reactions of the affected companies to the announcement of the new screening methodology (Event 1) and their actual delisting from the list of Shari’ah compliant securities (Event 2). The daily abnormal returns of the securities are estimated by employing a market model regression and the calculation of the cumulative abnormal returns (CAR). The estimation period spans from 150 days before the event to 72 days after event date. The findings of this study will provide empirical evidence on the link between Shari’ah compliant status and stock performance of listed companies, particularly on the potential negative impact of being delisted from the list of Shari’ah compliant securities.
format Conference or Workshop Item
author Prima Sakti, Muhammad Rizky
Barom, Mohd Nizam
author_facet Prima Sakti, Muhammad Rizky
Barom, Mohd Nizam
author_sort Prima Sakti, Muhammad Rizky
title The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
title_short The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
title_full The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
title_fullStr The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
title_full_unstemmed The impact of stock delisting from the Shari'ah-compliant list: evidence from Bursa Malaysia
title_sort impact of stock delisting from the shari'ah-compliant list: evidence from bursa malaysia
publishDate 2014
url http://irep.iium.edu.my/41971/
http://irep.iium.edu.my/41971/
http://irep.iium.edu.my/41971/1/The_Impact_of_Stock_Delisting_from_Shari%27ah-compliant_List-_Evidence_from_Bursa_Malaysia.pdf
first_indexed 2023-09-18T20:59:56Z
last_indexed 2023-09-18T20:59:56Z
_version_ 1777410555235008512

Similar Items