The objective of this study is to explore how investors execute decisions in persistence of Islamic anomalies in context of Pakistan stock exchange. Applying interpretive approach, data was acquired from PSX investor by asking a series of questions through an interview protocol. Interviews were conducted by using semi-structured interview approach. The responses were explored using NVivo 10.0 plus software. The results of the study indicated Islamic anomalies are changing emotions and perceptions of investors due to their past experience and perceived market consequences, and biased behaviors. Due to Islamic anomalies investors decisions are found to be biased and depict a self-serving, anchoring and overconfident behavior. Moreover, various conventional market factors (e.g. market capitalization, price earning and capita market line fluctuation etc.) are constant and reshaping investor decisions. Promotion of corporate culture, controlling mispricing, conducting awareness/ training sessions on rationality, capital gain than price gain is seriously required in local context. This is the first qualitative study investigating Islamic Calendar anomalies and PSX investors, leading to the formulation of sound policy implications.
Ali, Irfan., Waheed Akhter, and Namrah Ashraf. “Impact of Muslim Holy Days on Asian Stock Markets: An Empirical Evidence.” Cogent Economics and Finance 5, no. 1 (2017).
Ariss, Rima Turk., Rasoul Rezvanian, and Seyed M. Mehdian. “Calendar Anomalies in the Gulf Cooperation Council Stock Markets.” Emerging Markets Review 12, no. 3 (2011): 293–307.
Bialkowski., J. P., et al., “Do Mutual Fund Managers Exploit the Ramadan Anomaly.” Evidence from Turkey, University of Canterbury, Christchurch NZ, 2011.
Bialkowski, Jędrzej., et al., “Do Mutual Fund Managers Exploit the Ramadan Anomaly? Evidence from Turkey.” Emerging Markets Review 15 (2013): 211–232.
Debata, Byomakesh., Saumya Ranjan Dash, and Jitendra Mahakud. “Investor Sentiment and Emerging Stock Market Liquidity.” Finance Research Letters 26 (2018): 15–31.
Al-Hajieh, Heitham., Keith Redhead, and Timothy Rodgers. “Investor Sentiment and Calendar Anomaly Effects: A Case Study of the Impact of Ramadan on Islamic Middle Eastern Markets.” Research in International Business and Finance 25, no. 3 (2011).
Halari, Anwar., et al., “Islamic Calendar Anomalies: Evidence from Pakistani Firm-Level Data.” The Quarterly Review of Economics and Finance 58 (2015): 64–73.
al-Ississ, Mohamad. “The Holy Day Effect.” Journal of Behavioral and Experimental Finance 5 (2015).
Jaziri, Marwa., and Mouna Abdelhedi. “Islamic Occasions and Investor Sentiment.” International Journal of Islamic and Middle Eastern Finance and Management 11, no. 2 (2018): 194–212.
Kahneman, Daniel., and Amos Tversky. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47, no. 2 (1979): 263–292.
Khan, Kalimullah., Muhammad Ali Nasir, and Matteo Rossi. “The Calendar Anomalies on Performance and Volatility of Stock Market: The Effects of Ramadan on Karachi Stock Exchange.” Global Business and Economics Review 19, no. 1 (2017): 54–69.
Majeed, Usman., et al., “Islamic Calendar Events and Stock Market Reaction: Evidence from Pakistan.” Science International 27, no. 3 (2015): 2559–2567.
Ramiah, Vikash., et al., “A Behavioural Finance Approach to Working Capital Management.” The European Journal of Finance 22, no. 8–9 (2016): 662–687.
Syed, Fatima., and Naimat U. Khan. “Islamic Calendar Anomalies: Evidence from Pakistan.” Business and Economic Review 9, no. 3 (2017): 104–122.
Wasiuzzaman, Shaista. “Religious Anomalies in Islamic Stock Markets: The Hajj Effect in Saudi Arabia.” Journal of Asset Management 18, no. 3 (2017): 157–162.