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Macroeconomic Forces Affecting Islamic Performance Indices

Author

Listed:
  • Zainora Ab Wahid
  • Norliza Che Yahya
  • Siti Norbaya Mohd Rashid
  • Muhammad Azizi Karim
  • Amireza Mohd Khalid

Abstract

This study aims to investigate the macroeconomic factors that impact the performance of Malaysia's Islamic stock market. This study looks at six independent variables that affect the performance of the Islamic stock market in Malaysia: the world oil price, inflation rate, Islamic interbank rate, money supply (M2), industrial activity index, inflation rate, Islamic interbank rate, exchange rate, and world oil price. The Department of Statistics Malaysia (DOSM), Bursa Malaysia, Bank Negara Malaysia, and Eikon Thomson Reuters were among the secondary data sources used in this study's quantitative data gathering methodology. The research was carried out over four years (2019–2023) using monthly data. A theoretical model was created to investigate the suggested relationship after it was analyzed using the E-views software. The success of the Islamic stock market was found to be significantly correlated with the inflation rate, money supply, Islamic interbank rate, and exchange rate. These determinants are exerting a direct influence on the Islamic stock market in Malaysia, particularly in its macroeconomic aspects. The present study aims to enhance comprehension regarding the possible effects of different elements on how well the Islamic stock market performs. Different results could come from more research into the various elements affecting the Islamic stock market's performance.

Suggested Citation

  • Zainora Ab Wahid & Norliza Che Yahya & Siti Norbaya Mohd Rashid & Muhammad Azizi Karim & Amireza Mohd Khalid, 2024. "Macroeconomic Forces Affecting Islamic Performance Indices," Information Management and Business Review, AMH International, vol. 16(3), pages 979-990.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:3:p:979-990
    DOI: 10.22610/imbr.v16i3S(I)a.4185
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    References listed on IDEAS

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