TY - JOUR AU - Al-Awadhi, Abdullah M. AU - Bash, Ahmad AU - Al-Mutairi, Ahmad F. AU - Al-Awadhi, Ahmad M. PY - 2018/03/16 Y2 - 2024/03/28 TI - Returns of Islamic Stocks in Saudi Arabia: Segmentation and Risk-Aversion JF - International Journal of Economics and Financial Issues JA - IJEFI VL - 8 IS - 2 SE - Articles DO - UR - https://www.econjournals.com/index.php/ijefi/article/view/5974 SP - 238-242 AB - <p>This study investigates whether religious-based trading practices affect market returns. We use data from Saudi Arabia, which has clear defined religious rules on investing in stock markets. Using panel regression model, we find that non-Islamic stocks in this market have lower returns compared to Islamic stocks. These results conflict with Merton's market segmentation theory.</p><p><strong>Keywords:</strong> Returns; Islamic stocks; risk-aversion; segmentation; investment</p><h2><strong>JEL Classifications</strong>: C58, E44, G32</h2> ER -