The present study assesses the impact of bank diversification on the financial stability of 65 Islamic and 119 conventional banks from 11 countries between the period 2006 and 2017. The study uses a novel proxy for financial stability constructed using the CAMELS approach. Using system GMM...

This paper shows that generalizing the heterogeneous autoregressive model (HAR) with realized (co)variances and semi-(co)variances from the index leads to more accurate volatility forecasts. To circumvent the effects of the market microstructure noise arising from using high sampling...

This study investigates and compares herding in US corporate bond and equity markets between January 2008 and December 2018. Our initial unconditional tests detect significant herding in speculative grade (high yield) corporate bonds only. However, once we condition on market liquidity and...

This paper examines how efficiency dynamics of Islamic and conventional banks compare and how they are converging across different countries. We employ both parametric and non-parametric methods to analyse a panel of Islamic and conventional banks from 23 countries during the period 1999 to...