SHARIAH RISK FACTOR AND STOCK RETURN IN THE INDONESIAN STOCK MARKET DURING COVID-19 AND THE RUSSIA-UKRAINE CONFLICT

Using a sample of 544 Indonesian stocks, we examine the performance of the Shariah and non-Shariah stocks from 2018-2023. Employing panel regressions to investigate the impact of the Shariah investment principles on the average stock returns, we observe a positive relationship between the Shariah firms and average stock return in the market. Consequently, the study forms the Shariah and non-Shairah portfolios and analyzes their performance using the asset pricing model. We document evidence that the Shariah portfolio provides a higher abnormal return than the non-Shariah portfolio. Further, we report that the Shariah portfolio provides a higher abnormal return than the non-Shariah portfolio after controlling COVID-19 and the Russia-Ukraine war. Finally, we create the Shariah risk factor and conclude that it is one factor that explains the deviation in the stock return in the Indonesian stock market. The study recommends that policymakers consider this factor to derive the cost of equity, discount rate, and cost of capital.&nbsp

Effect of weather on stock market: A literature review and research agenda

The paper presents a systematic review of the research work, published on the topic of weather effects and stock market behavior. The objectives of the study were to examine the current status of research, by collecting the literature, in the area of weather effects and stock market behavior. In the process, the study would reveal the current status to the budding researchers. In this study, the authors critically assessed and examined fifty one research studies, published from 1993 and 2019, in different regions across the globe. A systematic literature review for this study has been made using Google Scholar. The present study found that number of research works on the weather effects and stock market behavior had increased marginally during the recent time period, especially from the beginning of Twenty First Century. Among the different weather factors, temperature was wildly used for research. Finally, this paper reveals some significant research gap to advance the research agenda for future research