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COVID-19 effect on Islamic vs. conventional banks’ stock prices: Case of GCC countries

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  • Aliani, Khaoula
  • Al-kayed, Lama
  • Boujlil, Rhada

Abstract

This Study explores the COVID-19 impact on the co-movement between Islamic and conventional banks' stock prices during the period from March 3, 2019, to January 30, 2021, in six GCC countries. The wavelet coherency approach and the DCC- GARCH (1,1) model are used to assess the COVID-19 impact on both banks' indexes. Findings of the study find that Islamic and conventional banks' stock returns move in the same direction during the pandemic, but the fluctuations of Islamic banks’ returns were less volatile compared to their conventional counterparts. These findings indicate that investors in the Islamic banking industry had more positive sentiments for the industry.

Suggested Citation

  • Aliani, Khaoula & Al-kayed, Lama & Boujlil, Rhada, 2022. "COVID-19 effect on Islamic vs. conventional banks’ stock prices: Case of GCC countries," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    • Handle: RePEc:eee:joecas:v:26:y:2022:i:c:s170349492200024x
    DOI: 10.1016/j.jeca.2022.e00263
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    References listed on IDEAS

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    Cited by:

    1. Takashi Kanamura, 2023. "A difference in COVID-19 impact on bank stocks between Japan and the US," SN Business & Economics, Springer, vol. 3(7), pages 1-23, July.
    2. Choi, Sun-Yong & Phiri, Andrew & Teplova, Tamara & Umar, Zaghum, 2024. "Connectedness between (un)conventional monetary policy and islamic and advanced equity markets: A returns and volatility spillover analysis," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 348-363.
    3. Miroslav Mateev & Tarek Nasr & Kiran Nair, 2024. "Navigating crisis: marketing dynamics and resilience in the MENA’s dual-banking system amidst the SAR-COV-2 pandemic," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-21, December.
    4. Panagiotidis, Theodore & Papapanagiotou, Georgios & Stengos, Thanasis, 2023. "Dying together: A convergence analysis of fatalities during COVID-19," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).
    5. Hasan, Md. Bokhtiar & Hassan, M. Kabir & Alhomaidi, Asem, 2023. "How do sectoral Islamic equity markets react to geopolitical risk, economic policy uncertainty, and oil price shocks?," The Journal of Economic Asymmetries, Elsevier, vol. 28(C).

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