Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach

Does the inclusion or exclusion from the Shariah index have any effect on the performance of a stock? This study aims to examine the impact of stock inclusion (or exclusion) on the stock prices and trading volume of the firms. Based on the case of selected stocks in Bursa Malaysia, our sample consis...

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Main Authors:	Kassim, Nawal Seif, Ramlee, Roslily, Kassim, Salina
Format:	Article
Language:	English
Published:	Econjournals 2017
Subjects:	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/60123/ http://irep.iium.edu.my/60123/ http://irep.iium.edu.my/60123/1/007%20Nawal%20IJEFI.pdf

id	iium-60123
recordtype	eprints
spelling	iium-601232018-01-12T06:57:41Z http://irep.iium.edu.my/60123/ Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach Kassim, Nawal Seif Ramlee, Roslily Kassim, Salina H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation Does the inclusion or exclusion from the Shariah index have any effect on the performance of a stock? This study aims to examine the impact of stock inclusion (or exclusion) on the stock prices and trading volume of the firms. Based on the case of selected stocks in Bursa Malaysia, our sample consists of 107 additions and 95 deletions from the FTSE Bursa Malaysia Emas Shariah Index (FBMESI) in the period June 2007-June 2014. Event study methodology is used to estimate the abnormal returns and abnormal volumes in the days surrounding the announcement and change dates. The study finds the included stock shows significant and permanent excess returns and abnormal volumes. On the other hand, deleted stocks earn temporary significant negative returns and below normal volumes after the announcement and change dates. Econjournals 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/60123/1/007%20Nawal%20IJEFI.pdf Kassim, Nawal Seif and Ramlee, Roslily and Kassim, Salina (2017) Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach. International Journal of Economics and Financial Issues, 7 (2). pp. 40-51. ISSN 2146-4138 https://www.econjournals.com/index.php/ijefi/article/view/3297/pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation
spellingShingle	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance HG4501 Stocks, investment, speculation Kassim, Nawal Seif Ramlee, Roslily Kassim, Salina Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
description	Does the inclusion or exclusion from the Shariah index have any effect on the performance of a stock? This study aims to examine the impact of stock inclusion (or exclusion) on the stock prices and trading volume of the firms. Based on the case of selected stocks in Bursa Malaysia, our sample consists of 107 additions and 95 deletions from the FTSE Bursa Malaysia Emas Shariah Index (FBMESI) in the period June 2007-June 2014. Event study methodology is used to estimate the abnormal returns and abnormal volumes in the days surrounding the announcement and change dates. The study finds the included stock shows significant and permanent excess returns and abnormal volumes. On the other hand, deleted stocks earn temporary significant negative returns and below normal volumes after the announcement and change dates.
format	Article
author	Kassim, Nawal Seif Ramlee, Roslily Kassim, Salina
author_facet	Kassim, Nawal Seif Ramlee, Roslily Kassim, Salina
author_sort	Kassim, Nawal Seif
title	Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
title_short	Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
title_full	Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
title_fullStr	Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
title_full_unstemmed	Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach
title_sort	impact of inclusion into and exclusion from the shariah index on a stock price and trading volume: event study approach
publisher	Econjournals
publishDate	2017
url	http://irep.iium.edu.my/60123/ http://irep.iium.edu.my/60123/ http://irep.iium.edu.my/60123/1/007%20Nawal%20IJEFI.pdf
first_indexed	2023-09-18T21:25:13Z
last_indexed	2023-09-18T21:25:13Z
_version_	1777412145974083584

Impact of inclusion into and exclusion from the Shariah index on a stock price and Trading Volume: Event study approach

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