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This study explores the price and trading volume effects around the quarterly Dow Jones Islamic Market-GCC index (DJIM-GCC) revisions and investigates whether these reactions are driven by firms' fundamentals or by investors' perception of ethical screening.

The authors adopt an event study methodology to analyze the price and volume effects of Islamic indices redefinitions.

The results exhibit a positive (negative) price reaction for added (deleted) stocks. The authors also document an asymmetric volume response for index additions and deletions. The multivariate analysis of the cumulative abnormal returns reveals that the documented market reaction around Islamic index revisions is mainly related to the compliance attribution (withdrawal).

The approach allows to separate the market reaction arising from changes in firms' fundamentals from that induced by investors' perception of the attribution or withdrawal of a compliance certification. Moreover, the focus on the GCC region, where countries share the same cultural traits and perceive Islamic law identically excludes any social effect that would influence the market reaction due to cultural differences between countries.

This chapter discusses the regulatory challenges faced by financial institutions in emerging countries and it presents their specific features compared to financial institutions in developed countries. It offers a practical way of implementing regulatory changes while accounting for emerging countries’ specific features. Using a principle-based approach, this chapter builds on the recent regulatory developments in both developed and developing market economies. It relates these developments to industry best practices as well as the current state of the art in risk management and corporate governance. The findings show how the regulation of financial institutions in emerging countries differs from that in developed countries. Different approaches to mitigate the divergences and fill the gaps are discussed. Both regulators and financial institutions in emerging countries will find this chapter offers a practical point of view based on field and industry experience on how to interpret and apply regulations and adopt best practices in risk management in a way that accounts for emerging countries’ specific features.

The purpose of the current study is to attempt to contribute to the understanding of some socio-cultural factors likely to explain the preference for international products in emerging countries, and more specifically those characterising former colonised countries in the Middle East and North Africa.

The chosen approach is exploratory and of a qualitative inductive nature. It was based on a series of semi-structured and unstructured in-depth interviews with Tunisian consumers about their relationship to local and foreign products.

A set of complex and inter-related explanatory factors of the country-of-origin phenomenon emerged through the analysis, notably the complex of the decolonised, acculturation in situ, frustration towards the West and sensitivity to the Western fashion system.

The main limitation of this research is that the interviews were carried out among people living in the three main cities of Tunisia, which are urban settings.

This research proposes a general framework and a set of new constructs that may be used by leaders of businesses, communications agencies or distribution companies. These elements may help them for segmentation, assortment and range decisions, and brand names.

Given the failure of “buy local” campaigns, this research shows the importance to revive Tunisian consumers’ feeling of identification with their local culture and to reconcile them with their own identity. Suggestions are given to reach these objectives.

This research proposes a framework explaining how the country-of-origin effect in emerging countries operates in a different manner from what has been suggested in the studies conducted in Western contexts.