Table 6.

Determinants of price clustering of Islamic stocks in digit zero

CompanyConst.Price (+)Turnover (−)Volatility (+)Spread (+)Percent classified correctlyMcFadden R2
Telekomunikasi Indonesia−10.8057* (−1.905)1.5016** (1.985)−0.1206 (−0.6648)0.2105 (1.271)0.5845** (2.062)87.00.006920
Bumi Resources−2.2437* (−1.788)2.1971** (2.107)0.0561 (0.428)−0.2746* (−1.676)2.2404** (2.125)85.40.010461
Petronas Chemical Group−2.0974** (−2.132)0.7125** (2.127)−0.0655 (−0.833)0.1801** (2.203)0.0275 (0.341)80.30.004329
Press Metal Aluminium Hold.0.3091 (0.276)0.3094 (0.788)0.0839 (1.027)0.1939*** (2.688)0.1223 (1.571)79.40.006261
Sime Darby Plantation−2.6355*** (−3.272)1.0324*** (6.240)0.0024 (0.048)−0.1781** (−1.987)0.1937** (2.052)82.70.026188
IHH Healthcare−0.0063 (−0.003)1.0634 (1.253)0.2307** (2.027)0.0359 (0.267)0.2631** (2.198)83.80.012146

Notes:

The table shows the results of the binomial logistic regression model (1). The dependent variable is a binary variable, which takes the value 1 if the last digit of the closing price on day t is zero and 0 otherwise. The independent variables are the log of the closing level in day t (price), the log of number of stocks (in thousands) traded in day t scaled by the number of outstanding shares (turnover), the log of the standard deviation of the stock’s daily returns in the previous 5 days (volatility), and the log of relative bid-ask spread in day t (spread). The expected sign of the coefficients according to the price negotiation hypothesis and the resolution hypotheses is indicated near the name of the independent variables. Z-statistics in parenthesis. *significance at the 10% level, **significance at the 5% level, *** significance at the 1% level

Source: Own elaboration

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