Abstract

The continuous growth in Islamic finance over the past decades grabbed the interest of empirical researchers who investigated different aspects of Shariah compliant firms. In this thesis, we are interested to explore the impact of Shariah compliance on stock price synchronicity and informativeness. Our rational is that Shariah standard forced compliant firms to release more firm-specific information compared with conventional ones and given that Shariah compliant firms are more associated with information transparency taking into consideration the impact of the Shariah on the governance of the compliant firms. We claim that these features of Shariah compliant firms lead to less price synchronicity compared with conventional firms. We use data from 11 emerging and developed countries for the period of 2000 to 2018. Our findings suggest that firms' compliance to Shariah has a significant negative impact on stock price synchronicity confirming that Shariah compliance decreases the co-movements of the stocks. The results are consistent with the unique characteristics and the financial ratio constrains of compliant firms increase the information transparency and accuracy.

Department

Management Department

Degree Name

MS in Finance

Graduation Date

2-1-2020

Submission Date

January 2020

First Advisor

Mohamed Bouaddi, Neveen Ahmed

Committee Member 1

Youssef, Noha

Committee Member 2

Wael Abdallah, Noha Youssef

Extent

48p||048 p.

Document Type

Master's Thesis

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy.

Institutional Review Board (IRB) Approval

Approval has been obtained for this item

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