Impact of Muslim Holy Days on Asian stock markets: An empirical evidence

  • Irfan Ali, Waheed Akhter, Namrah Ashraf, Mohammed M. Elgammal
  • Cogent Economics & Finance, January 2017, Taylor & Francis
  • DOI: 10.1080/23322039.2017.1311096

Muslim Holy Days Effect on Returns of Asian Stock Markets

What is it about?

This study attempts to investigate the impact of five Muslim Holy Events (Eid-ul-Fitr, Eid-ul-Adha, Eid-Melad-un-Nabi, Ramadan and Ashura) on stock markets of Pakistan, Bahrain, Saudi Arabia, and Turkey. The results reveal that Eid-ul-Fitr is the only Holy day, which has significant positive effect on stock returns of Asian markets, while all other Holy Days have no effect.

Why is it important?

The major contribution of this study is that it isolate the effect of Muslim Holy days from Gregorian calendar anomalies. This study will also contribute to the literature by comparing the results of controlling and without controlling these anomalies. So this is a comprehensive study.

Perspectives

Irfan Ali

Writing this article was a great pleasure as it has co-authors with whom I have had long standing collaborations. This study is so interesting as it isolate the effect of Muslim Holy events from Gregorian anomalies. According to Muslim Holy days, Eid-ul-Fitr has high impact on stock returns. Whereas according to Gregorian anomalies, Friday and January have high impact on stock returns. The major contribution of this study is that if Eid-ul-Fitr occured on Friday or in January then how you can say that stock return is high due to Eid-ul-Fitr or Friday and January. This study has separated these effects and prove that stock return is high due to Eid-ul-Fitr but not due to Friday or January.

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http://dx.doi.org/10.1080/23322039.2017.1311096

The following have contributed to this page: Irfan Ali