Title : Shariah review of Brownian motion of Islamic stock market elements: establishing the benchmarks of Islamic econophysics

Authors :
1. Syed Alamdar Ali Shah
2. Bayu Arie Fianto
3. Batool Imtiaz
4. Raditya Sukmana
5. Rafiatul Adlin Hj Mohd Rusla

Department : Islamic Economics

Journal Name: Journal of Islamic Accounting and Business Research

Kinds of Journal: Q2

Keywords : brownian motion model, shariah review, Islamic econophysics, physics of Islamic finance

ABSTRACT

PURPOSE - The purpose of this paper is to perform sharia review of Brownian motion that is used for prediction of Islamic stock prices and their volatility.
Design/Methodology/Approach - IT Uses the Shariah Compliant Development Model Guidelines to Review The Brownian Motion and Its Applications.
Finding-The Model of Brownian Motion does not involve any variable that renders it non-sharia compliant; Neither all applications of brownian motion are sharia compliant. Because the model is based on stochastic properties that involve randomness, therefor the issue of gharar takes the utmost important to handle in the applications of the model. The results need to be analyzed strictly in according to the sharia whether they create any element of gharar or uncertainty in case of expectations and volatility estimates.
Research Limitations/Implications - The Research Suffers from the Limitation that Analyses Only One Model of Physics, Ie Brownian Motion Model from Shariah Perspective.
Practical Implications - The research opens an area for sharia analysis of results generated from the application of advanced models of physical on matters related to Islamic financial markets.
Originity/Value - The originality of this study stems from the fact that to the best of the author 'knowledge, it is the first study that extends sharia guidelines into financial physics for making the foundations of Islamic econophyssics.

For details : https://www.emerald.com/insight/content/doi/10.1108/JIABR-07-2022-0181/full/html