Is there a role for Islamic bonds in global diversification strategies?

Balcilar M., ÇERÇİ G., Demirer R.

MANAGERIAL FINANCE, cilt.42, sa.7, ss.656-679, 2016 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 42 Sayı: 7
  • Basım Tarihi: 2016
  • Doi Numarası: 10.1108/mf-07-2015-0189
  • Dergi Adı: MANAGERIAL FINANCE
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.656-679
  • Çukurova Üniversitesi Adresli: Evet

Özet

Purpose - The purpose of this paper is to examine the international diversification benefits of Islamic bonds (Sukuk) for equity investors in conventional stock markets. The authors compare the diversification benefits of these securities with their conventional alternatives from advanced and emerging markets. Compared to conventional bonds, Sukuk are backed by tangible assets and carry both bond and stock-like features. Furthermore, the Sharia-based limitations limit the risk in these securities as a result of ethical investing rules. The regime-based model provides insight to possible segmentation (or integration) of these securities from global markets during different market states.