Abstract:

The aim of this study is to investigate the effect of interest rate risk on Islamic indices in Turkey and in different countries of the world, and to monitor the process. For this purpose, BIST100 and Participation index and six Dow Jones Islamic index data between 2011-2021, starting from 2011 when the participation index was created in Turkey, were analyzed. In the analysis, “interest” was taken as the independent variable, additionally, control variables were included in the analysis. With the regression analysis, the systematic risk parameter beta of interest was examined and its effect on the related index was measured. The findings support most of the previous studies, and the results show that the participation index is less affected by the interest rate risk than the BIST100 stock index. According to the results of the analysis, it has been observed that the beta coefficients of the Participation Index are quite close to the conventional index results. Except for the Dow Jones European Islamic Index, "interest rate risk" was not found statistically significant in the US, China, India, Japan and UK Islamic.

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