Islamic Finance and Herding Behavior Theory: A Sectoral Analysis for Gulf Islamic Stock Market
1
Department of Finance and Investment, College of Economics and Administrative Sciences, Imam Muhammad Ibn Saud Islamic University (IMSIU), 11432 Riyadh, Saudi Arabia
2
Department of Economics and Quantitative methods, High Business School, Sfax University, 3029 Sfax, Tunisia
3
Department of Management, High Business School, Sfax University, 3029 Sfax, Tunisia
*
Author to whom correspondence should be addressed.
Int. J. Financial Stud. 2019, 7(4), 65; https://doi.org/10.3390/ijfs7040065
Received: 18 July 2019
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Revised: 30 September 2019
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Accepted: 1 October 2019
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Published: 4 November 2019
This study examines herding behavior in four sectors of the Gulf Islamic stock markets. Based on the methodology of Chiang and Zheng (2010), results showed evidence of herding among investors in major sectors for the Gulf Cooperation Council (hereinafter GCC) Islamic stock market during falling periods. In addition, we found that conventional return dispersions have a dominant influence during both falling and rising market periods. We also found evidence of herding around the conventional sectors during down market periods only in banking, hotel and restaurant sectors. There is evidence of herding around the conventional sectors during up market periods for insurance and industrial sectors.
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Keywords:
Islamic stock market; GARCH model; Quantile regression; herding behavior; GCC countries; sectoral analysis; JEL Classification ; G11; G12; G15
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MDPI and ACS Style
Medhioub, I.; Chaffai, M. Islamic Finance and Herding Behavior Theory: A Sectoral Analysis for Gulf Islamic Stock Market. Int. J. Financial Stud. 2019, 7, 65. https://doi.org/10.3390/ijfs7040065
AMA Style
Medhioub I, Chaffai M. Islamic Finance and Herding Behavior Theory: A Sectoral Analysis for Gulf Islamic Stock Market. International Journal of Financial Studies. 2019; 7(4):65. https://doi.org/10.3390/ijfs7040065
Chicago/Turabian StyleMedhioub, Imed, and Mustapha Chaffai. 2019. "Islamic Finance and Herding Behavior Theory: A Sectoral Analysis for Gulf Islamic Stock Market" International Journal of Financial Studies 7, no. 4: 65. https://doi.org/10.3390/ijfs7040065
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