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Market Reactions Towards The Announcement Of Sukuk Issuance: Evidence From Gulf Markets

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  • Nabil El Majdoub

    (FSJES - Faculté des Sciences Juridiques, Economique et Sociales de Mohammedia - UH2MC - Université Hassan II [Casablanca])

Abstract

Sukuk (Islamic bonds) emerged as a revolutionary financial instrument over the last years and is considered as the flagship capital market instrument of the Islamic finance industry. However, the understanding of it is still limited compared to conventional bonds. This study aims to investigate whether the announcements of Sukuk issuance that carry any new information can create impact on the market's reactions using 42 Sukuk announcements over the period of 2010 to 2019 in four Gulf financial markets. It is revealed the absenteeism of significant abnormal returns across asymmetric and symmetric event windows for periods before and after the announcement date, concluding no wealth effect. Within the equity marketplace, these results will be of practical relevance to corporations, practitioners and decision-makers.

Suggested Citation

  • Nabil El Majdoub, 2021. "Market Reactions Towards The Announcement Of Sukuk Issuance: Evidence From Gulf Markets," Post-Print hal-04175214, HAL.
    • Handle: RePEc:hal:journl:hal-04175214
    DOI: 10.5281/zenodo.5795069
    Note: View the original document on HAL open archive server: https://hal.science/hal-04175214
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    References listed on IDEAS

    as
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    3. Andreas Jobst & Peter Kunzel & Paul Mills & Amadou Sy, 2008. "Islamic bond issuance: what sovereign debt managers need to know," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(4), pages 330-344, November.
    4. Andreas Jobst & Peter Kunzel & Paul Mills & Amadou Sy, 2008. "Islamic bond issuance: what sovereign debt managers need to know," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(4), pages 330-344, November.
    5. Maryam Beigi & Oliver Budzinski, 2013. "Reservations on the use of event studies to evaluate economic policy," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 48(3), pages 174-179, May.
    6. Andreas Jobst & Peter Kunzel & Paul Mills & Amadou Sy, 2008. "Islamic bond issuance: what sovereign debt managers need to know," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 1(4), pages 330-344, November.
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    Keywords

    Islamic finance; Sukuk; Event study; GCC;
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