Public attention to “Islamic terrorism” and stock market returns

Ouadghiria, Imane El and Peillex, Jonathan,(2018), Public attention to “Islamic terrorism” and stock market returns. , Journal of Comparative Economics 46 (2018) 936–946, UNSPECIFIED

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Abstract

Does public attention to Islamic terrorism affect the performance of Islamic and conventional indices? We answer this question by empirically examining the effects of US public attention to Islamic terrorism on returns of US Islamic and conventional indices between 2004 and 2017. US public attention to Islamic terrorism is measured using Google Search Volume, which reflects active public attentiveness, and media coverage, which measures passive attentiveness. We test its effect on the stock returns of Islamic and conventional indices by using difference-in-difference analysis. The results indicate that US public attention to Islamic terrorism negatively affects US Islamic indices, suggesting that investors may make amalgams between terrorism and Islamic finance. These clichés may lead them to sell Sharia-compliant assets when US public attention to Islamic terrorism is high. Taken together, our findings provide new evidence and financial implications for investors and providers of Islamic financial products
Keywords : Difference-in difference analysis Islamic indices Public attention Terrorism, UNSPECIFIED
Journal or Publication Title: Journal of Comparative Economics 46 (2018) 936–946
Volume: 46
Number: UNSPECIFIED
Item Type: Article
Subjects: Ekonomi Islam
Depositing User: Nila Nurjanah
Date Deposited: 16 Dec 2019 06:27
Last Modified: 16 Dec 2019 06:27
URI: https://repofeb.undip.ac.id/id/eprint/191

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