The Performance of Islamic Stocks and Conventional Stocks During the COVID-19 Shock: Evidence from Indonesian Stock Market

Authors

  • Mohamad Rahmawan Arifin Department of Islamic Banking, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta
  • Ahmad Syahrul Fauzi Department of Development Economics, Faculty of Economics and Business Universitas Negeri Semarang
  • Sri Runtiningsih Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada
  • Frank Aligarh Department of Islamic Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta
  • Arif Nugroho Department of Islamic Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta

DOI:

https://doi.org/10.54471/iqtishoduna.v13i1.2340

Keywords:

islamic stock, conventional stock, performance, sharia compliance, Covid-19

Abstract

This study aims to analyze the performance of Islamic stocks and conventional stocks in Indonesia during the crisis period due to the COVID-19 pandemic. Islamic stocks and conventional stocks are divided based on sharia compliance qualifications by each stock. The sample used in this study is nine sharia stocks taken from the Jakarta Islamic Index (JII) and nine conventional stocks taken based on nine non-shariah compliance stocks included in the IDX30 Index during 31 August 2020 to 31 July. 2022. The analytical method used in this study is Ordinary Least Square (OLS) using panel data, then this study also uses an interaction variable between the three COVID-19 indicators and the sharia compliance variable which represents company compliance with Islamic principles. The estimation results show that daily confirmed cases of COVID-19 and stringency index have a significant negative effect on stock returns in Indonesia, while daily confirmed deaths due to COVID-19 has no effect on stock returns. Furthermore, the results of the interaction between the COVID-19 indicator measures and the sharia compliance variable show that Islamic stocks show greater performance in crises during the COVID-19 pandemic.

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Author Biographies

Mohamad Rahmawan Arifin, Department of Islamic Banking, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta

Lecturer and Researcher in Department of Islamic Banking, Faculty of Islamic Economics and Business Universitas Islam Negeri (UIN) Raden Mas Said Surakarta, Indonesia

Ahmad Syahrul Fauzi, Department of Development Economics, Faculty of Economics and Business Universitas Negeri Semarang

Lecturer and Researcher in Department of Islamic Accounting, Faculty of Islamic Economics and Business Universitas Islam Negeri (UIN) Raden Mas Said Surakarta, Indonesia

Sri Runtiningsih, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

Student in Master of Science in Economic Program, Faculty of Economics and Business Universitas Gadjah Mada Indonesia

Frank Aligarh, Department of Islamic Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta

Lecturer and Researcher in Department of Islamic Accounting, Faculty of Islamic Economics and Business Universitas Islam Negeri (UIN) Raden Mas Said Surakarta, Indonesia

Arif Nugroho, Department of Islamic Accounting, Faculty of Islamic Economics and Business, Universitas Islam Negeri Raden Mas Said Surakarta

Lecturer and Researcher in Department of Islamic Accounting, Faculty of Islamic Economics and Business Universitas Islam Negeri (UIN) Raden Mas Said Surakarta, Indonesia

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Published

2024-04-01

How to Cite

Mohamad Rahmawan Arifin, Ahmad Syahrul Fauzi, Sri Runtiningsih, Frank Aligarh, and Arif Nugroho. “The Performance of Islamic Stocks and Conventional Stocks During the COVID-19 Shock: Evidence from Indonesian Stock Market”. IQTISHODUNA: Jurnal Ekonomi Islam 13, no. 1 (April 1, 2024): 265–284. Accessed July 17, 2024. https://ejournal.iaisyarifuddin.ac.id/index.php/iqtishoduna/article/view/2340.

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