Islamic Calendar Anomalies Reshaping Investor Behavior

A Qualitative Study

  • Sajid Iqbal School of Business Administration and Management Superior University, Lahore, Pakistan
  • Nadeem Iqbal Department of Business Administration Ghazi University, DG. Khan, Pakistan
  • Arshad Muneer University of Gujrat, Gujrat, Pakistan
Keywords: behavioral biases, investor psychology, investor decision making, islamic calendar anomalies, thematic analysis

Abstract

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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.

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Published
2019-12-27
How to Cite
Sajid Iqbal, Nadeem Iqbal, and Arshad Muneer. 2019. “Islamic Calendar Anomalies Reshaping Investor Behavior”. Journal of Islamic Thought and Civilization 9 (2), 212-32. https://doi.org/10.32350/jitc.92.11.
Section
Articles