Effect of Exchange Rate, Foreign Exchange Reserves and Consumer Price Index on the Shariah Shares Index of Asian Countries
Journal Title: Oblik i finansi - Year 2020, Vol 1, Issue 3
Abstract
Sharia shares are securities proof of equity participation in a company. On the base of this proof of participation shareholders are entitled to a share of income arisen from the company's business. This concept of equity participation with share rights of operating income does not conflict with Sharia principles. This study aimed to analyze the effect of exchange rate, foreign exchange reserves and consumer price index on the Sharia stock index of Asian countries, where the research object was the Islamic stock index of Indonesia, Malaysia, Japan and India. It is known that many factors influence on the stock index movements in a country, including domestic interest rates, foreign exchange rates, international economic conditions, a country's economic cycle, inflation rates, tax regulations, and the money supply. In this study, the authors examine the influence of only three factors – the exchange rate, foreign exchange reserves and consumer price index. The panel data regression method was used for the period of January to December 2019. The results of the regression analysis shown that the variables of exchange rates, foreign exchange reserves and the consumer price index together had a significant effect on the Islamic stock index of Asian countries. The R-squared value was 0.997762, meaning that 99% of the variation in the Islamic stock index of Asian countries could be explained by variations in the variable exchange rates, foreign exchange reserves and the consumer price index. The individual test results show that the exchange rate had a significant negative effect on the Islamic stock index of Asian countries. Meanwhile, foreign exchange reserves and the consumer price index had a significant positive effect on the Islamic stock index of Asian countries.
Authors and Affiliations
Dolly Tanzil & Marlina Widiyanti & Muhammad Subardin
Keywords
Related Articles
- EP ID EP690118
- DOI 10.33146/2307-9878-2020-3(89)-77-82
- Views 161
- Downloads 0
Імплементація термінології у сфері аудиту державних фінансів: проблема конвенційності понять
Забезпечення прозорого і ефективного управління державними фінансами, що є однією з ключових вимог європейської спільноти та вимагає сучасних механізмів контролю. Відособленість різних гілок влади при підготовці та прийн...
The Effect of Leverage, Liquidity and Firm Size on Tax Aggressiveness
Tax aggressiveness occurs when businesses apply various tax techniques to lower the amount of tax payable. This study aims to analyze the influence of such factors as leverage, liquidity, and firm size on the tax aggress...
State Support for Geodetic Business - An Important Prerequisite for Post-War Reconstruction of Ukraine
The need for post-war reconstruction of the Ukrainian economy, housing stock and infrastructure facilities will lead to the activation of the construction industry and, therefore, the demand for geodetic services. On the...
Практична концептуалізація інформаційно-аналітичного забезпечення управління відтворенням біологічного капіталу скотарства
У статті досліджено особливості практичної реалізації концепції інформаційно-аналітичного забезпечення процесів формування та використання біологічного капіталу скотарства. Обґрунтовано необхідність диференціації інформа...
Consumer Behaviour Study in the Brand Management System
The issues of how a human thinks and what influences his decisions, the ratio of rational and irrational in consumer behaviour, and how the decision-making process works while purchasing goods are phenomena of human natu...