Abstract
Although many papers have examined the Saudi stock market, to date none have explored the influence of religiosity on the behavior of stock prices, taking into account the dominance of individual investors. These characteristics distinguish the Saudi stock market from other mature and immature markets. Therefore, we study the reaction of the Saudi stock market to announcements by imams regarding firms' sharia compliance, using a two-step procedure. First, we distribute a questionnaire to gauge individual opinions about imams' announcements. Then, we conduct an appropriate event-study to capture the potential abnormal returns. Our findings indicate that imams’ announcements convey valuable information to the stock market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
