Return Volatility of Green Sukuk in The Islamic Capital Market: A Comparative Study Between Indonesia and Malaysia A Comparative Study Between Indonesia and Malaysia
Main Article Content
Abstract
Sustainable development is increasingly vital in climate-vulnerable countries such as Indonesia and Malaysia, where green sukuk Sharia-compliant financial instruments play a key role in funding environmentally sustainable projects. This study employs a quantitative method using multiple linear regression to analyze factors influencing green sukuk return volatility in both countries. Secondary data on price movements and returns were obtained from capital market reports, followed by classical assumption testing to ensure data reliability and validity. The findings reveal that taxes, exchange rates, money supply, and interest rates significantly affect return volatility, with exchange rates and money supply exerting stronger effects in Malaysia, while tax-related volatility is more pronounced in Indonesia due to fiscal instability. These results suggest that Indonesia should focus on stabilizing fiscal policies and raising public awareness, whereas Malaysia should strengthen its support for green investment initiatives. Overall, the study contributes to enhancing Islamic finance resilience and promoting sustainable development.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).