Testing the animal spirits theory for ethical investments: further evidence from aggregated and disaggregated data.

This study aims to test the animal spirits theory by Akerlof and Shiller (Animal spirits - how human psychology drives the economy, and why it matters for global capitalism? Princeton University Press) for ethical stock markets using Islamic and sustainable stock indexes during calm and crisis periods. This question helps determine whether ethical finance is driven more by its specific rules or determined by animal spirits. We used data covering January 1996-September 2021, which includes both calm periods and crisis periods (dot-com bubble of 2000, subprime crisis of 2007, global financial crisis of 2008-2009, and COVID-19 recession).

Computing the Time-Varying Effects of Investor Attention in Islamic Stock Returns.

This paper investigates the relationship between investor attention and the Islamic stock market. In particular, we investigate whether investor attention-measured by Google searches-could help to improve the forecasting of Islamic stock returns. To this end, we used quantile regressions to examine the relationship over the period 2004-2016 in order to capture its evolution during calm and turbulent times.