Boubakri, Narjess and Chen, Ruiyuan and Guedhami, Omrane and Li, Xinming,(2019), The Stock Liquidity of Banks: A Comparison between Islamic and Conventional Banks in Emerging Economies. , Emerging Markets Review, UNSPECIFIED
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Abstract
We explore the stock liquidity of Islamic banks (IBs) and matching conventional banks (CBs) in
emerging economies. We find that IBs have higher stock liquidity than CBs, suggesting that investors
prefer IBs' stocks and neglect what they consider to be “sin stocks” (i.e., CBs' stocks),
which do not conform to their religious beliefs. We also find that the liquidity effects are particularly
important for small IBs, and during the global financial crisis. This evidence is stronger
in countries with less developed banking sectors and weaker bank supervision and regulation.
Hence, faith-driven investors tend to value more norm-conforming stocks (i.e., IBs) during times
of distress and uncertainty, and in weaker regulatory environments.
Keywords : | Islamic banks Stock liquidity Social norms, UNSPECIFIED |
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Journal or Publication Title: | Emerging Markets Review |
Volume: | 39 |
Number: | UNSPECIFIED |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Nila Nurjanah |
Date Deposited: | 16 Dec 2019 07:23 |
Last Modified: | 16 Dec 2019 07:23 |
URI: | https://repofeb.undip.ac.id/id/eprint/222 |