Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis

The metaverse, a virtual universe in which individuals and companies can interact, has become of paramount importance in China in recent years. While the metaverses are still in their infancy, there has been a growing interest and influx of capital into these universes. Shariah-compliant corporation...

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Main Authors: Klemens Katterbauer, Hassan Syed, Laurent Cleenewerck, Sema Yılmaz Genç
Format: Article
Language:English
Published: İLKE İlim Kültür Eğitim Vakfı 2024-08-01
Series:Türkiye İslam İktisadı Dergisi
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Online Access:https://tujise.org/uploads/2024/08/1_SemaY%C4%B1lmazGenc_tujise_11-2.pdf
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author Klemens Katterbauer
Hassan Syed
Laurent Cleenewerck
Sema Yılmaz Genç
author_facet Klemens Katterbauer
Hassan Syed
Laurent Cleenewerck
Sema Yılmaz Genç
author_sort Klemens Katterbauer
collection DOAJ
description The metaverse, a virtual universe in which individuals and companies can interact, has become of paramount importance in China in recent years. While the metaverses are still in their infancy, there has been a growing interest and influx of capital into these universes. Shariah-compliant corporations have been gradually attracting significant funds from Islamic countries, given the growing strong engagement and trade. Similarly, metaverse corporations have been gaining significant sizes in the Chinese market and have become cornerstones of the investment landscape. For Islamic investors, questions arise whether these new metaverse corporations provide better returns given the massive hype and media attention they have attracted, and whether a portfolio investment into these corporations deliver the benefits promised. The article provides a comparative analysis between Chinese Islamic metaverse and Shariah-compliant enterprises, where all enterprises have either A or H-shares. The performance analysis over a timespan of 10 years demonstrates that the most optimal portfolios have similar expected returns while general Shariah-compliant enterprises provide significantly lower risks as compared to the metaverse ones. This implies that Shariah-compliant enterprises provide significantly more value for the risk they are attributed and are more sustainable.
format Article
id doaj-art-c4def534fc8b4b1e9a9ec7d425a6ec0f
institution Kabale University
issn 2148-3809
language English
publishDate 2024-08-01
publisher İLKE İlim Kültür Eğitim Vakfı
record_format Article
series Türkiye İslam İktisadı Dergisi
spelling doaj-art-c4def534fc8b4b1e9a9ec7d425a6ec0f2024-12-02T07:16:20ZengİLKE İlim Kültür Eğitim VakfıTürkiye İslam İktisadı Dergisi2148-38092024-08-0111211610.26414/A4079Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysisKlemens Katterbauer0https://orcid.org/0000-0001-5513-4418Hassan Syed1https://orcid.org/0000-0003-2114-2473Laurent Cleenewerck2https://orcid.org/0000-0002-3138-1622Sema Yılmaz Genç3https://orcid.org/0000-0002-9267-0428EUCLID University EUCLID UniversityYıldız Teknik UniversityCLID UniversityThe metaverse, a virtual universe in which individuals and companies can interact, has become of paramount importance in China in recent years. While the metaverses are still in their infancy, there has been a growing interest and influx of capital into these universes. Shariah-compliant corporations have been gradually attracting significant funds from Islamic countries, given the growing strong engagement and trade. Similarly, metaverse corporations have been gaining significant sizes in the Chinese market and have become cornerstones of the investment landscape. For Islamic investors, questions arise whether these new metaverse corporations provide better returns given the massive hype and media attention they have attracted, and whether a portfolio investment into these corporations deliver the benefits promised. The article provides a comparative analysis between Chinese Islamic metaverse and Shariah-compliant enterprises, where all enterprises have either A or H-shares. The performance analysis over a timespan of 10 years demonstrates that the most optimal portfolios have similar expected returns while general Shariah-compliant enterprises provide significantly lower risks as compared to the metaverse ones. This implies that Shariah-compliant enterprises provide significantly more value for the risk they are attributed and are more sustainable.https://tujise.org/uploads/2024/08/1_SemaY%C4%B1lmazGenc_tujise_11-2.pdfmetaversechinashariah complianceportfolio optimizationconditional value at riskmean-variance optimizationcapm
spellingShingle Klemens Katterbauer
Hassan Syed
Laurent Cleenewerck
Sema Yılmaz Genç
Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
Türkiye İslam İktisadı Dergisi
metaverse
china
shariah compliance
portfolio optimization
conditional value at risk
mean-variance optimization
capm
title Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
title_full Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
title_fullStr Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
title_full_unstemmed Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
title_short Return versus hype – Are Islamic metaverse companies more profitable than general ones – A Chinese stock analysis
title_sort return versus hype are islamic metaverse companies more profitable than general ones a chinese stock analysis
topic metaverse
china
shariah compliance
portfolio optimization
conditional value at risk
mean-variance optimization
capm
url https://tujise.org/uploads/2024/08/1_SemaY%C4%B1lmazGenc_tujise_11-2.pdf
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AT hassansyed returnversushypeareislamicmetaversecompaniesmoreprofitablethangeneralonesachinesestockanalysis
AT laurentcleenewerck returnversushypeareislamicmetaversecompaniesmoreprofitablethangeneralonesachinesestockanalysis
AT semayılmazgenc returnversushypeareislamicmetaversecompaniesmoreprofitablethangeneralonesachinesestockanalysis