COVID-19 and Macro-Financial Forces: Who Drives the Conventional and Islamic Stock Markets?

Melissa Putritama, Natanael Christian Adinata, Nathalie Noviani, Shinta Amalina Hazrati Havidz, Shinta Amalina Hazrati Havidz

2025

Abstract

Although WHO has declared the pandemic end, the underexplored area of study around COVID-19, macro-financial, conventional, and Islamic stock markets should be conducted. Therefore, this research remains relevant since a market downturn can happen anytime in the future, and the world will face dynamic changes in investors' behavior. We aim to investigate the drivers of the Conventional and Islamic stock markets, which mainly consider the global pandemic COVID-19 and Macro-financial forces. The main methodology applied panel autoregressive distributed lag (ARDL). This research discovers the following findings: (1) conventional stocks highly rely on the confidence index of the COVID-19 vaccine, whereas Islamic stocks remain more resilient; (2) A safe-haven role of Islamic stocks during global market turbulence and outperform their counterparts; (3) government policies boost the confidence of both stock markets; and (4) conventional stocks are much more dominant than Islamic stocks. Islamic stocks provide safe-haven attributes during market turmoil, whereas conventional stocks take time to recover. We offer suggestions to investor decision-making, regulators, and government policies.

Paper Citation

in Harvard Style

Putritama M., Adinata N., Noviani N. and Havidz S. (2025). COVID-19 and Macro-Financial Forces: Who Drives the Conventional and Islamic Stock Markets?. In Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-748-1, SciTePress, pages 209-216. DOI: 10.5220/0013402900003956

in Bibtex Style

@conference{femib25,
author={Melissa Putritama and Natanael Adinata and Nathalie Noviani and Shinta Havidz},
title={COVID-19 and Macro-Financial Forces: Who Drives the Conventional and Islamic Stock Markets?},
booktitle={Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2025},
pages={209-216},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013402900003956},
isbn={978-989-758-748-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - COVID-19 and Macro-Financial Forces: Who Drives the Conventional and Islamic Stock Markets?
SN - 978-989-758-748-1
AU - Putritama M.
AU - Adinata N.
AU - Noviani N.
AU - Havidz S.
PY - 2025
SP - 209
EP - 216
DO - 10.5220/0013402900003956
PB - SciTePress