Research

Junaina Muhammad · Mohamed Hisham Dato' hj Yahya · Sabarina Mohammed Shah · Mohammad Mizanur Rahman ·Asian Economic and Financial Review ·2018

Islamic financial market is the growing innovation of global financial market which moves together with conventional and sectorial counterpart in many countries. As the fastest growing investment component, Shariah compliant stock index in Bursa Malaysia has picked up positive momentum and attracted more attention to the investors, policy makers, issuers and researchers. The main objective of this study is to investigate the co-movement between Shariah compliant stock and sectorial stocks indexes performance in Bursa Malaysia using a standard time series techniques. For understanding a long run and short run co-movement among the Shariah compliant stock index, composite stock index and sectorial stock indexes, a co-integration approach, Vector Error Correction Model (VECM) have been applied respectively in this study. In addition, Granger causality test have been adopted to determine the lead-lag relationship. The findings show that in the long run, Shariah compliant index stock price and sectorial indexes stock price move together but in short run, speed of adjustment varies among the variables. Ganger causality test shows that there are bidirectional, unidirectional and no causality relationships between Shariah compliant and sectorial indexes.

Abid Rashid Gill · Kuperan K. Viswanathan · Sallahuddin Hassan ·Environment, Development and Sustainability ·2018

This study investigates the presence of environmental kuznets curve (EKC) for green house gases (GHG) measured by CO2 emission in Malaysia for the period 1970 to 2011. The study also examines the potential of the renewable source of energy to contain GHG. The long-run significant positive coefficient of GDP indicates that the GHG are increasing with economic growth while the insignificant coefficient on GDP square rejects the EKC transition. These results indicate a high GDP level for the EKC turning point for Malaysia. Therefore, it can be stated that only economic growth cannot reverse the environmental degradation in Malaysia. The government should have to come up with some policy measures to achieve CO2 emission reduction targets that Malaysia has pledged to achieve in Paris Submit (2015). The renewable energy production is found to have significant negative effect on CO2 emission. So government should focus on the renewable source of energy production and should frame a special policy for renewable energy production.