Search

ABSTRAK Penelitian ini bertujuan untuk menguji spillover effect indeks saham syariah Amerika Serikat dan Cina terhadap indeks saham syariah ASEAN dengan menggunakan metode Nonlinier Autoregressive Distributed Lag (NARDL) untuk menemukan spillover effect yang bersifat asimetris selama pandemi Covid-19. Data yang diamati dimulai pada 1 Januari 2020 sampai dengan 30 September 2021 dengan total observasi sebanyak 336 data untuk masing-masing indeks saham. Penelitian ini mendapatkan beberapa temuan. Pertama, indeks saham syariah Amerika Serikat dan Cina memiliki pengaruh asimetris jangka pendek terhadap indeks saham syariah Indonesia, Malaysia dan Thailand selama pandemi Covid-19. Kedua, indeks saham syariah Amerika Serikat dan Cina hanya memiliki pengaruh asimetris jangka panjang terhadap indeks saham syariah Malaysia selama pandemi Covid-19. Ketiga, efek ketika terjadi penurunan indeks saham syariah Amerika Serikat dan Cina lebih besar dibandingkan pada saat terjadi kenaikan terhadap indeks saham syariah Malaysia selama pandemi Covid-19. Salah satu penyebab hubungan tersebut adalah karena adanya hubungan dagang yang sangat erat antara Amerika Serikat dan Cina terhadap Malaysia. Adapun implikasi dari penelitian ini adalah investor internasional dapat menjadikan hasil penelitian ini sebagai bahan pengambilan keputusan apabila terjadi kontraksi akibat krisis seperti pada saat pandemi Covid-19 terhadap indeks saham syariah Amerika Serikat dan Cina untuk mempertahankan maupun menjual portofolio investasi mereka. Kata Kunci: Spillover, Indeks Syariah, Asimetris, Covid-19. ABSTRACT This study aims to examine the spillover effect of Islamic stock indexes of the United States and China on the ASEAN Islamic stock index using the Nonlinear Autoregressive Distributed Lag (NARDL) method to find asymmetric spillover effects during the Covid-19 pandemic. The observed data starts on January 1, 2020, until September 30, 2021, with a total of 336 observations for each stock index. This study found some findings. First, the Islamic stock indexes of the United States and China have a short-term asymmetric influence on the Islamic stock indices of Indonesia, Malaysia, and Thailand during the Covid-19 pandemic. Second, the Islamic stock indexes of the United States and China have only a long-term asymmetric influence on Malaysia's sharia stock indexes during the Covid-19 pandemic. Third, the effect when there is a decline in Islamic stock indexes of the United States and China is greater than when there is an increase in the Malaysian sharia stock index during the Covid-19 pandemic. One of the reasons for this relationship is the very close trade relationship between the United States and China with Malaysia. The research implication of this study is that international investors can use the results of this research as a decision-making material in the event of a contraction due to the crisis (one of which is the Covid-19 pandemic) in the United States and China Islamic stock indexes to maintain or sell their investment portfolios. Keywords: Spillover, Islamic Index, Asymmetric, Covid-19. DAFTAR PUSTAKA Abdullahi, S. I. (2021). Islamic equities and covid-19 pandemic: Measuring Islamic stock indices correlation and volatility in period of crisis. Islamic Economic Studies, 29(1), 50-66. https://doi.org/10.1108/IES-09-2020-0037 Aslam, F., Mohmand, Y. T., Ferreira, P., Memon, B. A., Khan, M., & Khan, M. (2020). Network analysis of global stock markets at the beginning of the coronavirus disease (covid-19) outbreak. Borsa Istanbul Review, 20, 49–61. https://doi.org/10.1016/j.bir.2020.09.003 Azhar, J. A., Wulandari, R., & Kalijaga, U. I. N. S. (2021). Stock performance based on sharia stock screening: Comparasion between syariah stock indices of Indonesia and Malaysia. 1(1), 14–26. https://doi.org/10.20885/AMBR.vol1.iss1.art2 Baek, S., Mohanty, S. K., & Glambosky, M. (2020). Covid-19 and stock market volatility: An industry level analysis. Finance Research Letters, 37(January), 1-10. https://doi.org/https://doi.org/10.1016/j.frl.2020.101748 Dizioli, A., Guajardo, J., Klyuev, VladimirMano, R., & Raissi, M. (2016). Spillovers from China’s growth slowdown and rebalancing to the ASEAN-5 economies. IMF Working Papers, 16(170), 1. https://doi.org/10.5089/9781475524260.001 Forbes, K. J., & Rigobon, R. (2002). No contagion, only interdependence: Measuring stock market comovements. Journal of Finance, 57(5), 2223–2261. https://doi.org/10.1111/0022-1082.00494 Hasan, M. B., Mahi, M., Sarker, T., & Amin, M. R. (2021). Spillovers of the covid-19 pandemic: Impact on global economic activity, the stock market, and the energy sector. Journal of Risk and Financial Management, 14(5), 200. https://doi.org/10.3390/jrfm14050200 He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of covid-19 on stock markets. Economic and Political Studies, 0(0), 275–288. https://doi.org/10.1080/20954816.2020.1757570 Hung, N. T. (2019). Return and volatility spillover across equity markets between China and Southeast Asian countries. Journal of Economics, Finance and Administrative Science, 24(47), 66–81. https://doi.org/10.1108/JEFAS-10-2018-0106 International Monetary Fund. (2021). Fault lines widen in the global recovery. World Economic Outlook Update, July 2021, 1–21. Retrieved from https://www.imf.org/en/Publications/WEO/Issues/2021/07/27/world-economic-outlook-update-july-2021 International Trade Administration. (2021). The investment climate statement chapter of the CCG is provided by the state department. Retrieved from https://www.trade.gov/country-commercial-guides/malaysia-market-overview Jebran, K., & Iqbal, A. (2016). Examining volatility spillover between Asian countries’ stock markets. China Finance and Economic Review, 4(1), 0–13. https://doi.org/10.1186/s40589-016-0031-1 Kayo, E. S. (2021). Bursa saham terbesar di dunia (20 besar). Retrieved from https://www.sahamu.com/bursa-saham-terbesar-di-dunia/ Kirkulak Uludag, B., & Khurshid, M. (2019). Volatility spillover from the Chinese stock market to E7 and G7 stock markets. Journal of Economic Studies, 46(1), 90–105. https://doi.org/10.1108/JES-01-2017-0014 Komorek, C. (2021). Record trade between Malaysia and China. Retrieved from http://www.fruitnet.com/asiafruit/article/184345/record-trade-between-malaysia-and-china Lee, H. Y. (2012). Contagion in international stock markets during the sub prime mortgage crisis. International Journal of Economics and Financial Issues, 2(1), 41–53. Lee, K.-J., Lu, S.-L., & Shih, Y. (2018). Contagion effect of natural disaster and financial crisis events on international stock markets. Journal of Risk and Financial Management, 11(2), 16. https://doi.org/10.3390/jrfm11020016 Lento, C., & Gradojevic, N. (2021). S&P 500 index price spillovers around the covid-19 market meltdown. Journal of Risk and Financial Management, 14(7), 330. https://doi.org/10.3390/jrfm14070330 Liu, H., Manzoor, A., Wang, C., Zhang, L., & Manzoor, Z. (2020). The covid-19 outbreak and affected countries stock markets response. International Journal of Environmental Research and Public Health, 17(8), 1–19. https://doi.org/10.3390/ijerph17082800 Marçal, E. F., Prince, D. de, Zimmermann, B., Merlin, G., & Simões, O. (2020). Assessing global economic activity linkages: The role played by United States, Germany and China. EconomiA, 21(1), 38–56. https://doi.org/10.1016/j.econ.2020.01.001 Mata, M. N., Razali, M. N., Bentes, S. R., & Vieira, I. (2021). Volatility spillover effect of Aan-Asia’s property portfolio markets. Mathematics, 9(12), 1–20. https://doi.org/10.3390/math9121418 McMillan, D. G. (2020). Interrelation and spillover effects between stocks and bonds: Cross-market and cross-asset evidence. Studies in Economics and Finance, 37(3), 561-582. https://doi.org/10.1108/SEF-08-2019-0330 Panjaitan, Y., & Novel, R. (2021). Volatility spillover among Asian developed stock markets to Indonesia stock market during pandemic covid-19. Jurnal Keuangan dan Perbankan, 25(2), 342–354. https://doi.org/10.26905/jkdp.v25i2.5532 Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289–326. Purbasari, I. (2019). Volatility spillover effects from the US and Japan to the ASEAN-5 markets and among the ASEAN-5 markets. Sains: Jurnal Manajemen dan Bisnis, 11(2), 293-331. https://doi.org/10.35448/jmb.v11i2.6064 Rahmayani, D., & Oktavilia, S. (2021). Does the covid-19 pandemic affect the stock market in Indonesia? Jurnal Ilmu Sosial dan Ilmu Politik, 24(1), 33–47. https://doi.org/10.22146/JSP.56432 Ramdhan, N., Yousop, N. L. M., Ahmad, Z., Abdullah, N. M. H., & Zabizi, A. Z. (2016). Stock market integration: The effect of leader and emerging market. Journal of Advanced Research in Business and Management Studies, 2(1), 1–10. Saleem, A., Bárczi, J., & Sági, J. (2021). Covid-19 and Islamic stock index: Evidence of market behavior and volatility persistence. Journal of Risk and Financial Management, 14(8), 389. https://doi.org/10.3390/jrfm14080389 Sari, L. K., Achsani, N. A., & Sartono, B. (2017). Volatility transmission of the main global stock return towards Indonesia. Bulletin of Monetary Economics and Banking, 20(2), 229–254. https://doi.org/10.21098/bemp.v20i2.813 Sekaran, U., & Bougie, R. (2018). Metode penelitian untuk bisnis. Jakarta: Salemba Empat. Setiawan, A., & Kartiasih, F. (2021). Contagion effect of Argentina and Turkey crisis to Asian countries, is it really happening? Jurnal Ekonomi dan Pembangunan Indonesia, 21(1), 59–76. https://doi.org/10.21002/jepi.v21i1.1333 Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2012). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. SSRN Electronic Journal, 1–61. https://doi.org/10.2139/ssrn.1807745 Suppakittiwong, T., & Aimprasittichai, S. (2015). A study of a relationship between the U.S. stock market and emerging stock markets in Southeast Asia. Unpublished undergraduate thesis. Sweden: Linnaeus University. Sznajderska, A., & Kapuściński, M. (2019). The spillover effects of chinese economy on Southeast Asia and Oceania. NBP Working Paper Issue 315. Retrieved from https://www.nbp.pl/publikacje/materialy_i_studia/315_en.pdf Thai Hung, N. (2019). Equity market integration of China and Southeast Asian Countries: Further Evidence from MGARCH-ADCC and wavelet coherence analysis. Quantitative Finance and Economics, 3(2), 201–220. https://doi.org/10.3934/qfe.2019.2.201 Thomson Reuters Practical Law. (2021). International trade in goods and services in Malaysia: Overview. Retrieved from https://uk.practicallaw.thomsonreuters.com/w-017-9602?transitionType=Default&contextData=(sc.Default)&firstPage=true Trade between Malaysia and China reached new high in 2020 despite Covid. (2021). Retrieved from https://www.freshplaza.com/article/9293748/trade-between-malaysia-and-china-reached-new-high-in-2020-despite-covid/ United States Census Bureau. (2021). Trade in goods with Malaysia. Retrieved from https://www.census.gov/foreign-trade/balance/c5570.html Vo, X. V., & Tran, T. T. A. (2019). Modelling volatility spillovers from the US equity market to ASEAN stock markets. Pacific Basin Finance Journal, 59(February 2020), https://doi.org/10.1016/j.pacfin.2019.101246 Wang, Q., & Han, X. (2021). Spillover effects of the United States economic slowdown induced by COVID-19 pandemic on energy, economy, and environment in other countries. Environmental Research, 196(February). https://doi.org/10.1016/j.envres.2021.110936 Wycislak, S. (2014). Contagion effect and organization. European Scientific Journal, 10(1), 17–26. https://doi.org/10.19044/esj.2014.v10n1p%25p Yan, B., Stuart, L., Tu, A., & Zhang, Q. (2020). Analysis of the effect of covid-19 on the stock market and investing strategies. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.3563380 Yan, C. (2020). COVID-19 Outbreak and stock prices: Evidence from China. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.3574374 Yujing, O. (2021). China-Malaysia diplomatic relations – sailing towards a brighter future. Retrieved from https://www.thestar.com.my/opinion/letters/2021/05/31/china-malaysia-diplomatic-relations---sailing-towards-a-brighter-future

Indonesia is the largest Muslim country in the world with a Muslim population of 229 million people and ZIS collection institutions such as BAZNAS and LAZIS have spread throughout the archipelago. This research aims to determine how much influence the variables have in increasing the collection of Zakat, Infaq, and Alms (ZIS) in BAZNAS throughout the Province of Java. The variables used to explain the effect of macroeconomic variables on the collection of Zakat, Infaq, and Alms at BAZNAS are Regional Minimum Wages, Inflation, Per capita Income and Unemployment by using secondary data collection techniques or directly on the BAZNAS official website per year. This study uses the Common Effect Model (CEM) analysis model on panel data regression using time series and cross section data for the years 2013-2020.The results of this study indicate that of all independent variables that can affect ZIS income, only inflation and per capita income variables, while the Provincial Minimum Wage and Unemployment variables have no effect on the dependent variable.

This study empirically investigates the effect of an Islamic label on environmental, social, and governance (ESG) performance. Islamic firms in Indonesia and Malaysia that are characterized by lower debt and lower non-sharia compliant income and have a higher ethical standard are expected to make a better contribution to the environment and society. Testing firms in Indonesia and Malaysia, two emerging countries in ASEAN (Association of Southeast Asian Nations), reveals a significant difference in overall environmental and social performance, but not in governance quality. Also, the study documents the significant effect on performance of using Islamic criteria for leverage, accounts receivable, and cash. Overall, after controlling for some variables and splitting the sample into different time horizons and firm sizes, the study consistently reveals that firms labeled as Islamic have better environmental and social performance, but not governance performance. The relevant policies should be adjusted. Jel classifications G21, G29.

The objective of this paper is to discuss the issue of profit maximization from a shariah point of view. The study is very relevant, especially in the current development of Islamic economics. Profit maximization is the central issue in conventional economics and the implication is that all firm decisions must be intended to realize a profit. This paper uses a qualitative approach to answer the main research question. Using a comprehensive study on the Al-Quran and previous empirical findings, the study reveals that profit maximization is still accepted, but not as a single objective. Islamic economics must use comprehensive objectives that not only profit but also maqasid shariah maximization, including environmental, and social aspects.

This study empirically investigates the comparative performance of four portfolios— Indonesia Shariah Stock Index (ISSI), socially responsible investing (SRI), conventional, and Islamic-SRI portfolios—in Indonesia, of which the last integrates an Islamic portfolio into an SRI portfolio (henceforth, ISRI or the ISRI portfolio), to test whether the ISRI portfolio matters by addressing the two specific issues: first, the degree to which investment performance from the ISRI portfolio is different from the other portfolios; second, whether the ISRI portfolio has better time-varying performance than the other portfolios. Overall, this study provides evidence that the ISRI portfolio outperforms the other three types. Investing in the ISRI portfolio provides more flexibility in term of investment style. Hence, integrating Islamic screening into SRI/environmental, social, and governance screening is a reasonable way to implement Islamic values in “modern” investment. The relevant policies should be adjusted.

According to some economical politicians of the world, Islamic scholars and the mental state of most Muslims who have a moderate economy, existence of Islamic banking considered an important issue. After the downturn of the economy of the world several economical politicians, even Vatican pointed out; that the Islamic banking could be an alternative for the existing economic system. According to Afghan Islamic scholars and some Afghan merchants, Afghanistan is a pour country. But due to some factors it has been founded so late in Afghanistan. The basic rolls of Islamic economic have solutions for the poverty. Afghanistan is an Islamic state, and almost all residents are Muslim. 90% of the people do not use conventional banks due to religious orders in Afghanistan. But Islamic Banking system was founded so late compared to other countries. There are some factors caused late establishment of Islamic Banking system in Afghanistan. These factors will be discussed in this paper.

Purpose The purpose of this study is to investigate the nature and integration of Islamic stock markets across the Association of Southeast Asian Nations (ASEAN-5) countries for economic community (AEC) development. Design/methodology/approach Using samples of daily closing prices from 2009 to 2014 across ASEAN-5 countries, co-integration and Granger-causality tests were applied. Findings This research finds that Islamic capital markets across ASEAN-5 countries remain highly integrated despite the global financial crisis of 2008, and it also finds the integration strength between Jakarta Islamic Index -Indonesia and Bursa Malaysia Emas Sharia-Malaysia Islamic capital markets to be the most influential across ASEAN-5 countries, while MSCI-Philippine Islamic capital market is the most vulnerable across ASEAN-5 Islamic capital markets. Research limitations/implications The overwhelming benefit of Islamic stock market integration across ASEAN-5 countries, and, even in a broader context, awaits further inquiry. Originality/value Islamic capital markets across ASEAN-5 countries are integrated regardless of the post-global financial crisis. This contributes to confirming cross-border integration policies, especially for AEC development.

The objective of this paper is to analyze Rencana Jangka Panjang Daerah Kabupaten Rembang from SDGs and Maqosid Shariah point of view. This paper find that, SDGs only confirm with 4 element maqosid syariah, except the first maqosid. For the secular countries, it is not create any problems, but for the Regency like Rembang, the fulfilment of first maqosid namely “safeguarding religion” is very important. Hence, adobting SDGs need to be modified. In majority SDGs are connects with the 4th and 5th objective of shariah. It means that, from Maqosid Syariah view, SDGs are very focus on the economic and long-life aspect. While, there is no goal of SDGs that has intended to the development of religion. If compared to RPJPD, for the first objective of Shariah there is no specific indication that Rembang has concern on this. For the second objective of Shariah, it has strong relationship with SDGs, thus, in RPJPD there are some real concern from the government in achieving this goal. Indeed, for the goal related to progency and economic aspect, RPJPD of Rembang are very much focus on the fulfilment of this. Hence, there are many program related to this goal. Contrastly, although, education that confirm to SDGs and also 3rd Maqosid syariah, has been accommodated in RPJPD, but this program is away from the main characteristics of Rembang, namely Pesantren and Madrasah. In RPJPD, it is clearly indicated that, the final goal of education is just in term of achieving scores such as APS and APM, rather than character building which has been done by Pesantren and Madrasah. Keyword: RPJP, SDGs, Maqoshid Syari’ah

This study aims to analyze the challenges of the dual banking system during macroeconomic fluctuations. By using the default probability mapping method and macroeconomic stress testing, we can measure the stability of the financial system through credit calculation. In addition, by using the stress test method, we can find information about the characteristics of the financial system in crises and its financial-related assistance in the financial system. Considering if a financial system can detect it early, the government can take preventative measures to minimize the consequences. The results of the study show that Islamic banking has a higher default probability than conventional banking. So it can be concluded that the current stability of Islamic banking is not better than conventional banking. Our findings suggest that inflation is only a macroeconomic variable that has a high level of sensitivity to the default probability of banks. Moreover, Islamic and conventional banking have different responses to the sensitivity of inflationary interventions.

This study aims to examine the impact of macroprudential policy particlarly the relaxing of Financing to Value (FTV) on property financing of Islamic bank in case of Indonesia. In addition, this paper also analyzes the impact of macroeconomic variables and specific factors on property financing in Islamic Bank. This paper collects data from the Bank Indonesia website, the Financial Services Authority (FSA) and the Central Statistics Agency (CSA) form January 2010 until April 2016. By employing Vector Error Correction Model (VECM), this study found that inflation and Industry Produce Index (IPI) have been positively influence on the property financing, while the BI rate and financing to deposit ratio (FDR) have been negatively influence on the property financing. While the relaxing of FTV policy also negatively influence on the property financing. Therefore, This study conludes that the policy have not effectived yet.

Determinant of Cash Waqf Nahdatul Ulama (Case of Muslim Students in Indonesia). Cash waqf is getting popular in some countries because of its flexibility. Due to that, Bank BTN is supporting the cash waqf through releasing an application called “Mobile Wakaf Uang NU BTN” which is able to be downloaded on App Store. This application is in cooperation with LWP-NU. The purpose of this study is to examine the determinant of cash waqf contribution among Muslim students through Mobile Wakaf Uang NU BTN. Attitude, Islamic religiosity, Islamic egalitarianism and perceived are used as independent variable and its intention of Muslim students in Indonesia to contribute to cash-waqf. The sample of this study are 115 Muslim students who applying Mobile Wakaf Uang NU BTN. This study employs Structural Equation Model (SEM) to verify the determinants of cash waqf contribution and the program used is Smart PLS. This study found that religiosity positively influence on attitude, Islamic egalitarianism, and behavioral intention. While, Islamic egalitarianism as a mediating variable positively influence on intention is rejected, because the p-value is more than 5% (0.05). Attitude as a mediating variable has a positive influence on intention and perceived ease of use is accepted and perceived ease of use toward intention has a positive influence. In addition, the interesting result of the study showed that the Islamic egalitarianism does not significantly affect on behavioral intention of Muslim students.

This study aims to examine reserve ratio (GWM), and capital buffer toward credit growth; the impact of macroeconomic variables and micro-banking specific factors toward credit growth in Islamic and Conventional Bank. This research using Vector Error Correction Model (VECM). This research finds that macroprudential policy based on GWM instrument positively influence the credit growth of conventional and Islamic banks. From macroeconomic, the credit growth is positively affected by GDP and negatively affected by BI Rate and inflation. Also, credit also affected by deposit funds and default rate ratio. Interestingly, there is a different impact of capital buffer instrument toward credit growth. Capital buffer instrument has negatively affected the financing growth of Islamic banks in Indonesia.DOI: 10.15408/aiq.v10i1.5446

This research aims to measure maslahah level on collateral implementation in mudaraba financing contract at sharia banking. This is important, because although the existence of collateral in the contract is able to create such maslahah, but there is no specific level regarding to it. Then, this research also tries to examine the relationship between collateral to maslahah itself in order to know the effect which give by those variables. This is an explanatory research uses a quantitative approach with survey method. This research also uses descriptive statistic and path analysis method by IBM SPSS Statistic 22 in order to reach the purpose of this research. This research picked sharia banking practitioners and customers specifically in Cirebon as the population, reaching 116 respondent which used as the sample of research. The result of this research reported that the implementation of collateral in mudaraba financing contract is truly provide maslahah level both for sharia banking practitioners and customers. This result was also strengthened by the direct effect between each variable which revealed a positive significant effect.

Capital market efficiency is one of the most important part in finance theory, in which assume the price of stock will fully reflect the information available in the market, hence the price will adjust directly and quickly. The objective of this study is to evaluate the efficiency of both Islamic and conventional stock markets, particularly in case of Indonesia. Event study of King Salman Visit in Indonesia was used as testing periods. Abnormal return and average abnormal trading volume activity of 30 companies listed in Jakarta Islamic Index (JII) to represent Islamic capital market and 17 companies listed in LQ45 to represent conventional capital market were employed to explain this issue. The result shows that from abnormal return perspectives both Islamic and conventional capital market are efficient. While from abnormal trading volume activities, shows that during the visit of King Salman, the trading activity in Islamic capital market is increased significantly rather than conventional counterpart. Keyword s : Islamic c apital m arket , c apital m arket e fficiency , a bnormal r eturn and a bnormal t rading v olume a ctivity

General Election (GE) is one of the most important political issues which has an impact on the economic condition. This research aims to reveal the effect of General Election 2019 on the capital market reaction. Specifically, the study compares the impact of three events in the GE 2019, namely, The General Election 2019, the announcement of Elected President 2019, and Mahkamah Konstitusi (MK) decision. By employing Abnormal Return with t-test analysis, the study reveals that the publication of the elected-president has the most significant impact on the Islamic Capital Market compares to the two other events. While using Trading Volume Activity (TVA), all the three events of GE 2019 affects the TVA. This finding suggests that for the Islamic capital market investor, the announcement of the elected president is seen as the most significant event that determines the whole of economic condition for the next five years. Hence, for the policy-makers, they must focus on the date of the announcement by preparing such a policy to maintain the market condition.

This paper empirically studied the impact of several variables such as moneyness, stock return, maturity, and volatility on the warrant mispricing. We selected 4 companies listed in Bursa Malaysia such as MHC Plantations Bhd, MKH Bhd, YFG Bhd, and UNISEM to investigate the mispricing of warrants. Subsequently, panel time series data employed with daily basis from 30 June 2010 until 30 June 2013. The Black-Scholes Option Pricing Model (BSOPM) used to determine the mispricing of warrant. Several panel data techniques employed in this study such as pooled-OLS, fixed effect model (FEM), and random effect model (REM). In turn, we found that FEM is well explained the determinants of warrant mispricing. Thus, empirical results suggest that moneyness, maturity, and volatility are positively and significantly explained the mispricing of warrant, while stock return does not give an impact toward the warrant mispricing. The BSOPM is consistently mispricing the warrant either in-the-money (ITM) or out-the money (OTM) warrants. The market is not efficient on the warrants traded for four companies observed

Shariah stocks is one of the financial sectors that experienced with most significant growth in recentyears. the most important issue in Shariah stock is Stock screening mechanism. The aim of this study isto examine the screening models of Shariah stocks in ASEAN countries. This study is very crucialespecially in the era of ASEAN economic community (AEC). In addition, this study aims to examinesome of the factors that contribute to the differences in screening models applied in five ASEANcountries. By using descriptive method and literature studies approach, this study found a few things.Firstly, there are various models of Shariah stock screening in Indonesia, Malaysia, Singapore, Thailandand Philippines. In this context, the model screening in ASEAN countries have two tendencies, namely;for the country in the majority of the population is Muslim whereby there are many Sharia expert, thenthey will use the specific screening model and applied only in the country, while for the country that themajority is not Muslim, then they will tend to use models of screening that has been used globally forexample DJIM, FTSE, etc. This second pattern has been applied by Singapore, Thailand and Philippines.Secondly, differences in shariah screening models influenced by several factors, namely; differencesin social structure of a country where the Islamic stock market is located; the difference in the financialindustry that exist in the country will affect on the difference of screening models; and differences sectembraced by most scholars in a country is one of the fundamental factors in determining stock screeningmodel of sharia in 5 ASEAN Countries.

The petroleum fuels (PF) subsidy has long burdens the government spending, and discourages less expensive energy usage such as natural gas (NG). Exporting NG and importing the more expensive PF products cause financial losses to Indonesia. The lack of NG infrastructure is the main hurdle in maximizing domestic NG usage and so does the perception of its high investment costs burdening government spending and pushing the NG transportation cost up. This study calculates the required NG infrastructure and its investments for several levels of PF substitutions up to 2030. To balance the NG demands, the supply from each field and its corresponding infrastructures needed was calculated and optimized using non-linear programming with generalized reduced gradient method to calculate the lowest transportation cost for the consumers. The study shows with a favorable return on investments attractive to private investors, the NG prices can still be put much lower than PF prices, allowing subsidy, import and production cost savings in many sectors. Furthermore, the highest level of substitution scenario needs only US$ 2.07 billion a year investment, very low compare to the current US$ 14.17 billion a year PF and electricity subsidy.

Stable economic growth is the major macroeconomic goal which is all nations seek. Economist and policy makers have been tried to find the ways to sustain and maintain stable economic growth. This paper examines the macroeconomic fluctuations and economic growth in Malaysia and Indonesia and its determinant by using multiple regression models. Five variables were chosen for the model namely variables are Money supply (MS), Industrial production (IP), Interest rate (IR), exchange rate (ER), Consumer price Index (CPI) and stock prices. The study shows that Money supply (MS), Interest rate (IR), exchange rate (ER), and stock prices are among others, the determinant factors of macroeconomic fluctuations in both countries. Specifically, the empirical results reveal that Interest rate (IR), exchange rate (ER), and stock prices has significant contribution to the performance of real GDP in Malaysia while Money supply (MS) and exchange rate (ER) are the main cause of macroeconomic fluctuations in Indonesia. This may be due to the different monetary policies pursued by the two countries. The two countries might have different monetary policy strategies; Malaysia pursues interest rate targeting policy, whereas Indonesia applies inflation rate targeting policy.The study recommends for both countries government policies play an important role in economic performance. Therefore, a careful policy should be the foremost important factor for economic in these nations and the every country in general.

Islamic Capital Market is important part of Financial System in ASEAN countries especially in the context of AEC. The objective of this paper is to investigate interconnection long run equilibrium of Islamic Capital Market in ASEAN Countries. Using daily closing price for from September 2007 to October 2012, this study examine five Islamic Capital markets in ASEAN namely Indonesia, Malaysia, Philippines, Singapore and Thailand. This study examines on Integration among these Islamic Capital markets by relies a simple correlation test, Granger causality test and co-integration test using error correction model. This research documents some interesting finding. First, Using Johansen estimation technique, there is co-integration between the considered Islamic indices namely; Indonesia, Malaysia, Philippines, Singapore and Thailand. Second, Since the co-integration exists, granger causality test shows that there is three bi-directional causalities namely; between Malaysia Islamic Capital Market and Singapore Islamic Capital Market; between Thailand Islamic Capital Market and Singapore Islamic Capital Market; and between Singapore Islamic Capital Market and Philippines Islamic Capital Market. However, there is a unidirectional between Indonesia Islamic Market (MCIINA) and Malaysia Islamic Market (MCIMY), MCIINA and Philippines Islamic Market (MCIPhil), MCIINA and Thailand Islamic Market (MCITHAI), it implies that MCIINA affects MCIMY, MCIPhil, and MCIThai but not vice versa. Third, based on VECM suggest that all Islamic indexes are inter-related in the long run that can be explained due to the similarity of structure bring about by its stock as required by shariah in the process stock screening.