Abstract
In this paper we show that non-Islamic countries which invest more in technologies are more profitable than countries, including Islamic countries, which do not. Our results also reveal that high-investing emerging countries are relatively more profitable than high-investing developed countries. Commonly known market risk factors explain only between 11 to 41% of momentum profits over time, suggesting that our results that technology-investing countries are profitable are not entirely due to market risk factors. Our results survive a battery of robustness tests.
Original language | English |
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Pages (from-to) | 70-81 |
Number of pages | 12 |
Journal | Pacific Basin Finance Journal |
Volume | 52 |
DOIs | |
Publication status | Published - Dec 2018 |
Externally published | Yes |
Keywords
- Islamic
- Market risk
- Momentum
- Profits
- Technology