The Determinants of Islamic Banks’ Stock Prices Volatility: Evidence From the GCC Countries
(1) UIN Mataram
(2) Universitas Mataram
(*) Corresponding Author
Islamic banks’ stock is a new interesting material to be discussed among Islamic economics scholars. The majority of Islamic banks’ stocks presents in middle-east countries, especially those which are joining as the Gulf Cooperation Council (GCC) countries. Samples in this study were 10 islamic banks in the Gulf Cooperation Council (GCC) Countries with secondary data from their financial report. A panel data regression analysis was employed to seek the influence of all observed variables (ROA, ROE, and ICSR (zakat)) as the determinant factors toward Islamic banks’ stock prices volatility. The study found that all the independent variables simultaneously have an impact on Islamic banks’ stock prices in that area. The study also found that the variable of ROA has a negative significant impact and the variable of ROE has a positive significant impact, while total of zakat spending by corporates as the ICSR variable has an insignificant impact on Islamic banks’ stock prices because zakat is an obligation to pay within the GCC countries. This study suggested all Islamic banks globally to consider investors’ sentiment toward Islamic banks’ financial condition before entering the Islamic capital market.
Al Kalbani, Zaynab, Vinay R. Gupta, D. Mamtha, and Asma Al-Hanai, (2015), “Impact of Financial Crisis on Stock Prices of Companies in Oman”, International Journal of Business Management & Research (IJBMR), Vol. 5, No. 2.
Al-Nimer, Munther, Lina Warrad, and Rania Al Omari, (2013), “The Effect of Return on Assets and Earnings Per Share and Dividends Per Share on Stock Prices of Publicly Listed Banks in Jordan”, International Journal of Marketing, Financial Services, and Management Research, Vol. 2, No. 3.
Barakat, Abdallah, (2014), “The Impact of Financial Structure, Financial Leverage, and Profitability on Industrial Companies Shares Value (Applied Study on a Sample of Saudi Industrial Companies)”, Research Journal of Finance and Accounting, Vol. 5, No. 1.
Derakhshanzade, Amin and Rezaie, Hamideh, (2015), “Explanation of the Relationship between Corporate Social Responsibility and Falling Risk of Stock Prices in Companies of the Tehran Stock Exchange,” International Research Journal of Management and Sciences, Vol. 3, No. 12.
Dixon, Rob, Elena Platonova, Mehmet Asutay, and Sabri Mohammad, (2016), “The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector,” Journal of Business Ethics.
Gharaibeh, Ahmad Mohammad Obeid, (2015), “The Determinants of Common Share Prices: New Empirical Evidence From Kuwait”, EPRA International Journal of Economic and Business Review, Vol. 3, Issue-11.
Hartono, J., (2008), Teori Portofolio dan Analisis Investasi, Edisi 5, Yogyakarta: BPFE.
Jogiyanto, H.M., (2000), Teori Portofolio dan Analisis Investasi, Yogyakarta: BPFE.
Labib, Mughni, “Keberhasilan Pengelolaan Zakat di Arab Saudi”, in www.darussaadah.or.id/kajian/18/Keberhasilan_Pengelolaan_Zakat_di_Arab_Saudi.html. Accessed on April 20, 2017
Pinches, George E., (1996), Essential of Financial Management, New York: Harver Collins College Publishers.
Reskino, (2016), “Zakat and Islamic Corporate Social Responsibility: Do These Effect the Performance of Sharia Banks?”, Shirkah Journal of Economics and Business, Vol. 1, No. 2.
Ridwan, Murtadho, (2014), “Zakat VS Pajak: Studi Perbandingan di Beberapa Negara Muslim”, ZISWAF, Vol. 1, No. 1.
Sikimic, Simona, “Profile, What Is The GCC?”, in www.middleeasteye.net. Accessed on February 20, 2017.
Suharli, M., (2008), “Studi Empiris Terhadap Dua Faktor Yang Mempengaruhi Return Saham Pada Industri Food & Beverages di Bursa Efek Jakarta”, Jurnal Akuntansi dan Keuangan, Vol. 7, No. 2
Tandelilin, Eduardus, (2001), Analisis Investasi dan Manajemen Portofolio, Yogyakarta: BPFE.
Widiatmojo, (2001), Cara Sehat Investasi Manajemen Portofolio, Yogyakarta: BPFE.
Article MetricsAbstract view : 0 times
PDF - 0 times
- There are currently no refbacks.
Al Amwal Indexed by:
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
This work is licensed under a Creative Commons Attribution 4.0 International License.-->View My Stats