The Intersection of Shariah Compliance and Digital Innovation (Part-1)

The COVID-19 pandemic has disrupted traditional business models, prompting the need for digital innovation to ensure business continuity and growth. A recent study by Dr Mohamad Ikhsan Modjo from Financial International Bina Nusantara University investigates the critical intersection of Shariah compliance, digital innovation, and stock performance during this unprecedented period.

The study reveals robust evidence that both Shariah compliance and digital transformation act as moderating factors, mitigating the negative effects of crises on stock performance and firm value. Interestingly, the analysis suggests that digital innovation amplifies the positive influence of Shariah compliance on firm stock performance during crisis periods.