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Determining Financial Uncertainty through the Dynamics of Sukuk Bonds and Prices in Emerging Market Indices

Author

Listed:
  • Muhammad Safdar Sial

    (Department of Management Sciences, COMSATS University Islamabad (CUI), Islamabad 44000, Pakistan)

  • Jacob Cherian

    (College of Business, Abu Dhabi University, Abu Dhabi P.O. Box 59911, United Arab Emirates)

  • Abdelrhman Meero

    (College of Business Administration, Kingdom University, Riffa 40434, Bahrain)

  • Asma Salman

    (College of Business Administration, American University in the Emirates, Dubai P.O. Box 503000, United Arab Emirates)

  • Abdul Aziz Abdul Rahman

    (College of Business Administration, Kingdom University, Riffa 40434, Bahrain)

  • Sarminah Samad

    (Department of Business Administration, College of Business and Administration, Princess Nourah Bint Abdulrahman University, Riyadh 11671, Saudi Arabia)

  • Constantin Viorel Negrut

    (Faculty of Economics and Business Administration, West University of Timisoara, 300006 Timisoara, Romania)

Abstract

The main focus of the study is to determine the financial uncertainty while examining the Sukuk bonds prices, Sukuk bond and global emerging market indices returns dynamics. The study, with a time period ranging from 2017 to 2020, applies the quantile regression technique. The study findings show that evidence of co-moment exists between the global emerging market index and Sukuk bond price returns, except the one. There is no impact of the financial uncertainty indicator reflected by the global volatility index (VIX) on the Sukuk index returns, and even this impact is negative for (VXEEM). The causal impact among the global emerging and Sukuk bond markets will help formulate future trading strategies in particular to Islamic bond markets.

Suggested Citation

  • Muhammad Safdar Sial & Jacob Cherian & Abdelrhman Meero & Asma Salman & Abdul Aziz Abdul Rahman & Sarminah Samad & Constantin Viorel Negrut, 2022. "Determining Financial Uncertainty through the Dynamics of Sukuk Bonds and Prices in Emerging Market Indices," Risks, MDPI, vol. 10(3), pages 1-13, March.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:3:p:61-:d:766857
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    References listed on IDEAS

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    Cited by:

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