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Kassim SH, The global financial crisis and the integration of Islamic stock markets in developed and developing countries, Asian academy of management journal of accounting and finance, 9(2), 75-94, 2013.

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Article

The Impact of Subprime Crisis on Conventional and Islamic Stock Market

1Higher Institute of Management, Tunis University, Tunisia


International Journal of Business and Risk Management. 2020, Vol. 3 No. 1, 1-8
DOI: 10.12691/ijbrm-3-1-1
Copyright © 2020 Science and Education Publishing

Cite this paper:
Majoul Neila. The Impact of Subprime Crisis on Conventional and Islamic Stock Market. International Journal of Business and Risk Management. 2020; 3(1):1-8. doi: 10.12691/ijbrm-3-1-1.

Correspondence to: Majoul  Neila, Higher Institute of Management, Tunis University, Tunisia. Email: m.neila@hotmail.fr

Abstract

The aim of this paper is to examine the impact of the U.S. subprime crisis on the long-term and short-term dynamic relationships between conventional and Islamic stock markets in three sub periods. The comovements among these stock markets are examined through cointegration tests, and vector error correction model-based Granger causality tests. The sub periods studied are the pre-, post and during the recent subprime crisis. Results indicate that Islamic stock market indexes are attractive than their conventional counterparts for portfolio managers and international investors. Opportunities for potential earnings through diversification of investment portfolios are high in these markets.

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