Does low leverage minimise the impact of financial shocks? New optimisation strategies using Islamic stock screening for European portfolios

@inproceedings{ElAlaoui2018DoesLL,
  title={Does low leverage minimise the impact of financial shocks? New optimisation strategies using Islamic stock screening for European portfolios},
  author={AbdelKader Ouatik El-Alaoui and Obiyathulla Ismath Bacha and Mansur Masih and Mehmet Kazım Asutay},
  year={2018}
}
This study embodies a preliminary endeavour at analysing the impact of leverage on portfolio behaviour, with specific reference to return and volatility, in the European stock markets, using the debt ratio as one of the important benchmarks for Islamic stock screening. Given the focus of Islamic stock screening on the debt ratio, we use data from 320 firms for eight European countries which were classified according to their level of debt and size. For this, the portfolio optimisation based… CONTINUE READING

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