Israeli-Palestinian conflict, boycotted products' stock shares, geopolitical risk, policy uncertainty, and oil prices nexus: evidence from wavelet-based approach

Primambudi, Ganjar and Siddiq, Muhammad Rizky and Ahmad Nazri, Nur Farah Dalila and Mohd Thas Thaker, Hassanudin and Hosen, Mosharrof and Abd Jalil, Mohamad Isa (2025) Israeli-Palestinian conflict, boycotted products' stock shares, geopolitical risk, policy uncertainty, and oil prices nexus: evidence from wavelet-based approach. Labuan e-journal of muamalat and society, 19 (1). pp. 84-105. ISSN 1985-482X E-ISSN 2672-7390

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Abstract

This paper aims to study the media coverage connectedness and correlations between the Israeli-Palestinian Conflict and some boycotted targeted companies. We utilize monthly data from January 2016 to December 2023 using three groups of variables. For the analysis part, we utilize the Wavelet-Based Approach alongside panel data regression and Granger causality to identify significant correlations and patterns. Demonstration, PolCiv Event, PolCiv Fatalities as the indicator for Israel-Palestinian conflict. Wix.Com Ltd (WIX), Yum! Brands Inc (YUM), Restaurant Brands International Inc (QSR), Papa John's International Inc (PZZA), Domino's Pizza Inc (DPZ), and McDonald's Corporation's Stock (MCD) as boycotted targeted companies and Global Price of WTI Crude (WTI), Economic Policy Uncertainty (EPU) and Geopolitical Risk Index (GPR) as global indicators. We found strong correlations among Demonstration, PolCiv Event, and PolCiv Fatalities, indicating their connectedness. However, only a few share prices, like WIX and YUM, exhibit limited significance in reflecting the humanitarian conditions tied to the conflict. Additionally, boycotted-product stock prices show medium to high correlations with media coverage, and global indicators (WTI, EPU, GPR) significantly correlate with selected boycotted-product share prices. Surprisingly, WTI and GPR exhibit a strong correlation, suggesting that geopolitical tensions globally influence oil price fluctuations. However, direct impacts on targeted companies are challenging due to opposing perspectives on the conflict, but a reduction in consumption is observed. We uncover strong correlations among various factors, including Demonstration, PolCiv Event, and PolCiv Fatalities. These connections highlight their interconnectedness and contribute fresh insights to existing knowledge. Additionally, the study explores the intriguing relationship between boycotted-product stock prices and media coverage, revealing medium to high correlations. Surprisingly, global indicators like WTI (oil prices) and GPR (geopolitical risk index) demonstrate a strong correlation, suggesting that geopolitical tensions globally influence oil price fluctuations. Overall, this research advances our understanding of the multifaceted effects arising from conflict-related events

Item Type:	Article (Journal)
Uncontrolled Keywords:	Israeli-Palestinian conflict, Boycotted products, Geopolitical risk, Policy uncertainty, Wavelet analysis
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance H Social Sciences > HG Finance > HG3810 Foreign exchange H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr Hassanudin Mohd Thas Thaker
Date Deposited:	03 Jun 2025 11:27
Last Modified:	03 Jun 2025 11:27
URI:	http://irep.iium.edu.my/id/eprint/121309

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