Next Article in Journal
Financial Variables, Market Transactions, and Expectations as Functions of Risk
Previous Article in Journal
Comparing the Influence of Green Credit on Commercial Bank Profitability in China and Abroad: Empirical Test Based on a Dynamic Panel System Using GMM
Open AccessArticle

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 / Revised: 30 September 2019 / Accepted: 1 October 2019 / 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. View Full-Text
Keywords: Islamic stock market; GARCH model; Quantile regression; herding behavior; GCC countries; sectoral analysis; JEL Classification; G11; G12; G15 Islamic stock market; GARCH model; Quantile regression; herding behavior; GCC countries; sectoral analysis; JEL Classification; G11; G12; G15
Show Figures

Figure 1

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.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop