Green Investment and Iran-Israel Escalation: Potrait of Share Price of Environmentally Based Company in ASEAN and The Views Sharia Investment on Energy Scarcity
DOI:
https://doi.org/10.29407/ayvh3265Abstract
Research aim : This research aims to analyze the impact of the escalation of the Iran–Israel conflict on share price movements of environmentally based companies in the ASEAN region, as well as assessing whether this event has significant information content for investors in the context of green investment. Apart from that, this research also aims to examine this phenomenon from a sharia investment perspective, especially in understanding the issue of energy scarcity and the importance of sustainability in resource management.
Design/Methode/Approach : This research uses a quantitative design with an event study approach to analyze the stock market reaction to the escalation of the Iran–Israel conflict. This approach was chosen because it is able to directly measure the information content of an event through changes in abnormal returns on shares of environmentally based companies in the ASEAN region.
Research Finding : Based on an analysis of the capital market reaction of four environmentally based companies in the ASEAN region, all of them did not have a significant influence on stock returns due to the Iran-Israel escalation. Environmentally based companies have better resilience to global external risks. Investments in the renewable energy sector not only support environmental sustainability, but also provide stability in conditions of geopolitical uncertainty.
Theoretical contribution/Originality : This research provides a theoretical contribution by expanding the literature on the relationship between geopolitical risk, green investment, capital market reaction and sharia investment.
Practitionel/Policy implication : This research provides practical implications for investors, market players and policy makers in understanding the dynamics of green investment amidst global geopolitical risks.
Research limitation : The event study method used focuses on quantitative stock price data, so it does not fully consider company fundamental factors or other macroeconomic conditions. And the analysis of the sharia investment perspective in this research is still conceptual and has not been tested empirically using specific sharia financial data.
Keywords:
Green Investment; Iran–Israel Escalation; Share Price; ASEAN; Sharia InvestmentDownloads
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