Purpose

This paper aims to examine the effects of oil price uncertainty on corporate investment of Islamic stocks during the COVID-19 pandemic.

Design/methodology/approach

The study uses a panel data set that covers 398 listed Islamic stocks from seven major Asia Pacific countries over the period of five years from 2017 to 2021, yielding 1,990 observations. Specifically, this paper investigates the said association by combining the real options theory regarding investment and the panel data-based econometric method that captures the dynamic relationship, the generalized method of moments estimators.

Findings

The findings show that the relationship between the oil price volatility and corporate investment of Islamic stocks is significant and nonlinear in nature, suggesting the presence of both the growth options and the waiting options. Overall, the results reveal that corporate investment of Islamic stocks is hindered during the unprecedented corona crash, when oil price increases at exponential rates.

Practical implications

The findings suggest that considering the information caused by unprecedented events like the COVID-19 pandemic is crucial for investment decisions of Islamic stocks. Therefore, policymakers and regulators should incorporate the impact of oil price uncertainties caused by unprecedented events like the COVID-19 pandemic on firm’s investment expansion and diversification strategies.

Originality/value

To the best of the authors’ knowledge, this paper is the first to examine the relationship between the investment of Islamic stocks and the oil price uncertainty under compound options theory in top Asian oil-importing countries.

中文翻译：

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油价不确定性对伊斯兰股票企业投资的影响：来自Covid-19大流行极端事件的证据

目的

本文旨在研究 COVID-19 大流行期间油价不确定性对伊斯兰股票企业投资的影响。

设计/方法论/途径

该研究使用的面板数据集涵盖了 2017 年至 2021 年五年间来自亚太地区七个主要国家的 398 只上市伊斯兰股票，得出了 1,990 个观察结果。具体来说，本文结合有关投资的实物期权理论和捕捉动态关系的基于面板数据的计量经济学方法（矩估计量的广义方法）来研究这种关联。

发现

研究结果表明，油价波动与伊斯兰股票的企业投资之间存在显着且非线性的关系，表明同时存在增长选项和等待选项。总体而言，结果表明，在前所未有的新冠危机期间，石油价格呈指数级上涨，企业对伊斯兰股票的投资受到阻碍。

实际影响

研究结果表明，考虑像 COVID-19 大流行这样的前所未有的事件所带来的信息对于伊斯兰股票的投资决策至关重要。因此，政策制定者和监管机构应将COVID-19大流行等前所未有的事件造成的油价不确定性对公司投资扩张和多元化战略的影响纳入考虑。

原创性/价值

据作者所知，本文首次在亚洲主要石油进口国的复合期权理论下研究了伊斯兰股票投资与石油价格不确定性之间的关系。