Stock market liberalization : effects on stock market development in the emerging Islamic countries

Author

Ilhan, Bilal

Source

International Journal of Islamic Economics and Finance Studies

Issue

Vol. 6, Issue 1 (31 Mar. 2020), pp.30-56, 27 p.

Publisher

Centre of Political Economical and Social Research

Publication Date

2020-03-31

Country of Publication

Turkey

No. of Pages

27

Main Subjects

Financial and Accounting Sciences

Abstract EN

It is more or less agreed that even though the rising trend has occurred in the stock markets of emerging countries during 1990s, those in the emerging Islamic countries (EIC), with the common characteristics of small size, less liquidity, less efficiency, high cost of capital and volatility, have not been able to perform at the same pace.

The proponents of stock market liberalization (SML) prescribes liberalization as a full-fledged solution to the problems of the EIC, whereas the limited number of studies illustrate mixed results.

Against this backdrop, this study makes the initial attempt to examine the effects of SML on the development of stock markets in the EIC.

Relying on panel data techniques on a sample of 7 EIC over the years 1989 to 2008, the results tend to demonstrate that SML significantly increases stock market size and liquidity, hence contributing to the development of stock markets in the EIC.

With these results, the study produces policy implications suggesting that SML has been beneficial to the stock markets and further liberalization policies should be implemented to deepen and broaden the stock markets in the EIC.

American Psychological Association (APA)

Ilhan, Bilal. 2020. Stock market liberalization : effects on stock market development in the emerging Islamic countries. International Journal of Islamic Economics and Finance Studies،Vol. 6, no. 1, pp.30-56.
https://search.emarefa.net/detail/BIM-975647

Modern Language Association (MLA)

Ilhan, Bilal. Stock market liberalization : effects on stock market development in the emerging Islamic countries. International Journal of Islamic Economics and Finance Studies Vol. 6, no. 1 (Mar. 2020), pp.30-56.
https://search.emarefa.net/detail/BIM-975647

American Medical Association (AMA)

Ilhan, Bilal. Stock market liberalization : effects on stock market development in the emerging Islamic countries. International Journal of Islamic Economics and Finance Studies. 2020. Vol. 6, no. 1, pp.30-56.
https://search.emarefa.net/detail/BIM-975647

Data Type

Journal Articles

Language

English

Notes

Includes margin notes.

Record ID

BIM-975647