Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 1, 2016 erstellt
Beschreibung:
We use an original identification strategy to isolate a potential religious bias in traders’ behavior. We analyze the stock market reaction to sukuk issuance during Ramadan. We then isolate the religious component of the trades by comparing the stock market reaction to sukuk and bond issuance during that holy month. We use the event study methodology to measure abnormal returns for a sample of 2,140 issuances by 133 issuers in Malaysia over the period 2000-2013. We find that sukuk issuance during Ramadan is valued more positively than bond issuance by stock market investors. We observe that the type of securities previously issued by the firm influences the stock market reaction, in the sense that the positive reaction to sukuk issuance during Ramadan rewards firms which only issue sukuk. Our findings then support the view that religiosity influences the behavior of investors. As a consequence religiosity of investors should be taken into account in the analysis of financial markets