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Stock Exchange Alliances in Organization of Islamic Conferences (OIC) Countries

Author

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  • M. Kabir Hassan
  • Jung Suk-Yu

Abstract

This paper examines the feasibility and economic benefits of stock exchanges alliances among OIC countries. Despite common Islamic culture, OIC local capital market conditions are heterogeneous depending on legal jurisdictions, income level and the maturity of stock market development. Therefore, in this paper, we suggest a set of internationally acceptable standards that aim to provide guidance for the development and implementation of policy irrespective of local differences so that they can form the basis for the development of sound stock exchanges in OIC countries. For the future development of OIC stock exchanges, we propose a bifurcated or two-tier system for blue-chips and small / medium-sized firms. That is, although small and locally operating firms will list shares at local exchanges, larger firms will rely on regional financial centers within Asian, Europe and MENA regions in the long term or a pan-OIC exchange irrespective of where this market will be located in OIC countries.

Suggested Citation

  • M. Kabir Hassan & Jung Suk-Yu, 2007. "Stock Exchange Alliances in Organization of Islamic Conferences (OIC) Countries," NFI Working Papers 2007-WP-18, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfiwps:2007-wp-18
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2007-WP-18_Hassan-Yu.pdf
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    References listed on IDEAS

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    Cited by:

    1. Korkmaz, Turhan & Çevik, Emrah İ. & Atukeren, Erdal, 2012. "Return and volatility spillovers among CIVETS stock markets," Emerging Markets Review, Elsevier, vol. 13(2), pages 230-252.
    2. Norhazlina Ibrahim & Obiyathulla Ismath Bacha & Mansor H. Ibrahim & Hishamuddin Abdul Wahab, 2020. "The Impact of Depositary Receipts on Stock Market Development: Evidence from Organization of Islamic Cooperation Stock Markets," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 130-138.
    3. Nurrachmi, Rininta, 2018. "Movements of Islamic Stock Indices in Selected OIC Countries," MPRA Paper 96539, University Library of Munich, Germany.

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    More about this item

    Keywords

    Stock exchanges alliances; OIC capital markets; cross-border mergers;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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