Work

Beyond borders: Interlocking directorships and stock price reactions of Islamic firms

Year: 2024

Type: article

Abstract: Announcing a director's additional appointments may positively reflect the skills and negatively reflect the workload of the director and, therefore, may influence how investors perceive the shareholder value of the director's home firm. We examine the announcement effect of 276 additional appointments on the stock price of Islamic firms from 2010 to 2022. Event study tests show that the appointment of directors to other firms in Islamic jurisdictions decreases the home firm's stock price, on average. For appointments to non-Islamic firms, the stock price increases in the appointing firm's relative market capitalization, which brings prestigious benefits to the home firms.

Source: Finance research letters

DOI: 10.1016/j.frl.2024.105973

Authors: Amal Alabbad, Andrea Schertler

Institutions: Iona College, University of Graz, CAMPUS 02 University for Applied Sciences

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,350

OpenAlex ID: W4401671345

FWCI:

Cites: 26

Cited by:

Related to: 10