Macroeconomic Variables and Islamic Bank Stock Returns: Panel Data Evidence From GCC Countries

  • Abdesslam Menacer Islamic Business School, Islamic Finance and Banking Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Sintok, Kedah Darul Aman, Malaysia
  • Saheed Adebowale Nurein School of Business Innovation and Technopreneurship, Centre for Graduate Studies, Universiti Malaysia Perlis, Kangar, Perlis, Malaysia
Keywords: Macroeconomic, money supply, interest, inflation, exchange.


The study provides an empirical evidence of the relationship between macroeconomic variables and bank stock returns in the context of GCC countries using a panel data approach. The data for this study is retrieved from the DataStream World Bank Data archive. The data of 66 banks for the period 2005-2014 was examined using GLS estimation for the analysis. The findings revealed that there is a statistically positive relationship between macroeconomic variables and Islamic bank returns. The positive relationship implies that most banks in the GCC countries engage in numerous off-balance sheet transactions and implement efficient and effective methods of risk management, which reduces their exposure to changes in macroeconomic variables.


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How to Cite
Menacer, A., & Nurein, S. (2017). Macroeconomic Variables and Islamic Bank Stock Returns: Panel Data Evidence From GCC Countries. Journal of Islamic Finance, 6, 001-013. Retrieved from