Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era

We examine the time- and frequency-domain spillover connectedness between regional and world Shariah indices. The spillover index approach is employed with data over the period from April 30, 2012, to May 9, 2022, for African, American, Asian, European, and world emerging and developed markets’ Shar...

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Main Authors: Shafi Madhkar Alsubaie, Khaled H. Mahmoud, Emmanuel Asafo-Adjei, Ahmed Bossman
Format: Article
Language:English
Published: Wiley 2023-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2023/5602895
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author Shafi Madhkar Alsubaie
Khaled H. Mahmoud
Emmanuel Asafo-Adjei
Ahmed Bossman
author_facet Shafi Madhkar Alsubaie
Khaled H. Mahmoud
Emmanuel Asafo-Adjei
Ahmed Bossman
author_sort Shafi Madhkar Alsubaie
collection DOAJ
description We examine the time- and frequency-domain spillover connectedness between regional and world Shariah indices. The spillover index approach is employed with data over the period from April 30, 2012, to May 9, 2022, for African, American, Asian, European, and world emerging and developed markets’ Shariah-based equity indices. The results indicate significant time- and frequency-dependent spillovers between Shariah indices. The world and developed markets’ Shariah indices transmit the greatest return spillover to their African and Asian counterparts, which act as net recipients of system spillovers. Our findings show that Asian Shariah assets are a perfect hedge against all relevant market shocks over the last decade. Our findings have implications for Shariah market regulators, investors, practitioners, and policymakers.
format Article
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institution OA Journals
issn 1099-0526
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publishDate 2023-01-01
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record_format Article
series Complexity
spelling doaj-art-189e0120ca244c41a5dfdb5e9313173a2025-08-20T02:02:13ZengWileyComplexity1099-05262023-01-01202310.1155/2023/5602895Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis EraShafi Madhkar Alsubaie0Khaled H. Mahmoud1Emmanuel Asafo-Adjei2Ahmed Bossman3Department of Sharia and Islamic StudiesDepartment of PhysicsDepartment of FinanceDepartment of FinanceWe examine the time- and frequency-domain spillover connectedness between regional and world Shariah indices. The spillover index approach is employed with data over the period from April 30, 2012, to May 9, 2022, for African, American, Asian, European, and world emerging and developed markets’ Shariah-based equity indices. The results indicate significant time- and frequency-dependent spillovers between Shariah indices. The world and developed markets’ Shariah indices transmit the greatest return spillover to their African and Asian counterparts, which act as net recipients of system spillovers. Our findings show that Asian Shariah assets are a perfect hedge against all relevant market shocks over the last decade. Our findings have implications for Shariah market regulators, investors, practitioners, and policymakers.http://dx.doi.org/10.1155/2023/5602895
spellingShingle Shafi Madhkar Alsubaie
Khaled H. Mahmoud
Emmanuel Asafo-Adjei
Ahmed Bossman
Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
Complexity
title Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
title_full Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
title_fullStr Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
title_full_unstemmed Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
title_short Time-Frequency Connectedness between Shariah Indices in a Systemic Crisis Era
title_sort time frequency connectedness between shariah indices in a systemic crisis era
url http://dx.doi.org/10.1155/2023/5602895
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