Is conservatism good news? The case of stocks of Jakarta Islamic index

Rudiawarni, Felizia Arni and Sulistiawan, Dedhy and Sergi, Bruno S (2022) Is conservatism good news? The case of stocks of Jakarta Islamic index. Heliyon, 8 (4). e09292. ISSN 24058440

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Abstract

This study examines the role of Sharia stocks to affect the association between conservatism and crash risk. Sharia stocks are represented by the Jakarta Islamic Index (JII) stocks. We use Sharia stocks as a moderating variable to provide contextual issues in discussing conservatism and crash risk. Our findings show that conservatism reduces the crash risk for Sharia stocks. The test also suggests that conservatism cannot affect crash risk for non-Sharia stocks. The examinations are also consistent with the belief that Sharia, as a set of religious norms, helps minimize future risk. This paper contributes to the literature on religion and corporate behaviors by adding a contextual factor, Sharia stocks in Indonesia.

Item Type:	Article
Uncontrolled Keywords:	Sharia; Conservatism; Crash risk; Indonesia
Subjects:	B Philosophy. Psychology. Religion > BL Religion H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Business and Economic > Department of Accounting
Depositing User:	Felizia Arni Rudiawarni 31129
Date Deposited:	19 May 2022 01:45
Last Modified:	29 Jun 2022 04:55
URI:	http://repository.ubaya.ac.id/id/eprint/41875

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