M. Ishaq Bhatti

M. Ishaq Bhatti
La Trobe University · Department of Accounting Data Analytics Economics & Finance La Trobe Business School

BSc (Multan), MSc (Alberta), PhD (Monash)
Working in Finance Discipline of the SP Jain School of Global Management, Sydney Campus, NSW 2141, Australia

About

235
Publications
183,086
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2,454
Citations
Introduction
- My interests are in Islamic finance, econometrics & Business Analytics. I'm currently, using mechanism design, copula, DCC and wavelet models for empirical work in business & Finance. - editing especial issues; (i) “Towards a New Paradigm for Statistical Evidence” (with J. Kim): http://www.mdpi.com/journal/econometrics/special (ii)Islamic Fin (with L. Arbi) http://www.mdpi.com/journal/jrfm/special_issues/Islamic - Conference Co-chair: https://www.mul.edu.pk/education/189/World-Islamic-Economics-and-Finance-Conference-WIEFC-2019.html - Professorial post at HEC of Pakistan, Saudia, Oman, Kuwait Turkey Central Bank Training via IDB, and the ARC Discovery Grant with Suren Basov.
Additional affiliations
June 2001 - June 2003
Sultan Qaboos University
Position
  • Professor (Associate)
September 1999 - June 2001
Kuwait University
Position
  • Professor (Associate)
November 1994 - May 1995
King Saud University
Position
  • Ast Prof

Publications

Publications (235)
Article
Pakistan is an energy-deficient country and relies heavily on imported fossil fuels despite significant potential for it to instead develop renewable energy resources. This paper employs a newly developed causality determination scheme known as the Graph Theoretic Approach (GTA), which is based on the modified Peter and Clark algorithm. In this stu...
Book
8. Qadri, H. M. –U. –D., & Bhatti, M. I. (2019). The Growth of Islamic Finance and Banking innovation, Governance and Risk Mitigation (1 ed.). United States: Routledge
Article
This paper proposes modified Peter and Clark (PC) algorithm of graph-theoretic approach to study causality correlated data. The proposed algorithm is derived to determine the directions of the casual correlated complex variables. The PC algorithm treats VAR residuals as original variables while the proposed algorithm riz-PC uses modified R recursiv...
Article
Full-text available
With the rapid increase of waste throughout the country, the government of Indonesia has enacted regulations targeting waste reduction using religious sentiment. This is employed in Malang City’s “Waste Bank of Malang” (WBM). This study aims to analyze the impact of waste banks on socio-economic progress, and to assess their efficacy in accomplishi...
Article
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This paper proposes a new variant and reinvestigates the validity of the Balassa–Samuelson (BS) hypothesis for nine East and South Asian countries under new specifications. The BS hypothesis is often criticized for one of its fundamental, but oversimplified assumptions related to Purchasing Power Parity (PPP) holding which can be confirmed for cron...
Article
Full-text available
This paper employs a structural empirical model to gauge the possible effects of COVID-19, political and financial events on the returns and volatility of commercial banks. It observes that insured and run-prone uninsured depositors choose between differentiated commercial banks, which appears to be significantly impacted from the present pandemic,...
Article
Purpose The objective of this paper is to investigate the validity of stock valuation theories and their forecasting ability by conducting an empirical study. It employs four most commonly used theories which are then tested using 19-year banking-firm market data. The usefulness of these models demonstrates with promising results. Design/methodolo...
Article
Purpose This paper investigates the performance of locally focused equity mutual funds (LFEFs) in Saudi Arabia as compared with the performance of benchmark funds. More specifically, the focal question pertains to whether Shariah -compliant mutual funds (SMFs) and conventional mutual funds (CMFs) outperform their respective benchmarks. Undertaken i...
Article
In recent years, several attempts have been made to measure human prosperity using shariah objectives. These, however, have failed to propose a unified model that incorporates the ‘means to achieve these objectives’. This paper attempts to fill this gap by arguing that a large proportion of shariah-led prosperity measures are in line with the Unite...
Article
The exponentiated Gompertz (EGZ) distribution has been recently used in almost all areas of human endeavours, starting from modelling lifetime data to cancer treatment. Various applications and properties of the EGZ distribution are provided by Anis and De (2020). This paper explores the important properties of the EGZ distribution under Bayesian d...
Article
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In conventional Econometrics, the unit root and cointegration analysis are the only ways to circumvent the spurious regression which may arise from missing variable (lag values) rather than the nonstationarity process in time series data. We propose the Ghouse equation solution of autoregressive distributed lag mechanism which does not require addi...
Article
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This paper attempts to detect the unavoidable impacts of COVID-19 on geopolitical and financial events related to Islamic banking and the finance sector in Pakistan. It considers only those major events that triggered imbalances in the equity prices of selected Islamic banks. Employed here is the GARCH model, used to predict the volatility series u...
Article
The real estate sector has emerged as the bedrock of the Gulf Cooperation Council (GCC) economies, and it has remained resilient despite the various unprecedented micro- and macro-economic shocks devouring the world’s economies. However, wavering investor attitudes and minimal exposure to real estate investment vehicles, coupled with weak regulator...
Article
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Financial innovation vis-à-vis economic policy uncertainty (EPU) without due regards being given to debt financing. This paper fills this gap and unveils the dynamic role of national culture in defining debt financing via EPU. We use a sample of 3831 non-financial firms of Asian economies and employ the System Generalized Method of Moments to estim...
Article
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During the global financial crisis (GFC), regulators and policymakers turned to deposit insurers, along with monetary and fiscal measures, to help restore market confidence and promote financial stability. These events have focused attention on the role of deposit insurers and their role in the banking system. Recent literature reveals that during...
Article
Full-text available
This paper explored the energy–environment–economy (EEE) causal nexus of Pakistan, thereby reporting the causal determinants of the EEE nexus by employing the newly developed modified Peter and Clark (PC) algorithm. The modified PC algorithm was employed to investigate the causal ordering of energy consumption, CO2 emissions and economic growth acr...
Article
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Cash holding is important for Chinese manufacturing firms coping with the increasing costs of financing and tough economic conditions. This study examines the impact of cash holding on the firm value of Chinese manufacturing businesses. We found evidence that a non-linear relationship exists between cash holding and firm value in these companies. T...
Article
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This paper studies the effect of COVID-19 on the volatility of Australian stock returns and the effect of negative and positive news (shocks) by investigating the asymmetric nature of the shocks and leverage impact on volatility. We employ a generalised autoregressive conditional heteroskedasticity (GARCH) model and extend the analysis using the ex...
Preprint
Cash holding is important for Chinese manufacturing firms coping with the increasing cost of financing and stiff market conditions. This study examines the impact of cash holding on the firm value of Chinese manufacturing firms. We find evidence that a non-linear relationship exists between cash holding and firm value in manufacturing firms of Chin...
Article
Recently, El-Sherpieny et al., (2020), suggested Type-II hybrid censoring method for parametric estimation of Lomax distribution (LD) without due regard being given to the choice of priors and posterior risk associated with the model. This paper fills this gap and derived the new LD model with minimum posterior risk for the selection of priors. It...
Article
Trade credit transactions are quite common for businesses. The article carries out the trade credit analysis for an emerging economy, namely Indian corporate sector employing rich information dataset covering multiple industries such as manufacturing, services, construction and others, since the period of financial crisis including both firm specif...
Article
Exchange rate instability has become a key concern within economic policy circles ever since the 1973 breakdown of Bretton Woods agreement; after 47 years, central bankers realize the deleterious effect of exchange rate on the economy in the 12 selected OIC member countries we studied. The aim of this paper is to report the findings on a proposed m...
Article
Full-text available
As the guest editors of this Special Issue, we feel proud and grateful to write the editorial note of this issue, which consists of seven high-quality research papers [...]
Article
This paper proposes a Bayesian unit root test for testing a non-stationary random walk of nonlinear exponential smooth transition autoregressive process. It investigates the performance of Bayes estimators and Bayesian unit root test due to its superiority in estimation and power properties than reported in existing literature. The proposed approac...
Chapter
"Development in Copula Applications in Forestry and Environmental Sciences" This book presents recent developments in statistical methodologies with particular relevance to applications in forestry and environmental sciences. It discusses important methodologies like ranked set sampling, adaptive cluster sampling, small area estimation, calibration...
Article
Full-text available
Abstract: This paper investigates the investment performance of Malaysian Islamic equity funds and a matching sample of conventional equity funds relative to their market benchmark. An integrated model is used to simultaneously capture the market timing and selectivity skills of fund managers. Our findings indicate that the Islamic funds do not matc...
Article
Planning process focusing on Energy-Environment-Economy nexus heavily relies upon the results of causality studies for policy and decision guidance. These studies are mostly aimed to determine the true direction of the causal-path among key variables such as energy consumption, economic growth and GHGs emissions. However, there are some weak points...
Article
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In less than a decade, the Islamic Banking (IB) industry has become an essential part of the global financial system. During the last ten years, the IB industry has witnessed changes in economic conditions and proved to be resilient during the periods of financial crisis. This paper aims to examine the important issues related to credit risk in sel...
Article
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The aim of this paper is to document recent trends in Asia's CO2 emissions and explore the mechanisms that drive those emissions for fourteen countries over the period 1971 to 2017. We apply a sequential method which has a strong relationship to policy indicators. First, an analysis of the dynamics is undertaken to identify if convergence is occurr...
Article
This paper employs the VARMA-MGARCH-ABEKK model and Granger causality on 15 years’ daily time series data to examine investment opportunities in the oil and gas industries for ASEAN5 countries relative to the US counterpart. It shows that the latter leads the former in decomposing integration into cross-country effects on returns and conditional re...
Article
In recent years, there is high tendency to use either simple or complicated models to conduct empirical studies on banking and finance data without due regards being given to the structure, suitability and the choice of econometrics models. In particular, there are numerous works that have emerged to examine dividend policy, which is considered one...
Article
This paper explains how Islamic banks (IBs) maximize profitability in the presence of costly religiosity. Due to strong competition between IBs and conventional banks (CBs), a unique equilibrium emerges which affects the IBs pricing structure. We propose a new model that identifies the optimal rate on the asset and liability sides of IBs. It shows...
Chapter
Recently, copula is being used in social, natural, and physical sciences due to its flexibilities in joint distributions and marginals and high computing power. They are the powerful instruments to model-dependent structures between various complex correlated variables in environmental sciences. This chapter studies the development of copula models...
Article
Purpose The purpose of this paper is to explore the current strategic planning practices in the MENA region by highlighting the practices in the Saudi telecommunications industry (Saudi TI) and the external and internal factors that influence strategic planning in the Saudi TI. Design/methodology/approach The data comprised those from a questionna...
Article
Full-text available
In recent years, copula models are being used in all areas of human endeavors including energy, environment, social, natural and physical sciences. Copulas are the most powerful tools that can model dependent structures between various complex correlated variables. In this paper, we specifically examine the development of copula models and their ap...
Article
Purpose The purpose of this study is to assess customers’ perceptions of Islamic banks (IBs) of customers who have used or intend to use Ijarah service to purchase a car. The study further examines the mediating role of clarity and accuracy (CAA) of service offered between customer perceptions and customer satisfaction. This paper focuses on connec...
Article
Full-text available
Purpose The purpose of this paper is to compare the return performance and persistence of ethical and conventional mutual funds during two extreme events, the Asian and the global financial crises under Shariah constraints. Design/methodology/approach The overall sample comprises of 129 Islamic mutual funds (IMFs) and 350 conventional mutual funds...
Article
This article proposes the GOAL-Framework for the evaluation of organizational goals based on an ontology. The aim is to capture and analyze relevant data for the organization goals because determining relevant data is a key to delivering value from massive amounts of data for better decision-making in relation to the organizational goals achievemen...
Article
This paper provides evidence of a significant exchange rate effect on stock index returns using data from seven selected countries practicing free-floating exchange rate regimes. This research uses parity and asset pricing theories, thus placing it within the monetary-cum-economics framework for international asset pricing. In this study, we apply...
Article
Full-text available
This paper provides evidence of a significant exchange rate effect on stock index returns using data from seven selected countries practicing free-floating exchange rate regimes. This research uses parity and asset pricing theories, thus placing it within the monetary-cum-economics framework for international asset pricing. In this study, we apply...
Article
Full-text available
The purpose of this study is to review recent developments pertaining to risk management in Islamic banking and finance literature. The study explores the fundamental features of risks associated with Islamic banks (IBs) as compared to those associated with conventional banks (CBs) in order to determine the extent to which IBs engage in effective r...
Article
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This paper extends the recent work of Mansor et al. [1] who use panel regres-sion to measure ethics based Islamic mutual fund performance and note the various methodological issues in this respect. We attempt to capture the co-movement and dependence structure of the fund index with five major equity indices before and during the Global financial c...
Article
In recent years, there is high tendency to use complicated models to conduct empirical studies on banking and finance data without due regards being given to the structure, suitability and the choice of econometrics models. This paper attempts to tackle this issue by proposing appropriate estimation methods; the Tobit model and the Generalized Meth...
Technical Report
Recent interest into the decision-making process has taken the analysis of ambiguity to new heights, examining its impact on more complicated transactions such as contracts (Kellner 2017) and mechanisms (Bose & Renou 2014, Di Tillio et al. 2017). However, there is a significant gap in the literature caused by an emphasis on output ambiguity instead...
Article
Purpose The purpose of this paper is to investigate the default characteristics of Sukuk issues by corporate firms in Malaysia using value-at-risk (VaR) techniques over a period of 16 years from 2000 to 2015 and across nine economic sectors. Design/methodology/approach The paper employs non-parametric and Monte Carlo simulations to estimate Sukuk...
Article
This paper extends the recent work of Mansor et al. (2015) who use panel regression to measure Islamic mutual fund performance and note the various methodological issues in this respect. We attempt to capture the co-movement and dependence structure of the fund index with five major equity indices before and during the Global financial crises (GFC)...
Article
In light of recent papers examining the relationship between religion and economic behaviour such as Klein et al. (2017) and Kirchmaier et al. (2018), we model the relationship between underwriters, regulators, and issuers of Islamic financial securities (IFSs). The three parties are modelled as partaking in a principal-agent relationship with mora...
Technical Report
In light of recent papers examining the relationship between religion and economic behaviour such as Klein et al. (2017) and Kirchmaier et al. (2018), we model the relationship between underwriters, regulators, and issuers of Islamic financial securities (IFSs). The three parties are modelled as partaking in a principal-agent relationship with mora...
Article
Full-text available
Purpose The purpose of this paper is to examine the new paradigm of Islamic corporate governance (ICG) in an emerging area of Islamic finance. Design/methodology/approach The paper adopts an analytical approach to investigate the new executive and managerial roles that ICG is expected to play in the process of corporate financial decision making...
Article
Using a sample of U.S. firms during the 1989–2015 period, we study whether the efficiency with which managers generate revenue is sensitive to monitoring by institutional shareholders. We find that institutional ownership is positively related to managerial efficiency. Our identification relies on a discontinuity in ownership around the Russell 100...
Article
Full-text available
Purpose This paper aims to report practice-relevant anomalous investment yield behavior of two types of bonds – Type A, the mainstream bond, and Type B, which is Sukuk – both having similar cash-flow-relevant characteristics. Design/methodology/approach Bond valuation theory suggests that yields to investors of similarly rated bonds ought to be...
Article
Full-text available
Purpose The main aim of this paper is to measure the customers’ perception of car ijarah financing transactions services provided by the Islamic banks and financial institutions in Pakistan. Design/methodology/approach The paper uses two research methodologies; Kruskall Wallis and Mann Whitney test (non-parametric) and Logit regression model (pa...
Article
In the present work, Zinc Sulphide (ZnS) thin films deposited by resistive heating technique on BK-7 glass substrate. Optical and structural characterizations of ZnS films have been carried out along with the post-deposition annealing at different temperatures. The thickness of the film is monitored by quartz crystal monitor and found to be 500nm....
Article
Full-text available
Abstract:This paper investigates the dynamic integration of ASEAN6 stock markets (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) with international stock markets (the US, the ASEAN bloc, and Asia) in an ARMA-EGARCH-M and a vector autoregression models (VAR) using weekly price returns from January 2000 to October 2015. The in...
Article
Full-text available
This paper compares Bank's corporate image on customer's satisfaction to enhance marketability between Islamic (IB) and conventional banks (CB) in Pakistan. A sample of 320 customers is selected from four major cities of the country to ask about brand image, firm's reputation, ethics and corporate social responsibility (CSR). It is observed that th...
Article
Full-text available
The aim of this conceptual paper is to propose a toolkit to assist entrepreneurs to evaluate their organizationalgoalsachievement.Thistoolkitisdesignasaclearsetofsystematicguidelinefor organizationstoanalysetheirdatatoextractvaluethatmeetcertainorganizationalgoals.Itallows entrepreneurstomanagetheir...
Article
This paper employs Chi-plots, Kendall (K)-plots and three different copula functions to empirically examine the tail dependence between the US stock market and stock markets in Vietnam and China in order to test contagion effects pre- and post- the US subprime mortgage crisis. The results based on data between 2003 and 2011 indicate the presence of...