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Profitability of technology-investing Islamic and non-Islamic stock markets

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  • Narayan, Paresh Kumar

Abstract

In this paper we show that non-Islamic countries which invest more in technologies are more profitable than countries, including Islamic countries, which do not. Our results also reveal that high-investing emerging countries are relatively more profitable than high-investing developed countries. Commonly known market risk factors explain only between 11 to 41% of momentum profits over time, suggesting that our results that technology-investing countries are profitable are not entirely due to market risk factors. Our results survive a battery of robustness tests.

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  • Narayan, Paresh Kumar, 2018. "Profitability of technology-investing Islamic and non-Islamic stock markets," Pacific-Basin Finance Journal, Elsevier, vol. 52(C), pages 70-81.
    • Handle: RePEc:eee:pacfin:v:52:y:2018:i:c:p:70-81
    DOI: 10.1016/j.pacfin.2017.08.007
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