Product market fluidity and religious constraints: evidence from the US market

Zaheer Anwer, Shamsher Mohamad, Wajahat Azmi, Akram Shavkatovich Hasanov

Research output: Contribution to journalArticleResearchpeer-review

1 Citation (Scopus)

Abstract

We use a sample of 5,863 US firms to investigate how religious constraints affect the product market fluidity for Shariah compliant (SC) firms. The study is important as Islamic asset management is emerging as an alternative investment class. We find that SC firms are less exposed to product market threats in relation to Shariah non-compliant (SNC) firms. They are more competitive in the case of less concentrated markets, lower market share, equity multiplier, market/book assets ratio, experience lower asset growth, and spend little on research and development. Their competitive position is strengthened when their return on assets, sales and retained earnings are lower.

Original languageEnglish
Pages (from-to)1761-1817
Number of pages57
JournalAccounting & Finance
Volume62
Issue numberS1
DOIs
Publication statusPublished - Apr 2022

Keywords

  • Fluidity
  • Islamic finance
  • Shariah compliant firms
  • Two stage least square regressions
  • United States

Cite this