The impact of COVID-19 pandemic on Islamic versus conventional stock markets: international evidence from financial markets

Future Business Journal

Table 6 Summary of regression and paired t-test analysis for the Islamic and conventional stock market returns during COVID-19 pandemic

Panel (A₂): during COVID-19 pandemic
Analysis technique	Panel pooled OLS regression with the heteroskedasticity robust standard errors for the impact of growth in COVID-19 confirmed cases on stock market returns				Paired t-test of stock market returns (Islamic vs. conventional)
Variable	Islamic stock returns (%)		Conventional stock returns (%)		Islamic stock returns (%)	Conventional stock returns (%)	t-value
Variable	(1)	(2)	(1)	(2)	Mean	Mean	(p-value)
Initial full sample	− 0.009*	− 0.010	− 0.016***	− 0.015**	− 0.129	− 0.221	1.820*
1st case day–April 30	(0.080)	(0.144)	(0.008)	(0.021)	− 0.129	− 0.221	(0.069)
Further analysis: Eliminating the initial full sample into four sub-samples based on period
First Sub-sample	− 0.010*	− 0.000	− 0.019***	− 0.009	− 0.477	− 0.692	1.627
March 12–March 31	(0.061)	(0.983)	(0.007)	(0.361)			(0.105)
Second sub-sample	− 0.011**	− 0.008	− 0.019***	− 0.015*	− 0.073	− 0.249	1.911*
March 12–April 10	(0.021)	(0.308)	(0.005)	(0.065)			(0.057)
Third sub-sample	− 0.011**	− 0.008	− 0.019***	− 0.015**	0.027	− 0.130	2.053**
March 12–April 17	(0.025)	(0.242)	(0.004)	(0.035)			(0.040)
Fourth sub-sample	− 0.011**	− 0.009	− 0.019***	− 0.016**	0.145	− 0.021	2.773***
March 12–April 30	(0.018)	(0.146)	(0.004)	(0.015)			(0.005)

This table summarizes the results of panel pooled OLS regression for the impact of COVID-19 on Islamic and conventional stock market returns (%) for the initial full sample (Panel A₂) and the four sub-samples as shown in Tables 4 and 5. Further, it summarizes the paired t-test of Islamic stock market returns versus conventional stock market returns during COVID-19 pandemic for the initial full sample (Panel A₂) as shown in Table 3, besides presenting the further analysis for the four sub-samples; ***, **, * represent statistical significance at 1%, 5%, and 10% levels, respectively; p-values are given in parenthesis; Panel (A₂) represents the period during COVID-19 (the day when 1st COVID-19 case was confirmed in a country—April 30, 2020); VIF values for each model do not indicate multicollinearity problem; 1st case day denotes 1st COVID-19 case was confirmed in a country; March 12, 2020 is the first day when all the 15 countries in the sample reported at least one positive case (see Table 1)